I wrote a few months back about increasing demand in America for coal from the West.
Producing basins like the Powder River of Wyoming and Montana are in demand these days. With coal-fired power plants across the nation switching to this supply–based on its low price as compared to other production centers like Appalachia.
Now it appears the rest of the world also wants in on this supply.
At least, major coal consumer South Korea does. According to an editorial published last week by a fuel supply procurer for one of the nation’s biggest power generating firms.
In that piece, Lee Kyungro, managing director of Fuel and Resources Strategy for Korea East West Power, wrote that Korea is “very interested” in securing additional supplies of coal from the Powder River basin.
Additional, because Korea is already a significant importer of these coals. Currently bringing in about 5 million tonnes of Powder River coal yearly, through export facilities in Vancouver, Canada.
Kyungro noted that Korean importers would like those numbers to increase. The firms are eyeing government directives aimed at doubling Korea’s coal-fired generating capacity by 2027. And are therefore making a push to identify where supply for these new developments is going to come from.
Kyungro noted, “That means South Korea is going to need to find new, reliable suppliers of coal to meet the country’s growing energy demands.” He encouraged America to build coal export terminals on the Pacific that could provide supply of coals like Powder River abroad.
This demand growth is another big positive for the global coal market. Showing that the fuel remains very much relevant on the world stage. With consumption only increasingly in several key nations.
Expect that trend to continue. To the benefit of coal producers in well-positioned locales.
Here’s to being in the black,
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