According to a Reuters report, the Portuguese power provider is considering either US or Colombian coal.

The successful supplier is expected to be awarded this week.

Reuters quoted traders as saying Carbopega tendered for two cargoes of thermal coal to meet its standard specifications for delivery in June and August.

Those traders also said Carbopega was expected to offer a price of about $95 to 96 a tonne.

However, high sulfur US providers need not apply.

Carbopego cannot handle coal with more than 1.5% to 3% because it has no blending facilities. Instead, it prefers to burn straight from its stockpile.

The utility has taken Colombian and South African coal for years.

The traders said Portugal and Spain were among the few hot spots of strong coal demand in Europe because of their expensive gas and low hydro generation options.

Portugal is expected to burn 1.5 to 1.6 million tonnes of imported coal this year.