Tue Oct 18, 2011
* LNG resold to Japan, Europe
* All Spanish coal-burning plants running
* Dry weather also increases coal burn
MADRID, Oct 18 (Reuters) - Spain is on course to import 10 million tonnes of thermal coal in 2011 due to better margins on burning coal than liquefied natural gas, an executive from Spanish utility Iberdrola said on Tuesday.
Speaking on the sidelines of the annual Coaltrans conference in Madrid, utility sources said they have renegotiated LNG take-or-pay contracts and resold cargoes, mainly to Japan but also to Europe and elsewhere in Asia.
"All of Spain's coal-fired power plants are currently burning," said Jorge Palomar, a Madrid-based executive in Iberdrola's coal and biomass trading department.
Data from national grid operator REE showed coal plants were providing 21.1 percent of Spain's electricity by 1150 GMT, which compares to an average of 8 percent for 2010 as a whole.
"Last year, it was very wet so there was more hydro available, this (year) it's been dry."
Utilities can sell hydropower at a discount to electricity generated from coal and gas, so a lack of it over the recent hot, dry summer has forced up wholesale Spanish power prices .
Spain's coal imports have languished in recent years and many analysts expect them to be compromised this year by the introduction of market regulations favouring domestically produced coal.
"Let's wait and see what happens next year. Spain's increase in coal imports is not enough to compensate for lack of demand across Europe," said a European trader who supplies Mediterranean utilities.
(sourced Reuters)
* LNG resold to Japan, Europe
* All Spanish coal-burning plants running
* Dry weather also increases coal burn
MADRID, Oct 18 (Reuters) - Spain is on course to import 10 million tonnes of thermal coal in 2011 due to better margins on burning coal than liquefied natural gas, an executive from Spanish utility Iberdrola said on Tuesday.
Speaking on the sidelines of the annual Coaltrans conference in Madrid, utility sources said they have renegotiated LNG take-or-pay contracts and resold cargoes, mainly to Japan but also to Europe and elsewhere in Asia.
"All of Spain's coal-fired power plants are currently burning," said Jorge Palomar, a Madrid-based executive in Iberdrola's coal and biomass trading department.
Data from national grid operator REE showed coal plants were providing 21.1 percent of Spain's electricity by 1150 GMT, which compares to an average of 8 percent for 2010 as a whole.
"Last year, it was very wet so there was more hydro available, this (year) it's been dry."
Utilities can sell hydropower at a discount to electricity generated from coal and gas, so a lack of it over the recent hot, dry summer has forced up wholesale Spanish power prices .
Spain's coal imports have languished in recent years and many analysts expect them to be compromised this year by the introduction of market regulations favouring domestically produced coal.
"Let's wait and see what happens next year. Spain's increase in coal imports is not enough to compensate for lack of demand across Europe," said a European trader who supplies Mediterranean utilities.
(sourced Reuters)
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