For all your devices
Focus on what matters
(Bloomberg) – It’s just additional herbal fuel that hurt European energy markets are suffering to get from Russia.
The continent’s powermakers are being forced to ask Russia for more coal to ease the force crisis as winter approaches and record profitability from fuel costs, according to officials at two Russian coal companies. it will not be substantial, they said.
After years of largely moving away from coal in a bid to green its electricity generation, Europe is now at a dead end: gas workshops in the region are only partially full, suppliers of liquefied herbal fuels prefer Asia, and intermittent renewables are not. able to fully meet demand. As the winter heating season approaches, Russia’s reliance on maintaining lighting devices increases.
“If all European companies move to coal, there will be a massive increase in demand for coal that Russia alone cannot meet in such a short time,” said Natasha Tyrina, senior research analyst at Wood Mackenzie Ltd. in Houston. ” It would also require materials from other countries, such as the United States, but the scenario there is similar. “
Europe’s fate highlights the energy supply crisis that is hitting the world as countries emerge from the pandemic: demand for oil, fuel and electric power is booming, while coal is returning, driven in components through China. The recent confidence in him to keep their economies moving, will make discussions on critical climate much more confusing with the COP26 assembly in a few weeks.
See also: Gas hungry, European coal-fired electric power manufacturers
The European public desperately wants to get their hands on more coal, a European public service strategist said, asking not to be named, but Russia, the world’s third-largest exporter of fuel, is basically targeting sales to Asia’s biggest buyers. .
“Russia cut its coal exports to Europe for years, as the European Union shut down coal-fired power plants,” said Kirill Chuyko, head of research at BCS Global Markets. It will be difficult to redirect to Europe “because there are contracts” with Asian customers In addition, the shipping capacity is limited anyway.
Europe’s strict environmental criteria for burning coal also complicate matters, making it much more complicated and time-consuming for Russia to prepare materials that meet quality requirements, officials from the country’s coal corporations said.
UMMC and Suek JSC, Russia’s coal producers, declined to comment. Suek shipped more coal east than west last year.
Russian materials to Asia could increase in the fourth quarter once train availability improves, WoodMac’s Tyrina said. Maintenance paintings will be finished and there will be less traffic from other types of traffic, he said. The end of summer will decrease passenger traffic to the Black Sea. , which is home to beach resorts but also primary export ports.
There are fewer bottlenecks in transport to the west, with around 35% to 45% of the source of thermal coal exported from northern and southern ports, adding to Europe, according to corporate data. The infrastructure can transport about 133 million tons of coal to the west. This year, said Kirill Nikoda, deputy director of Gazprombank’s economic forecasting center. That’s nearly 40 million tons more than capacity in 2020, following several expansion projects, he said.
Still, coal exports to Europe, which add to power generation, are expected to stagnate this year at around 48 million tonnes, a spokeswoman for the Force Ministry said, rising 2. 4% to 22. 5 million tonnes in the first part of the year.
Europe’s developing demand could attract more Russian coal, “but that’s what would allow for the additional source rail infrastructure,” Tyrina said.
© 2021 Bloomberg L. P.