Expert “Long-term effects… need to be prepared”
Regarding the coal export ban that Indonesia decided to implement this month, the government said, “The impact on the domestic industry and electricity supply and demand is limited.”
The Ministry of Trade, Industry and Energy held an ‘Emergency Meeting of the Energy and Resources Supply and Demand Management Task Force (TF)’ on the 3rd to check the domestic energy and electricity supply and demand trend following the Indonesian coal export ban. The Indonesian government imposed a ban on the export of bituminous coal from the 1st to the 31st of this month following the country ran out of coal stocks for power generation at the end of December last year. After supplying all coal to its power plants by the 5th of this month, the company plans to review coal stocks and resume exports. South Korea’s average annual coal import share in 2018 was Australia (49%), Indonesia (20%), and Russia (11%).
The government expects that the arrival of some of this month’s scheduled imports may be delayed, but the impact on the overall energy supply and demand in Korea will be negligible. 55% of the stock in January has already been shipped and departed. The government explained that the coal stocks secured by domestic power companies in advance are sufficient and imports from other countries such as Australia are being made normally.
Experts believe that if coal exporting countries strengthen such a move this year, it will affect industries such as electricity and steel in the long term. As China and other countries import large-scale coal from Indonesia, some point out that they should prepare for the ‘butterfly effect’ that this measure will have. Kang Cheon-gu, a professor of energy and resource engineering at Inha University, pointed out, “As export restrictions may continue until the first half of this year (January to June), thorough preparations such as diversification of importing countries are necessary.”
Sejong = Reporter of the former special school [email protected]