US Coal Exports
Exports Economic Contributions Report
Aug 01 2017

Pa. Coal Company Wins $79 Million Deal to Supply Ukraine (Boston Globe)

Posted in All News, Europe

Pa. coal company wins $79 million deal to supply Ukraine

A Pennsylvania-based coal company has won a contract to supply coal to Ukraine’s state-owned power company in preparation for that country’s winter heating needs. Officials said the deal would bolster a key US ally often threatened by Russia.

The deal, potentially worth about $79 million, calls for Xcoal Energy and Resources to ship 700,000 tons of thermal coal to the Ukraine to heat homes and businesses. The first shipment is expected to leave the Port of Baltimore next month at a cost of $113 per metric ton.

Energy Secretary Rick Perry said US coal ‘‘will be a secure and reliable energy source’’ for Ukraine, which he said has been ‘‘reliant on and beholden to Russia to keep the heat on. That changes now.’’

The United States ‘‘can offer Ukraine an alternative, and today we are pleased to announce that we will,’’ Perry said, calling such deals ‘‘crucial to the path forward to achieve energy dominance’’ for the United States.

President Trump has vowed to revive the struggling coal industry and has cited increases in US coal exports as evidence the strategy is working. The Energy Department said in July that coal exports have risen sharply in 2017 amid increased demand in Asia and Europe, but are still below capacity.

The deal comes amid increased tensions in US-Russia relations. Russian President Vladimir Putin says the United States will have to cut its diplomatic staff in Russia in response to new sanctions against Russia. Congress approved those because of Russian interference in the 2016 US election and its military aggression in Ukraine and Syria.

Commerce Secretary Wilbur Ross said the coal deal will allow Ukraine to diversify its energy sources ahead of the coming winter, noting that Russia has restricted some natural gas deliveries to Ukraine and other neighbors in a bid to ‘‘choke off opposition to its ambitions.’’

Perry was recently fooled by a pair of Russian pranksters impersonating the prime minister of Ukraine. Topics on the mid-July call included coal exports. Perry met with Ukraine’s president, Petro Poroshenko, in June.

See article here.

  • “The fact that we’re no longer in the age of energy scarcity – that we’re in the age of energy abundance – positions the United States in a totally different place. This gives access to affordable, reliable energy in the United States, and gives the U.S. a major competitive advantage.”
    – Dave Banks, Special Assistant to President Donald Trump for International Energy, June 2017
  • “It is in the national interest to promote clean and safe development of our Nation's vast energy resources, while at the same time avoiding regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation. Moreover, the prudent development of these natural resources is essential to ensuring the Nation's geopolitical security.”
    – Executive Order on Promoting Energy Independence and Economic Growth, March 28, 2017
  • “Historically, U.S. companies seeking to expand their revenues focused first on increasing their number and share of U.S customers. For years, this focus served as a winning strategy for many of the most successful U.S. companies. Today, global economic trends make clear that successful companies are those that reach and sell to consumers outside U.S. borders and around the globe.”
    — 2011 National Export Strategy, U.S. Trade Promotion Coordinating Committee
  • “Federal regulatory agencies should not require climate change studies in the course of their permitting processes for proposed facilities. Coal will be consumed around the world regardless of U.S. trade policy. The only question is whether the coal is produced here in North America, where environmental standards are high, or elsewhere.”
    — U.S. Senator Lisa Murkowski, January 7, 2014
  • “At present 19% of the world’s population, 1.3 billion people, lack access to electricity and on New Policy Scenario projections there will still be 1 billion people without such access in 2030. To meet the UN Millennium Development Goal of eradicating extreme poverty by 2015, 395 million more people need access to electricity. There is a strong correlation between electrification and improvement in the United Nations’ Human Development Index.”
    — International Energy Agency, Coal Industry Advisory Board
  • “Access to electricity is strongly correlated with every measurable indicator of human development”
    — Berkeley Science Review, 2008

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