Japan power firms to double Indonesian coal import in 2010

Indonesian thermal coal will continue to gain significance for Japan?s coal-fired power plants and import volume is predicted to double in 2010.

?In 2000, Japan power plants used 6.2 million tons of coal from Indonesia, which represented 12 percent of their total coal consumption. In 2001, the number grew into 7.1 million, or 13 percent of total their thermal coal requirement. In 2010, the number will double to 15.7 million tons, and Indonesian share will increase to 22 percent,? a trader from one of Japan?s trading powerhouse told Petromindo.Com recently.

Indonesia is currently the third largest thermal coal exporter to Japan after Australia and China, accounting for 15 percent of Japan thermal coal requirement in 2000.

The trader said Indonesian coal would continue to gain popularity amongst Japan power plants due to transportation competitiveness, huge coal reserve, low ash and sulphur and relatively high calorific value.

However, the trader warned that Japan?s coal consumers are worried about Indonesian political and economic uncertainty and poor infrastructure, which lead to decreasing supply stability.(alex)