Centrenergo expects supply of 2.7 million tons of coal

PJSC Centrenergo has agreed on the supply of 2.7 million tons of coal for the autumn-winter period. Of these, 1.65 million tons are of import origin and over 1 million tons are of Ukrainian origin.

This was announced by Anatolii Korzun, representative of the Department of Analysis and Planning of Strategic Development of Centrenergo, during the discussion Energy Freedom “Global Trends: What is Happening in the World Coal Markets?”, ExPro reports.

“To date, Centrenergo has contracted more than 1.65 million tons of imported coal for the autumn-winter period. In addition, we are counting on more than 1 million tons of Ukrainian coal. So, in total, about 2.7 million tons of coal have been contracted. But the contract is not yet coal at the power plant. However, based on the financial resources that Centrenergo operates, this task is real,” Korzun said.

He also notes that today the price of coal on the ARA exchange is $148/ton, and the cost of coal from Ukrainian coal mining enterprises is, according to the Ministry of Energy, UAH 2823/ton.

“In fact, for 10 months of 2021, the selling price of Ukrainian coal did not even reach UAH 1400/ton. That is, on average, the price is 2 times lower than the cost. If the average selling price reached $100/ton, the income of the state mines would be balanced,” Korzun said.

Investing in state-owned mines is advisable, and the required volume of investments is about half of the cost of purchasing imported coal for the year, he emphasized. Therefore, the Ukrainian authorities should pay attention to the increase in the volume of coal production in the country: about 7 million tons of their marketable products would make the coal industry balanced and food-grade.

 

Tags: coal, Centrenergo, coal imports

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