12:43 06.03.2015

DTEK believes importing coal under current TPP tariffs impossible

2 min read
DTEK believes importing coal under current TPP tariffs impossible

Rinat Akhmetov's DTEK Energy Holding believes that importing coal under the current tariffs for thermal power plants (TPPs) is impossible, DTEK Energo Commercial Director Vitaliy Butenko told reporters on the sidelines of the Ukrainian Energy Forum organized by Adam Smith Institute.

"Now Centrenergo is importing Russian coal at around $76 per tonne. Compare that with the tariff [for TPPs]. It covers only UAH 840 per tonne and even if we compare with our price of coal – UAH 1,500 per tonne, the coverage is 56%. There is no possibility of importing [coal]," he said.

Butenko said that the price of coal imported from South Africa under CIF TIS conditions is UAH 2,762 per tonne, from Russia under DAP conditions it costs UAH 2,291 per tonne, and that the production cost of coal at Ukrainian state enterprises is UAH 2,111 per tonne, which costs UAH 1,500 per tonne for DTEK.

Previously, DTEK had contracted two vessels to transport coal from South Africa with 165,000 tonnes aboard each, however the company does not plan to buy any more coal from South Africa.

Butenko said that there are no plans to import coal from Russia too. At the end of 2014 the holding contracted 750-800 tonnes from Russia with full advance payment. However, due to political reasons the supplies were halted, and the Russian contractors had to return the money which was paid in advance.

AD
AD
AD
AD
AD