Regional Coal: Malaysia?s MBC secures coal transport deal from TNB

Malaysian Bulk Carriers Berhad (MBC) announced on Friday that it had been awarded a Contract of Affreightment (COA) by Tenaga Nasional Berhad (TNB) for the transportation of approximately 2 million tons of steam coal per annum to Malaysian Ports.

?The COA is for a contract term of 3 years with the option to extend for a further 1 year at TNB's option,? MBC said without specifying where the coal will be sourced.

TNB, a Malaysian state-owned electricity company, is currently operating two coal-fired power plants in the country, that is the 1,600 MW Kampar power station and the 2,100 MW Manjung power plant. The two power plants need around ten million tons of coal annually.

Malaysia had been importing about 60 percent of its coal needs from Australia, 30 percent from Indonesia, and 5 percent each from China and South Africa. However with the commissioning of the Manjung power plant, which is capable of burning sub-bituminous coal, import from Indonesia has increased to more than 50 percent. (robert)