JAKARTA (TheInsiderStories) – China’ coal consumption is expected to remain stable in 2019, and will likely see a fair balance between supply and demand, said the official statement last week. Almost half of world coal consumption is China.
Chinese coal consumption are 14 percent of global primary energy, the largest in the world. But, followed the green energy program, its estimated that China’ coal demand will decline by around three percent until 2023, said the report. This development has the potential to influence the coal prices, gas and electricity throughout the world.
National Bureau of Statistics reported, with a positive achievement in 2018, where coal supply and demand were balanced and prices fluctuated within a reasonable range, this year its estimated that the country’ coal demand will remain at the normal threshold. This will give an advantage to coal exporter, including Indonesia.
Last year, China produced 3.55 billion tons of raw coal, up 5.2 percent on annual basis (YoY) and coal consumption edged up 1 percent. This growth far slower than net fuel expansion and making 59 percent of total energy consumption, or down 1.4 percentage points from the previous year.
The profits of China’ main coal producers also rose 5.2 percent to RMB288.82 billion (around US $ 43 billion). While, total revenues increased 5.5 percent to RMB2.27 trillion, according to a report released by the China National Coal Association.
The office also reported, number of coal mines fallen sharply to 5,800 by the end of 2018 but the average production capacity has been increased to around 920,000 tons per year. Right now, 70 percent of electricity in China is generated by thermal coal power.
As one of largest coal producer in the world, Indonesia has potential to lift its coal production. As set by Energy and Mineral Resources Ministry, this year the country targeting to produces 490 million tons (MT) of coal from last year 528 MT of coal. The government allocates 75 percent of the production for export market while 25 percent for the domestic market obligation.
Since 2016, Indonesia’ coal production has continued rised to 456 million tons, 2017 amounting to 456 million tons, and 2018 at 461 million tons. However, like China, the number of coal mines in Indonesia began to fall, along with government policies to implement renewable energy in the form of B20.
Written by Daniel Deha, Email: email@example.com