Wednesday, 04 Jan 2012
Business Standard reported that delays in commissioning of new mines and a historic dip in production from operational mines have thrown coal availability position and the associated power capacity into emergency mode.
Fresh data from the Central Electricity Authority, the apex power sector planning body, reveals the current fuel stock at India’s 89 thermal power stations is down by 35% from a year earlier.
The power stations are running on an 8.3 million tonne coal stock, against 12.7 million tonne in the same period last year. In addition, 26 power stations have supercritical stocks, or stocks that can support operations for four days, up from 14 stations. Also, half of the 89 stations have stocks sufficient to sustain operations for seven days.
A senior coal ministry official said that “The main reasons for the decreased availability of coal recently are logistical problems of railway rakes and the hit to production from strike at Coal India Ltd and heavy rains.”
He said the ministry had taken several steps, including cancellation of captive blocks and taking up the rake availability issue with the Railways.
The ministry has awarded 193 captive coal blocks, largely to private sector companies, over the past 18 years. However, only 28 have started operations, throwing production targets off the track. These blocks were expected to produce 104 million tonne coal a year by the end of this Plan period. But last year, production stood at a dismal 34 million tonne. The ministry, therefore, has cancelled allocations of a dozen blocks, including five blocks of state-run NTPC Ltd.
The power ministry is also worried over the widening gap between the power capacity linked to CIL supply and actual receipts from the coal producer. CIL’s production remained flat at 431 million tonne last year. During this year, too, it has been reporting declines in production for the first time in recent history. The power ministry has urged CIL to meet its supply commitments in the absence of which over 24,000 MW new power capacity is likely to be stranded.
The ministry stated in a recent note that “Inadequate availability of domestic coal and reluctance of coal companies to sign fuel supply agreements have serious repercussions on the confidence of utilities, developers and investors.”
(Sourced from BS)
Showing posts with label coal stocks. Show all posts
Showing posts with label coal stocks. Show all posts
Wednesday, January 4, 2012
Monday, December 12, 2011
Indonesia Stock Movers: Bank Negara, Summarecon Agung, Renuka
Monday, Dec 12, 2011
Shares of the following companies had unusual (JCI) moves in Indonesian trading. Stock symbols are in parentheses, and share prices are as of the close in Jakarta.
The Jakarta Composite Index rose 0.9 percent to 3,792.15.
Coal producers: PT Bumi Resources (BUMI) , Asia’s largest exporter of power-station coal, gained 1.1 percent to 2,225 rupiah. PT Adaro Energy (ADRO) , the second-largest producer, rose 5 percent to 1,930 rupiah. PT Tambang Batubara Bukit Asam (PTBA) , a state-owned coal producer, gained 1.8 percent to 17,200 rupiah.
Power-station coal prices at Australia’s Newcastle port, an Asian benchmark, rose 0.2 percent in the week ended Dec. 9, according to the globalCOAL NEWC Index.
PT Bank Negara Indonesia (BBNI) , the third-biggest state-owned bank by market value, rose 1.3 percent to 3,975 rupiah. Bank Indonesia Governor Darmin Nasution told the nation’s commercial lenders to lower borrowing costs as Southeast Asia’s biggest economy looks to domestic consumption to drive growth amid a global slowdown.
PT Renuka Coalindo (SQMI) , an Indonesian coal producer jumped 23.7 percent to 365 rupiah, the highest close since Nov. 30, 2004. Renuka expects to boost annual coal output at its wholly-owned unit, PT Jambi Prima Coal, to at least 1 million metric tons next year, Renuka President Director Ganesh Mane said by telephone in Jakarta on Dec. 9. Jambi Prima, which has begun operating a mine in Jambi province in Sumatra, is producing 50,000 tons to 60,000 tons of coal a month, Mane said.
PT Summarecon Agung (SMRA) , a property developer, gained 4.5 percent to 1,170 rupiah, set for the highest close since Nov. 4. Summarecon may spend 1.3 trillion rupiah ($143 million) in 2012 to fund projects such as a shopping mall, a convention center and a sports club, Investor Daily Indonesia reported, citing President Director Johanes Mardjuki. Mardjuki couldn’t be reached when called at his office.
(sourced Bloomberg)
Shares of the following companies had unusual (JCI) moves in Indonesian trading. Stock symbols are in parentheses, and share prices are as of the close in Jakarta.
The Jakarta Composite Index rose 0.9 percent to 3,792.15.
Coal producers: PT Bumi Resources (BUMI) , Asia’s largest exporter of power-station coal, gained 1.1 percent to 2,225 rupiah. PT Adaro Energy (ADRO) , the second-largest producer, rose 5 percent to 1,930 rupiah. PT Tambang Batubara Bukit Asam (PTBA) , a state-owned coal producer, gained 1.8 percent to 17,200 rupiah.
Power-station coal prices at Australia’s Newcastle port, an Asian benchmark, rose 0.2 percent in the week ended Dec. 9, according to the globalCOAL NEWC Index.
PT Bank Negara Indonesia (BBNI) , the third-biggest state-owned bank by market value, rose 1.3 percent to 3,975 rupiah. Bank Indonesia Governor Darmin Nasution told the nation’s commercial lenders to lower borrowing costs as Southeast Asia’s biggest economy looks to domestic consumption to drive growth amid a global slowdown.
PT Renuka Coalindo (SQMI) , an Indonesian coal producer jumped 23.7 percent to 365 rupiah, the highest close since Nov. 30, 2004. Renuka expects to boost annual coal output at its wholly-owned unit, PT Jambi Prima Coal, to at least 1 million metric tons next year, Renuka President Director Ganesh Mane said by telephone in Jakarta on Dec. 9. Jambi Prima, which has begun operating a mine in Jambi province in Sumatra, is producing 50,000 tons to 60,000 tons of coal a month, Mane said.
PT Summarecon Agung (SMRA) , a property developer, gained 4.5 percent to 1,170 rupiah, set for the highest close since Nov. 4. Summarecon may spend 1.3 trillion rupiah ($143 million) in 2012 to fund projects such as a shopping mall, a convention center and a sports club, Investor Daily Indonesia reported, citing President Director Johanes Mardjuki. Mardjuki couldn’t be reached when called at his office.
(sourced Bloomberg)
Friday, December 2, 2011
Euro Coal-Prices stable on equities, euro gains
Dec2, 2011
* No fixed price trades, API4 index deals at -$1-1.20
* Macros continue to be main driver
LONDON Dec 1 (Reuters) - Physical prompt coal prices were little changed on Thursday despite a fall in oil as signs of further economic slowdown in Europe and a weaker factory sector in China outweighed encouraging U.S. manufacturing data.
No fixed price trades were reported but there were several indexed trades for South African cargoes.
Unless supported by strong oil, equities and a weaker dollar, coal prices could drift lower between now and January because short-term fundamentals are bearish, traders and end-users said.
World stocks edged higher on Thursday while the euro gained for the fourth day and a Spanish debt sale saw good demand, keeping hopes alive that the euro zone debt crisis may be contained.
Further ahead in 2012 the outlook is less grim for coal and other bulk commodities.
"We continue to favour the fundamentals for copper, coal and iron ore," Credit Suisse said in its Metals and Mining research note.
Lack of spot demand from China and India has left suppliers struggling to place prompt cargoes already unwanted in Europe and there are almost no bullish fundamental factors.
South African exporters have sold their December cargoes but some players further down the cargo chains formed when cargoes trade multiple times are still battling to find buyers.
A South African prompt cape was being offered on Wednesday with no takers.
Global stocks rallied and the dollar slid on Wednesday after the world's leading central banks acted jointly to ensure financial markets rocked by the euro zone's escalating debt crisis have enough funding.
The banking measures bolstered the appetite for risk, lifting assets such as stocks and commodities while leading investors to dump safe-haven dollar and government debt.
TRADES
No fresh fixed price trades were reported.
A February South African cargo traded at $1.20 a tonne below the API4 index.
A Q2 API4 index trade also took place at $1.00 a tonne below the index.
PRICES
A January South African cargo was bid at $103.25, unchanged.
A February South African cargo was bid at $95.00. A January delivery DES ARA cargo was offered at $112.00, down $1.00.
A February DES ARA cargo was bid at $112.50.
(sourced Reuters)
* No fixed price trades, API4 index deals at -$1-1.20
* Macros continue to be main driver
LONDON Dec 1 (Reuters) - Physical prompt coal prices were little changed on Thursday despite a fall in oil as signs of further economic slowdown in Europe and a weaker factory sector in China outweighed encouraging U.S. manufacturing data.
No fixed price trades were reported but there were several indexed trades for South African cargoes.
Unless supported by strong oil, equities and a weaker dollar, coal prices could drift lower between now and January because short-term fundamentals are bearish, traders and end-users said.
World stocks edged higher on Thursday while the euro gained for the fourth day and a Spanish debt sale saw good demand, keeping hopes alive that the euro zone debt crisis may be contained.
Further ahead in 2012 the outlook is less grim for coal and other bulk commodities.
"We continue to favour the fundamentals for copper, coal and iron ore," Credit Suisse said in its Metals and Mining research note.
Lack of spot demand from China and India has left suppliers struggling to place prompt cargoes already unwanted in Europe and there are almost no bullish fundamental factors.
South African exporters have sold their December cargoes but some players further down the cargo chains formed when cargoes trade multiple times are still battling to find buyers.
A South African prompt cape was being offered on Wednesday with no takers.
Global stocks rallied and the dollar slid on Wednesday after the world's leading central banks acted jointly to ensure financial markets rocked by the euro zone's escalating debt crisis have enough funding.
The banking measures bolstered the appetite for risk, lifting assets such as stocks and commodities while leading investors to dump safe-haven dollar and government debt.
TRADES
No fresh fixed price trades were reported.
A February South African cargo traded at $1.20 a tonne below the API4 index.
A Q2 API4 index trade also took place at $1.00 a tonne below the index.
PRICES
A January South African cargo was bid at $103.25, unchanged.
A February South African cargo was bid at $95.00. A January delivery DES ARA cargo was offered at $112.00, down $1.00.
A February DES ARA cargo was bid at $112.50.
(sourced Reuters)
Friday, November 11, 2011
Power minister urge power companies to procure imported coal
Friday, 11 Nov 2011
Ministry of Power has asked power utilities across the country to procure imported coal as per given targets in view of the increasing shortage of coal from domestic sources and directed Coal India to arrange coal supply to newly commissioned units.
As per CEA report of November 7 there are 38 thermal plants in country which have coal stock at super critical level implying the coal stock is for less than 4 days. 4 NTPC plants have no coal stock and these are Singrauli, Mejia, Koradama and Durgapur.
Haryana Rajasthan Uttar Pardesh, Andhra Pardesh, NTPC and other utilities have been asked to expedite placement of orders for import of the entire quantity of coal as per their assigned targets. Import of coal is not an easy job in itself moreover pricing of coal is also an important parameter. The costly coal imports lead to higher generation cost and utilities are not able to recover the additional investments made.
NTPC is going for direct coal import to tide over the critical coal stocks at a number of its thermal plants. Gujarat had to back down thermal generation to the extent of 15% due to the high cost of imported coal.
The acute coal shortages and poor quality of coal supplied to thermal stations was also reviewed in the meeting .It may be mentioned that 65% of the country's total power generation is met by thermal generation and of which 85% is coal based generation.
In Haryana Panipat and khedar have coal stock of 2 days and one day respectively. Moreover both plants normally complain about poor coal quality and high transit losses. The oil consumption at the plants has increased due to poor coal quality.
Ministry of Power has sought month wise data from utilities regarding gross calorific value of the coal received at power stations, delivered price along with transportation cost and information with regard to imported coal.
The power utilities are importing substantial amounts of coal to meet their requirements and many have failed to meet their annual targets on account of rising coal costs.
(sourced from Punjabnewsline)
Ministry of Power has asked power utilities across the country to procure imported coal as per given targets in view of the increasing shortage of coal from domestic sources and directed Coal India to arrange coal supply to newly commissioned units.
As per CEA report of November 7 there are 38 thermal plants in country which have coal stock at super critical level implying the coal stock is for less than 4 days. 4 NTPC plants have no coal stock and these are Singrauli, Mejia, Koradama and Durgapur.
Haryana Rajasthan Uttar Pardesh, Andhra Pardesh, NTPC and other utilities have been asked to expedite placement of orders for import of the entire quantity of coal as per their assigned targets. Import of coal is not an easy job in itself moreover pricing of coal is also an important parameter. The costly coal imports lead to higher generation cost and utilities are not able to recover the additional investments made.
NTPC is going for direct coal import to tide over the critical coal stocks at a number of its thermal plants. Gujarat had to back down thermal generation to the extent of 15% due to the high cost of imported coal.
The acute coal shortages and poor quality of coal supplied to thermal stations was also reviewed in the meeting .It may be mentioned that 65% of the country's total power generation is met by thermal generation and of which 85% is coal based generation.
In Haryana Panipat and khedar have coal stock of 2 days and one day respectively. Moreover both plants normally complain about poor coal quality and high transit losses. The oil consumption at the plants has increased due to poor coal quality.
Ministry of Power has sought month wise data from utilities regarding gross calorific value of the coal received at power stations, delivered price along with transportation cost and information with regard to imported coal.
The power utilities are importing substantial amounts of coal to meet their requirements and many have failed to meet their annual targets on account of rising coal costs.
(sourced from Punjabnewsline)
Wednesday, November 2, 2011
141 coal rakes dispatched to the power sector
Wednesday, 02 Nov 2011
In a bid to improve coal stock position with the power stations on 30.10.2011, a total of 141 rakes were dispatched to the power sector. In addition to that 7 rakes and another 1,88,000 tonnes coal was dispatched through MGR (Marry Go Round Transport mode, exclusive arrangement made by the power stations themselves) to the power stations.
During October, till 30th October, 2011, the overall average rail loading from CIL sources was 157 rakes, out of which 128 rakes were dispatched to the power stations.
The coal stock position in the power stations of Northern India has also been continuously reviewed. The average loading to these stations during the current month has been 44 rakes per day. On 30.10.2011, a total of 51 rakes were dispatched, out of which 24 rakes were sent to the power stations of Uttar Pradesh alone.
While Unchahar was dispatched 3 rakes, Dadri was sent 10 rakes. Supply to Faridabad was 10 rakes and Panipat 4 rakes. During the last three days, 166 rakes have been dispatched to the power stations of Northern India.
For the power plants of Andhra Pradesh also, regular coal supply is being maintained. On 30th October 2011, coal equivalent to 28 rakes were dispatched by SCCL to the power plants of AP. The coal companies have been advised to ensure priority movement of coal to the power stations of the country so as to improve the power generation.
Ministry of Coal is regularly reviewing the coal stock position with the power plants of the country and government coal companies have been directed to give the highest priority to coal dispatches for the power sector.
In a bid to improve coal stock position with the power stations on 30.10.2011, a total of 141 rakes were dispatched to the power sector. In addition to that 7 rakes and another 1,88,000 tonnes coal was dispatched through MGR (Marry Go Round Transport mode, exclusive arrangement made by the power stations themselves) to the power stations.
During October, till 30th October, 2011, the overall average rail loading from CIL sources was 157 rakes, out of which 128 rakes were dispatched to the power stations.
The coal stock position in the power stations of Northern India has also been continuously reviewed. The average loading to these stations during the current month has been 44 rakes per day. On 30.10.2011, a total of 51 rakes were dispatched, out of which 24 rakes were sent to the power stations of Uttar Pradesh alone.
While Unchahar was dispatched 3 rakes, Dadri was sent 10 rakes. Supply to Faridabad was 10 rakes and Panipat 4 rakes. During the last three days, 166 rakes have been dispatched to the power stations of Northern India.
For the power plants of Andhra Pradesh also, regular coal supply is being maintained. On 30th October 2011, coal equivalent to 28 rakes were dispatched by SCCL to the power plants of AP. The coal companies have been advised to ensure priority movement of coal to the power stations of the country so as to improve the power generation.
Ministry of Coal is regularly reviewing the coal stock position with the power plants of the country and government coal companies have been directed to give the highest priority to coal dispatches for the power sector.
Coal ministry to restore 5 captive coal block allotments to NTPC
Wednesday, 02 Nov 2011
BS reported that in a major development for Maharatna power generator NTPC Limited, the coal ministry is set to restore its five captive coal block allotments in a week.
The blocks were cancelled earlier this year on grounds of delays.
The move would boost the plans of the INR 57,000 crore company to more than double generation capacity to 75,000 MW by ramping up in house coal production to 47 million tonnes per annum, one fourth of its coal requirement over the next five years.
The decision has been prompted by a mix of factors including an urgent need to bridge the burgeoning gap in coal demand and supply, firm commitment of rapid development of the blocks from NTPC, the huge investments already made by the company on power projects linked to the blocks, pressure from the power ministry for restoring the blocks and the recent coal supply crisis.
Mr Sriprakash Jaiswal coal minister told Business Standard that "NTPC has assured us of quicker development of blocks now. Also, there have been many requests from the power minister. We are likely to give the blocks back as soon as the report of the review committee is submitted in four to five days." He also added NTPC, being a government company, deserves preference in this matter.
An intra ministerial review committee headed by coal secretary Mr Alok Perti has been reviewing the ministry's decision, taken in May 2011, to cancel 14 coal blocks and one lignite block awarded to six public sector undertakings, including NTPC.
Apart from rejuvenating the company’s fuel securing strategy, the decision would also set at rest months of uncertainty over the progress of the government’s captive coal production plan, as NTPC's blocks account for a major chunk of such reserves allotted so far.
The five cancelled blocks Chatti Bariatu, Chatti Bariatu (South), Kerandari, Brahmani and Chichiro Patsimal have combined geological reserves exceeding 3 billion tonne. The first three blocks are meant to supply fuel to two power plants of 1,320 MW capacity each Barh in Bihar and Tanda stage II in Uttar Pradesh. Both the projects, when commissioned, would require over 10 million tonnes of coal annually. The other two blocks are meant to feed the expansion of Kahalgaon power project in Bihar and Farakka in West Bengal.
Waiting For Approval
Source - NTPC
An NTPC official informed that almost a half of the INR 6,600 crore investment in Barh has already been made. He added that "Also, Tanda stage II is in advanced stage of progress and the first unit is expected to be commissioned in early 2012-13."
NTPC was awarded a total of eight coal blocks over past seven years with reserves of around 5 billion tonnes. All these were expected to come into production between April 2008 and March 2012. However, not a single block has commenced production so far.
The review exercise could be extended to the cancelled blocks of Damodar Valley Corporation, another PSU under the power ministry, and Jharkhand State Electricity Board. The coal ministry had cancelled DVC’s Saharpur Jamarpani block in Jharkhand and Gondulpara coal block in the same state, jointly allocated to DVC and Tenughat Vidyut Nigam.
(sourced from Business-Standard)
BS reported that in a major development for Maharatna power generator NTPC Limited, the coal ministry is set to restore its five captive coal block allotments in a week.
The blocks were cancelled earlier this year on grounds of delays.
The move would boost the plans of the INR 57,000 crore company to more than double generation capacity to 75,000 MW by ramping up in house coal production to 47 million tonnes per annum, one fourth of its coal requirement over the next five years.
The decision has been prompted by a mix of factors including an urgent need to bridge the burgeoning gap in coal demand and supply, firm commitment of rapid development of the blocks from NTPC, the huge investments already made by the company on power projects linked to the blocks, pressure from the power ministry for restoring the blocks and the recent coal supply crisis.
Mr Sriprakash Jaiswal coal minister told Business Standard that "NTPC has assured us of quicker development of blocks now. Also, there have been many requests from the power minister. We are likely to give the blocks back as soon as the report of the review committee is submitted in four to five days." He also added NTPC, being a government company, deserves preference in this matter.
An intra ministerial review committee headed by coal secretary Mr Alok Perti has been reviewing the ministry's decision, taken in May 2011, to cancel 14 coal blocks and one lignite block awarded to six public sector undertakings, including NTPC.
Apart from rejuvenating the company’s fuel securing strategy, the decision would also set at rest months of uncertainty over the progress of the government’s captive coal production plan, as NTPC's blocks account for a major chunk of such reserves allotted so far.
The five cancelled blocks Chatti Bariatu, Chatti Bariatu (South), Kerandari, Brahmani and Chichiro Patsimal have combined geological reserves exceeding 3 billion tonne. The first three blocks are meant to supply fuel to two power plants of 1,320 MW capacity each Barh in Bihar and Tanda stage II in Uttar Pradesh. Both the projects, when commissioned, would require over 10 million tonnes of coal annually. The other two blocks are meant to feed the expansion of Kahalgaon power project in Bihar and Farakka in West Bengal.
Waiting For Approval
| Coal block | Date of allocation | Target date | Status of progress |
| Pakri Barwadih | Oct '04 | Apr '08 | Environmental nod granted, awaited, order for coal handling plant awarded |
| Chatti Bariatu | Jan '06 | Jul '09 | Environmental nod granted, forest clearance awaited |
| Kerandari | Jan '06 | Jul '09 | Environmental nod granted, forest clearance awaited |
| Talaipalli | Jan '06 | Mar '12 | Environmental nod and forest clearance awaited |
| Dulanga | Jan '06 | Sep '11 | Environmental nod and forest clearance awaited |
| Brahman & Chichiro Patsimal | Jan '06 | Oct '11 | JV company with CIL incorporated in April 2010, exploration underway |
| Chatti Bariatu (South) | Jul '07 | Jan '11 | MoU with Mineral Exploration Corp being finalized for exploration, application for land acquisition being submitted |
Source - NTPC
An NTPC official informed that almost a half of the INR 6,600 crore investment in Barh has already been made. He added that "Also, Tanda stage II is in advanced stage of progress and the first unit is expected to be commissioned in early 2012-13."
NTPC was awarded a total of eight coal blocks over past seven years with reserves of around 5 billion tonnes. All these were expected to come into production between April 2008 and March 2012. However, not a single block has commenced production so far.
The review exercise could be extended to the cancelled blocks of Damodar Valley Corporation, another PSU under the power ministry, and Jharkhand State Electricity Board. The coal ministry had cancelled DVC’s Saharpur Jamarpani block in Jharkhand and Gondulpara coal block in the same state, jointly allocated to DVC and Tenughat Vidyut Nigam.
(sourced from Business-Standard)
Tuesday, November 1, 2011
Dispatch of coal to power firms a priority: Govt to coal miners
Tuesday, 1 Nov, 2011
NEW DELHI: Amid a severe disruption of electricity supply in different parts of the country due to an acute coal shortage, the government today said it has advised coal companies to ensure priority movement of the dry fuel to power stations to improve generation.
"The Ministry of Coal is regularly reviewing the coal stock position with the power plants of the country and government coal companies have been directed to give the highest priority to coal dispatches for the power sector," an official statement said.
In a bid to improve the stocks position at power stations, a total of 141 rakes carrying coal were dispatched to various units on October 30, it said.
"In addition to that, seven rakes and another 1,88,000 tonnes of coal were dispatched through the MGR (Merry-Go-Round transport mode, an exclusive arrangement made by the power stations themselves) to the power stations," it added.
In October, the railway load dispatched daily from CIL sources was 157 rakes, out of which 128 rakes were destined for power stations.
As per data released by Central Electricity Authority (CEA), 33 power plants with a total generation capacity of 39,054 MW across the country were facing an acute fuel shortage and had coal stocks for less than four days on October 28.
Power plants usually maintain 10-15 days of coal stocks. The situation is considered critical if the reserves fall below seven days' generation requirement.
The Coal Ministry said, "The stock position in the power stations of northern India has also been continuously reviewed. The average loading to these stations during the current month has been 44 rakes per day."
On October 30, a total of 51 rakes were dispatched, out of which 24 rakes were sent to the power stations of Uttar Pradesh alone. While three rakes were dispatched to the Unchahar plant, the Dadri project was sent 10 rakes. In addition, the thermal power station at Faridabad was sent 10 rakes and the Panipat plant four rakes.
During the last three days, 166 rakes have been dispatched to power stations in northern India. Regular coal supply is being maintained to power plants in Andhra Pradesh as well.
The Coal Ministry has attributed the shortage of coal to a number of factors, including lower production by Coal India on account of heavy rains in August-September and a strike at Singareni Collieries Company (SCCL), which has been called off.
Regular coal supply from SCCL has been restored, the ministry said last week, adding that it will take some more time for these plants to build up their coal stocks.
( sourced Economic Times)
NEW DELHI: Amid a severe disruption of electricity supply in different parts of the country due to an acute coal shortage, the government today said it has advised coal companies to ensure priority movement of the dry fuel to power stations to improve generation.
"The Ministry of Coal is regularly reviewing the coal stock position with the power plants of the country and government coal companies have been directed to give the highest priority to coal dispatches for the power sector," an official statement said.
In a bid to improve the stocks position at power stations, a total of 141 rakes carrying coal were dispatched to various units on October 30, it said.
"In addition to that, seven rakes and another 1,88,000 tonnes of coal were dispatched through the MGR (Merry-Go-Round transport mode, an exclusive arrangement made by the power stations themselves) to the power stations," it added.
In October, the railway load dispatched daily from CIL sources was 157 rakes, out of which 128 rakes were destined for power stations.
As per data released by Central Electricity Authority (CEA), 33 power plants with a total generation capacity of 39,054 MW across the country were facing an acute fuel shortage and had coal stocks for less than four days on October 28.
Power plants usually maintain 10-15 days of coal stocks. The situation is considered critical if the reserves fall below seven days' generation requirement.
The Coal Ministry said, "The stock position in the power stations of northern India has also been continuously reviewed. The average loading to these stations during the current month has been 44 rakes per day."
On October 30, a total of 51 rakes were dispatched, out of which 24 rakes were sent to the power stations of Uttar Pradesh alone. While three rakes were dispatched to the Unchahar plant, the Dadri project was sent 10 rakes. In addition, the thermal power station at Faridabad was sent 10 rakes and the Panipat plant four rakes.
During the last three days, 166 rakes have been dispatched to power stations in northern India. Regular coal supply is being maintained to power plants in Andhra Pradesh as well.
The Coal Ministry has attributed the shortage of coal to a number of factors, including lower production by Coal India on account of heavy rains in August-September and a strike at Singareni Collieries Company (SCCL), which has been called off.
Regular coal supply from SCCL has been restored, the ministry said last week, adding that it will take some more time for these plants to build up their coal stocks.
( sourced Economic Times)
Monday, October 31, 2011
Coal stock investors should look to India
Needs to add 75,000 MW of power generation over the next five years
Monday, October31, 2011
I’ve said it over and over – economic growth requires a cheap source of home-grown energy.
It doesn’t matter what country we’re talking about. Without cheap energy, economic growth stagnates, plain and simple. If energy is expensive, transportation gets expensive, and the cost of goods gets expensive. Consumer spending slows, and economic growth stagnates.
India may be facing just such a problem… To continue its economic growth, which is running at about nine percent annually, India needs to add 75,000 MW of power generation over the next five years.
India burns coal to generate about half of its electricity. In 2011, it’ll import about 54 million tons to generate power.
Nearly 85 percent of new generation over the next five years is targeted to come from coal-burning plants. That translates into a 400-percent rise in coal imports – to about 213 million tons by 2016 or 2017.
This is particularly ironic in that India is sitting on 10 percent of the world’s coal reserves, or approximately 267 billion tons.
How can a country with such vast reserves of coal have to increase its imports four times in as many years? The short and simple answer is bad policy decisions on the part of the government.
Coal India, a state-run monster, is the country’s main coal producer. Its 2010 production was a stagnant 431 tons. It’s suffered from increased environmental hurdles, difficulty in obtaining land and lack of adequate investment by India’s central government.
India’s growing supply gap
The widening power generation gap is particularly acute in India. Its rising middle class is demanding more shopping malls and air-conditioned homes and offices. The peak-power deficit (the amount of power needed versus what can be supplied) grew to 12 percent last year.
It’s going to get worse, and that could have a stalling effect on the country’s economic growth. Remember what happened here when oil prices shot through the roof?
India’s demand for coal has made Coal India the second-most valuable company in the country. Its 2010 IPO raised a record $3.5 billion. But even with that kind of investment, it will struggle to meet even a fraction of India’s additional demand for coal.
A report published by India’s Central Electric Authority, remarked “The Ministry of Coal/Coal India need to be impressed upon to formulate a contingency plan to meet the demand of the power sector.”
The reality is that there is no contingency plan. Even if the government came up with one, nothing would change short term.
The bottom line is that India will be importing four times the amount of coal it does now in five years. Countries and companies who export coal to India can sell all they can produce.
The demand from both India and China will keep a floor under coal prices, and the stocks of companies that produce and export it. Consider any one of the large coal exporters as a great place to start investing in the coal sector.
ABOUT THE AUTHOR
David Fessler, Investment U
Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth. www.investmentu.com
(sourced StockHouse)
Monday, October31, 2011
I’ve said it over and over – economic growth requires a cheap source of home-grown energy.
It doesn’t matter what country we’re talking about. Without cheap energy, economic growth stagnates, plain and simple. If energy is expensive, transportation gets expensive, and the cost of goods gets expensive. Consumer spending slows, and economic growth stagnates.
India may be facing just such a problem… To continue its economic growth, which is running at about nine percent annually, India needs to add 75,000 MW of power generation over the next five years.
India burns coal to generate about half of its electricity. In 2011, it’ll import about 54 million tons to generate power.
Nearly 85 percent of new generation over the next five years is targeted to come from coal-burning plants. That translates into a 400-percent rise in coal imports – to about 213 million tons by 2016 or 2017.
This is particularly ironic in that India is sitting on 10 percent of the world’s coal reserves, or approximately 267 billion tons.
How can a country with such vast reserves of coal have to increase its imports four times in as many years? The short and simple answer is bad policy decisions on the part of the government.
Coal India, a state-run monster, is the country’s main coal producer. Its 2010 production was a stagnant 431 tons. It’s suffered from increased environmental hurdles, difficulty in obtaining land and lack of adequate investment by India’s central government.
India’s growing supply gap
The widening power generation gap is particularly acute in India. Its rising middle class is demanding more shopping malls and air-conditioned homes and offices. The peak-power deficit (the amount of power needed versus what can be supplied) grew to 12 percent last year.
It’s going to get worse, and that could have a stalling effect on the country’s economic growth. Remember what happened here when oil prices shot through the roof?
India’s demand for coal has made Coal India the second-most valuable company in the country. Its 2010 IPO raised a record $3.5 billion. But even with that kind of investment, it will struggle to meet even a fraction of India’s additional demand for coal.
A report published by India’s Central Electric Authority, remarked “The Ministry of Coal/Coal India need to be impressed upon to formulate a contingency plan to meet the demand of the power sector.”
The reality is that there is no contingency plan. Even if the government came up with one, nothing would change short term.
The bottom line is that India will be importing four times the amount of coal it does now in five years. Countries and companies who export coal to India can sell all they can produce.
The demand from both India and China will keep a floor under coal prices, and the stocks of companies that produce and export it. Consider any one of the large coal exporters as a great place to start investing in the coal sector.
ABOUT THE AUTHOR
David Fessler, Investment U
Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth. www.investmentu.com
(sourced StockHouse)
Saturday, October 29, 2011
Power plant's coal crisis, coal rakes rush to power stations
Saturday, 29 Oct 2011
Indian Ministry of Coal is regularly reviewing the coal stock position with the power plants of the country. During 21st to 27th October, 2011, the total average railway rake loading was 169 rakes per day, out of which 134 rakes were for the power sector.
In addition, on an average, 6 MGR rakes and another 153,000 tonnes were also dispatched through MGR to the power stations during this month so far.
During October, till 27th October, 2011, the overall average rail loading from CIL sources was 156 rakes, out of which 127 rakes were dispatched to the power stations.
The coal stock position in the power stations where there is less than 4 days stock has also been continuously reviewed. Out of 32 power stations which are having less than 4 days stock as on 26.10.2011, 4 plants are located in Andhra Pradesh and 8 plants are located in West Bengal. Due to strike in Singareni Collieries Company Ltd, the coal supplies to the power plants of Andhra Pradesh were affected and now that the strike has been called off, regular coal supply from SCCL has been restored. However, it will take some more time for these plants to build up coal stocks. The power plants of West Bengal have been regulating their coal supplies from ECL due to huge outstanding payments payable to the coal company and increase in the cost of higher grade of coal being supplied to these plants.
There are three power plants located in Tamil Nadu having less than 4 days coal stock. During the period of strike in SCCL, railway rakes from MCL and other coal companies were diverted to Andhra Pradesh, which has resulted in reduced availability to the plants of Tamil Nadu. The coal supplies from MCL /ECL to these plants has now picked up and it is expected that the coal supply to the ports, from where the coal is evacuated by TNEB through ships, would improve shortly.
There are five power pithead plants where there is coal stock of less than 4 days. Coal is being moved to these plants through Merry-Go-Round (MGR) and are nearer to the mines. Therefore, building of huge stocks in such power stations is generally not done.
As on 26.10.2011, the power plants had 8.13 MT of coal stocks, which is equivalent to 7 days stock.
The coal companies have been advised to ensure priority movement of coal to the power stations of the country so as to improve the power generation and to build up coal stocks.
sourced steel guru.
Indian Ministry of Coal is regularly reviewing the coal stock position with the power plants of the country. During 21st to 27th October, 2011, the total average railway rake loading was 169 rakes per day, out of which 134 rakes were for the power sector.
In addition, on an average, 6 MGR rakes and another 153,000 tonnes were also dispatched through MGR to the power stations during this month so far.
During October, till 27th October, 2011, the overall average rail loading from CIL sources was 156 rakes, out of which 127 rakes were dispatched to the power stations.
The coal stock position in the power stations where there is less than 4 days stock has also been continuously reviewed. Out of 32 power stations which are having less than 4 days stock as on 26.10.2011, 4 plants are located in Andhra Pradesh and 8 plants are located in West Bengal. Due to strike in Singareni Collieries Company Ltd, the coal supplies to the power plants of Andhra Pradesh were affected and now that the strike has been called off, regular coal supply from SCCL has been restored. However, it will take some more time for these plants to build up coal stocks. The power plants of West Bengal have been regulating their coal supplies from ECL due to huge outstanding payments payable to the coal company and increase in the cost of higher grade of coal being supplied to these plants.
There are three power plants located in Tamil Nadu having less than 4 days coal stock. During the period of strike in SCCL, railway rakes from MCL and other coal companies were diverted to Andhra Pradesh, which has resulted in reduced availability to the plants of Tamil Nadu. The coal supplies from MCL /ECL to these plants has now picked up and it is expected that the coal supply to the ports, from where the coal is evacuated by TNEB through ships, would improve shortly.
There are five power pithead plants where there is coal stock of less than 4 days. Coal is being moved to these plants through Merry-Go-Round (MGR) and are nearer to the mines. Therefore, building of huge stocks in such power stations is generally not done.
As on 26.10.2011, the power plants had 8.13 MT of coal stocks, which is equivalent to 7 days stock.
The coal companies have been advised to ensure priority movement of coal to the power stations of the country so as to improve the power generation and to build up coal stocks.
sourced steel guru.
Wednesday, October 26, 2011
Indian Coal ministry constantly monitoring supply to power projects
Wed, Oct26, 2011
NEW DELHI: The government on Tuesday said it was constantly monitoring coal supply and stock position at power plants. The coal ministry said a total of 181 coal rakes were dispatched to consumers on Monday, of which 147 rakes went to the power sector.
In addition seven rakes and another 1, 77,000 tonnes of coal was dispatched through merry-go-round and exclusive transportation ties ups.
The overall average rail loading from Coal India Ltd sources was 156 rakes per day, of which 127 rakes per day were dispatched to the power stations.
The ministry in an official statement said coal stock position in power stations in northern India is also being continuously reviewed. Average loading to these stations during the current month has been 43 rakes per day.
On Monday, a total of 53 rakes were dispatched, of which 26 rakes were dispatched to Uttar Pradesh, nine to Rajasthan, eight to Haryana, seven to Delhi and three to Punjab power stations. During the last three days alone, a total of 146 rakes have been dispatched to the power stations in northern India.
"The coal companies have been advised to ensure priority movement of coal to the power stations of the country and their coal availability is improving," the ministry statement said.
(source ET)
NEW DELHI: The government on Tuesday said it was constantly monitoring coal supply and stock position at power plants. The coal ministry said a total of 181 coal rakes were dispatched to consumers on Monday, of which 147 rakes went to the power sector.
In addition seven rakes and another 1, 77,000 tonnes of coal was dispatched through merry-go-round and exclusive transportation ties ups.
The overall average rail loading from Coal India Ltd sources was 156 rakes per day, of which 127 rakes per day were dispatched to the power stations.
The ministry in an official statement said coal stock position in power stations in northern India is also being continuously reviewed. Average loading to these stations during the current month has been 43 rakes per day.
On Monday, a total of 53 rakes were dispatched, of which 26 rakes were dispatched to Uttar Pradesh, nine to Rajasthan, eight to Haryana, seven to Delhi and three to Punjab power stations. During the last three days alone, a total of 146 rakes have been dispatched to the power stations in northern India.
"The coal companies have been advised to ensure priority movement of coal to the power stations of the country and their coal availability is improving," the ministry statement said.
(source ET)
30 thermal power plants including NTPC and Reliance Power have coal stock for just four days
Wed, 26 Oct, 2011
NEW DELHI: Coal stocks at India's thermal power plants are critically low on the eve of Diwali, and will not improve unless coal supplies are stepped up significantly, a senior power ministry official said. However, coal-sector authorities said dispatches to power plants had increased.
Coal Minister Sriprakash Jaiswal has directed coal companies to give top priority to power plants compared to other customers, but power stations are running with very thin stocks and supplies are not enough to build stocks to a comfortable level.
"The critical stock with power projects is a matter of great concern. The coal supply is sufficient for hand-to-mouth existence. There is no coal on railway sidings. Stock would not improve unless we get at least 30-40 additional rakes everyday. The silver lining, however, is that we are receiving 100% coal supply now and projects are operating at full capacities," a senior power ministry official said
Many plants, including units run by leading energy companies such as NTPC, Reliance Power, Sterlite and Damodar Valley Corp had coal stocks for less than seven days, a condition that the Central Electricity Authority says is "critical".
Latest CEA data shows that number power projects with critically low stocks of coal increased to 48 on Monday from 44 two weeks ago. Thirty plants had "supercritical" stock that would last less than four days. There are 89 coal based electricity generation stations in India that have a capacity of 86,000 mw.
NTPC's Singrauli, Mejia, Vindyachal and Damodar Valley's Kodarma projects and few other projects with about 9,000-mw had no coal stock as against a normative requirement of 15-20 days. On an average coal plants have stocks for barely seven days.
The power ministry official said coal stocks would continue to deplete unless about 190 rakes are dispatched to power sector alone. The coal ministry said a total 147 rakes were dispatched to power projects on Monday. In addition seven rakes and another 1,77,000 tonnes of coal was dispatched through exclusive transportation ties ups.
A coal ministry statement said a total of 181 coal rakes were dispatched to all consumers including power plants on Monday. "The coal companies have been advised to ensure priority movement of coal to the power stations of the country and their coal availability is improving," a coal ministry statement said.
The overall average rail loading from Coal India Ltd was 156 rakes per day, of which 127 were dispatched to power stations. During the last three days, 146 rakes have been dispatched to the power stations in northern India.
Heavy floods, strikes at mines and the Telangana agitation has crippled mining and loading operations in several states had depleted coal stock at power plants in trhe beginning of this month.
source ET
NEW DELHI: Coal stocks at India's thermal power plants are critically low on the eve of Diwali, and will not improve unless coal supplies are stepped up significantly, a senior power ministry official said. However, coal-sector authorities said dispatches to power plants had increased.
Coal Minister Sriprakash Jaiswal has directed coal companies to give top priority to power plants compared to other customers, but power stations are running with very thin stocks and supplies are not enough to build stocks to a comfortable level.
"The critical stock with power projects is a matter of great concern. The coal supply is sufficient for hand-to-mouth existence. There is no coal on railway sidings. Stock would not improve unless we get at least 30-40 additional rakes everyday. The silver lining, however, is that we are receiving 100% coal supply now and projects are operating at full capacities," a senior power ministry official said
Many plants, including units run by leading energy companies such as NTPC, Reliance Power, Sterlite and Damodar Valley Corp had coal stocks for less than seven days, a condition that the Central Electricity Authority says is "critical".
Latest CEA data shows that number power projects with critically low stocks of coal increased to 48 on Monday from 44 two weeks ago. Thirty plants had "supercritical" stock that would last less than four days. There are 89 coal based electricity generation stations in India that have a capacity of 86,000 mw.
NTPC's Singrauli, Mejia, Vindyachal and Damodar Valley's Kodarma projects and few other projects with about 9,000-mw had no coal stock as against a normative requirement of 15-20 days. On an average coal plants have stocks for barely seven days.
The power ministry official said coal stocks would continue to deplete unless about 190 rakes are dispatched to power sector alone. The coal ministry said a total 147 rakes were dispatched to power projects on Monday. In addition seven rakes and another 1,77,000 tonnes of coal was dispatched through exclusive transportation ties ups.
A coal ministry statement said a total of 181 coal rakes were dispatched to all consumers including power plants on Monday. "The coal companies have been advised to ensure priority movement of coal to the power stations of the country and their coal availability is improving," a coal ministry statement said.
The overall average rail loading from Coal India Ltd was 156 rakes per day, of which 127 were dispatched to power stations. During the last three days, 146 rakes have been dispatched to the power stations in northern India.
Heavy floods, strikes at mines and the Telangana agitation has crippled mining and loading operations in several states had depleted coal stock at power plants in trhe beginning of this month.
source ET
Saturday, October 8, 2011
Poor coal supply forces NTPC to reduce output in Bihar and West Bengal plant
Saturday, 08 Oct 2011
ET reported that inadequate coal dispatches have forced state run NTPC to slash output at two of its plants in Bihar and West Bengal, affecting power supply to parts of northern, eastern and western regions during the peak festival season.
Output at key plants has been falling of late because of poor coal supplies. Some 35 of India's 86 thermal stations have a coal stock position that will barely last seven days.
Stocks at 26 of these plants are just enough to generate for the next four days, according to the Central Electricity Authoirty. The installed capacity of these 86 thermal power stations is 85,477 MW.
(Sourced from ET)
ET reported that inadequate coal dispatches have forced state run NTPC to slash output at two of its plants in Bihar and West Bengal, affecting power supply to parts of northern, eastern and western regions during the peak festival season.
Output at key plants has been falling of late because of poor coal supplies. Some 35 of India's 86 thermal stations have a coal stock position that will barely last seven days.
Stocks at 26 of these plants are just enough to generate for the next four days, according to the Central Electricity Authoirty. The installed capacity of these 86 thermal power stations is 85,477 MW.
(Sourced from ET)
Saturday, March 5, 2011
Shaanxi may ration power on short coal supply
Mar 5, 2011
Northwestern China's Shaanxi province would have to cut power supply again, as the province is facing a gap of 100 kWh electricity due to badly shortage of power coal, local paper Huashang Daily reported.
Since Feb, coal stocks in the province’s 14 main power plants have been falling by 23,000 tonnes per day on average.
Each day, an average of 83,000 tonnes coal was carried to these power plants, compared to some 106,000 tonnes being used, showed data from the dispatching center of Shaanxi Power Grid.
As of Mar 2, these 14 power plants had 659,000 tonnes coal in stock, enough for use of 3.8 days on average, nine plants only enough for less than 3 days.
Shaanxi Power Grid Corp is striving to increase coal supply to 150,000 tonnes each day.
Meanwhile, Shaanxi stopped supplying power out of the province starting from Mar 1, in a bid to secure local demand.|By en.sxcoal|
Northwestern China's Shaanxi province would have to cut power supply again, as the province is facing a gap of 100 kWh electricity due to badly shortage of power coal, local paper Huashang Daily reported.
Since Feb, coal stocks in the province’s 14 main power plants have been falling by 23,000 tonnes per day on average.
Each day, an average of 83,000 tonnes coal was carried to these power plants, compared to some 106,000 tonnes being used, showed data from the dispatching center of Shaanxi Power Grid.
As of Mar 2, these 14 power plants had 659,000 tonnes coal in stock, enough for use of 3.8 days on average, nine plants only enough for less than 3 days.
Shaanxi Power Grid Corp is striving to increase coal supply to 150,000 tonnes each day.
Meanwhile, Shaanxi stopped supplying power out of the province starting from Mar 1, in a bid to secure local demand.|By en.sxcoal|
Sunday, February 13, 2011
China’s coal price kept stable on ample supply during Lunar New Year
Feb11, 2011
China's coal price remained stable under ample supply during the Chinese Lunar Spring Festival in Feb 2-8 despite international coal price hike.
By Feb 2, China's benchmark power coal price stood unchanged for two consecutive weeks at 774 yuan/t.
Meanwhile, coal stocks at Qinhuangdao Port, a major coal transit and trading center in north China, stayed high, reaching 7.726 8 million tonnes by Feb 7.
At the same time, daily coal output of major coal producers in Shanxi has approximated to 1 million tonnes by Feb 7, which guaranteed stable coal supply to domestic market. Insiders believe that China's steam coal price is unlikely to jump under the government's price control.
Besides, international coal price is staying range bound at a high level after reaching the peak, which lessened the pressure to drive up domestic coal price.
Currently, steam coal price at New Castle Port in Australia stands at US$ 125 a tonne, down US$2 per tonne from the price on Feb 4.
Li Zhaolin, a coal expert in China, noted that China's coal price will keep stable in general in 2011, with rise estimated at 3 percent over 2010.
(sourced:Xinhua)
China's coal price remained stable under ample supply during the Chinese Lunar Spring Festival in Feb 2-8 despite international coal price hike.
By Feb 2, China's benchmark power coal price stood unchanged for two consecutive weeks at 774 yuan/t.
Meanwhile, coal stocks at Qinhuangdao Port, a major coal transit and trading center in north China, stayed high, reaching 7.726 8 million tonnes by Feb 7.
At the same time, daily coal output of major coal producers in Shanxi has approximated to 1 million tonnes by Feb 7, which guaranteed stable coal supply to domestic market. Insiders believe that China's steam coal price is unlikely to jump under the government's price control.
Besides, international coal price is staying range bound at a high level after reaching the peak, which lessened the pressure to drive up domestic coal price.
Currently, steam coal price at New Castle Port in Australia stands at US$ 125 a tonne, down US$2 per tonne from the price on Feb 4.
Li Zhaolin, a coal expert in China, noted that China's coal price will keep stable in general in 2011, with rise estimated at 3 percent over 2010.
(sourced:Xinhua)
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