• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 24 mins Which producers will shut in first?
  • 6 mins The Most Annoying Person You Have Encountered During Lockdown
  • 2 hours Its going to be an oil bloodbath
  • 15 hours We are witnesses to the end of the petroleum age
  • 2 hours Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 20 hours Breaking News - Strategic Strikes on Chinese Troll Farms
  • 5 hours Wastewater Infrastructure Needs
  • 18 hours A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 19 hours >>The falling of the Persian Gulf oil empires is near <<
  • 22 hours Natural gas price to spike when USA is out of the market
  • 23 hours As Saudi Arabia Boosts Oil Output, Some Tankers Have Nowhere to Go
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

India Gets Pushy with Coal

One of the "drums" I've been banging for awhile is coal exportable to India.

The case is pretty clear. India's domestic coal prices are fixed at a level that doesn't make much profit for local miners. The result has been underinvestment and flagging supply.

The situation has grown dire. According to India's Central Electricity Authority, 24 of 84 coal-fired plants across the nation are running at "critical" coal supply levels. Meaning these facilities have less than 7 days of coal supply in inventory.

That's nearly 30% of India's coal-fired power running on fumes. Even more concerning, 12 of those 24 low-coal plants are at "super critical" levels. With less than 4 days worth of coal supply on hand.

Some of these plants are suffering from transportation bottlenecks. Rail infrastructure is simply insufficient to get the needed amount of coal to site. But many are straight-up unable to procure the supplies they need anywhere in the country.

Which is why the government has been pushing lately to increase coal imports. Particularly through direct ownership of coal mines around the Indian Ocean perimeter.

Case in point, last week state coal power NTPC announced it is considering spending top dollar for a stake in two coal mines in Indonesia. The latest in a series of bids by Indian companies for coal assets in that nation, along with Mozambique, Australia and even America.

This is a big tailwind for coal. Although not all deposits will benefit equally. There is increasingly a premium being attached to coal assets within India's "area of influence". Anything that can easily be shipped via the Indian Ocean is going to get a lot of love going forward.

Plays on this? How about Madagascar, which has proven coal fields near to India but has gone largely untouched by investors due to the political problems a few years back. With the situation now improved, might be worth a re-visit.

By. Dave Forest of Notela Resources


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News