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India’s coal imports fall 30%

INDIA INDIA’S coal imports fell by 29.7% to 48.84mn In May, imports stood at 15.22mn tonnes,
tonnes in three months to June, spelling good compared with 16.54mn tonnes imported in
news for government efforts to replace 100mn May 2020.
tonnes of coal imports with domestic supplies. Of the total imports in June 2020, non-cok-
The figures compared with the 69.54mn ing coal was at 10.06mn tonnes, against 10.54mn
tonnes that India imported in the same period tonnes imported in May 2020.
in 2019, according to industry data published by Coking coal imports were at 2.84mn tonnes
India’s mjunction. in June 2020, against 3.18mn tonnes imported in
The drop in imports assumes significance in the previous month.
the wake of government mandating state-owned From April to June 2020, non-coking coal
Coal India Ltd (CIL) to replace at least 100mn imports stood at 32.88mn tonnes, compared
tonnes of imports with domestically produced with 48.48mn tonnes during the year-ago period.
coal in 2020-21. India is expected to save around INR300bn
The country’s coal imports also dropped ($4bn) crore annually on its import bill of ther-
22.5% to 15.22mn tonnes in June 2020, com- mal coal through its commercial mining of
pared with 19.64mn tonnes in June 2019. blocks, Coal Minister Pralhad Joshi had earlier
“The weak trend in imports is in line with said.
market expectation, given the continued high He had said the country still imports one-fifth
stockpile of coal in the system. The plunge in of its annual coal requirements and spends pre-
thermal power sector’s PLF (plant load factor) in cious foreign exchange on it.
the past couple of months and the sharp decline In June, the government began the process of
in cement output do not augur well for import auctioning coal blocks for commercial mining
demand in [the] coming month,” mjunction MD and put on sale 41 blocks.™
and CEO Vinaya Varma said.

GAS-FIRED GENERATION

Japan confirms $14.4bn

investment in Mozambique

JAPAN JAPAN has announced a $14.4bn investment project, in which Mitsui & Co. and JOGMEC
drive by some of the country’s leading energy together hold 20%.
developers and financiers in Mozambique’s LNG Japan’s confirmation of the involvement of
potential, strongly suggesting that a group of pri- its commercial banks as well as the state-owned
vate and state banks have agreed to lend to Total’s JBIC is a good sign that Total will be able to
Mozambique LNG project. secure all its financing by the end of 2020.
The headline deal, reported by the Nikkei at In June, Total said it had reached an agree-
the end of last week, is Mitsui & Co. and Japan ment with a group that included 20 lenders for
Oil, Gas and Metals National Corp.’s (JOGMEC) the first phase of senior debt funding of $14.4bn.
ownership of a 20% stake in a 12mn tonne per Other banks named included Standard Bank
year (tpy) project that will see the development Group, Societe Generale and Rand Merchant
of a gas field in the north of Mozambique, Japan’s Bank.
Nikkei reported. As well as Total’s $20bn Mozambique LNG
Four Japanese private banks – MUFG Bank, project, which aims to produce 12mn tpy of
Mizuho Bank, Sumitomo Mitsui Banking and LNG, ExxonMobil is developing the 7.6mn tpy
Sumitomo Mitsui Trust Bank – will provide Romuva project in the African country. How-
most of the debt funding for the project, and ever, only Total is close to FID, with Exxon delay-
the state-owned Japan Bank for International ing any decision until 2021.
Cooperation (JBIC) will furnish $3bn in loans. Even though Japan’s LNG imports fell by 8.8%
The African Development Bank (AfDB) will also year on year in April to 5.13mn tonnes, because
support the project, the report said. of the impact of COVID-19, LNG import are of
The report in the Nikkei suggested that the long-term strategic importance to the country’s
money would support Total’s Mozambique LNG energy sector.™

Week 27 08•July•2020 www. NEWSBASE .com P7