• 45 mins Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 5 hours Rosneft Signs $400M Deal With Kurdistan
  • 7 hours Kinder Morgan Warns About Trans Mountain Delays
  • 14 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 19 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 23 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 1 day Conflicting News Spurs Doubt On Aramco IPO
  • 1 day Exxon Starts Production At New Refinery In Texas
  • 1 day Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
  • 7 days Shell Buys One Of Europe’s Largest EV Charging Networks
Alt Text

China Creates World’s Biggest Power Group With $271B In Assets

Chinese authorities approved the merger…

Alt Text

The (Only) Culprit Of Coal’s Demise

Cheap and abundant natural gas…

Michael Economides

Michael Economides

Michael is among America's leading energy analysts. Back in 1999, Economides warned that oil prices, then at $11 a barrel, were about to surge. Within…

More Info

India’s Hunger for Coal Sending it on a Worldwide Search

India’s Hunger for Coal Sending it on a Worldwide Search

India is hungry for coal and domestically there is neither the quantity nor the quality to feed the country’s needs. The situation is exacerbated because coal consumption has soared in the construction (steel, cement) and power generation sectors. Given ongoing high demand, the problem is expected to become even more pressing.

Following China’s example, India is seeking new and distant coal locations in the US, Colombia and Russia to add to supplies from Indonesia, Australia and South Africa, the usual sources of the recent past. It is expected that American and Colombian coal will be shipped to India before the end of the year. China, paving the way, has imported several million tons of coal from Colombia this year. The Chinese generally blaze the coal import trail for India to follow. This is a routine that is already happening in South Africa. India imported 1.4 million metric tons (Mt) from South Africa in February, double the January figure of over 720,000 Mt.

India and China, the two fastest growing large coal-consuming countries, are looking for high-energy content coal at a low average cost that would justify the long-distance shipment. “It's good to know that India is a market into which we can sell our coal, even if it's not our first choice,” a Colombian supplier said.

Industry sources say that over the last few months many global coal producers and traders have been assessing the prospects of the Indian market. These include Colombia's Cerrejon, conglomerates Vale, Xstrata, Rio Tinto, BHP Billiton, Anglo Coal, and Mechel from Russia. In addition Europe is close to shipping surplus coal for the first time from Netherlands to India. In the export hubs of Amsterdam, Rotterdam and Antwerp, coal stockpiles are reportedly over 7 million metric tons (Mt) out of a total capacity of around 9 million Mt.

The search for more coal is due to India’s need for more electricity. The Eleventh Plan of India (ending March 2012) calls for the addition of more than 50 GW of new coal-fired generating capacity.

Coal accounts for over half of India’s total energy consumption. About 70 percent of India's own coal production is already utilized for power generation while three quarters of India's electricity is generated from over 80 coal-fired thermal plants. India, the third biggest coal producer in the world, had reserves of 56,498 million Mt, or nearly 7 percent of the world total.

Yet, India’s federal coal minister Sriprakash Jaiswal recently said coal imports are likely to rise 21 percent over the next year. The imports are needed because domestic output is not keeping pace with the demands of a fast-growing Indian economy. Jaiswal added that coal imports in 2010/11 are estimated to top 85 million Mt up from 70 million Mt in the current fiscal year. “Though local production has increased by about 8 percent, yet energy requirements have risen by 15 percent,” Jaiswal said. The import figures represent almost 15 percent of India’s coal consumption of over 600 million Mt.

More coal imports are almost certain in the future. The Indian government estimates that imports could reach 200 million Mt by 2017.

Indian largest coal producer, the state owned Coal India Limited (CIL), is looking to buy joint global stakes with the US’s largest coal firm, Peabody Energy Corp, in America, Australia, Indonesia and South Africa. CIL has earmarked over $2 billion over the next four years to buy stakes in overseas assets. Last year, CIL acquired two blocks with estimated reserves of 1 billion tons in Mozambique.

State-owned National Thermal Power Corp (NTPC), India’s biggest power producer, and Tata Power are also looking to put in place coal supplies from Australia, Indonesia and Africa.

Following suit is the $15-billion, Ruia family-controlled, Mumbai-based Essar Group (with interests in oil, steel, retail, power) that recently finalized a deal to buy Aries coal mines in Indonesia from an unnamed private company. The deal follows the Essar Group’s recent acquisition of US-based Trinity Coal (200 million tons reserves) for $600 million. The company has plans to raise about $3 billion by listing its energy and power businesses on the London bourse, to fund its $8 billion India expansion plans.

To facilitate these acquisitions New Delhi has drawn plans to create a sovereign fund that will help state-run firms finance the purchase of oil, gas, coal, LNG, and other energy sources abroad. The government has also ratified a coal ministry move to auction coal blocks to ensure transparency and speed the allotment process. “Only the highest bidder would be given coal blocks in the country, as it was found that private players were acquiring them as property assets,” the coal ministry has said. The government has also proposed setting up a coal regulator to deal with coal pricing and disputes.

Despite these efforts, India has a long way to go to meet its coal requirements and it’s clear that international sources are likely to dominate India’s ever-increasing energy appetite.

By. Priyanka Bhardwaj and Michael Economides of EnergyTribune.com

Source: EnergyTribune.com




Back to homepage


Leave a comment
  • Anonymous on May 07 2010 said:
    :-) India is growing - that is great news, but I think it needs to look for greener solutions especially for power generation. Solar and wind is biggest area where it can invest and grow faster than other countries as it has lot of sunshine.
  • Thiagarajan on November 26 2012 said:
    Nice to wish more power from solar and wind source. But, can these two resources ensure the estimated demand?

    Rather, to look at and make it mandatory to use clean coal or washed coal for power generation can reduce pollution considerably

Leave a comment




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