According to the vessel line-up data compiled by CoalMint Research, coal imports by Pakistan have increased 36% Y-o-Y to 14,579,221 MT in CY18 compared with 10,738,658 MT in CY17.
Previous year’s total was eventually crossed in Sep’18, driven by higher coal demand from the power sector and cement industries.
However, import volumes have been rather subdued in the final quarter of CY18, wherein the importers had lowered their intake in the event of the newly formed government in the country.
Nevertheless, there was a steady rise in coal imports on the monthly basis during Dec’18. Imports in Dec’18 was marked 2% higher on the month at 1,032,811 MT, also rising 19% Y-o-Y from 868,393 MT in Dec’17.
Major Coal Suppliers in CY18:
A country-wise break-up of coal imports indicate that South Africa remained the largest coal supplier to Pakistan in CY18, but its share in the total volume has drastically fallen over the year.
South African coal export to Pakistan increased 5% Y-o-Y to 8,976,254 MT in CY18 compared with 8,530,058 MT in CY17.
Indonesian coal exports witnessed a remarkable growth of 138% Y-o-Y, marked at 3,832,590 MT in CY18, thus gaining fair share in Pakistan’s total imports.
Mozambique overtook Russia to become the third largest coal supplier to Pakistan in CY18. Mozambique’s coal export increased nearly 5-folds to 674,440 MT, while exports from Russia were marked at 460,431 MT in CY18.
Pakistan had also procured coal shipments from Canada, Mexico, Ukraine and UAE in this year.
Outcome of CPEC Investment on Pakistan’s Energy Mix:
Investments made under China-Pakistan Economic Corridor (CPEC) have come as a boon for energy-starved market of Pakistan, wherein the coal-based power plants providing affordable energy to the country in a diversified way.
With the introduction of CPEC energy projects, Pakistan has added 3240 MW to the national grid, accounting to more than 11% of the country’s total installed capacity.
These projects also have helped Pakistan reduce its heavy dependence on gas and LNG power plants, which account for 50% of total installed capacity.
Besides, the installation of the super-critical coal-fired plants under CPEC has significantly lowered the power tariff from PKR 16-18 per unit to PKR 7-8 per unit.
Energy projects are marked as priority under the CPEC framework, where 15 projects were handed preference above others, among which 7 are completed and in operation while 6 are under construction.
At present, Zonergy 300 MW Solar Park, 50 MW Dawood Wind Farm, Jhimpir UEP wind power project, Sachal 50 MW Wind Farm, Sahiwal 2×660MW Coal-fired Power Plant, Port Qasim 2×660MW Coal-fired Power Plant and Three Gorges second and third Wind Power Projects have been completed.
With many more power plants excepted to be operational in 2019, Pakistan’s coal imports are likely to grow subsequently.
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