southeast asian coal developments - Marston
Coal vessel loading at an Indonesian coal terminal.
Southeast Asian coal developments Donald L. Ewart, Jr., Marston & Marston, Inc., US, studies the recent growth in the coal industry and coal-fired power sector in Southeast Asia.
T
The region of Southeast Asia comprises 10 countries: Brunei, Indonesia, Cambodia (formerly Kampuchea), Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam (Figure 1). Coal is currently produced in all of these countries, except Brunei, Cambodia and Singapore.
In the last eight years, coal production in the region has almost doubled. Figure 2 shows that combined coal production from the seven Southeast Asian coal-producing countries increased from approximately 83 million t in 1996 to over 155 million t last year. This growth in regional coal producReprinted from
World Coal • June 2004
tion has been driven primarily by the rapid expansion of the Indonesian coal industry, with Vietnam also experiencing significant production increases in the last few years. Indonesia dominates regional coal output and accounted for almost 75% of the region’s coal production last year. Thailand
and Vietnam are the next largest coal producers, with production shares last year of 12% and 11.5%, respectively. The Philippines accounted for an additional 1.3% of regional coal production for the year, with the balance from Malaysia, Figure 1. Southeast Asia comprises 10 countries. Laos and Myanmar. Indonesia and Vietnam produce coal for export as well as domestic markets, must be augmented with imported coal to while the other coal-producing countries meet domestic demand requirements. only generate coal for domestic consumpOver the last few years, there has been tion. Indonesia currently exports just over a marked increase in coal consumption 70% of its annual coal production, while throughout much of the region. Figure 3 Vietnam exports roughly 35%. shows that coal consumption in Southeast To some degree, coal is consumed in all Asian countries has increased from 50 milof the Southeast Asian countries, except lion t in 1996 to almost 80 million t in 2002. Brunei and Cambodia. In Indonesia, Laos, Coal consumption in Indonesia, Laos, Myanmar and Vietnam, domestic coal Malaysia, Myanmar, the Philippines and demand is met by indigenous coal producSingapore has at least doubled or tripled tion, while in Malaysia, the Philippines between 1996 and 2002. Coal consumption and Thailand, indigenous coal production in Vietnam has grown more slowly, while Reprinted from
World Coal • June 2004
Thailand’s coal consumption has remained relatively constant. In Indonesia, Malaysia, the Philippines, Thailand and Vietnam, coal is used extensively for power generation, while in Laos, Myanmar and Singapore coal use is currently limited to industrial applications. Coal is a particularly important ingredient in the energy mixes of Indonesia and the Philippines, with more than one-third of the electricity in these countries currently generated by coal-fired power plants (Figure 4). In Malaysia, Thailand and Vietnam, coal-fired power currently accounts for 10 - 15% of total electricity generation. Throughout much of the region, the use of coal for power generation is forecast to
capacity has also contributed to the growth in production, with 10 new coal mines having been developed since 1998. Indonesia currently produces bituminous and sub-bituminous rank coals from more than 35 different mines in East Kalimantan, South Kalimantan and Sumatra. Almost all of Indonesia’s coal production is derived from openpit mines, with only two or three small underground mines curPaiton coal-fired IPP project on the island of Java, Indonesia. rently in operation. The locaincrease steadily over the next 5 - 10 years tions of major Indonesian coal as additional coal-fired power plants are mines are shown in Figure 5. built. A total of 10 coal-fired power plants Currently, the largest coal producers are currently being constructed, with plans in Indonesia are PT Bumi Resources, PT to develop at least another 12 coal-fired Adaro Indonesia (Adaro), PT Kideco Jaya projects by 2010. This current round of Agung (Kideco), Banpu Public Co. Ltd power plant construction should bring (Banpu) and the state-owned enterprise 6500 MW of new coal-fired generating PT Tambang Batubara Bukit Asam (PTBA). capacity online by 2007, with an additional Last year, Bumi Resources’ operations pro4800 MW of coal-fired capacity scheduled duced almost 30 million t of coal. Adaro’s for development by 2010. coal production last year approached 22.5 million t, Kideco produced 14 milIndonesia lion t, Banpu produced approximately Indonesia currently ranks as the ninth larg11.5 million t, and PTBA’s coal production est coal producer in the world and is by reached almost 10 million t. Combined, far the largest coal producer in Southeast these top five producers currently account Asia. Figure 2 shows that Indonesian coal for more than 75% of Indonesia’s total coal production has more than doubled in the production. last eight years, increasing from 50 million To meet the rising demand for domestic t in 1996 to 116 million t last year. Although and export coal, many Indonesian coal much of this increase is attributable to producers are planning to increase output the expansion of existing operations, new from existing operations. In addition to the
Figure 5. The locations of the major Indonesian coal mines. Reprinted from
World Coal • June 2004
various planned mine expansions, several new coal projects are scheduled to commence operation within the next several years. Banpu reportedly plans to open its 6 million tpa Trubaindo coal mine in East Kalimantan by the end of this year, and to develop its 1 million tpa Mumpun Pandan coal mine in South Sumatra by the end of next year. Furthermore, PT Marunda Grahamineral (MGM) reportedly plans to begin shipping coal (primarily coking coal) from its new mine in Central Kalimantan by the end of the first half of this year. Initially, the MGM mine is forecast to produce 1 million tpa of coal, with coal production increasing to 2 million tpa from 2006 onwards. Figure 6 shows that Indonesia has not installed any new coal-fired generating capacity since 2000. However, power shortages are being predicted for parts of Indonesia as early as next year, with a series of rolling blackouts already experienced in East Java and Bali. To keep pace with the growing demand for electricity, the Government is calling for the development of up to 12 coal-fired power projects over the next 10 years. Indonesia relies heavily on independent power producers (IPPs) for the development of new coal-fired power capacity. Correspondingly, the state-owned electric utility Perusahaan Listrik Negara (PLN) recently renegotiated power purchase agreements (PPAs) with three previouslycancelled coal-fired IPP projects; namely the 1320 MW Tanjung Jati B, 200 MW Sibolga A and 110 MW Amurang projects. Reportedly, PLN will also attempt to revive two other stalled independent coal-fired power projects (Serang and Tanjung Jati A). Construction has resumed on the two unit (2 x 660 MW) Tanjung Jati B coal-fired power plant, with commissioning currently scheduled for 2006. This project was approximately 70% completed when construction was halted due to disputes involving power prices. When fully operational, Tanjung Jati B will burn 4.5 million tpa of domestic coal. After Australia and China, Indonesia is cur-
First generation coal contractor mining operation in East Kalimantan, Indonesia.
rently the world’s third largest exporter of coal. Since 1996, Indonesia’s coal exports have more than doubled, increasing from 36 million t in 1996 to over 74 million t in 2002.
Thailand
Thailand is the second largest coal producing country in Southeast Asia and produces only lignitic-rank coals for domestic consumption. Thailand’s annual lignite production has fallen slightly in recent years, from 22 - 23 million tpa in 1996 and 1997 to less than 19 million t last year. Over 80% of Thailand’s total annual lignite production comes from a single operation, the Mae Moh surface mine in northern Thailand. All lignite produced from the Mae Moh Mine is consumed by the mine-mouth Mae Moh power plant. Thailand’s remaining lignite production is derived from a handful of small to medium-size surface mines located primarily in the northern part of the country. The country’s three major lignite producers are the Electric Generating Authority of Thailand (EGAT), Banpu and Lanna Resources Public Co. Ltd (Lanna Resources). The state-owned EGAT operates the Mae Moh surface mine in north-
ern Thailand, while Banpu and Lanna Resources currently operate two lignite mines each. To help ensure the long-term supply of lignite to the Mae Moh power plant, EGAT plans to develop the Wiang Haeng lignite deposit in northwest Thailand within the next several years. Once developed, this lignite mine is expected to produce 0.5 - 1 million tpa of relatively low-sulphur lignite for use at the Mae Moh plant. Thailand’s coal-fired power capacity currently comprises a single lignite-fired power plant, EGAT’s 2625 MW Mae Moh power plant. Until recently, three separate IPP consortiums had plans to develop coal-fired power projects on the east coast of Thailand, with each of these proposed plants to be fuelled entirely by imported coal. However, two of these projects are now to be developed as gas-fired units, leaving only one coal-fired power project (BLCP Power’s 1347 MW Map Ta Phut plant), scheduled for development in Thailand before 2010. Construction of the Map Ta Phut plant is now under way, with both of the plant’s 673.5 MW units currently scheduled to come online by early 2007. Commissioning of this project will increase Thailand’s Reprinted from
World Coal • June 2004
import coal 4 million tpa.
Vietnam
consumption
by
some
Vietnam is currently the third largest coal producer in Southeast Asia and is also the fifth largest producer of anthracite in the world. Its production of primarily anthracite-grade coals reached a record high of 18 million t last year, almost twice 1996’s production level of 9.8 million t. The country’s anthracite production is centred in the Quang Ninh province, northeastern Vietnam. Vietnam also produces minor amounts of lignite and bituminous coking coal for domestic consumption. The majority of Vietnam’s coal is produced by the state-owned mining company Vietnam Coal Corporation (Vinacoal). Vinacoal currently operates approximately 30 open-pit and underground coal mines, with the surface mines accounting for 60 - 70% of the company’s annual coal production. To meet future production targets, Vinacoal plans to open six new anthracite mines in Quang Ninh province within the next seven years. Figure 6 shows that up until 2001, Vietnam’s coal-fired power capacity remained constant at 645 MW. However,
the country’s coal-fired generating capacity was almost doubled in 2002 with the addition of two 300 MW coal-fired units at the Pha Lai plant. From now until 2010, Vietnam’s electricity requirements are projected to increase at more than 10%/year. According to current energy plans, a portion of the country’s growing electricity demand will be fulfilled by a handful of new coal-fired power projects. Four of these power plants are currently under construction, with three additional projects scheduled to be completed by 2008. The state-owned electricity company Electricity of Vietnam (EVN) is currently constructing the first 300 MW unit of the Cam Pha coal-fired plant in the Quang Ninh province, and is adding a second coal-fired unit (300 MW) at the existing Uong Bi power plant (Figure 1). The new unit at Uong Bi is scheduled to come online in 2006, with the Cam Pha plant slated for commissioning in 2007. Meanwhile, Vinacoal is developing the 100 MW Cao Ngan and 100 MW Na Duong coal-fired power projects in the north of the country. The Na Duong power plant is scheduled to come online this year, with the Cao Ngan plant to be commissioned next year. In the longer term, the first 300 MW unit of the proposed Hai Phong coal-fired power plant is slated for commissioning in 2007, with another 300 MW unit to be added in 2008. A second 300 MW unit is to be installed at Cam Pha in 2008, when a third (300 MW) unit is also scheduled to be added at Uong Bi. Vietnam is the world’s second largest exporter of anthracite, with primary markets in Japan, China, Europe and Thailand. Vietnam’s anthracite exports have almost doubled in the last eight years, increasing from 3.6 million t in 1996 to 6.5 million t last year.
The Philippines
Coal production in the Philippines reached a record high of 2 million t last year, almost doubling the amount of coal produced previously. Over 90% of the country’s mostly sub-bituminous coal production derives from Semirara Coal Corporation’s (SCC) open-pit mining operations on the island of Semirara. The balance of the country’s coal output is from a handful of small operations on Batan, Cebu, Mindanao and Negros. Between 1996 and 2002, coal consumption in the Philippines increased by approx-
Figure 2. Southeast Asian coal production, 1996 - 2003.1
Figure 3. Southeast Asian coal consumption, 1996 - 2002.1
imately 4 million tpa, with the country’s coal burn approaching 8 million t in 2002. The Philippines consumes all of its domestically-produced coal internally and also imports coal from Australia, Indonesia and China to fuel its eight coal-fired power plants and cement industry. The country has not installed any new coal-fired generating capacity since 1998 - 2000. Although many coal-fired power projects have been proposed in the last few years, only one new coal-fired power plant is currently under construction. The current Philippine Energy Plan developed by the Department of Energy predicts that the country’s electricity demand will increase at roughly 8%/year until 2012. While much of the country’s required new generating capacity in the short-term is to be powered by renewable resources such as geothermal and hydropower, one coal-fired power plant is currently being constructed, while a handful of proposed coal-fired power projects have Reprinted from
World Coal • June 2004
been delayed by environmental opposition. Currently, an independent power provider is developing a 232 MW coal-fired power plant on the island of Mindanao (Figure 1). Construction of the two unit (2 x 116 MW) Mindanao power plant is expected to take 36 months, with the plant scheduled to become commercially operational by December 2006. Once operational, the Mindanao plant will burn 750,000 tpa of sub-bituminous coal from Indonesia. At least six other coal-fired power projects have been proposed for short-term development in the Philippines. However, development of these projects has been slowed or halted by intense environmental opposition.
Malaysia
After peaking at 550,000 t in 2001, Malaysia’s production of primarily subbituminous coals dropped to roughly 350,000 tpa in 2002 and last year. The bulk
added 1000 MW of coal-fired capacity to its existing Kapar power plant south of Kuala Lumpur. Last year, TNB commissioned all three 700 MW units of its new Manjung power plant, bringing Malaysia’s coal-fired generating capacity to 3800 MW. The addition of the new coal-fired power capacity at Kapar Figure 4. Power generation mix in Southeast Asia.2 and Manjung has increased Malaysia’s import coal consumption by almost 8 million tpa. To help meet future energy needs, TNB will increasingly rely on IPPs to develop new coalfired power capacity. TNB has negotiated a PPA with Malakoff Bhd to develop the 2100 MW Tanjung Bin coal-fired power plant in the southern Figure 6. Southeast Asian coal-fired power generation capacity, 1996 - 2003. state of Johor, and is also in the process of the country’s coal is produced from an of negotiating a PPA open-pit mine located in the Merit-Pila that will pave the way for the developcoalfield of western Sarawak. The balance ment of the 1400 MW Jimah coal-fired of Malaysia’s coal production is from two power project. other small-scale operations (one openConstruction of the three-unit Tanjung pit mine and one underground mine), Bin project began early this year, with also in western Sarawak. the first 700 MW unit scheduled to come Over the last few years, Malaysia’s online in 2006 and the remaining two 700 coal consumption has doubled, increasMW units slated to begin commercial ing from approximately 3 million tpa in operation in 2007. Commissioning of the the years preceding 2001 to 6 million t Jimah power plant is tentatively schedin 2002. To satisfy the demands of the uled for 2010. country’s domestic coal-fired power and Laos cement industries, the country’s relatively limited indigenous coal production must Laos’s coal production has quadrupled be heavily supplemented by coal imports, in the last eight years, increasing from primarily from Australia and Indonesia. 60,000 t in 1996 to more than 250,000 t last In fact, more than 90% of Malaysia’s year. Laos currently produces anthracite annual coal requirements are currently and lignite from a handful of small mines satisfied by imported coal. scattered throughout the country. Since 2000, Malaysia’s coal-fired generCoal production in Laos is accomating capacity has increased by more than plished by the state-run mining company 500%. In 2001, the state-owned electricity State Coal Mining Enterprise (SCME) and company Tenaga Nasional Berhad (TNB) two private producers (Hongsa Lignite
Reprinted from
World Coal • June 2004
Co. and Viengphoukha Coal Mine Co.). All of the country’s coal production is currently consumed domestically, primarily by the cement industry.
Myanmar
Although Myanmar’s coal production has more than doubled since 1996, the country still only produces a small amount of coal, with last year’s production barely topping 100,000 t. Myanmar currently produces sub-bituminous coal and lignite from a handful of small-scale surface mines located in the central and northern parts of the country. Currently, coal/lignite mining in Myanmar is carried out by one of the state-owned mining companies, Mining Enterprise No. 3 (ME-3), and three private producers. To help combat growing power shortages, Myanmar is constructing its first coal-fired power plant in the Tikyit region of Southern Shan State (Figure 1). Construction of the 2 x 60 MW Tikyit power plant began in Q2 2002 and was reportedly 55% completed in Q3 last year. The Tikyit power plant has been designed to utilise lignite and sub-bituminous coal from a nearby mine with an annual coal/ lignite burn of approximately 750,000 tpa.
Conclusion
Many Southeast Asian countries are increasingly relying on coal-fired power to meet growing energy requirements and achieve more balanced energy mixes. With 6500 MW of coal-fired power capacity currently under construction, and an additional 4800 MW planned by 2010, regional coal consumption will increase significantly over the next 5 - 10 years. This increased domestic demand, coupled with projected increases in export coal requirements, will continue to fuel the growth of Southeast Asia’s coal industry in the years to come._____________________________n
Sources
1. Figures 2 and 3: ASEAN Centre for Energy; Asian Development Bank; Energy Information Administration; Indonesia Directorate of Mineral and Coal Enterprises and Department of Mines & Energy; The Institute of Energy Economics, Japan; Philippines Department of Energy; Thailand Energy Policy and Planning Office; and Vietnam Government General Statistical Office.
2. Figure 4: EVN, Philippines Department of Energy; PLN; and Thailand Energy Policy and Planning Office.
Southeast Asian coal developments Donald L. Ewart, Jr., Marston & Marston, Inc., US, studies the recent growth in the coal industry and coal-fired power sector in Southeast Asia.
T
The region of Southeast Asia comprises 10 countries: Brunei, Indonesia, Cambodia (formerly Kampuchea), Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam (Figure 1). Coal is currently produced in all of these countries, except Brunei, Cambodia and Singapore.
In the last eight years, coal production in the region has almost doubled. Figure 2 shows that combined coal production from the seven Southeast Asian coal-producing countries increased from approximately 83 million t in 1996 to over 155 million t last year. This growth in regional coal producReprinted from
World Coal • June 2004
tion has been driven primarily by the rapid expansion of the Indonesian coal industry, with Vietnam also experiencing significant production increases in the last few years. Indonesia dominates regional coal output and accounted for almost 75% of the region’s coal production last year. Thailand
and Vietnam are the next largest coal producers, with production shares last year of 12% and 11.5%, respectively. The Philippines accounted for an additional 1.3% of regional coal production for the year, with the balance from Malaysia, Figure 1. Southeast Asia comprises 10 countries. Laos and Myanmar. Indonesia and Vietnam produce coal for export as well as domestic markets, must be augmented with imported coal to while the other coal-producing countries meet domestic demand requirements. only generate coal for domestic consumpOver the last few years, there has been tion. Indonesia currently exports just over a marked increase in coal consumption 70% of its annual coal production, while throughout much of the region. Figure 3 Vietnam exports roughly 35%. shows that coal consumption in Southeast To some degree, coal is consumed in all Asian countries has increased from 50 milof the Southeast Asian countries, except lion t in 1996 to almost 80 million t in 2002. Brunei and Cambodia. In Indonesia, Laos, Coal consumption in Indonesia, Laos, Myanmar and Vietnam, domestic coal Malaysia, Myanmar, the Philippines and demand is met by indigenous coal producSingapore has at least doubled or tripled tion, while in Malaysia, the Philippines between 1996 and 2002. Coal consumption and Thailand, indigenous coal production in Vietnam has grown more slowly, while Reprinted from
World Coal • June 2004
Thailand’s coal consumption has remained relatively constant. In Indonesia, Malaysia, the Philippines, Thailand and Vietnam, coal is used extensively for power generation, while in Laos, Myanmar and Singapore coal use is currently limited to industrial applications. Coal is a particularly important ingredient in the energy mixes of Indonesia and the Philippines, with more than one-third of the electricity in these countries currently generated by coal-fired power plants (Figure 4). In Malaysia, Thailand and Vietnam, coal-fired power currently accounts for 10 - 15% of total electricity generation. Throughout much of the region, the use of coal for power generation is forecast to
capacity has also contributed to the growth in production, with 10 new coal mines having been developed since 1998. Indonesia currently produces bituminous and sub-bituminous rank coals from more than 35 different mines in East Kalimantan, South Kalimantan and Sumatra. Almost all of Indonesia’s coal production is derived from openpit mines, with only two or three small underground mines curPaiton coal-fired IPP project on the island of Java, Indonesia. rently in operation. The locaincrease steadily over the next 5 - 10 years tions of major Indonesian coal as additional coal-fired power plants are mines are shown in Figure 5. built. A total of 10 coal-fired power plants Currently, the largest coal producers are currently being constructed, with plans in Indonesia are PT Bumi Resources, PT to develop at least another 12 coal-fired Adaro Indonesia (Adaro), PT Kideco Jaya projects by 2010. This current round of Agung (Kideco), Banpu Public Co. Ltd power plant construction should bring (Banpu) and the state-owned enterprise 6500 MW of new coal-fired generating PT Tambang Batubara Bukit Asam (PTBA). capacity online by 2007, with an additional Last year, Bumi Resources’ operations pro4800 MW of coal-fired capacity scheduled duced almost 30 million t of coal. Adaro’s for development by 2010. coal production last year approached 22.5 million t, Kideco produced 14 milIndonesia lion t, Banpu produced approximately Indonesia currently ranks as the ninth larg11.5 million t, and PTBA’s coal production est coal producer in the world and is by reached almost 10 million t. Combined, far the largest coal producer in Southeast these top five producers currently account Asia. Figure 2 shows that Indonesian coal for more than 75% of Indonesia’s total coal production has more than doubled in the production. last eight years, increasing from 50 million To meet the rising demand for domestic t in 1996 to 116 million t last year. Although and export coal, many Indonesian coal much of this increase is attributable to producers are planning to increase output the expansion of existing operations, new from existing operations. In addition to the
Figure 5. The locations of the major Indonesian coal mines. Reprinted from
World Coal • June 2004
various planned mine expansions, several new coal projects are scheduled to commence operation within the next several years. Banpu reportedly plans to open its 6 million tpa Trubaindo coal mine in East Kalimantan by the end of this year, and to develop its 1 million tpa Mumpun Pandan coal mine in South Sumatra by the end of next year. Furthermore, PT Marunda Grahamineral (MGM) reportedly plans to begin shipping coal (primarily coking coal) from its new mine in Central Kalimantan by the end of the first half of this year. Initially, the MGM mine is forecast to produce 1 million tpa of coal, with coal production increasing to 2 million tpa from 2006 onwards. Figure 6 shows that Indonesia has not installed any new coal-fired generating capacity since 2000. However, power shortages are being predicted for parts of Indonesia as early as next year, with a series of rolling blackouts already experienced in East Java and Bali. To keep pace with the growing demand for electricity, the Government is calling for the development of up to 12 coal-fired power projects over the next 10 years. Indonesia relies heavily on independent power producers (IPPs) for the development of new coal-fired power capacity. Correspondingly, the state-owned electric utility Perusahaan Listrik Negara (PLN) recently renegotiated power purchase agreements (PPAs) with three previouslycancelled coal-fired IPP projects; namely the 1320 MW Tanjung Jati B, 200 MW Sibolga A and 110 MW Amurang projects. Reportedly, PLN will also attempt to revive two other stalled independent coal-fired power projects (Serang and Tanjung Jati A). Construction has resumed on the two unit (2 x 660 MW) Tanjung Jati B coal-fired power plant, with commissioning currently scheduled for 2006. This project was approximately 70% completed when construction was halted due to disputes involving power prices. When fully operational, Tanjung Jati B will burn 4.5 million tpa of domestic coal. After Australia and China, Indonesia is cur-
First generation coal contractor mining operation in East Kalimantan, Indonesia.
rently the world’s third largest exporter of coal. Since 1996, Indonesia’s coal exports have more than doubled, increasing from 36 million t in 1996 to over 74 million t in 2002.
Thailand
Thailand is the second largest coal producing country in Southeast Asia and produces only lignitic-rank coals for domestic consumption. Thailand’s annual lignite production has fallen slightly in recent years, from 22 - 23 million tpa in 1996 and 1997 to less than 19 million t last year. Over 80% of Thailand’s total annual lignite production comes from a single operation, the Mae Moh surface mine in northern Thailand. All lignite produced from the Mae Moh Mine is consumed by the mine-mouth Mae Moh power plant. Thailand’s remaining lignite production is derived from a handful of small to medium-size surface mines located primarily in the northern part of the country. The country’s three major lignite producers are the Electric Generating Authority of Thailand (EGAT), Banpu and Lanna Resources Public Co. Ltd (Lanna Resources). The state-owned EGAT operates the Mae Moh surface mine in north-
ern Thailand, while Banpu and Lanna Resources currently operate two lignite mines each. To help ensure the long-term supply of lignite to the Mae Moh power plant, EGAT plans to develop the Wiang Haeng lignite deposit in northwest Thailand within the next several years. Once developed, this lignite mine is expected to produce 0.5 - 1 million tpa of relatively low-sulphur lignite for use at the Mae Moh plant. Thailand’s coal-fired power capacity currently comprises a single lignite-fired power plant, EGAT’s 2625 MW Mae Moh power plant. Until recently, three separate IPP consortiums had plans to develop coal-fired power projects on the east coast of Thailand, with each of these proposed plants to be fuelled entirely by imported coal. However, two of these projects are now to be developed as gas-fired units, leaving only one coal-fired power project (BLCP Power’s 1347 MW Map Ta Phut plant), scheduled for development in Thailand before 2010. Construction of the Map Ta Phut plant is now under way, with both of the plant’s 673.5 MW units currently scheduled to come online by early 2007. Commissioning of this project will increase Thailand’s Reprinted from
World Coal • June 2004
import coal 4 million tpa.
Vietnam
consumption
by
some
Vietnam is currently the third largest coal producer in Southeast Asia and is also the fifth largest producer of anthracite in the world. Its production of primarily anthracite-grade coals reached a record high of 18 million t last year, almost twice 1996’s production level of 9.8 million t. The country’s anthracite production is centred in the Quang Ninh province, northeastern Vietnam. Vietnam also produces minor amounts of lignite and bituminous coking coal for domestic consumption. The majority of Vietnam’s coal is produced by the state-owned mining company Vietnam Coal Corporation (Vinacoal). Vinacoal currently operates approximately 30 open-pit and underground coal mines, with the surface mines accounting for 60 - 70% of the company’s annual coal production. To meet future production targets, Vinacoal plans to open six new anthracite mines in Quang Ninh province within the next seven years. Figure 6 shows that up until 2001, Vietnam’s coal-fired power capacity remained constant at 645 MW. However,
the country’s coal-fired generating capacity was almost doubled in 2002 with the addition of two 300 MW coal-fired units at the Pha Lai plant. From now until 2010, Vietnam’s electricity requirements are projected to increase at more than 10%/year. According to current energy plans, a portion of the country’s growing electricity demand will be fulfilled by a handful of new coal-fired power projects. Four of these power plants are currently under construction, with three additional projects scheduled to be completed by 2008. The state-owned electricity company Electricity of Vietnam (EVN) is currently constructing the first 300 MW unit of the Cam Pha coal-fired plant in the Quang Ninh province, and is adding a second coal-fired unit (300 MW) at the existing Uong Bi power plant (Figure 1). The new unit at Uong Bi is scheduled to come online in 2006, with the Cam Pha plant slated for commissioning in 2007. Meanwhile, Vinacoal is developing the 100 MW Cao Ngan and 100 MW Na Duong coal-fired power projects in the north of the country. The Na Duong power plant is scheduled to come online this year, with the Cao Ngan plant to be commissioned next year. In the longer term, the first 300 MW unit of the proposed Hai Phong coal-fired power plant is slated for commissioning in 2007, with another 300 MW unit to be added in 2008. A second 300 MW unit is to be installed at Cam Pha in 2008, when a third (300 MW) unit is also scheduled to be added at Uong Bi. Vietnam is the world’s second largest exporter of anthracite, with primary markets in Japan, China, Europe and Thailand. Vietnam’s anthracite exports have almost doubled in the last eight years, increasing from 3.6 million t in 1996 to 6.5 million t last year.
The Philippines
Coal production in the Philippines reached a record high of 2 million t last year, almost doubling the amount of coal produced previously. Over 90% of the country’s mostly sub-bituminous coal production derives from Semirara Coal Corporation’s (SCC) open-pit mining operations on the island of Semirara. The balance of the country’s coal output is from a handful of small operations on Batan, Cebu, Mindanao and Negros. Between 1996 and 2002, coal consumption in the Philippines increased by approx-
Figure 2. Southeast Asian coal production, 1996 - 2003.1
Figure 3. Southeast Asian coal consumption, 1996 - 2002.1
imately 4 million tpa, with the country’s coal burn approaching 8 million t in 2002. The Philippines consumes all of its domestically-produced coal internally and also imports coal from Australia, Indonesia and China to fuel its eight coal-fired power plants and cement industry. The country has not installed any new coal-fired generating capacity since 1998 - 2000. Although many coal-fired power projects have been proposed in the last few years, only one new coal-fired power plant is currently under construction. The current Philippine Energy Plan developed by the Department of Energy predicts that the country’s electricity demand will increase at roughly 8%/year until 2012. While much of the country’s required new generating capacity in the short-term is to be powered by renewable resources such as geothermal and hydropower, one coal-fired power plant is currently being constructed, while a handful of proposed coal-fired power projects have Reprinted from
World Coal • June 2004
been delayed by environmental opposition. Currently, an independent power provider is developing a 232 MW coal-fired power plant on the island of Mindanao (Figure 1). Construction of the two unit (2 x 116 MW) Mindanao power plant is expected to take 36 months, with the plant scheduled to become commercially operational by December 2006. Once operational, the Mindanao plant will burn 750,000 tpa of sub-bituminous coal from Indonesia. At least six other coal-fired power projects have been proposed for short-term development in the Philippines. However, development of these projects has been slowed or halted by intense environmental opposition.
Malaysia
After peaking at 550,000 t in 2001, Malaysia’s production of primarily subbituminous coals dropped to roughly 350,000 tpa in 2002 and last year. The bulk
added 1000 MW of coal-fired capacity to its existing Kapar power plant south of Kuala Lumpur. Last year, TNB commissioned all three 700 MW units of its new Manjung power plant, bringing Malaysia’s coal-fired generating capacity to 3800 MW. The addition of the new coal-fired power capacity at Kapar Figure 4. Power generation mix in Southeast Asia.2 and Manjung has increased Malaysia’s import coal consumption by almost 8 million tpa. To help meet future energy needs, TNB will increasingly rely on IPPs to develop new coalfired power capacity. TNB has negotiated a PPA with Malakoff Bhd to develop the 2100 MW Tanjung Bin coal-fired power plant in the southern Figure 6. Southeast Asian coal-fired power generation capacity, 1996 - 2003. state of Johor, and is also in the process of the country’s coal is produced from an of negotiating a PPA open-pit mine located in the Merit-Pila that will pave the way for the developcoalfield of western Sarawak. The balance ment of the 1400 MW Jimah coal-fired of Malaysia’s coal production is from two power project. other small-scale operations (one openConstruction of the three-unit Tanjung pit mine and one underground mine), Bin project began early this year, with also in western Sarawak. the first 700 MW unit scheduled to come Over the last few years, Malaysia’s online in 2006 and the remaining two 700 coal consumption has doubled, increasMW units slated to begin commercial ing from approximately 3 million tpa in operation in 2007. Commissioning of the the years preceding 2001 to 6 million t Jimah power plant is tentatively schedin 2002. To satisfy the demands of the uled for 2010. country’s domestic coal-fired power and Laos cement industries, the country’s relatively limited indigenous coal production must Laos’s coal production has quadrupled be heavily supplemented by coal imports, in the last eight years, increasing from primarily from Australia and Indonesia. 60,000 t in 1996 to more than 250,000 t last In fact, more than 90% of Malaysia’s year. Laos currently produces anthracite annual coal requirements are currently and lignite from a handful of small mines satisfied by imported coal. scattered throughout the country. Since 2000, Malaysia’s coal-fired generCoal production in Laos is accomating capacity has increased by more than plished by the state-run mining company 500%. In 2001, the state-owned electricity State Coal Mining Enterprise (SCME) and company Tenaga Nasional Berhad (TNB) two private producers (Hongsa Lignite
Reprinted from
World Coal • June 2004
Co. and Viengphoukha Coal Mine Co.). All of the country’s coal production is currently consumed domestically, primarily by the cement industry.
Myanmar
Although Myanmar’s coal production has more than doubled since 1996, the country still only produces a small amount of coal, with last year’s production barely topping 100,000 t. Myanmar currently produces sub-bituminous coal and lignite from a handful of small-scale surface mines located in the central and northern parts of the country. Currently, coal/lignite mining in Myanmar is carried out by one of the state-owned mining companies, Mining Enterprise No. 3 (ME-3), and three private producers. To help combat growing power shortages, Myanmar is constructing its first coal-fired power plant in the Tikyit region of Southern Shan State (Figure 1). Construction of the 2 x 60 MW Tikyit power plant began in Q2 2002 and was reportedly 55% completed in Q3 last year. The Tikyit power plant has been designed to utilise lignite and sub-bituminous coal from a nearby mine with an annual coal/ lignite burn of approximately 750,000 tpa.
Conclusion
Many Southeast Asian countries are increasingly relying on coal-fired power to meet growing energy requirements and achieve more balanced energy mixes. With 6500 MW of coal-fired power capacity currently under construction, and an additional 4800 MW planned by 2010, regional coal consumption will increase significantly over the next 5 - 10 years. This increased domestic demand, coupled with projected increases in export coal requirements, will continue to fuel the growth of Southeast Asia’s coal industry in the years to come._____________________________n
Sources
1. Figures 2 and 3: ASEAN Centre for Energy; Asian Development Bank; Energy Information Administration; Indonesia Directorate of Mineral and Coal Enterprises and Department of Mines & Energy; The Institute of Energy Economics, Japan; Philippines Department of Energy; Thailand Energy Policy and Planning Office; and Vietnam Government General Statistical Office.
2. Figure 4: EVN, Philippines Department of Energy; PLN; and Thailand Energy Policy and Planning Office.
