Asia growing need for energy projects a fascinating year of change and progress for the coal sector of Australia. China, Indonesia, and China emerged as the leading miners of coal in the country.
According to the International Energy Agency, the black coal sector benefits from a large high-quality resource base, in particular, low cost/high-quality coking coal, and from a formidable mining industry which has successfully cut costs in recent years. The agency added that Australia continues to be well-positioned to serve coal import needs in the Pacific Basin and it is well-positioned to grow its exports of both thermal coal and coking coal over the next two decades.
The agency projected that the country's coal export will boost by 22 percent between 2017 and 2040 and its total coal production is expected to grow by not less than 14 percent. The large part of the nation's export will focus on Asia. China is expected to shift from using non-renewable energy like coal and oil into cleaner sources of energy like gas, renewable energy. According to the World Energy Outlook, China's coal use may have already been at its peak. However, its expected coal demand is still expected at 2.4 billion tonnes in 2040 which is still higher than it's coal use in 2000.
It is also expected that India's coal consumption is expected to grow by 120 percent by 2040. The country is expected to increase its domestic coal production while maintaining its projection to become the world's largest importer of coal. India is one of the leading exporters of oil from Australia.
Indonesia also emerged as one of the miners of coal in Australia. According to the World Energy Outlook, Indonesian coal exports will drop by more than 40 percent in 2040 because most of its thermal coal will be used in its domestic power generation.
The World Energy Outlook said that South East Asia's coal demand is projected to increase by 120 percent by 2040. Coal will serve as the main source of fuel for power generation in the region. Indonesia, however, is still expected to rely on imports for its coal demand.
The demand for Australian coal will soon compete with new coal plants being built in places that include UAE, Iran, Jordan, and Egypt. Australia will also compete with Russia's growing potential to expand its market share. According to projections, Russia will stand as the second largest coal exporter by 2030.
