DTEK Energy has held two trading sessions at the Ukrainian Energy Exchange to buy coal for its TPPs. The bid price, which is based on the API2 Index and includes the costs of freight, port transhipment and the railway rates (from a port or border of Ukraine to the TPP, Rotterdam+), has not yet found a single trader interested in deliveries.
On 3-4 September, the bidding took place to buy thermal coal for DTEK Zakhidenergo and DTEK Skhidenergo thermal power plants. The requests for proposal to purchase 450,000 tonnes of thermal coal were put up for bidding, 75,000 tonnes for each TPP, including Ladyzhinska, Kryvorizka, Zaporizka, Prydniprovska, Burshtynska, and Dobrotvirska.
The bid price is determined on the basis of API2 indices on CIF terms at the ports of Amsterdam – Rщtterdam – Antwerp as of 30 August 2019 and includes the cost of coal delivery to each TPP. Thus, the bidding shaped a price offer ranging from UAH 1,867 to UAH 1,966 per tonne, depending on the location of TPPs.
“At the moment, the coal offer is limited in global markets. The company uses different tools to deliver coal sufficient to Ukraine for the autumn and winter period. In particular, we’ve chosen the most transparent way to buy coal at the online tender pegged to the import index, and we look forward to suppliers joining our trading sessions to be held several times until 12 September inclusive,” said DTEK Energy CEO Dmitry Sakharuk.