Luhanska TPP facing problems with coal amid Russian sanctions

Since June start, the Russian Railways has been failing to confirm coal shipments to the Luhanska TPP due to the lack of government quotas for coal supplies.

Meanwhile, at Luhanska Thermal Power Plants (Shchastia, Luhansk Region), which is owned by DTEK Vostokenergo, coal reserves are sufficient to cover only 41 days of stable operation, DTEK press service said Tuesday, June 11.

"As of 15:00 on June 11, DTEK Luhanska TPP operates two power units with a load of 225 MW and ensures stable electricity supplies to residents of Luhansk region in the area controlled by the Ukrainian government. Coal reserves at the station are at 125,000 tonnes. This is enough for 41 days of stable operation of the station," it was reported.

The said TPP is the sole electricity producer in the region, on which electricity and heat supplies depend to 1 million households.

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Since April 2017, coal has been supplied to the TPP from a DTEK asset in the Russian Federation – the Obukhovskaya mine (Rostov region), since the station can receive coal by rail only from the territory of the Russian Federation. There are no railway routes laid to Luhanska TPP from the territory controlled by the Ukrainian authorities. At the same time, since June of this year, the Russian Railways has not been confirming coal shipments to Luhanska thermal power plant due to the lack of government quotas for coal supplies.

It is reported that DTEK is in constant dialogue with the Luhansk military-civil administration, the Ministry of Energy and Coal Industry of Ukraine, and the Ministry of Temporarily Occupied Territories and Internally Displaced Persons of Ukraine to solve the problem of coal supplies to DTEK Luhanska TPP.

The company has worked out two scenarios for further developments given the lack of coal supplies from the Russian Federation: the transfer of Luhanska TPP to natural gas with subsequent compensation of the cost of fuel from the electricity market, and purchase of anthracite from alternative sources.

At the same time, coal can be delivered by road only in very limited volumes.