PLN coal consumption weaker than projected

Coal consumption by state-owned electricity company PT PLN, the main consumer of coal in the country, this year is weaker than initially anticipated as a result of lower power demand from manufacturing industries.

Director for Coal Management and Development at the Ministry of Energy and Mineral Resources, Adhi Wibowo was quoted by Kontan as saying Thursday that as of mid December, PLN could only absorb 61 million tons coal of the total 74 million tons allocated for the company under the government?s 2015 domestic market obligation (DMO) policy.

He said that the weaker coal consumption by PLN is related to lower electricity demand from industries amid the country?s current economic slowdown.

The government, through its DMO policy, has allocated a total of 92.31 millions of coal for domestic consumption this year based on demand request made earlier by local consumers including PLN, cement, fertilizer, textiles and other industries. More than 80 percent of the DMO volume is allocated for PLN. (*)