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Monday, 06 October 14
' COAL-BY-WIRE' FROM SUMATRA TO JAVA - THE JAKARTA POST
 Coal from the island of Sumatra accounts for most of Indonesia’s low-grade lignite, a low-quality coal that receives a poor price in international markets.
Given this low pricing combined with high transportation costs and the fact that most reserves are located in landlocked areas, it is not feasible to export Sumatra’s coal out of the island.
It is more efficient to use Sumatra’s coal for a mine-mouth power plant, an approach in which we develop a power plant very close to where mines are located, use the low-calorie coal from the mines to feed the plant, and transmit the electricity, rather than transporting a low-value commodity, out of the mines.
With mine-mouth, we no longer require either barges or expensive railway-heavy infrastructure to transport coal; rather we need to have long-distance high-voltage transmission lines to bring “coal-by-wire” from mines to consumer centers, either regions in Sumatra and/or Java-Bali.
Essentially, with “coal-by-wire” we are transporting a higher-value commodity by wire from mines to customers. Coal stays in the landlocked areas and feeds mine-mouth, coal-fired power plants.
“Coal-by-wire” would definitely boost the development of a domestic market for low-grade coal. Today, our market for coal is very thin as we are one of the world’s leading exporters of thermal coal of a high quality in the international market.
Our exports have increased very significantly within the past decade on account of demand from fast-growing Asian economies. More than 80 percent of our coal currently produced is exported.
Indeed, coal is currently the most important source of energy for our economy. For decades coal has accounted for more than half of our power-generation capacity. And this will continue for a half century to come before alternative and cleaner energy sources other than coal become affordably available.
Our economy is also growing, and of course will require more electricity power and therefore coal – challenges that have to be met. Electricity generation now consumes close to 75 million tons per year, and will almost triple in the next 10 to 15 years.
However, domestic use of coal today notoriously suffers from infrastructure bottlenecks. Congested barges and ports, as well as a shortage of railways limit the transportation of coal from coalmines in two coal-producing regions, Kalimantan and Sumatra, to demand centers in Java-Bali, where most of our power plants are located.
The majority of our coal reserves in the two regions are located in landlocked areas that require rail transportation infrastructure to reach ports for export.
Either truck haul or rail is needed to transport the coal to barge ports and terminals.
Truck operating costs are about twice that of rail, but existing rail transportation infrastructure is severely insufficient.
Indonesia’s attempts to improve coal-transport infrastructure for the domestic market have not been very successful. Dedicated coal ports in Kalimantan have been planned for many years, but implementation has again faced bottleneck issues.
Specialized railways for coal in Sumatra have also been initiated, but this concept is still under development and has not yet received a higher-level mandate or legal authorization.
Delays in expanding the capacity of barge and transportation infrastructure cause inefficiencies and high transportation costs in domestic coal utilization. These high costs and infrastructure bottlenecks have held back the development of the domestic market for coal.
Our high-voltage transmission lines are also astonishingly limited. The state-owned electricity company (PLN) operates approximately 40,000 kilometers of transmission lines, with less than 15 percent of this total serving the island of Sumatra.
If we can build more mine-mouth, coal-fired power generation plants we will need to expand our transmission network across the island, interconnected to other transmission systems in Java-Bali.
A new set of lines of a high-voltage of 500 kilovolts and medium-voltage of 275 kV needs to be developed as a backbone network across the island, i.e. providing long-distance, reliable and stable transmission.
The distribution system and transformer capacity also need to be expanded to service a larger coverage of costumers and demand centers.
We are required also to develop an interconnected transmission system, as existing electricity transmission is not compatible across regions due to different systems and manufacturer standards adopted in the past.
The current initiative of developing inter-island interconnection lines between Java and Sumatra with 500kV High Voltage Direct Current (HVDC) lines needs to be completed in harmony with the mine-mouth development.
These long-distance transmission and distribution lines, as well as interconnected systems are required to exist before a system of mine-mouth power plants is commissioned to ensure that electricity produced can be transmitted in a timely manner and with minimum cost.
Both the central and local governments must work hand-in-hand to endorse incentives to encourage the private sector — independent power producers (IPPs) — to develop mine-mouth power plants.
Incentives need to be designed to enhance the financial viability of IPPs’ mine-mouth power plant projects.
PLN as an off-taker of IPP plays a fundamental role as the “coal-by-wire” agent, and has to be ready to absorb all of the risks associated with the development and operation of the system, including the difficulties in land acquisition and intra-regional compatibility of transmission systems.
Sumatra with its huge resources of low-grade coal can secure its own electricity supply and, eventually, can be the source of low-cost electricity with its energy radiating not only to Java, but also to every corner of the country.
Source: The Jakarta Post
The writer is deputy for energy and mineral resources at the office of Coordinating Economic Minister.
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Thursday, 13 November 14
MODERN DRY BULK SHIPS' PRICES START FIRMING UP - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
While the main story of the past few weeks has been the rebound of the dry bulk market, which has been a result of increased Chinese iron ore impor ...
Wednesday, 12 November 14
PANAMAX: WITNESSED A FAIRLY STABLE MARKET IN THE ATLANTIC
COALspot.com: Despite the fact that the Dry Bulk market noted another weekly increase, clouds of uncertainty returned mid-week onwards, as the mini ...
Wednesday, 12 November 14
SHIPPING MARKET INSIGHT - CHRISTOPHER T. WHITTY
COALspot.com: The fight continues between the low-cost iron ore producers and the big three: Vale, Rio Tinto and BHP Billiton. We are moving into a ...
Tuesday, 11 November 14
FACING CHALLENGES AND MEETING OPPORTUNITIES - INTERNATIONAL EPC CONFERENCE & EXHIBITION
Press Release: SKYCONNECTION and TRANSEVENT, which is fully supported by the Institution of Engineers Indonesia and Ministry of Industry of the Rep ...
Tuesday, 11 November 14
NEWCASTLE COAL SWAP CLOSED AT $ 52.65 FOR Q1' 15 DELIVERY
COALspot.com: API 5 FOB Newcastle Coal swap for Q1’ 2015 delivery decreased US$ 2.83 (-5.10%) month over month and US$ 1.35 (-2.50%) week ove ...
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- Miang Besar Coal Terminal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Kepco SPC Power Corporation, Philippines
- Indogreen Group - Indonesia
- Tamil Nadu electricity Board
- Kalimantan Lumbung Energi - Indonesia
- Borneo Indobara - Indonesia
- Metalloyd Limited - United Kingdom
- Antam Resourcindo - Indonesia
- SMC Global Power, Philippines
- Ministry of Finance - Indonesia
- Planning Commission, India
- Altura Mining Limited, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Semirara Mining Corp, Philippines
- Economic Council, Georgia
- Alfred C Toepfer International GmbH - Germany
- Bulk Trading Sa - Switzerland
- Intertek Mineral Services - Indonesia
- The Treasury - Australian Government
- Marubeni Corporation - India
- Wilmar Investment Holdings
- Cigading International Bulk Terminal - Indonesia
- Mintek Dendrill Indonesia
- Rashtriya Ispat Nigam Limited - India
- SN Aboitiz Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- PNOC Exploration Corporation - Philippines
- MS Steel International - UAE
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Videocon Industries ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kapuas Tunggal Persada - Indonesia
- IHS Mccloskey Coal Group - USA
- Essar Steel Hazira Ltd - India
- Makarim & Taira - Indonesia
- Central Java Power - Indonesia
- OPG Power Generation Pvt Ltd - India
- Georgia Ports Authority, United States
- Ministry of Transport, Egypt
- International Coal Ventures Pvt Ltd - India
- Bangladesh Power Developement Board
- Gujarat Sidhee Cement - India
- Indonesian Coal Mining Association
- Power Finance Corporation Ltd., India
- Bukit Asam (Persero) Tbk - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Goldman Sachs - Singapore
- Thai Mozambique Logistica
- Siam City Cement - Thailand
- Mjunction Services Limited - India
- Vizag Seaport Private Limited - India
- Sakthi Sugars Limited - India
- Manunggal Multi Energi - Indonesia
- Thiess Contractors Indonesia
- Ceylon Electricity Board - Sri Lanka
- Ministry of Mines - Canada
- Ambuja Cements Ltd - India
- Billiton Holdings Pty Ltd - Australia
- GMR Energy Limited - India
- Bukit Makmur.PT - Indonesia
- Global Business Power Corporation, Philippines
- Mercuria Energy - Indonesia
- Indika Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- GN Power Mariveles Coal Plant, Philippines
- Anglo American - United Kingdom
- Aditya Birla Group - India
- Gujarat Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meralco Power Generation, Philippines
- Leighton Contractors Pty Ltd - Australia
- European Bulk Services B.V. - Netherlands
- Toyota Tsusho Corporation, Japan
- Agrawal Coal Company - India
- White Energy Company Limited
- Global Green Power PLC Corporation, Philippines
- Madhucon Powers Ltd - India
- Bhoruka Overseas - Indonesia
- Bhushan Steel Limited - India
- GVK Power & Infra Limited - India
- Bayan Resources Tbk. - Indonesia
- Bharathi Cement Corporation - India
- PowerSource Philippines DevCo
- Pendopo Energi Batubara - Indonesia
- Indian Oil Corporation Limited
- San Jose City I Power Corp, Philippines
- Sindya Power Generating Company Private Ltd
- CNBM International Corporation - China
- Offshore Bulk Terminal Pte Ltd, Singapore
- Holcim Trading Pte Ltd - Singapore
- Meenaskhi Energy Private Limited - India
- SMG Consultants - Indonesia
- Minerals Council of Australia
- Kaltim Prima Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Energy Development Corp, Philippines
- Medco Energi Mining Internasional
- GAC Shipping (India) Pvt Ltd
- Interocean Group of Companies - India
- Sojitz Corporation - Japan
- Vijayanagar Sugar Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Karaikal Port Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Price Waterhouse Coopers - Russia
- CIMB Investment Bank - Malaysia
- Dalmia Cement Bharat India
- Bhatia International Limited - India
- AsiaOL BioFuels Corp., Philippines
- Grasim Industreis Ltd - India
- The University of Queensland
- Therma Luzon, Inc, Philippines
- Star Paper Mills Limited - India
- Latin American Coal - Colombia
- TeaM Sual Corporation - Philippines
- Independent Power Producers Association of India
- Pipit Mutiara Jaya. PT, Indonesia
- Edison Trading Spa - Italy
- Port Waratah Coal Services - Australia
- Jindal Steel & Power Ltd - India
- The State Trading Corporation of India Ltd
- Sree Jayajothi Cements Limited - India
- Coal and Oil Company - UAE
- Rio Tinto Coal - Australia
- Romanian Commodities Exchange
- Formosa Plastics Group - Taiwan
- Australian Coal Association
- Australian Commodity Traders Exchange
- Larsen & Toubro Limited - India
- Commonwealth Bank - Australia
- LBH Netherlands Bv - Netherlands
- Ind-Barath Power Infra Limited - India
- Timah Investasi Mineral - Indoneisa
- Jorong Barutama Greston.PT - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Central Electricity Authority - India
- Petron Corporation, Philippines
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- Parry Sugars Refinery, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Posco Energy - South Korea
- Tata Chemicals Ltd - India
- Salva Resources Pvt Ltd - India
- Malabar Cements Ltd - India
- Attock Cement Pakistan Limited
- Wood Mackenzie - Singapore
- Kumho Petrochemical, South Korea
- Maheswari Brothers Coal Limited - India
- Trasteel International SA, Italy
- Sical Logistics Limited - India
- PTC India Limited - India
- Chamber of Mines of South Africa
- IEA Clean Coal Centre - UK
- Heidelberg Cement - Germany
- Energy Link Ltd, New Zealand
- VISA Power Limited - India
- South Luzon Thermal Energy Corporation
- India Bulls Power Limited - India
- Globalindo Alam Lestari - Indonesia
- Electricity Generating Authority of Thailand
- Neyveli Lignite Corporation Ltd, - India
- Straits Asia Resources Limited - Singapore
- Merrill Lynch Commodities Europe
- Orica Mining Services - Indonesia
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- McConnell Dowell - Australia
- Barasentosa Lestari - Indonesia
- Electricity Authority, New Zealand
- Singapore Mercantile Exchange
- Samtan Co., Ltd - South Korea
- Parliament of New Zealand
- Riau Bara Harum - Indonesia
- Uttam Galva Steels Limited - India
- Oldendorff Carriers - Singapore
- Xindia Steels Limited - India
- Iligan Light & Power Inc, Philippines
- Africa Commodities Group - South Africa
- Kobexindo Tractors - Indoneisa
- Indo Tambangraya Megah - Indonesia
- Savvy Resources Ltd - HongKong
- Cement Manufacturers Association - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Renaissance Capital - South Africa
- Eastern Energy - Thailand
- Karbindo Abesyapradhi - Indoneisa
- Coalindo Energy - Indonesia
- Deloitte Consulting - India
- London Commodity Brokers - England
- Petrochimia International Co. Ltd.- Taiwan
- Simpson Spence & Young - Indonesia
- Aboitiz Power Corporation - Philippines
- Mercator Lines Limited - India
- Directorate Of Revenue Intelligence - India
- Banpu Public Company Limited - Thailand
- New Zealand Coal & Carbon
- ICICI Bank Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Carbofer General Trading SA - India
- Binh Thuan Hamico - Vietnam
- Baramulti Group, Indonesia
- Jaiprakash Power Ventures ltd
- Standard Chartered Bank - UAE
- Coastal Gujarat Power Limited - India
- Eastern Coal Council - USA
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