Halted shipping traffic from the Port of Baltimore, the second-largest U.S. hub for coal exports, will slow the growth in U.S. coal exports and reduce bunker fuel use, the Energy Information Administration (EIA) said on March 28.
Coal exports from the busy U.S. port have been disrupted following the collapse of Baltimore's Francis Scott Key Bridge which was struck by a massive cargo ship early morning of March 26.
"Since the port is a major transit point for freight and bulk vessels, we expect bunker fuel consumption to decrease," the EIA added.
Baltimore handled exports of 28 million short tons last year, making up 28% of total U.S. coal exports and second only to the Hampton Roads port in Norfolk, Virginia, according to census data.
"An attractive feature of the Port of Baltimore is its proximity to the northern Appalachia coal fields in western Pennsylvania and northern West Virginia," the EIA said.
"Other nearby ports, most notably Hampton Roads, have additional capacity to export coal, although factors including coal quality, pricing, and scheduling will affect how easily companies can switch to exporting from another port."
About 19 million short tons of the exports in 2023 were steam coal, used to generate power and heat, and the remaining 9 million short tons were metallurgical coal, an ingredient in steelmaking.
India was the top destination for steam coal over the last five years, where the brick manufacturing industry is a major customer, while metallurgical coal went to various Asian countries including Japan, China, and South Korea, the EIA said.
Baltimore also imported 3,000 bbl/d of biodiesel in 2023, mostly from Central America and Western Europe, alongside 4,000 bbl/d of asphalt from Canada and 2,000 bbl/d of urea ammonium nitrate largely from Russia.
More widely used refined oil products are less affected, the EIA noted.
Recommended Reading
New Permian Math: Vital Energy and 42 Horseshoe Wells
2024-05-10 - Vital Energy anticipates making 42 double-long, horseshoe-shaped wells where straight lines would have made 84 wells. The estimated savings: $140 million.
SM Energy Targets Prolific Dean in New Northern Midland Play
2024-05-09 - KeyBanc Capital Markets reports SM Energy’s wells “measure up well to anything being drilled in the Midland Basin by anybody today.”
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
Crescent Energy: Bigger Uinta Frac Now Making 60% More Boe
2024-05-10 - Crescent Energy also reported companywide growth in D&C speeds, while well costs have declined 10%.
SLB OneSubsea JV to Kickstart North Sea Development
2024-05-07 - SLB OneSubsea, a joint venture including SLB and Subsea7, have been awarded a contract by OKEA that will develop the Bestla Project offshore Norway.