OREANDA-NEWS. DTEK has completed the tendering process to purchase coal for the thermal power plants of DTEK Zakhidenergo and DTEK Dniproenergo till the end of 2015 The tender was open for participation to domestic and international coal producers without any limitations. As a result, seven companies took part in the open tender, representatives of Ukraine, Russia, Poland, Switzerland, and Cyprus among them. The tenderers offered Ukrainian, Russian, Australian, Polish, and South African coal. The open tender format allows the thermal power plants to choose the best offer based on the actual market price for steam coal.

DTEK Dniproenergo and DTEK Zakhidenergo launched the tender on 1 July 2015. The respective notice was placed in the information bulletin Visnyk Derzhavnykh Zakupivel. No preliminary registration of tenderers was required. The following coal volumes were put out to tender: А (anthracite) grade — 600 ths tonnes, Т (lean) grade — 700 ths tonnes, G/DG/D/GZh (gaseous) grades — 4.2 mln tonnes The purchased volume of coal for DTEK’s two generating companies totalled 5.5 mln tonnes of coal and was divided into 8 lots. Price offers were submitted by 7 companies:

— GALAROSE LIMITED (Cyprus)

— DTEK TRADING LLC (Ukraine)

— Vuhillia Ukrainy SE (Ukraine)

— ZAO Stroyservis (Russia)

— JSC HC SDS-COAL (Russia)

— Lubelski Wegiel BOGDANKA (Poland)

— UNICOAL (Switzerland)

The weighted average price of G-grade coal including delivery to TPPs was UAH 1,624 per tonne (net of VAT) and that of A/T-grade coal, UAH 1,734 per tonne. The tenders were opened on 8 July 2015 at DTEK Dniproenergo’s office (Zaporizhzhia).

Pursuant to the conditions of the tender conducted, successful tenderers will be determined within a month from the tender opening date. Tender results will be published in the information bulletin Visnyk Derzhavnykh Zakupivel.

„The coal price on the global market is determined on the basis of API2 indices on CIF terms (Amsterdam — Rotterdam — Antwerpen ports) and on FOB terms (ports of Puerto Bolivar (Columbia) and Richards Bay (RSA)). The cost of coal for TPPs also includes the production cost, logistics costs and currency risks.

The tender results objectively show the market price of coal for thermal generation in Ukraine. The market has had its say. „Now it is up to the Regulator (the NCSEPUR) and the Ministry to decide how to ensure funds for purchasing coal for thermal generation in order to pass the 2015/2016 heating season”, Vitaly Butenko, DTEK Energy LLC’ Commercial Director, commented.