Coal
Vitol is relatively new to the coal sector – we began operations in 2006 – and entered the fray at an interesting time.
In recent years, the coal market has become increasingly liberalised, with new grades of coal and pre-financing instruments creating a more sophisticated environment.
Against this background, Vitol has grown rapidly to become a major trading power in steam coal, signing long-term contracts with producers in both the Far East and Europe. Similarly, we are finding long-term outlets with utilities.
Anthracite is another significant strength, with long-term contracts in Russia, Ukraine and South Africa, and we support this with a full break-bulk operation (for storage, handling and wholesale) in Ghent, Belgium.
Our experience gained across the energy sectors also stands us in excellent stead in derivatives, which are now playing a vital role in the coal-trading business internationally. We are also applying models employed in oil and natural gas; by focusing on the physical aspects, we can add significant value in areas such as coal finance and logistics.
Vitol is also focused on other areas central to the sector. In freight, we are very active in the dry coal market, both through paper trades and vessel ownership.
• Capesize MV Xin Fa Hai, loading at Bayan’s newly built 60kt capacity Kalimantan floating anchorage off East Kalimantan, Indonesia.