RPT-Consol Energy plans to export more coal to Europe

(Repeats to include CEO's first name, third paragraph)

By Steve James

NEW YORK, Oct 25 (Reuters) - Consol Energy (CNX.N: Quote, Profile, Research, Stock Buzz), which already exports about 10 percent of its coal production, plans to increase shipments to Europe where it can get better prices, the company's chief executive said on Thursday.

While domestic U.S. customers such as power utilities will remain a priority, Consol sees a growing demand abroad for both its high-Btu, or heat-generating, steam coal and metallurgical, or coking, coal that is used in steel-making.

"We estimate that more than half of European power plants are scrubbed," said Brett Harvey, referring to the devices used at power plants to remove pollutants from the exhaust created from burning coal. "This creates a natural secondary market for our Appalachian coal.

"The prices that we currently are realizing from Europe are, for the most part, at a premium to domestic coal prices."

Consol said it expects steam coal exports this year to increase by more than 40 percent from 2006 and 2007 volumes to rise by approximately 25 percent for 2008.

In a conference call with Wall Street analysts to discuss Consol's third-quarter financial results, Harvey said the company would export around 4 million tons of steam coal and approximately 2-1/2 million tons of coking coal this year. Consol produces approximately 70 million tons per year.

"The export market is sustainable for the next three years for sure," he said. "The question is, will the dollar stay weak and trigger long-term contracts?