UPDATE 1-Taiwan, fearing squeeze, seeks long-term coal deals

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By Fayen Wong

SYDNEY, Oct 5 (Reuters) - Two Taiwanese utilities sought this week to secure coal supplies for the next five to 10 years, longer-term deals than the norm, amid growing concerns that China's demand may sap Asian supplies for years to come.

Taiwan Power Co (Taipower) and Ho-Ping Power Company issued the tenders this week to buy thermal coal from Australian, Indonesian and Chinese suppliers, producers said on Friday.

The delivery over as much as 10 years -- longer than deals typically for just four or five years -- is a stark sign of the anxiety among many Asian utilities after a year in which prices soared to record highs above $70 amid a scramble for supplies.

"The supply outlook has changed quite substantially over the past few months so we're moving to secure more coal in advance," a source at Taipower who declined to be named told Reuters.

Last month, Taipower signed a string of six to 10 years long-term contracts to buy a total of 17 million tonnes of coal from Australian, Indonesian and chinese producers.[ID:nSYD255742]

Despite a push for greener economic growth, China's massive power plant expansion is still dominated by coal-fired units.

Its unexpected emergence as a net importer this year and continued constraints on exports from number-two supplier Australia this year have forced big buyers to scramble for rare deals from further afield, primarily South Africa.