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Monday, 31 October 22
U.S. COAL-FIRED GENERATION DECLINING AFTER BRIEF RISE LAST YEAR - EIA
.jpg) We expect 6% less U.S. coal-fired generation in 2022 than in 2021, according to our latest Short-Term Energy Outlook (STEO). Although coal-fired generation declined each year between 2014 and 2020, it rose 16% in 2021 as a result of increased electricity demand and higher natural gas prices following the pandemic. Despite natural gas prices remaining high, coal-fired generation has continued its previous trend of decline this year as a result of constrained coal supply.
Coal and natural gas are two of the most prevalent sources of power generation in the United States. Natural gas-fired power plants that use modern combined-cycle technology can compete effectively with coal-fired generation because they operate with 30% to 35% greater efficiency. This difference affects relative fuel costs between coal and natural gas and the substitution between the two fuels.
Between 2020 and 2021, the delivered cost of natural gas for power generators nearly doubled while the delivered cost of coal grew by only 3%. The increase in natural gas prices caused the share of total natural gas-fired generation to fall to 37% in 2021 from 39% in 2020. In contrast, coal-fired generation increased in 2021 for the first time since 2014 and averaged 23% of U.S. generation, up from 20% in 2020.
The cost of delivering fuel to coal-fired and natural gas-fired generators depends on a wide variety of factors. Wholesale power prices are generally set by the price of natural gas, and natural gas prices have been volatile throughout most of 2022. Compared with coal-fired generators, costs for natural gas-fired generators are more dynamic. Natural gas is bought mostly in the daily, monthly, and seasonal markets to align fuel needs with power sales, which can be highly uncertain. Costs for coal-fired generators are more static because delivered coal prices are mostly based on long-term contracts and remain relatively steady for longer periods. So far this year, as reported to EIA, the delivered price of natural gas has increased more in percentage terms than the delivered price of coal, but natural gas prices for generators may decrease substantially in the fourth quarter.
Despite higher natural gas prices in 2022, we expect natural gas-fired generation will increase slightly this year, and its share of annual U.S. generation will increase from 37% to 38%. The electric power sector is not moving away from natural gas as we expected previously because coal-fired power plants, which have historically acted as a substitute for natural gas generation, have not been receiving enough coal to meet demand. We expect coal production to increase by less than 2% during 2022, and we expect much of that gain to be exported. We expect that the share of generation provided by coal will return to 20% in 2022, down from 23% last year.
Most coal is delivered to power plants by railroads in the United States, which have encountered a number of disruptions this year. Although U.S. coal inventories have been declining in recent years as coal-fired generators have retired, the limitations on coal deliveries have further constrained generators’ ability to replenish stocks and increase generation. During the first seven months of 2022, coal inventories at power plants averaged 23% lower than in 2021.
Source: EIA
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Friday, 09 September 22
GREECE WILL KEEP COAL-FIRED PLANTS RUNNING FOR LONGER AMID GAS CRISIS - REUTERS
Greece will keep seven coal-fired plants running for longer than previously planned as European countries adjust to a cut in gas flows coming from ...
Friday, 09 September 22
CHINA'S DROUGHT INTENSIFIES GLOBAL COAL SHORTAGE - REUTERS
China’s drought has sent coal prices surging as traders anticipate the lack of hydroelectric generation will force it to burn more coal to me ...
Thursday, 08 September 22
MOODY.S AFFIRMS ABM INVESTAMA'S B1 RATINGS FOLLOWING PLANNED MINORITY INVESTMENT IN COAL MINER; OUTLOOK STABLE
Moody's Investors Service has affirmed ABM Investama Tbk (P.T.)'s B1 corporate family rating (CFR), along with the B1 rating on its senior ...
Thursday, 08 September 22
MARKET INSIGHT - INTERMODAL
While the energy markets are historically stretched, Russian flows of crude oil are closely monitored as the oil trade is ultimately realigned. Mor ...
Friday, 02 September 22
INDONESIA COAL PRICE REFERENCE SLIPS SLIGHTLY IN SEPTEMBER 2022
COALspot.com: Indonesian Coal Price Reference for September delivery drops 0.74 per cent month on month.
The Indonesian Coal Price R ...
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- Carbofer General Trading SA - India
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- Vedanta Resources Plc - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Baramulti Group, Indonesia
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- Kepco SPC Power Corporation, Philippines
- Petron Corporation, Philippines
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- Australian Commodity Traders Exchange
- Eastern Energy - Thailand
- Orica Australia Pty. Ltd.
- Planning Commission, India
- Bayan Resources Tbk. - Indonesia
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- Bank of Tokyo Mitsubishi UFJ Ltd
- Uttam Galva Steels Limited - India
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- Price Waterhouse Coopers - Russia
- VISA Power Limited - India
- Renaissance Capital - South Africa
- PNOC Exploration Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Ministry of Transport, Egypt
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- Dalmia Cement Bharat India
- London Commodity Brokers - England
- Energy Development Corp, Philippines
- OPG Power Generation Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sojitz Corporation - Japan
- Singapore Mercantile Exchange
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- Mintek Dendrill Indonesia
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- Global Coal Blending Company Limited - Australia
- Mjunction Services Limited - India
- Antam Resourcindo - Indonesia
- Barasentosa Lestari - Indonesia
- McConnell Dowell - Australia
- Eastern Coal Council - USA
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- Madhucon Powers Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karaikal Port Pvt Ltd - India
- CNBM International Corporation - China
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- Vijayanagar Sugar Pvt Ltd - India
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- Thiess Contractors Indonesia
- Alfred C Toepfer International GmbH - Germany
- White Energy Company Limited
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- Banpu Public Company Limited - Thailand
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- Chamber of Mines of South Africa
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- Metalloyd Limited - United Kingdom
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- GAC Shipping (India) Pvt Ltd
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- Goldman Sachs - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Lanco Infratech Ltd - India
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- Attock Cement Pakistan Limited
- ASAPP Information Group - India
- Indian Oil Corporation Limited
- Indian Energy Exchange, India
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- Toyota Tsusho Corporation, Japan
- Central Java Power - Indonesia
- Sical Logistics Limited - India
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- Ministry of Finance - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Deloitte Consulting - India
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- Semirara Mining and Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Bangladesh Power Developement Board
- Kapuas Tunggal Persada - Indonesia
- GVK Power & Infra Limited - India
- Jorong Barutama Greston.PT - Indonesia
- SMC Global Power, Philippines
- Holcim Trading Pte Ltd - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- The University of Queensland
- IHS Mccloskey Coal Group - USA
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- Therma Luzon, Inc, Philippines
- Makarim & Taira - Indonesia
- Timah Investasi Mineral - Indoneisa
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- Kumho Petrochemical, South Korea
- Tata Chemicals Ltd - India
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- Ministry of Mines - Canada
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- Energy Link Ltd, New Zealand
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- Indonesian Coal Mining Association
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- Electricity Generating Authority of Thailand
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- Parliament of New Zealand
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- Riau Bara Harum - Indonesia
- Malabar Cements Ltd - India
- Standard Chartered Bank - UAE
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- Coal and Oil Company - UAE
- European Bulk Services B.V. - Netherlands
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- TNB Fuel Sdn Bhd - Malaysia
- Cement Manufacturers Association - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Sidhee Cement - India
- Formosa Plastics Group - Taiwan
- Economic Council, Georgia
- Indika Energy - Indonesia
- Rio Tinto Coal - Australia
- Interocean Group of Companies - India
- Georgia Ports Authority, United States
- Globalindo Alam Lestari - Indonesia
- The State Trading Corporation of India Ltd
- Parry Sugars Refinery, India
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