Indonesia threatens to stop supply of coal to Philippines

• 7 years ago (2016-06-27)
• David Flin

Europe 1061

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Coal-fired power plants in the Philippines are at risk of losing their supply of coal from Indonesia in the wake of the recent kidnapping of Indonesian nationals in Philippine waters. Indonesia has issued a moratorium on coal exports until the Philippines guarantees the security of its shipping vessels and crew.

Coal-fired power plants accounted for 51 per cent of the country’s generation mix in May 2016. Most of these plants rely on Indonesian coal, which is cheaper than other sources due to its proximity.

The Philippines imported 98.6 per cent of its total coal imports from Indonesia, with the rest coming from Vietnam and Russia.

Zenaida Monsada, Energy Secretary of the Philippines, said: “The Department of Energy is looking at coal inventories of importers and the power plants, as well as the replenishment schedules.” Monsada said that the Philippines could not afford to lose coal supply from Indonesia.

The country’s coal plants have inventory levels varying from 30-60 days. Coal plant operators said their suppliers could obtain coal from Australia in Indonesia cuts its supply.