Coal deficit looms

The Weekend Australian - Travel - - Resources -

ASIA-PA­CIFIC na­tions in­clud­ing China, the world’s big­gest coal pro­ducer, will have a 103 mil­lion-ton an­nual deficit of the fuel used by gen­er­a­tors by 2020 as more power plants are built in the re­gion, ac­cord­ing to UBS AG.

‘‘ Util­i­ties in Asia are — ex­cept for Ja­pan — not sub­ject to car­bon emis­sion caps or costs, and coal is likely to re­main the pre­ferred fuel,’’ an­a­lysts in­clud­ing Hong Kong-based Stephen Old­field wrote in a re­port to clients pub­lished this week. The re­sult will be ‘‘ strong pric­ing for a sus­tain­able pe­riod’’.

De­mand for ther­mal coal in the re­gion will in­crease to 6 bil­lion tons in 2020 from 2.5 bil­lion tons last year, says UBS, Europe’s big­gest bank. China, the world’s fastest-grow­ing ma­jor econ­omy, will be the main driver of the coal short­age, USB says.

China’s pro­duc­tion of power gen­er­ated from coal will in­crease by 145 per cent by 2020, ac­cord­ing to the UBS re­port. AAP, Bloomberg

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