Coal news and updates

Coastal Energen, the power generating flagship company of Coal and Oil Group, will be seeking 2.5 million mt/year of lower grade Indonesian thermal coal for the first of two units of its south Indian power plant at Tuticorin, a company source told Platts recently.

 

"We will be importing thermal coal from Indonesia, basis 4,200 kcal/kg GAR coal with maximum sulfur of 0.35% via the Tuticorin port [on the east coast]," he said.

 

The first unit has a capacity of 600 MW a year and is expected to burn 2.5 million mt/year of thermal coal, the source said.

 

The plant is designed to burn 4,200 kcal/kg GAR coal with a typical sulfur content of 0.35%. The stockyard at the power plant can store about 500,000 mt, which is sufficient for up to 30 days of coal burn.

 

The construction of the 1,200 MW power plant began in December 2009 at an estimated investment of about $1.1 billion, the source said, adding that the first unit is expected to become fully operational in July while the second unit, which has similar design specifications and capacity, is 75% complete and is expected to be commissioned in the fourth quarter of this year.

 

The source said that Coastal entered into a 15-year power purchase agreement with Tamil Nadu Generation and Distribution Corporation in December 2013, following an end-March boiler light-up of the first unit.

 

"The power purchase agreement is at a fixed price of Rupees 4.91 ($0.08) per unit," he said.

 

Coal and Oil Group -- the parent of Coastal -- is involved in coal trading, mining, shipping, logistics and power generation.

 

 

Source: Platts