Energy Ministry`s forecast: Anthracite reserves to shrink by 44% in March

Ukraine`s Energy and Coal Industry Ministry predicts that in March 2017, reserves of deficient anthracite which continues to be supplied exclusively to the DTEK-owned Luhansk TPP as a result of a trade blockade in the ATO zone, will shrink by 43.9%, to 513.100 tonnes, according to the ministry`s website.

In general, anthracite reserves in March are estimated at 916.200 tonnes (816.200 tonnes of reserves as of March 1, plus 100,000 tonnes of coal to be supplied by DTEK to Luhansk TPP). Over the same period, the consumption of anthracite at Ukraine`s TPPs is projected at 403.100 tonnes, according to the report titled ”Projected Structure of Fuel for TPPs in March 2017,” published on the ministry website.

At the same time, the DTEK stocks (including shipments to Luhansk TPP) in March will fall by 42.7% (288.500 tonnes), to 386,000 tonnes.

According to the ministry, anthracite imports are not scheduled for March.

Earlier, in late January a group of Donbas war veterans and some Members of Parliament initiated a blockade of rail tracks used to transport anthracite coal from the temporarily uncontrolled areas to Ukraine`s thermal power stations. According to the ministry, all the anthracite supplies to the Ukraine-controlled territory stalled on February 10, 2017, except the shipments to Luhansk TPP, which is part of DTEK.

Meanwhile, Donbasenergo generating company, which operates the Slavyansk and Starobeshevo TPPs (both use anthracite), has already announced its intention to import the deficit coal. Ukraine`s Cabinet of Ministers considers the anthracite imports as well.

On March 2, 2017, head of Commercial Analysis at DTEK Energo Dmytro Malyar said that the company was studying the possibility of anthracite imports and would be able to conclude contracts for the purchase of anthracite in the world market (for example, in Australia, South Africa, and Asia) only after the Energy and Coal Industry Ministry adopted the projected power balance before the end of 2017.

According to Malyar, after a contract is signed and price of imported anthracite is set, the company will appeal to Ukraine`s National Energy and Utilities Regulation Commission so that the new price is included in tariffs.

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