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South African coal producers seeing Pakistan as destination for exports

Sellers of South African coal are increasingly looking to the Pakistan import market as increasing demand there helps supplement the withdrawal of Indian buyers from imported coal.Traditionally in Pakistan the largest buyers of imported thermal coal had been cement plants as the country had few operating coal fired power plants however several new plants due to come on line over the next few years was fueling sentiment for an already strong export destination.

Exports of thermal coal from South Africa to Pakistan were 3.37 million mt in 2014 3.72 million mt in 2015 and 4.92 million mt in 2016 according to customs data collected by Platts. January to November 2017 exports almost doubled to 7.95 million mt giving Pakistan an 11.02 percentage share of South African exports having been 4.52% in 2014.

Currently there are three coal fired power plants under construction in Pakistan. The Thar Block II power station, nameplate capacity 660 MW is expected to come on line in 2019 although a source at Sindh Engro Coal Mining Company told Platts the plant will burn lignite from the developing Thar coal field rather than imported coal.An additional 3.7 GW of coal-fired capacity has been announced with imported coal as the primary fuel source.

There is a lot of coal fired generation coming on line in Pakistan and we have been selling more coal there over the last year a South Africabased producer said Thursday.

Some new plants there are burning lignite but others are made for bituminous coal so they don’t really compete with each other the source added.

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