Another sign of the shifting world energy market caused by the shale gas revolution is a $7 billion contract announced this week that directs the export of coal — no longer needed in the United States — to India from Kentucky and West Virginia. The 25-year agreement was lauded by Kentucky Gov. Steve Beshear, who called it “an example of a great new market for Kentucky resources.” Kentucky coal companies will export about 9 million tons of coal per year to India’s Abhijeet Group. The coal is being purchased from Kentucky-based affiliates of FJS Energy LLC. A supply glut of natural gas, much of it from shale, has driven gas prices lower than coal this year and intensified the environmental push toward coal-to-gas fuel switching for power generation (see Daily GPI, Aug. 16; Aug. 6). The 25-year contract is an indication that coal producers see stiff competition from natural gas continuing for their product in the United States.
Natural gas is muscling in on professional golf’s Mylan Classic at the Southpointe Golf Club in Canonsburg, PA at the end of the month, with companion symposiums on shale gas development. The program for natural gas golfers, sponsored by America’s Natural Gas Alliance and the Washington County Chamber of Commerce, includes a seminar presentation by the Marcellus Shale Coalition the morning of Aug. 29 at the golf club, followed by participation in the Taggart Global Energy Cup Pro-Am. A second morning shale program will be hosted by Range Resources before the main Mylan Classic tournament gets underway. Consol Energy will have the podium on Aug. 30 at a symposium talking about coal development.
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