Demand for coal from SE Asia set to ‘triple in the next 25 years’

The outlook is strong for NSW coal, confirmed by a new International Energy Agency report predicting that South-east Asian coal demand is set to triple in the next 25 years.

 

This is particularly good news for coal exports in NSW, supported by news earlier this month that the T4 project, a fourth coal terminal at the Port of Newcastle has been approved by the PAC (Planning Assessment Commission). 

 

The coal terminal will allow for an increase in export capacity by up to 70 million tonnes per year at full development, facilitating the expected rise in coal exports in the near future. 

 

Paul Flynn, CEO of Whitehaven Coal told the Australian Financial Review that those analysts predicting a decline in Australian coal exports were ignoring the higher energy content of Australian coal, which made it more suitable for new high-efficiency, lower carbon dioxide emitting coal plants. 

 

He also said that Australian coal would be required to meet demand from the many planned low emission power stations throughout Asia in the next few years.

 

‘That does see the supply-demand dynamic tightening,’

 

‘You cannot deny the build-out of power stations in those countries. That is happening and they don’t have the coal to service it.’ Mr Flynn added 

 

And it’s not just the International Energy Agency acknowledging the importance of Australian coal exports today, 2GB radio host Alan Jones has said live on air this morning that he supports coal mining, saying it will remain an important Australian export industry for many years to come.