About this webinar
Coal contracts can be typically split into two broad categories, spot contracts (single shipments) and term contracts (multiple shipments). Term contracts can span any period, but in China in 2014, the National Development and Reform Commission announced a desire for coal buyers to negotiate long-term contracts with suppliers. Security of supply of fuel and limiting exposure to shorter-term volatility in prices and fuel supplies are clearly a strategic aim of some Asian economies. Such approaches to coal procurement is used across the world to varying degrees depending on the particular circumstances of the power generators and the markets in which they operate. This webinar provides an overview of a recent publication by the IEA CCC regarding coal procurement and contractual needs, and describes some of the aspects associated with the long-term nature of some coal contracts. It provides an introduction to some of the fundamentals of coal contracts and buying to those unfamiliar with fuel procurement, as well as a review of some regions which have been active in long term coal procurement in recent years.