Malaysia's May thermal coal imports fall on weak demand

Spanish Market: Coal
14/07/26

Malaysia's thermal coal imports fell on the year in May because of weaker demand for coal-fired generation.

Malaysia imported 2.5mn t of thermal coal in May, down by 24pc on the year, according to Malaysian customs data. Imports in May almost halved from April.
Indonesia remained the top supplier of coal to Malaysia, accounting for 79pc of imports in May. Malaysia received 1.97mn t of Indonesian coal in May, down by 17pc from a year earlier and falling by 40pc from April.
Australian coal shipments to Malaysia reached 318,000t in May, falling by 51pc from 2025 and down by 62pc from April. Australia accounted for 13pc of Malaysian coal imports in May.
Overall imports in January-May reached 13.8mn t, down by 7pc on the year.
Coal-fired generation reached 7.17TWh in May, down from 7.29TWh recorded in the same period a year earlier, according to data from electricity planning authority Single Buyer. Coal accounted for 54.9pc of the country's generation mix in May, followed by gas at 41.1pc.
Malaysian coal imports may continue to weaken in the near term, as coal-fired power output reached only 6.7TWh in June, down from 7.56TWh in June 2025. Coal's share in the generation mix in June was at 52.5pc, while the country's gas reliance rose to 42.8pc.

By Nadhir Mokhtar

Malaysia's thermal coal imports by origin					t
	May '26	± on-month (%)	± on-year (%)	May '25	Apr '26
Indonesia	1,970,842	-40.3	-17.2	2,379,268	3,302,016
Australia	318,335	-62	-50.7	646,153	837,301
Canada	79,202	1.3			78,148
Total	2,497,556	-49.3	-23.6	3,268,429	4,924,206
Source: GTT, Malaysian customs data

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17/09/26

India's coal supply recovery gathers pace in September

Singapore, 17 September (Argus) — India's coal output and supplies rose in the first half of September as rainfall eased and operating conditions improved across key mining regions, with the higher domestic availability likely to help utilities replenish stocks and weigh on imported coal demand. Coal India (CIL), which accounts for about three-quarters of India's domestic coal output, produced 25.98mn t during 1-15 September, up by 7pc from a year earlier, while its supplies rose by 9.7pc on the year to 29.62mn t, according to the latest government data. Fellow producer Singareni Collieries (SCCL) increased production by 18pc on the year to 2.24mn t and dispatches by 24pc to 2.33mn t during the period. The gains at CIL and SCCL are likely to have supported broader growth in Indian coal production and supplies, with captive and commercial mines contributing to additional domestic volumes. The recovery in domestic coal supplies after recent disruptions could temper buying interest in the seaborne market as the higher domestic availability comes at a time of elevated international coal prices. India could import 12.54mn t of seaborne coal in September, up from 12.15mn t a year earlier, according to Kpler estimates. Indian buyers looking for post-monsoon cargoes have also largely retreated from the seaborne market after a sustained increase in prices in recent weeks led by tighter supplies. Argus last assessed low-calorific value Indonesian GAR 4,200 kcal/kg coal at $76.45/t fob Kalimantan on 11 September, its highest level since February 2023. The increase in domestic supplies follows a drop in August, when India's coal production fell by 3.8pc on the year to 66.87mn t, weighed down by a 5.7pc decline in CIL output to 47.52mn t. National coal supplies rose by 5.5pc to 81.87mn t last month as producers drew on pithead inventories to maintain deliveries to utilities and industrial consumers. India's coal ministry has attributed the early-September recovery in coal supplies to receding rainfall, which improved mine conditions, coal handling and transport routes. But authorities continue to monitor the domestic coal position, with the India Meteorological Department (IMD) forecasting intermittent rainfall in coal-bearing states including Odisha and Chhattisgarh. The IMD projects that seasonal rains could continue to recede and the withdrawal of the southwest monsoon from parts of western India could start from around 19 September. The push to raise coal output and supplies is part of efforts to rebuild utility inventories ahead of the seasonally stronger October-December demand period, especially as higher power demand has eroded the nationwide utility stocks. Coal-fired generation rose by 20pc on the year to 55.9TWh during 1-15 September, while overall electricity generation excluding renewables increased by 16pc to 73TWh, according to Central Electricity Authority (CEA) data. The growth in coal-fired output outpaced the increase in domestic coal production, underscoring the slow pace of stock replenishment at the utilities. Thermal power plant coal stocks fell to 24.04mn t as of 14 September from 29.12mn t at the end of August and 50.05mn t a year earlier, the CEA data said. The number of plants holding critical stock levels increased to 66 from 51 at the end of August and 15 a year earlier, CEA data show. Stock levels are classified as critical when coal inventories fall below one-quarter of prescribed stock norms. Such stock requirements vary by plant location and distance from coal mines, although for a typical pithead plant the threshold is equivalent to roughly 3-4 days of consumption. Imports Utility coal imports fell by 13pc on the year to 16.83mn t during April-July, from 19.28mn t a year earlier, according to the latest CEA data. The decline was driven by lower receipts of imported coal at plants blending imported coal with domestic fuel. Such imports fell by 37pc on the year to 2.61mn t during April-July from 4.16mn t a year earlier. Imports by the country's 17.77GW imported-coal-based fleet rose by 30pc on the year to 4.08mn t in July from 3.15mn t a year earlier, lifting total utility coal imports in July to 4.55mn t from 4.02mn t a year earlier. Imported coal-fired capacity accounts for about 8pc of India's overall coal-fired generation capacity. Receipts by blending plants fell by 45pc on the year to 478,000t in July, highlighting lower reliance on imports. The gap between growth in coal-fired generation and domestic coal supplies could provide limited support to imported coal demand heading into the peak demand period ahead of the winter. Delhi has shown little appetite to revive directives requiring imported coal blending, while emergency measures supporting generation at Tata Power Mundra's 4GW plant are due to expire later this month unless renewed. Additional buying interest could also emerge following force majeure declarations and reduced deliveries from some Indonesian suppliers. Large low-calorific value coal producer Bayan Resources recently declared force majeure citing production quota issues, prompting at least one Indian end-user to secure replacement cargoes from South Africa and alternative Indonesian suppliers. Demand from cement producers for high-CV Indonesian coal has also emerged as buyers seek alternatives to US fuel-grade petroleum coke and high-CV NAPP coal, both of which have risen to multi-month highs in recent weeks. By Saurabh Chaturvedi CIL coal output, supplies in 1H Sept (mn t) SCCL coal output, supplies in 1H Sept (mn t) Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Indonesian coal bottlenecks squeeze seaborne supply

17/09/26

Indonesian coal bottlenecks squeeze seaborne supply

Singapore, 17 September (Argus) — Tighter regulatory oversight of Indonesian coal production has begun to constrain seaborne supplies, with a major low-calorific value (CV) coal producer declaring force majeure earlier this week against the backdrop of ongoing quota restrictions. Dry weather has compounded the pressure, disrupting logistics across key producing regions. The disruptions come at a critical time for northeast Asian utilities preparing for winter and for other coal-consuming markets grappling with energy supply concerns. Most buyers have deferred August-October cargoes to November-December to ensure availability for winter demand, according to an Indonesian trader. Some have instead brought forward Australian cargoes while postponing Indonesian shipments. "Buyers are definitely more cautious now. The biggest concern is not really price. It's whether the cargo can be delivered on time," a Singapore-based trader said. Producer Bayan Resources declared force majeure on 14 September, suspending term and spot shipments because of insufficient coal availability after some mines reached their approved production limits. The company is awaiting approval for additional mining quotas, known as RKABs, from Indonesia's energy ministry. Quota delays have prompted buyers to scrutinise cargo origins and assess whether suppliers have sufficient approved production volumes to meet loading schedules, traders said. Some market participants are also seeking earlier shipments and building additional buffers into supply chains to mitigate potential delays. The tight availability of Indonesian low-CV coal leaves buyers with few alternatives. Comparable grades are not widely available from other exporting countries, while Indonesian coal remains attractive because of its low sulphur content and relatively low freight costs compared with Australian supplies. Buyers of mid- to high-CV coal have greater flexibility and can switch to Australian or Russian cargoes, depending on freight economics and end-user specifications, market participants said. "Overseas customers are starting to see Indonesia as less reliable right now, with RKAB delays and the river disruptions combined," an Indonesian mining company said. "Some have already started looking at other countries as backup supply, which could matter especially heading into winter procurement schedules." Domestic consumers, including captive power plants and smelters, are also facing tighter coal availability. These buyers are less able to switch to imports because of their smaller volume requirements and potential permitting constraints, the mining company added. Higher output, mounting logistics constraints Favourable dry-season mining conditions in Kalimantan have boosted coal yields for some producers, but moving those volumes to market has become increasingly difficult. Persistently dry conditions have left several rivers too shallow for normal barge operations, forcing producers to seek alternative loading points. Logistics options remain limited because hauling roads are poorly connected and many jetties are privately controlled. Operational jetties have reduced barge loadings to around 5,000t from the typical 7,500-8,000t. Producers in central Kalimantan are also struggling to receive diesel supplies as parts of the northern Barito River have become too shallow or inaccessible. Elevated diesel prices, linked partly to Middle East supply disruptions, have added further pressure to production costs. Forest fires across Kalimantan have created additional operational challenges. One trading company with mining assets in Indonesia temporarily halted operations several times because of poor visibility caused by haze. "Most RKAB approvals for additional volume only came through late August or early September, so producers only have three to four months left to sell extra volumes this year," an Indonesian producer said. "That's causing everyone with new approvals to compete for jetty slots at the same time, right when jetty capacity itself is disrupted. The concern isn't just limited jetty space. It's the limited time that's forcing everyone to compete at once." Significant volumes of coal are accumulating at jetties awaiting transportation as a result. The build-up is creating cash-flow pressures for producers unable to monetise inventories, market participants said. "Once heavy rain returns and rivers normalise around October-November, there's likely going to be a flood of supply released all at once, which could push prices down," the producer added. By Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Pa. study finds PJM short on generation

16/09/26

Pa. study finds PJM short on generation

Houston, 16 September (Argus) — Grid operator PJM Interconnection is projected to miss its reliability planning standard through 2030 even with the new power generation it expects to add, because data-center driven electricity demand is growing faster than supply, according to a Pennsylvania study. The study's base-case outlook, which uses PJM's 2026 load forecast and assumes resource supply gradually improves through 2040, found the grid operator fails to meet its reliability standard from 2027-30 in the absence of new policies. The Pennsylvania Public Utility Commission (PUC) said it commissioned the study to understand how rapid load growth, generator retirements and delays in new resource development could affect reliability across Pennsylvania and the broader PJM region, which covers 13 states the District of Columbia, making it the biggest grid operator in the US. "Across all scenarios, new in-state generation additions do not keep pace with the growth of in-state load," the report said. The system remains "tightly constrained" even as new resources are added, with the model selecting most generation technologies up to their assumed build limits, the report said. Under the study's base-case scenario, PJM's gas combined-cycle fleet increases to 71.8GW in 2030 from 61.4GW in 2025, while solar capacity rises to 56.1GW from 14.7GW. Onshore wind capacity grows to 21GW from 11GW and battery storage expands to 7.9GW from 0.5GW. Pennsylvania policymakers are increasingly focused on how data center growth effects electricity prices and reliability. Governor Josh Shapiro (D) has lobbied his counterparts to take a more active role in shaping PJM's policies as it grapples with unprecedented load-growth projections. Shapiro recently imposed new requirements on data center development to ensure new large-load customers pay for the infrastructure needed to serve them and do not shift costs to existing ratepayers. The report projects Pennsylvania will remain PJM's largest generation state, but its share of regional generating capacity shrinks over time as more resources are added in states such as Virginia and Ohio. Pennsylvania's share was 23pc in 2025 and is projected to fall to 20-21pc by 2030 and 14-17pc by 2040. Through 2030, most new generation added in Pennsylvania consists of solar and battery storage. By 2040, the state's gas combined-cycle fleet rises to 32GW from 20GW in 2025, while coal capacity falls to about 1GW from 4.6GW. Across all modeled scenarios, the study projects 14-29GW of coal retirements across PJM by 2040 as plants reach the end of their useful lives and face competition from more economic resources. The study did not evaluate specific solutions to the projected reliability shortfall, including whether extending the lives of existing coal plants or adding capacity beyond the modeled resource mix would improve reliability outcomes. Thermal generators were assumed to retire on or before their scheduled retirement dates, with additional retirements based on modeled economics, PUC officials said in response to questions from Argus . By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Dutch fossil exit roadmap highlights difficulties

16/09/26

Dutch fossil exit roadmap highlights difficulties

London, 16 September (Argus) — The Netherlands has published a roadmap on transitioning away from fossil fuels, outlining the difficulties the country will face in the transition and setting no date for an ultimate halt to fossil fuel use. The plan aims at the "minimisation" of fossil fuel use by 2050, with its "ultimate" phase-out date left undefined. It identifies challenges in moving away from each of natural gas, oil and coal. The country committed to producing a roadmap to end fossil fuel use at the UN Cop 30 climate summit in Brazil last year, and recommitted to it at the Transitioning away from Fossil Fuels conference in Santa Marta in May. The latter conference was organised outside of formal UN channels and attended only by countries keen to advance on cutting fossil fuel use. The Netherlands co-hosted the meeting with Colombia. But the Latin American country's new administration has since said it plans to pursue a different approach to transitioning to cleaner energy, reopening the door to expanding oil and natural gas. The Dutch government said that the transition away from gas is made more difficult by the fuel's role in the Netherlands' energy system. "As long as full-fledged, sustainable alternatives are insufficiently available, natural gas remains essential for our society," the roadmap reads. Gas plays a large role in balancing the Netherlands' renewable-heavy power system, filling in during periods of low intermittent renewable output. Replacement of gas in domestic heating is underway, with increased electrification and insulation reducing consumption in recent years. But "uncertainties are considerably greater" on the use of gas in industry, the government said. Allocating fixed costs of the gas network to a shrinking number of users during the transition represents another difficulty. Some changes have been made which frontload costs to the coming years, when they can be spread across more users. Gas consumption would fall to around 110TWh by 2040, from around 250TWh in 2025, under the government's plan. But alternative government projections suggest consumption could fall to 140-190TWh. The government plans to prioritise domestic production of gas, citing its lower climate impact compared to imported LNG, and lower dependence on other countries. The country produces around 20 mn m³/d of natural gas, or the equivalent of 100TWh/yr. On oil, the government considers the transition to be relatively sure in mobility. But it said that phasing out of fossil fuel use in the chemical sector is more uncertain as demand for sustainable raw materials remains slow as a result of a lack of policy support. Coal use in the Netherlands is limited to the power and steel sectors. In the former, a ban will come into force in 2030, although this will negatively affect security of supply, according to the roadmap. In the steel sector the replacement of the country's two coal-consuming blast furnaces could take place in the 2030s, although this will depend on "technological and market developments," the government said. Environmental non-governmental organisation (NGO) welcomed the publication of the roadmap, but criticised the absence of phase out dates for oil and gas and ongoing gas production. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Australia’s Queensland moves to curb mining objections

16/09/26

Australia’s Queensland moves to curb mining objections

Sydney, 16 September (Argus) — Australia's Queensland state government has introduced a bill to restrict objections to mining lease approvals, aiming to accelerate project approvals and limit legal challenges to mine expansions from climate activists. The centre-right Liberal National party (LNP) government introduced the Mineral Resources Objections Reform and Other Legislation Amendment Bill 2026 to parliament on 16 September. The proposed bill would prevent individuals outside of directly affected communities from objecting to mining lease approvals. The change would allow objections from individuals situated within 125km of a mining lease boundary, enabling local communities to oppose mining approvals while limiting "environmental lawfare driven by activists," Queensland minister for natural resources and mines Dale Last said today. The bill would also replace the automatic referrals to Queensland's land court with a process giving government ministers discretion to refer objections they consider warranted for a hearing or independent review. The change could be especially important for coal mine expansions, which are often subject to strong community scrutiny on climate grounds. Conservation group the Queensland Conservation Council said the bill would severely limit the ability of Queenslanders to object to mining projects and allow ministers to "pick and choose" which community objections would get heard in court. The bill would widen the gap between mining approval processes in Queensland and New South Wales (NSW) state. NSW has stopped issuing greenfield permits for thermal coal mines, while Queensland has said coal will remain an integral part of its energy system until at least the 2040s. Coal mining approvals in NSW have been marked by significant community opposition. The NSW court of appeal blocked Mach Energy's proposed extension of its 10mn t/yr Mount Pleasant thermal coal mine in July 2025 following opposition from an environmental group. Mach Energy sought to overturn this decision with an appeal in May, and the case remains before the High Court of Australia. The Hunter Valley Operations (HVO) coal mining complex, a joint venture between Chinese-Australian producer Yancoal and Switzerland-headquartered Glencore, is awaiting approval for an extension from NSW's independent planning commission (IPC). The proposed extension has been met with opposition from the NSW Net Zero Commission and environmental activists and received over 4,200 public objections, according to the IPC's website. Public scrutiny prompted the IPC to delay its approval decision, which was due on 4 September, by an additional month. By Emma Partis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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