Q3 coal deliveries to US power plants rise 26.1% on quarter, dips 21%: EIA

Houston — Coal deliveries to US power plants rose to 115.74 million st in the third quarter, up 26.1% from 91.76 million st in Q2, but 21% lower than 146.59 million st in the year-ago quarter, according to US Energy Information Administration data published Dec. 1.

The shipments in Q3 were also down 33.5% from the five-year average for the quarter, due to the coronavirus pandemic, which resulted in a decrease in US power generation and cutbacks by coal miners. According to EIA data, total US power generation rose to 1,149 TWh, up from the 17-year low 931.25 TWh in Q2, but down from 1,172 TWh in the year-ago quarter.

However, in September, coal deliveries to the US power sector fell to 37.82 million st, down 6.7% from the seven-month high 40.53 million st delivered in August, but 18.5% lower than 46.43 million st in the year-ago month.

The shipments in September were the lowest in over 13 years for the corresponding month and was also down 32.3% from the five-year average.

Subbituminous coal deliveries were at 21.7 million st in September, down from 22.46 million st in August and 27.71 million st in the year-ago month.

Bituminous coal deliveries to US power plants also fell to 12.37 million st, down from 13.59 million st in the previous month and 15.02 million st a year earlier.

Subbituminous coal deliveries through September are at 179.91 million st, while bituminous deliveries are at 105.91 million st, compared with 229.41 million st and 152.82 million st, respectively, in the first nine months of 2019.

Average delivery costs for bituminous coal to regulated plants ticked higher to $53.84/st in September, up from $53.75/st in August and $56.73/st in the year-ago month, according to the data. Subbituminous delivery costs to regulated plants declined to $30.20/st in September, from $30.21/st in August, but up from $32.17/st in September 2019.

The remaining deliveries in September were 3.32 million st of lignite and 431,062 st of waste coal, compared with 4.04 million st and 439,102 st, respectively, in August, and 3.55 million st and 147,518 st in the year-ago month. The lignite deliveries were at a 17-month low.

Imports to US power plants rose to 325,687 st in September, up from 302,152 st in August and 266,049 st in September 2019.

Contract, spot purchase deliveries decline on month

Contract deliveries, or purchases with a term of one year or longer, fell to 34.5 million st in September, down from 36.98 million st in August and 40.05 million st in September 2019.

Spot coal shipments, or contract deliveries less than one year, dropped to a four-month low 3.27 million st, down from 3.52 million st in August and 6.35 million st in the year-ago month.

New contract purchases made up 24,516 st of the deliveries in September, which was the first since February and also up from zero in the year-ago month.

The new contract coal came from American Consolidated Natural Resources (formerly Murray Energy) and was delivered to Duke Energy Carolinas' Cliffside Station at an average delivered cost of $55.66/st. The rail-delivered coal had an average heat content of 13,143 Btu/lb and sulfur content of 4.1 lb SO2/MMBtu. The supply agreement expires in December 2021.

Rail deliveries were at 26.39 million st in September, down from 27.26 million st in August and 33.02 million st in the year-ago month, while barge deliveries fell to 4.31 million st, from 5.04 million st in August and 5.42 million st a year ago.

Deliveries by truck fell to 3.74 million st, down from 3.94 million st in August and 3.55 million st in September 2019, while 3.24 million st was moved by conveyor, compared with 4.19 million st in August and 3.99 million st in the year-ago month.