Coal news and updates

American Electric Power seeks offers on 1.68 million st of coal

American Electric Power is taking offers through October 18 for up to two years' supply -- up to 1.68 million short tons -- of low-sulfur barge- and CSX-delivered eastern US coal, the utility company said Wednesday.

Columbus, Ohio-based AEP said the coal is for delivery to one or more of its generating stations.

AEP, through its American Electric Power Service Corporation unit, is seeking proposals on:

** Up to 500,000 st FOB barge, with delivery beginning in January 2014 and ending in December 2014. AEP classifies this coal as "NYMEX Specification 'A'", with the following specifications: 12,000 Btu/lb, 8% moisture, 12.5% ash, 1.6 lbs SO2/MMBtu, 32% volatile matter, 45 hardgrove grindability, 2,700 degrees F ash fusion temperature (H=1/2 W), 0.20% dry chlorine and 10 lbs Hg/TBtu.

** Up to 1 million st FOB Barge or Rail, with delivery beginning in January 2015 and ending in December 2015. This coal can be either NYMEX Specification "A" or CSX Rail Specification "B", with the following specifications: 12,500 Btu/lb, 10% moisture, 12% ash, 1.6 lbs SO2/MMBtu, 32% volatile matter, 45 hardgrove grindability, 2,700 degrees F ash fusion temperature (H=1/2 W), 0.20% dry chlorine and 10 lbs Hg/TBtu.

** Up to 180,000 st FOB Barge, with delivery beginning in January 2014 and ending in December 2015. AEP classifies this coal as "Compliance Specification 'C"', with the following specifications: 12,000 Btu/lb, 8% moisture, 12.5% ash, 1.2 lbs SO2/MMBtu, 32% volatile matter, 45 hardgrove grindability, 2,700 degrees F ash fusion temperature (H=1/2 W), 0.20% dry chlorine and 10 lbs Hg/TBtu.

Alternately, AEP is considering offers for a total of 1 million st of NYMEX Specification "A" for delivery beginning in January 2014 and ending in December 2015, or 500,000 st/year for each of those two years, with a fixed (blended) price for the two years.

Proposals are open for AEP's acceptance until 5 pm EDT, November 1.

Source: Platts