---------- Forwarded message ---------- From: Surahman Wiryo <[EMAIL PROTECTED]> Date: Jan 27, 2008 5:30 PM Subject: [IndoEnergy] China calls coal export halt to end power crisis To: [EMAIL PROTECTED]
http://uk.reuters.com/article/oilRpt/idUKSYD2450820080125 UPDATE 2-China calls coal export halt to end power crisis Fri Jan 25, 2008 11:04am GMT By Fayen Wong and Niu Shuping SYDNEY/BEIJING, Jan 25 (Reuters) - China told its miners and port authorities on Friday to stop coal exports for the next two months to help end its most severe power crisis yet, sending benchmark coal swap prices sharply above $100 a tonne. Some traders had been bracing for a possible clamp-down by Beijing after regional electricity shortages built this week into a nationwide crisis, with some generators struggling to secure increasingly costly coal and others shutting down capacity to avoid producing cheap electricity at a loss. "During the Chinese New Year and parliamentary meeting, all thermal coal exports will be suspended," the Ministry of Communication said in a notice posted on its Web site. "Where there is a need, all international shipping capacity will be diverted for domestic transportation requirements," the ministry said. China is an important supplier of thermal coal to power plants in Japan and South Korea, shipping an average of about 5 million tonnes a month in the second half of 2007. Indonesia, the world's biggest exporter, ships over 12 million tonnes monthly. Paper coal swaps for February surged 8 percent to trade at $106 a tonne on electronic trading platform globalCOAL on Friday, adding to recent gains fuelled by production cuts in Australia caused by heavy rains in Queensland. The ministry statement added that officials and heads of "irresponsible companies" that do not abide by the latest regulations would face serious investigations. The Chinese New Year holiday begins on Feb. 7 with celebrations usually lasting for 15 days, while the parliamentary meeting begins in early March and is held for about two weeks. http://www.miningweekly.co.za/article.php?a_id=124596 More coal price increases on the way, says senior analyst Published: 25 Jan 08 - 0:00 More price hikes are expected owing to global supply and demand shortages, Wood Mackenzie senior analyst *Xavier Prevost* tells *Mining Weekly*. The coal price started to soar from the $50-t mark in May 2007, bringing the price to the current $100-t mark. "For only the fourth time in the past 100 years, we are in the midst of a significant coal price hike, this time driven by strong demand," says International Energy Agency energy analyst *Brian Ricketts*. Prevost says that the $100/t mark is still sustainable, but continuous increases could be foreseen. "South Africa faces the issue that we have come to a point in our coal mining history where coal reserves are difficult to obtain," he adds. Because the Asian market also faces a severe shortage of coal, China has become a net importer of coal since 2007, which led to global coal supplies being pushed into that market. "China's changing coal demand has had a big impact on international coal trade over the last few years," adds Bricketts. Prevost also attributes the price increase to a number of other global coal shortage issues, namely the Indonesian market being plagued by heavy rains, and logistical difficulties in Australia's New Castle port, causing ship vessels to queue at the port, affecting its ability for timely supply to the market. In South Africa, lightning caused severe disruptions at one of the coal substations, which affected the weighing of coal material. For the industry, the sharp climb over the past few months means that all coal producers will be able to reap greater benefits, as it makes marginal coal extraction operations feasible, as some mines operate at these levels. And, while the cash rolls in, it means that they will have more capital available for expansions. As a result of the global demand for more coal, South African coal producers are exporting most of their high-quality coal while the lower-quality coal is being sold locally to Eskom, which uses more than 44% of the total produced saleable coal in South Africa, and Sasol, which is the second-biggest coal user. Prevost continues that the export of high-quality coal creates an incredible demand for South African coal, causing the local market to feel the strain of international demand. Even though Eskom procures most of its coal from mines located close to the power stations, Prevost says that they are struggling to obtain additional coal. "Projected global energy trends raise serious concerns of increased vulnerability to supply disruptions and rising carbon dioxide emissions," says Bricketts. "If major local coal shortages occur, Eskom might need to import coal from Botswana or Mozam-bique, and the coal industry will once again see radical price hikes," Prevost warns. Bricketts raises the concern that global energy needs will increase by more than 50% leading up to 2030. http://www.sabcnews.com/south_africa/general/0,2172,163096,00.html EU wants to help solve SA energy crisis January 26, 2008, 06:30 Europe is ready to help South Africa with its electricity crisis. The European Commission says it is following the energy situation in South Africa very closely through its delegation in Pretoria and via direct contacts. An EU official says Europe is ready to assist South Africa in this field as best as it can. Commission spokesman, Amadeu Tardio, says at a meeting in October last year, Energy Security, at the request of South Africa, was identified as one of the areas for enhanced co-operation between the EU and South Africa. Tardo says efforts are underway to extend this cooperation to the broader field of energy security in general. This co-operation could include capacity building, exchanges of officials and providing information on best practices and experience. Tadrio says a first exploratory mission on Clean Coal Technology has taken place and a working group has been established. http://www.energycurrent.com/index.php?id=3&storyid=8417 Brazil, Neste Oil welcome EU new biofuel policy Filed from Singapore * 1/25/2008 11:16:47 AM GMT* EUROPE/BRAZIL: Major producers in the biofuel sector have welcomed the new sustainability criteria on biofuel imposed by the European Commission and the economic bloc's continued commitment to promote biofuel use. The European Commission on Jan. 23 reiterated its commitment to the goal of using biomass to produce 10 per cent of its transport fuels, but also set up sustainability criteria to mandate targets on carbon savings from biofuel and control environmental damage and social problems stemming from a rush to produce biofuel. Risto Rinne, president and CEO of Neste Oil Corp., said, "Bio-feedstock producers, producing countries and users should work towards enforceable rules that simply make unsustainable biofuels production bad business. Sustainability should create the basis for profitable business operations in biofuels. These ideas should be built into legislation. The European Commission's proposal is a positive move towards this direction. "We believe that high standards of sustainability are essential to the long term success of the renewable fuels industry. Renewable fuels made from sustainable feedstocks can make an important contribution to reducing transport carbon dioxide emissions." Brazil's sugarcane industry had hailed the European Commission's goal of having 10 per cent of transport fuels coming from biomass by 2020 as a "sensible approach," the Brazilian Sugar Cane Industry Association (UNICA) said in a statement. UNICA also "welcomes the fact that criteria for sustainability in the EC proposal does not discriminate against imported biofuels." However, Neste Oil has called on the European Union (EU) to promote technology neutrality for biofuels, an issue that is not covered in the European Commission's proposal. Neste Oil said the EU should evaluate technologies and feedstocks based on sound science, that is on their efficiency and greenhouse gas balance. The EU should keep the door open to technologies and feedstocks which do not even exist today to encourage further innovation, the biodiesel producer added, the company said. Neste Oil, a major Finnish biodiesel producer, is planning to set up an 800,000-tonne (880,000-ton) biodiesel plant in Singapore. Brazil is the world's largest sugar cane-based ethanol producer. http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/08/33&format=HTML&aged=0&language=EN&guiLanguage=en http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/80&format=HTML&aged=0&language=EN&guiLanguage=en http://gristmill.grist.org/story/2008/1/23/1716/54657 http://uk.reuters.com/article/oilRpt/idUKPEK11530320080124 -- http://www.channelnewsasia.com/stories/singaporebusinessnews/view/295421/1/.html In Singapore, basic market forces have already made an impact in encouraging the use of oil alternatives. Khoo Chin Hean, chief executive of Energy Market Authority, said: "We were powered by oil. But over the last five to six years, we've made the switch to gas. The market will drive us to something that is cost efficient. By using gas, I notice it has helped to maintain downward pressure on electricity price." -- http://www.channelnewsasia.com/stories/singaporebusinessnews/view/295421/1/.html In Singapore, basic market forces have already made an impact in encouraging the use of oil alternatives. Khoo Chin Hean, chief executive of Energy Market Authority, said: "We were powered by oil. But over the last five to six years, we've made the switch to gas. The market will drive us to something that is cost efficient. By using gas, I notice it has helped to maintain downward pressure on electricity price."
