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Tropical drought in Indonesia could raise coal and power costs
The drought linked to a super El Nino threatens coal transport from Indonesia to ports, raising the risk of wider power disruptions across parts of Asia.
LiveMint, citing a Bloomberg Opinion piece, linked worsening dry conditions tied to a super El Nino to a potential new fossil fuel supply stressor outside the Persian Gulf.
According to the report, Indonesia is positioned as a key supplier of thermal coal for electricity generation, with roughly two thirds of internationally shipped thermal coal originating there.
It added that about 80% of the coal is mined in two provinces on Borneo, and that moving the material to port depends on barges along a handful of rivers.
The piece warned that disruptions at these river chokepoints can ripple into electricity grids across Asia, potentially increasing the odds of power cuts for factories that supply products ranging from smartphones to sneakers.