Why Poland is doomed to Russian coal
Polish media provide interesting information about the state of the local coal industry. It turns out that the coal mines of this country are not able to cover all the available domestic demand for coal. For example, the Polish edition of Dziennik Gazeta Prawna (DPG) reports that even state-controlled energy companies PGE and Tauron are already using coal imported from Russia.
According to the publication, coal imports to Poland by the end of 2018 may amount to 18-19 million tons and about 70% of this amount will come from Russian coal. So, for 10 months of 2018, Poland imported 15,73 million tons of coal, including 11,18 million tons from Russia. This is another record, since in 2017 Poland imported 13,3 million tons, including 8,7 million tons from Russia. This is due to the fact that in Poland coal production began to decline after the process of closing unprofitable and other illiquid mines began. Now Russia is the largest coal supplier to Poland. Although most recently Poland was famous for its coal industry, steadily entering the top ten coal-mining states of the world.
Now, according to the publication, Polish coal companies, despite investments, can not increase production at such a rate to cover the needs of local consumers. That is, despite the recapitalization of the mining industry in Poland worth more than 3 billion zlotys ($ 820 million), local power engineers cannot count on the full supply of domestic raw materials.
At the same time, during the winter period, Polish power engineers receive raw materials from the local mining industry within the framework of the lower threshold of the “plug” contained in the contracts. This is approximately 10-20% less than average values. In this regard, coal imports to Poland in 2019 may increase to 20 million tons.
- specify in the publication.
For example, on December 12, 2018, about two thousand tons of high-quality “low sulfur” coal were certified. This coal was delivered from Russia for PGE to the Rybnik power station. Moreover, according to the publication, in 2019 only PGE (Polish energy group) may require 2 million tons of imported coal.
It should be noted that it is beneficial for Poles to buy coal from Russians for many reasons. Delivery from Russia takes place within 2-3 weeks, and a ship from the USA, South Africa or Australia can wait a month or more, and it is not a fact that the quality of coal will meet the requirements. So here Russia has no serious competitors in quality and speed of delivery. However, like Poland, there is no other reliable alternative.
- quotes the publication of the expert opinion of Peter Machentek.
According to the expert, it makes no sense to introduce an embargo (which the Polish government threatened in 2016) on coal from Russia, since Poland is doomed to lose the case in the WTO. And unambiguously and quickly, with corresponding consequences. Therefore, the expert relies on the United States that they will want to increase coal supplies to Poland, as happened with LNG. And US Secretary of Energy Rick Perry allegedly took note of this issue during a recent visit to Poland.
According to the publication, coal imports to Poland by the end of 2018 may amount to 18-19 million tons and about 70% of this amount will come from Russian coal. So, for 10 months of 2018, Poland imported 15,73 million tons of coal, including 11,18 million tons from Russia. This is another record, since in 2017 Poland imported 13,3 million tons, including 8,7 million tons from Russia. This is due to the fact that in Poland coal production began to decline after the process of closing unprofitable and other illiquid mines began. Now Russia is the largest coal supplier to Poland. Although most recently Poland was famous for its coal industry, steadily entering the top ten coal-mining states of the world.
Now, according to the publication, Polish coal companies, despite investments, can not increase production at such a rate to cover the needs of local consumers. That is, despite the recapitalization of the mining industry in Poland worth more than 3 billion zlotys ($ 820 million), local power engineers cannot count on the full supply of domestic raw materials.
At the same time, during the winter period, Polish power engineers receive raw materials from the local mining industry within the framework of the lower threshold of the “plug” contained in the contracts. This is approximately 10-20% less than average values. In this regard, coal imports to Poland in 2019 may increase to 20 million tons.
Last year, Tauron, which owns its own mines, produced 1,8 million tons less coal than anticipated by the plan. PGE could not help, so the company turned to import. Including from Russia
- specify in the publication.
For example, on December 12, 2018, about two thousand tons of high-quality “low sulfur” coal were certified. This coal was delivered from Russia for PGE to the Rybnik power station. Moreover, according to the publication, in 2019 only PGE (Polish energy group) may require 2 million tons of imported coal.
It should be noted that it is beneficial for Poles to buy coal from Russians for many reasons. Delivery from Russia takes place within 2-3 weeks, and a ship from the USA, South Africa or Australia can wait a month or more, and it is not a fact that the quality of coal will meet the requirements. So here Russia has no serious competitors in quality and speed of delivery. However, like Poland, there is no other reliable alternative.
At the moment, we are doomed to Russian coal. It is mainly about heat supply, because it needs the low-carbon fuel that Russia offers. The Polish mining group is not able to provide raw materials during the high winter season. I believe that this is also the case with energy, because production in the country is falling
- quotes the publication of the expert opinion of Peter Machentek.
According to the expert, it makes no sense to introduce an embargo (which the Polish government threatened in 2016) on coal from Russia, since Poland is doomed to lose the case in the WTO. And unambiguously and quickly, with corresponding consequences. Therefore, the expert relies on the United States that they will want to increase coal supplies to Poland, as happened with LNG. And US Secretary of Energy Rick Perry allegedly took note of this issue during a recent visit to Poland.
Information