Spain as a coal and gas trading hub amid Europe’s energy shift

Energy tensions and geopolitical upheaval surrounding Russia’s invasion of Ukraine have driven a pronounced shift in global energy markets. The crisis has spotlighted a historic rise in energy prices and a decisive move to reduce Europe’s dependence on Russian supplies, alongside sanctions and embargo measures that have reshaped economic relations worldwide.

The most visible consequences include price and supply pressures in natural gas, electricity, and oil. A historic shock has also hit coal, with prices climbing rapidly to new records. European nations are sourcing coal from across the globe to replace Russian imports, as Russia’s role in supplying coal to member states has diminished significantly.

As the international energy landscape evolves and Russian coal is blocked, Spain has emerged as a central hub for coal trade, purchasing coal from various origins and re-exporting it to other markets. Data from the Ministry of Industry, Trade and Tourism show that re-exports through Spain surged from 92 million euros in the prior year to 564 million euros in the first half of this year.

Spain grows into a major gas and coal trading hub

Following last year’s peak of energy insecurity and volatile international prices, coal shipments through Spanish ports have intensified, with total international coal exports projected to quadruple. Exports reaching large vessels for global destinations illustrate a significant rise in re-exports of coal sourced elsewhere. Spain’s shipping revenue from coal exports rose during the first half of this year, signaling a much larger volume of material moving through Spanish ports than the previous year.

Current European coal pricing remains elevated, with the benchmark around 120 dollars per tonne and historical highs surpassing 485 dollars in March. The boost in re-exports by June confirms increased traffic of coal materials routed through Spain, even as domestic production remains minimal due to the closure of most coal mines in the late 2010s.

Blocking and resale

Exactly one year ago, the European Union completed its final veto on coal imports from Russia. This move formed part of broader sanctions to apply pressure on the Kremlin following intensified military actions in Ukraine and the winding down of previously signed coal purchase agreements.

Global producers such as Australia, Indonesia, and South Africa expanded exports to Europe to fill the gap left by Russian coal and to meet the growing demand for hard coal used in energy generation. Prices for gasoline and other fuels also reflected this tighter market, contributing to higher consumer costs.

In this context, Spanish ports acted as warehouses where coal from around the world arrived and was then shipped onward to multiple destinations. The uptick in sales from Spain to other markets is largely attributed to re-exports from various origins. Domestic coal production in Spain remains minimal, with only a single active mine after the closure of most operations in 2018.

Spain’s coal imports declined by about 24 percent to 985 million euros in the first half of this year, contrasting with last year’s record purchases exceeding 3 billion euros. International price levels have stayed more than three times higher than 2021 figures, shaping the revenue landscape for re-export activity through Spanish ports.

Asturias as a pivotal hub

Within this evolving framework, Asturias has positioned itself as a major national center for coal re-exports to diverse destinations. The regional hub accounts for the bulk of shipping activity, with the Asturian Economic Community noting that coal resale generated 431.5 million euros in the first half of this year, a near fivefold increase from the previous year and representing roughly three-quarters of national coal export revenue.

Why electricity prices are rising in mid-August

In the first half of the previous year, coal, coke, and briquettes contributed a modest portion of exports, while the most recent period saw a sizable rise in coal re-exports as part of broader regional trade. The Asturian trade balance shows major shifts in import patterns, with Australia, Germany, and other leading partners playing a crucial role in shaping regional demand for energy and other goods.

Trade data reveal how shipments redirected from Asturias influenced other markets. Significant increases in demand occurred in several countries, including Indonesia, Croatia, Morocco, Finland, and India, with Germany, Italy, and France remaining the primary buyers of Asturian-origin goods overall. These patterns reflect the broader re-export strategy that has become a hallmark of the region’s energy and trade activities.

Notes: The figures cited reflect official statistics from regional and national authorities, illustrating the dynamic re-export flows and shifting energy landscapes in Europe. Attribution: Asturian Economic Community and Sadei industrial studies.