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US coal industry to boost exports through Gulf of Mexico

Steel News - Published on Tue, 26 Jun 2012

Bloomberg reported that US coal companies are boosting exports through the Gulf of Mexico after meeting resistance to West Coast port expansions.

According to Mr John Schlosser CCO at Kinder Morgan Terminals, opposition from environmental groups in the Pacific Northwest has led to delay after delay after delay after delay in establishing ports in that region to serve demand in Asia.

Mr Schlosser at the IHS McCloskey Coal USA Conference in New York said “The coal industry really needs this capacity.”

The Houston based company is expanding terminals in the Gulf and the Southeast, including its Shipyard River operation in Charleston, South Carolina.

He told “Kinder plans to spend about USD 200 million to boost capacity there to 8 million tons a year from 2.5 million and the project would be completed by 2015. Kinder also plans to spend USD 250 million to build a 15 million ton a year operation at Port Westward in Oregon. Project was to begin in 2015 and now it may be 2016 or beyond, given the opposition that continues to be thrown at it.”

According to Energy Department data, exports in 2011 rose to 107 million tons, the highest level since 1991, 50% of which went to Europe and 26% to Asia. About 35% of exports were of the thermal variety and the remainder being metallurgical coal.

The Energy Department forecast June 12 that exports may drop to 106 million tons this year and 97 million in 2013.

Source - Bloomberg


Posted By : admin on Tue, 26 Jun 2012
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