Page 10 - AsiaElec Week 14 2022

AsiaElec COAL AsiaElec

Vietnam looks to South

Africa, Australia for

coal in tight markets

VIETNAM VIETNAM is seeking more coal from South on April 4 said that the coal phase-out in Europe
Africa and Australia for delivery in April and and North America would reduce demand for
May as domestic production falls and supplies coal.
from Asia tighten amid growing prices. “The year 2030 looks to be a significant turn-
Global coal markets have been disrupted by ing point, representing a coal power phase-out
Russia’s invasion of Ukraine and volatile prices, date for many OECD countries, but a peak
meaning that Vietnam has to find new sources demand date for a number of nations across
of supply. Asia,” the report said. “The underpinning tran-
Vietnamese Trade Minister Nguyen Hong sition of energy sources across much of the world
Dien asked the South African Ambassador could lead to significant volatility in coal trade
to Vietnam, Mpetjane Kgaogelo Lekgoro, to and coal prices in the interim.”
connect Vietnam coal companies Vinacomin, Demand would then shift to Asia’s emerging
Northeast Corp. and EVN with South African economies, leading to volatile prices and market
suppliers in order to procure coal supplies for movements.
April and May, the ministry said in a statement, “Imports to nations excluding India, China,
S&P Global Commodity Insights reported. Japan and South Korea are expected to rise from
Dien spoke with Australian Ambassador to 221mn tonnes in 2021 to 239mn tonnes in 2027,”
Vietnam Robyn Mudie about increasing delivery it said. Imports are anticipated to moderate for
in April, the statement also said. Japan, Taiwan and South Korea due to their ‘net
The news comes as the Australian govern- zero’ carbon policy commitments.
ment released a forecast saying that Vietnam’s Imports to Asia are expected to offset much of
rising power demand and difficulties in step- the decline – coal use in China is likely to remain
ping up domestic production would lead to coal strong, with the government recently removing
imports climbing until 2025, reaching a peak in energy intensity goals from its energy targets.
2030. However, China also continues to seek ways to
Vietnam did not import any coal from South reduce its dependency on coal imports, which
Africa in 2021, while it imported 15.6mn tonnes could come about through expanding domestic
from Australia, down 23.15% from 2020, Viet- production, it said.
namese customs showed. Coal demand in India is predicted to rise
EVN said in March that Vietnam was steadily over the outlook period, rising by 20mn
expected to face a power shortage in April and tonnes to 173mn tonnes by 2027, with growth
May because of the fuel shortage in the coun- then slowing thereafter amid an anticipated rise
try, S&P Global Commodity Insights reported in domestic output.
March 31. Thailand may begin phase-outs towards
Vietnam’s search for more coal comes as the 2027, with coal-powered generation expected to
Australian government said that global demand fall to 10% by 2030.
for coal was moving away from developed econ- Efficiency and price competitiveness in coal-
omies towards developing countries in Asia, fired generation in Malaysia and planned con-
forcing global markets to adjust. struction of new plants in the Philippines are
The Resources and Energy Quarterly report anticipated to keep import demand firm.™
released by Australia’s Office of Chief Economist

P10 www. NEWSBASE .com Week 14 06•April•2022