The Colombian Association of Large Industrial and Commercial Energy Consumers (Asoenergía), He asked the National Government to take urgent measures to allow the supply of thermal coal in the country to avoid shortages or shortages amid the rise in prices that affects this sector and the generation of energy for the country’s large industries.
In a letter sent to the Minister of Mines and Energy, Diego Mesa Puyo, Sandra Fonseca, Executive President of Asoenergía, requested to include the assurance of coal supply within the offer to ensure the energy basket and guarantee the competitiveness of the industry and the energy matrix of the country, and to be efficient as a reference in the formation of energy prices and its security.
“It is worth mentioning that a greater international demand for coal at higher prices affects the availability of domestic supply and compliance with supply contracts, with which we respectfully request the National Government to establish measures in the short term aimed at ensure the supply of thermal coal for local consumption, both for the electricity generation sector and the national industry, in the face of the current situation of energy prices in the international context“, says the communication.
Likewise, Asoenergía asked the Government “strengthen the internal coal market, its formalization, participation in negotiation scenarios that make the market more robust and standardized, traditional and non-traditional financial leverage and the generation of sufficient information on this economic link”.
(See: They warn about the shortage of coal for thermal generation).
According to Asoenergía, “Colombia is no stranger to the international energy crisis, and in the particular case of the coal market, there is currently a shortage of thermal coal in the local market, both for thermal generation and for consumption by the country’s large industrial users.”.
In the letter, it is noted that Colombia is one of the main exporters of thermal coal in the world, and within the framework of the economic reactivation during the year 2021, the country produced about 55 million tons of thermal coal, of which, between 5 and 10% is used for local consumption, in particular, industrial consumption and electricity generation.
“Although the consumption of thermal coal in the country has not historically exceeded more than six million tons/year, with the current situation of international prices that has shown a global shortage of the mineral, most of the agents of the small and medium-sized mining associated with coal, with whom thermal agents and large consumers have commercial relations, have chosen to sell coal for export purposes, which in practice has generated a shortage of thermal coal in the local market, with that there have been cases of non-compliance with bilateral contracts”, added Asoenergía.
