Coal news and updates

US coal exports to fall on continued economic weakness, low prices: EIA

US coal exports will total 114 million st this year, down from 2012's record 126 million st, the Energy Information Administration said Tuesday in its October Short-Term Energy Outlook.

The agency's October estimate is down slightly from the 115.3 million st of exports this year that it projected in its September STEO.

EIA also projected that US coal exports will slide to 105 million st in 2015, largely because of continuing economic weakness in Europe, slowing Asian demand, increased production in other exporting countries and lower global coal prices.

The agency also said the share of US electricity generation by coal will fall to 39.7% this year, down slightly from the 40% it forecast in September, but above the record low of 37.4% in 2012, when a flood of low-cost gas displaced coal in the power sector.

EIA said coal will provide 40.5% of the US electricity next year, while natural gas-fired generation will fall to 26.6% from a projected 27.4% this year, largely because of higher electricity demand and natural gas prices.

EIA said it expects the annual average price for coal to be $2.33/MMBtu in 2013, down from $2.40/MMBtu in 2012 and projects a $2.34/MMBtu price in 2014.

It said Henry Hub natural gas spot price will average $3.71/MMBtu in 2013, compared with $2.75/MMBtu in 2012. EIA forecasts the Henry Hub spot price will average $4/MMBtu in 2014.

Source: platts