U.S. utilities are importing more coal from countries like Colombia, Russia and Indonesia in 2014 to hedge against poor railroad service, fulfill unique blends and, in an alarming trend for Central Appalachia coal producers, because it is less expensive than burning domestic coal.
The U.S. imported 1.23 million tonnes of bituminous coal in the first quarter, according to SNL Energy data sourced from the U.S. Department of Commerce, Bureau of the Census, up 73.1% compared to the year-ago quarter. April and May coal imports also topped totals from a year ago.
Southern Co. increased its purchases of Colombian coal by nearly 500,000 tons in the first half of the year, a spokeswoman for the utility said. According to SNL Energy fuel delivery data through April, the utility purchased Colombian coal for subsidiary Alabama Power Co.'s Barry, Gorgas and Greene County coal-fired plants. The Greene County plant is co-owned by Southern subsidiary Mississippi Power Co. Most of the Colombian coal is purchased from Drummond International LLC, a unit of Alabama-based Drummond Co. Inc.
"The primary driver for the increased purchase of Colombian coal was in order to provide the most cost-effective fuel for our customers," the Southern spokeswoman said, noting that Southern purchased more than 12 million tons of spot coal in the first half of 2014.
More: US utilities turn to Colombia, Russia for coal in 2014 - MINING.com
The U.S. imported 1.23 million tonnes of bituminous coal in the first quarter, according to SNL Energy data sourced from the U.S. Department of Commerce, Bureau of the Census, up 73.1% compared to the year-ago quarter. April and May coal imports also topped totals from a year ago.
Southern Co. increased its purchases of Colombian coal by nearly 500,000 tons in the first half of the year, a spokeswoman for the utility said. According to SNL Energy fuel delivery data through April, the utility purchased Colombian coal for subsidiary Alabama Power Co.'s Barry, Gorgas and Greene County coal-fired plants. The Greene County plant is co-owned by Southern subsidiary Mississippi Power Co. Most of the Colombian coal is purchased from Drummond International LLC, a unit of Alabama-based Drummond Co. Inc.
"The primary driver for the increased purchase of Colombian coal was in order to provide the most cost-effective fuel for our customers," the Southern spokeswoman said, noting that Southern purchased more than 12 million tons of spot coal in the first half of 2014.
More: US utilities turn to Colombia, Russia for coal in 2014 - MINING.com