Coal news and updates

US coal export terminal delay could benefit producers: source

Permitting delays for the proposed $680 million coal export terminal project in Longview, Washington, could actually benefit coal producers as current market conditions would not likely support additional exports, a Powder River Basin producer said.

The state’s Department of Ecology announced Thursday that the draft Environmental Impact Statement, originally slated for release in November, would not be completed until an unspecified time in 2016.

“To some degree, I believe these agencies and environmental groups are doing the coal producers a favor by not approving or supporting the approval of these terminals,” the producer said. “If the terminals were already built and in operation, few, if any, would be exporting coal as current pricing wouldn’t support it.”

Platts assessed FOB Newcastle 5500 kcal/kg NAR at $42.25/mt Friday, down 21.5% from its year-ago price.

Additional competition for seaborne thermal coal could come from a proposed A$16.5 billion ($11.7 billion) thermal coal export project in the Galilee Basin of Queensland, Australia, which received conditional approval Thursday from the country’s environment minister.

“You’re looking at a PRB transportation component alone of about $53/mt to Asia, the PRB source said. “Producers would basically have to pay Asian customers to take their coal. Galilee would only make it even worse.”

Bill Chapman, CEO for Millennium Bulk Terminals, said the project continues to have the full support of its investors.

“We’re hopeful this delay is short and that we are breaking ground in 2017,” he said in a statement.

The environmental review process, which started in 2013, has been a collaborative effort between county, state and federal agencies. The draft EIS will include a broad scope of potential impacts from the coal export project, including potential impacts on climate change.

The extra time was needed due to “late data submittals” and “to ensure accurate and reliable data,” the Department of Ecology said.

The agency plans to have a new EIS “as early as possible in 2016,” it said.

source: http://www.hellenicshippingnews.com