Energy sector promises no shortage in supply after Indonesian ban

Energy sector promises no shortage in supply after Indonesian ban

The Department of Energy (DOE) said yesterday that the country will not be experiencing power outages despite a possible shortage in coal, as the country sources its coal from vessels under different flags.

Last week, the Indonesian government banned their ships from sailing to the Philippines after members of the Abu Sayyaf abducted Indonesians sailors on board a vessel in the Sulu Sea. A moratorium has been extended until the Philippines delivers back their shipping vessels and drew.

The ships banned include those containing coal imports, raising concerns over the country’s supply since Indonesia serves as the country’s major source of coal.

“In case the Indonesian source is not available, we have other sources like Australia, Russia and Vietnam but these will have a different quality. [Operators] of power plants would [also] need to negotiate for their respective new contracts,” Monsada said.

The department has already informed Malacanang, the Department of National Defense (DND) and the Department of Foreign Affairs (DFA) although the Indonesian government’s ban still has not projected any immediate impact.

“So far, the DFA has had talks with Malaysia and Indonesia for security but we don’t know at what level they are in their agreement,” she said.

“But what we’re doing right now is we’re studying the inventories of importers and of power plants, as well as determine whether the replenishment schedules were followed and if supply is affected,” Monsada said.