• 6 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 8 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 10 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 11 hours Schlumberger Warns Of Moderating Investment In North America
  • 12 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 13 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 14 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 16 hours New Video Game Targets Oil Infrastructure
  • 17 hours Shell Restarts Bonny Light Exports
  • 18 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 1 day Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 1 day British Utility Companies Brace For Major Reforms
  • 1 day Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 1 day Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO

India Gets Pushy with Coal

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




Back to homepage


Leave a comment

Leave a comment




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