US Officials Tout Coal Deal with Ukraine (SNL)
US officials tout coal deal with Ukraine
Federal government officials touted news that a Ukrainian state-owned power generation company will purchase U.S. thermal coal ahead of the upcoming winter.
The state-owned Centrenergo PJSC awarded a contract to Xcoal Energy & Resources to supply an unspecified amount of coal for arrival in late August or early September to stockpile for the winter heating season. According to the release, multiple U.S. government agencies and offices, including the U.S. Department of Commerce, were involved in the deal, and the partnership arose from a desire to diversify Ukraine’s energy supply.
“In today’s turbulent world, geopolitical turmoil can create uncertainty for nations without access to an abundance of their own natural resources,” said Energy Secretary Rick Perry in the release. “No one knows this more than Ukraine. In recent years, Kiev and much of Eastern Europe have been reliant on and beholden to Russia to keep the heat on. That changes now.”
Perry added that the Trump administration will seek ways to make additional domestic resources available to allies and partners. Xcoal is among the largest coal exporters in the United States, with a core business centered on exporting hard coking coals from Appalachia coal mines.
Ukraine has faced coal supply shortage issues in the past that have led to a power crisis. Ukraine generators have considered other sources of coal, including the U.S., as coal-rich regions were affected by political conflict.
The country recently unveiled reform to coal policies that would streamline the sector and close unprofitable state-run mines. President Donald Trump and administration officials have mentioned Ukraine’s potential need for U.S. coal multiple times since Trump took over the White House.