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Taiwan turns to Indonesia after PRC halts coal exports

Taiwan turns to Indonesia after PRC halts coal exports

Taiwan Power Co., the island's biggest electricity producer, said it bought 980,000 metric tons of Indonesian coal after China halted exports.
The amount was short of the 1.05 million tons the company had sought, as some bids didn't meet the utility's specifications, George Hsu, Taiwan Power's fuels department chief, said by telephone in Taipei yesterday.
Taiwan Power, or Taipower, purchased the fuel in the spot market after snowstorms in China disrupted production. The mainland accounts for about 15 percent of the Taipei-based utility's coal supplies. Thermal coal prices at Australia's Newcastle port, a benchmark for Asia remained near a record as rains cut deliveries in Queensland.
Taiwan Power isn't seeking any more spot coal for now "because prices are quite high," Hsu said. "Further purchases will depend on how output in China and Australia recovers."
Generators that run on coal accounted for 45 percent of Taiwan's electricity production in December, according to Taiwan Power's Web site. The government owns 97 percent of the utility, which produces about 75 percent of the electricity the island uses and monopolizes transmission in Taiwan.
Taiwan Power will need 27.5 million tons of coal in 2008, compared with an estimated 28.2 million in 2007, after closing one of its oldest power stations that ran on the fuel, Chief Engineer Tu Yueh-yuan said in December.


Updated : 2021-06-19 11:20 GMT+08:00