As environmental restrictions continue to grow in the U.S., and natural gas becomes more abundant, coal companies, especially those in Appalachia, are finding new buyers by exporting coal to Europe and South America, John Miller reports for The Wall Street Journal. "U.S. coal shipments outside the country in 2014 are expected to surpass
100 million tons for the third year, a record string. A high level of
exports helps keep the domestic supply in line with demand and helps
prevent U.S. prices from tanking."
While exports to Asia fell in 2013, because those countries can get supplies cheaper from countries located closer to them, U.S. exports to the Netherlands increased by 12.8 percent in 2013, and by 8.3 percent to Germany, Miller writes.
Last year Consol Energy "sold off five mines, the source of about half its coal production, but it kept the most profitable mines, including one that just completed an $800 million expansion," Miller writes. The plan is to export much of the extra coal—most of it high-quality metallurgical coal for steelmakers—through its Baltimore-area terminal, the only one wholly owned by a coal company. Other coal companies pay Consol for use of the terminal. Last year, 30 percent of the 10 million tons exported from the terminal belonged to Rosebud Mining Inc., and this year Murray Energy Corp., which bought five mines from Consol, will also start using it. The companies will have to pay between $4 and $8 a ton, according to analysts." (Read more) (WSJ graphic)
While exports to Asia fell in 2013, because those countries can get supplies cheaper from countries located closer to them, U.S. exports to the Netherlands increased by 12.8 percent in 2013, and by 8.3 percent to Germany, Miller writes.
Last year Consol Energy "sold off five mines, the source of about half its coal production, but it kept the most profitable mines, including one that just completed an $800 million expansion," Miller writes. The plan is to export much of the extra coal—most of it high-quality metallurgical coal for steelmakers—through its Baltimore-area terminal, the only one wholly owned by a coal company. Other coal companies pay Consol for use of the terminal. Last year, 30 percent of the 10 million tons exported from the terminal belonged to Rosebud Mining Inc., and this year Murray Energy Corp., which bought five mines from Consol, will also start using it. The companies will have to pay between $4 and $8 a ton, according to analysts." (Read more) (WSJ graphic)
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