A Korean energy company bought Colombian coal shipments amidst a rising demand for coal in Asia, said Reuters Thursday.
Reuters said Korean state utility Korea South East Power Co Limited bought six Capesize coal cargo shipments in its first Colombian-only coal purchase.
The report said the purchase highlights Colombian coal’s competitive pricing and ability to undercut domestic coal and rival coal importers in Asia.
The Reuters report coincides with a press release by energy consultancy firm Platts that said, “Construction of Colombia’s first deep-water river coal port near Barranquilla will begin by year’s end.”
The new “Super-port,” will allow Colombian coal exporters to accommodate Capesize cargo ship in Colombia’s northern Caribbean region.
Asia uses coal to generate the majority of its electricity. Colombian coal exports are expected to increase alongside Asian electricity use.
According to a separate Reuters report, Chinese and Indian coal imports are expected to increase to one billion tons and 400 million tons respectively by 2030.
Speaking with Reuters about India’s coal imports, energy consultant Prakash Sharma said, “If domestic coal prices rise and become at import parity for Indian consumers then probably coastal-based power plants and distant power plants … will prefer imported coal over domestic coal.”
Sharma added, “Australia and Indonesia will ramp up supply greatly but … around 2022 that supply cannot meet the rise in demand, so that’s when you need regular supply support from distant suppliers like Russia, Colombia and the U.S.”
Colombia is South America’s largest supplier of coal.