November 4, 2019 Read More →

Russia to overtake Indonesia as top exporter of thermal coal by 2040

Hellenic Shipping News:

Russia is expected to overtake Indonesia as the biggest exporter of coal by 2040, as the Southeast Asian country’s thermal coal production stagnates, the International Energy Agency (IEA) said.

In the report, IEA Southeast Asia Energy Outlook, released at the Singapore International Energy Week 2019, the agency said that with stagnating investment in coal mines in the 2020s, Indonesia will likely see its output decrease through 2030.

Indonesia is the world’s largest thermal coal exporter and accounts for almost 90% of Southeast Asia’s coal production, IEA said in its report.

The IEA stated that in its outlook scenario, Indonesia’s exports are likely to decline from 350 million mt of coal equivalent presently to 210 million mt of coal equivalent in 2040.

“A growing share of production is destined to serve increasing domestic demand, while output declines by 14%,” it said.

However, the report highlighted that Indonesian suppliers might also respond rapidly to price signals from international markets and ramp up production and exports when seaborne prices become more attractive.

The report noted that with the volume of coal traded in the world projected to stay broadly flat up to 2040, Australia and Russia are well-positioned to increase exports to offset the reduced role of Indonesia, which serves Asian markets predominantly.

“By 2040, Indonesia is overtaken by Russia in terms of export volumes,” the report said.

More: Russia to overtake Indonesia as top exporter of thermal coal by 2040: IEA

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