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PSNH's Russian coal imports highlight growing US imports

https://www.chemnet.com   Jul 24,2014 Platts
The Public Service of New Hampshire's shipment of Russian coal earlier this month at its Schiller station is part of a larger trend of increased coal imports into the US, government data shows.

According to US Energy Information Administration data, US utilities imported just over 2.017 million st of thermal coal through April 2014, compared with about 1.509 million st through the same period last year, a 33.7% increase.

While imports of Russian coal are relatively rare, the coal has low sulfur and is economical, according to PSNH, which said Wednesday in an email that the delivery helps the utility produce energy "as efficiently and economically as possible, while adhering, or beating, all environmental requirements."

EIA data does not show any Russian coal imports through April, the latest month data is available, although it does show PSNH imported 36,395 st of Russian coal in 2013.

The coal had an average heat value of 11,250 Btu/lb, and 0.6 lbs SO2/MMBtu, and a delivered cost of $87.26/st, or $3.878/MMBtu.

So far this year, the largest rise in US imports has come from Indonesia.

While AES Hawaii has maintained a modest supply of Indonesian imports over the past several years, other US utilities have increased their share, EIA data shows.

US utilities imported 685,052 st of coal from Indonesia through April, with an average heat content of 9,587 Btu/lb, and 1.1 lbs SO2/MMBtu. The average delivered cost for Indonesian coal is not disclosed, because the consuming plants are unregulated.

Through April 2013, Indonesian imports totaled 306,326 st. The average heat content was 9,692 Btu/lb, and 1.9 lbs SO2/MMBtu, while the average delivered cost was not listed.

So far this year, PSEG Power's Bridgeport Harbor generating station in Connecticut has increased imports of Indonesian coal to 386,285 st through April 2014 from 69,682 st through the first four months of last year.

PSEG did not respond to a request for comment, but it appears the utility is willing to bear the cost of shipping halfway around the world to save on coal costs.

According to the EIA, the Indonesian coal burned at the station so far this year has an average heat content of 9,205 Btu/lb. The price for the nearest Indonesian coal of the same quality assessed by Platts -- FOB Kalimantan 5,000 kcal/kg gross-as-received -- has averaged $55.67/mt, or $50.50/st, through April.

With shipping costs at roughly $35/mt ($31.75/st), the delivered cost would be about $82.25/st, or $4.468/MMBtu, which is roughly in line with deliveries to other coal-fired plants in the Northeast, such as PSNH's Merrimack station, which through the first four months of the year has had average delivered costs of $116.14/st, or $4.455/MMBtu, for rail-delivered coal from Northern Appalachian mines.

Colombian imports also have increased this year.

Through April, US utilities imported about 1.285 million st of Colombian coal, with an average heat value of 11,024 Btu/lb, and 1.2 lbs SO2/MMBtu. The average delivered cost of the Colombian coal was $84.64/st, or $3.839/MMBtu.

Compared with the same period a year ago, when Colombian imports totaled about 1.171 million st, and had an average heat value of 10,984/Btu/lb, and 1.2 SO2/MMBtu. The average delivered cost was $87.52/st, or $3.984/MMBtu.

In addition, US utilities imported 47,241 st of Venezuelan coal through April with an average heat content of 12,549 Btu/lb, and 1.3 lbs SO2/MMBtu. The average price is not disclosed.

US utilities imported 32,505 st of Venezuelan coal through April 2013. The coal had an average heat content of 12,661 Btu/lb, and 1.6 lbs SO2/MMBtu.
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