Today approximately 2/3 of China’s electricity is produced by coal-fired power plants. Several hydroelectric projects, modern oil and gas power plants and some nuclear reactors are either in progress or are being planned. Replacing existing coal-fired units is not under consideration. In fact the Chinese master-plan calls for a 20% increase in coal-fired production over the next five years! This should guarantee China’s 'number one' status for global coal consumption, currently at 1/3 of all production.
Though ARLP does not export to China, others do. As Chinese consumption increases, ARLP should be in a position to fill the gaps in local consumption.
Disclosure: Opinion of a CrossProfit analyst, not the consensus at CrossProfit.com and there are no conflict of interests. www.crossprofit.com
Eye on Alliance Resource Partners [View article]
Though ARLP does not export to China, others do. As Chinese consumption increases, ARLP should be in a position to fill the gaps in local consumption.
Disclosure: Opinion of a CrossProfit analyst, not the consensus at CrossProfit.com and there are no conflict of interests.
www.crossprofit.com