India to Become World's Largest Coal Importer by 2016, Says IEA

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Researched by Industrial Info Resources India (New Delhi, India)--While India is set to become the world's second-largest coal consumer by 2017, the country is likely to surpass China as the largest importer of seaborne coal by 2016. "The domestic industry's performance will allow India to be the largest seaborne coal importer by 2017, with 204 million tons of coal equivalent, and the second-largest coal consumer, surpassing the United States," says the International Energy Agency (IEA) in a recent report.

According to the agency, India will surpass the U.S. as the world's second-largest coal consumer, together with projected decline in consumption in the U.S. The surge in coal consumption in India is unlikely to be matched by the growth in domestic coal production, causing a strong growth in imports. As a result, India's imports will grow faster than in any other country.

India seeks to add about 62.6 gigawatts (GW) of coal-based thermal power capacity during the ongoing 12th Five-Year Plan period (2012-17). About 842 million tonnes (MT) of coal will be required in India to meet the fuel needs for 167-GW of operational coal-fired power units by 2016-17.

However, despite this significant rise in imports in India, China will hold its position as the world's largest coal importer in terms of total import volume, including overland imports from Mongolia. The report further adds that coal demand is expected to increase in every region of the world except in the U.S., where coal will be gradually replaced by natural gas.

On the other side, under IEA's "Chinese Slow-Down Case" scenario, where China's seaborne coal trade declines after 2016 and India becomes the world's top importer of coal.

Notably, in 2009, China became a net importer of coal for the first time. In 2011, it became the largest coal importer, surpassing Japan, which had held its position for decades. Chinese coal imports, including imports by Hong Kong, reached 204 million tons in 2011 and it continued to grow in 2012.

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