Q&A: Taiwan to focus on coal diversification in 2027

: Coal
26/10/15

A year of uncertainty in the thermal coal markets stemming from US-Israel's war with Iran, supply bottlenecks in Indonesia and delays to mining output quotas has highlighted the importance of energy security. Argus spoke with Taiwan Power Company's (Taipower) deputy director Richard Chiang about the company's procurement strategy in 2027.

What are Taiwan's priorities for energy security in 2027?

Our strategies for energy security are mainly diversification and inventory build-up. This includes diversification of sources and suppliers. There are statutory minimum safety stocks for each energy type in Taiwan.

For example, the requirement for oil is over 90 days. The requirement for coal is over 30 days, which may require even higher stock levels during the peak summer period. The minimum stock level for liquefied natural gas is 11 days.

What can we expect to change in coal procurement strategies?

We will watch developments in the coal market including the Indonesian government's policies. We expect there will not be a lot of changes in our coal procurement strategies.

But we will keep watching for any developments in the market and take appropriate action if needed.

What is Taipower doing to ensure certainty of supply from Indonesia, considering physical bottlenecks in central and east Kalimantan because of low river levels?

The low river levels have affected our delivery times, but we still can accommodate it because of diversification of suppliers.

In the event of potential drops in Indonesian coal supply, we can coordinate with power plants to slightly reduce the proportion of Indonesian coal burned.

What are some of the common concerns faced by the procurement team regarding contract requirements, specifications, and shipment schedules?

Common concerns we face include whether the product specifications can meet the requirements of our thermal coal power stations which are mainly regarding calorific value, sulphur content, ash content and ash fusion temperature.

There are other concerns, for example, adjusting shipment schedules to match the seasonal demand changes of our power stations.

What will Taipower be considering as key factors for selecting partners and potential suppliers amid uncertain supply conditions in the current market?

Taipower is a state-owned company, and our procurement follows the government's Procurement Act.

We welcome all qualified suppliers to participate in our tenders, which set bidding rules in our bidding documents. We will consider all necessary documents required to prove qualified suppliers, and the products shall meet our specifications.

By Nadhir Mokhtar

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PJM defers 10,000MW of outages during Oct heat spell

Houston, 13 October (Argus) — PJM Interconnection, operator of the US' largest grid, has asked power-plant owners to defer 10,000MW of planned outages to maintain reserve margins during this week's unseasonably warm temperatures. Generation outages are expected to total about 62,000MW on 14 October, the date for which PJM issued a maintenance outage recall. About 10,000MW of capacity was deferred to arrive at that sum, PJM said in an email to Argus . PJM forecast peak demand at roughly 111,500MW on 13 October and projected reserves would narrow to within about 900MW of required levels on 14 October even with the outage deferrals. PJM issued multiple emergency alerts covering 12-14 October, warning customers that the grid faces tight conditions. In response to the alerts, the US Department of Energy authorized PJM to temporarily suspend environmental restrictions, allowing it to implement emergency reliability measures, including asking some generators and transmission lines to remain operational or requesting some large-load consumers switch to back up generation if needed. The alerts come as PJM grapples with growing electricity demand and a shrinking window for routine maintenance, which typically occurs during North America's spring or fall seasons. Increasing baseload demand and increasingly unpredictable weather patterns are making it difficult to perform maintenance during periods that historically carried lower reliability risks. Earlier this year, the North American Electric Reliability Corporation warned that the nation's grid operators are increasingly facing reliability challenges outside of traditional peak demand periods, known as shoulder seasons. It noted that this year's March was the warmest in 132 years of recordkeeping, making the grid more vulnerable during a period when the system is not typically configured for high demand. "This is the new reality that grid operators are facing," PJM said. "Planned maintenance season will continue to present risks that we formerly faced only in summer and winter." Temperatures across much of the PJM region, which spans 13 states along the mid-Atlantic and into the Midwest and the District of Columbia, are expected to remain above seasonal norms through mid-October, boosting cooling demand. The winter heating season traditionally begins on 1 November. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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High diesel prices weigh on US coal producers

26/10/13

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26/10/13

High diesel prices weigh on US coal producers

New York, 13 October (Argus) — High diesel prices stemming from the US-Iran war are increasing costs for US coal production and transportation, potentially boosting prices and curbing available supply into 2027, according to producers and buyers. Diesel is a major operating expense for surface mines, and it is also factored into rail, barge and truck fuel surcharges. Rising costs first started worrying some coal market participants when prices rose sharply in March at the outset of the US-Iran war , and that concern has only grown with the war in its eighth month with no end in sight. US retail diesel price hit an all-time high in the week ended 21 September, averaging $6.529/USG, according to US Energy Information Administration (EIA) data. While retail prices fell to $6.199/USG in the week ended 5 October, that was still $2.30/USG higher than the weekly average before the start of the US-Iran war and 53pc above values in the first weeks of October in 2021-25. 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26/10/13

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26/10/13

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S Korea’s utilities merger to reshape coal procurement

26/10/12

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26/10/12

S Korea’s utilities merger to reshape coal procurement

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