September 19, 2026 - Wyoming Governor Mark Gordon has applauded Peabody Energy’s successful pilot shipment of Powder River Basin coal to Vietnam through Mexico, calling the development an important milestone in efforts to expand international markets for Wyoming coal.

The shipment originated at Peabody’s North Antelope Rochelle Mine in Wyoming’s Powder River Basin and traveled over Union Pacific’s rail network to Nogales, Arizona. There, the coal was interchanged with Mexican railroad Ferromex for the trip across Sonora to the Port of Guaymas on Mexico’s Gulf of California coast.

At Guaymas, the coal was loaded aboard a vessel for shipment across the Pacific to Vietnam.

Union Pacific said multiple test trains have already completed the journey to Guaymas and that the railroad and its partners are now evaluating possible future shipments. The pilot is intended to determine whether the cross-border route can provide another commercially viable pathway for Powder River Basin coal to reach international customers.

“This effort underscores Peabody’s ability to connect the largest coal basin in the Western Hemisphere with the largest global demand center for thermal coal imports,” Peabody President and Chief Executive Officer Jim Grech said.

“We are grateful to our many partners in the U.S. and Mexican governments, port authorities, and logistics, for their help coordinating this successful test run,” Grech added.

Peabody disclosed earlier this year that the project was designed as a proof of concept for moving Powder River Basin thermal coal through Guaymas. The company said the Mexican port has infrastructure capable of supporting additional coal volumes if market conditions make future shipments economically attractive.

More recently, Peabody reported that the first shipment involved a Panamax-sized vessel that was loaded in early June. According to company materials, the cargo was delivered to its Asian customer on time and to specification.

Peabody also said the successful shipment has generated interest from additional Asian counterparties and that the company is evaluating a second Guaymas test run.

For Wyoming, the significance of the project extends beyond a single shipment.

“Wyoming coal is an important part of our economy and is also an essential part of our global energy security,” Gordon said in announcing his support for the project.

“We will continue using every tool at our disposal, from trade missions to key investments, to ensure our legacy energy industries thrive,” the governor said. “I encourage our coal and rail companies to work together to find the best market friendly routes for shipment of more Wyoming coal.”

New Route to Pacific Markets

The Guaymas project could give Powder River Basin producers another route to Pacific markets at a time when establishing coal-export capacity on the U.S. West Coast has faced regulatory, legal and political obstacles.

Under the new route, Union Pacific handles the U.S. portion of the journey before handing the trains to Ferromex at Nogales. Ferromex then moves the coal south through Mexico to Guaymas.

“This effort shows how Union Pacific can connect U.S. production to global markets through a seamless cross-border supply chain,” Union Pacific Director of Marketing and Sales Kelli Sweet said when the railroad announced the successful test shipments.

“If market conditions support it, this creates another viable export option for customers,” Sweet said.

Union Pacific said the project required coordination among government agencies, Peabody, the two railroads, port operators and other logistics partners on both sides of the U.S.-Mexico border.

“This was a true team effort on both sides of the border,” Union Pacific Manager of Marketing and Sales Giovany Danel said. “We worked through every detail to deliver a reliable and efficient solution for our customer.”

Peabody Sees Broader Asian Opportunity

Peabody has made clear that it views the Vietnam shipment as potentially much more than a one-time transaction.

Company presentations identify Japan, South Korea, Taiwan, the Philippines and Vietnam among potential markets that could be reached through expanded West Coast export channels.

Peabody says Asia accounts for more than 80% of the world’s seaborne thermal coal imports, making access to Pacific export infrastructure strategically important for a Powder River Basin producer seeking additional overseas customers.

The company believes access to seaborne markets also could provide opportunities to improve margins when international coal prices support the additional transportation expense.

North Antelope Rochelle provides Peabody with considerable scale to pursue those markets. Located approximately 65 miles south of Gillette, Wyoming, the surface operation is the largest coal mine in the United States and produced approximately 65 million short tons in 2025.

The mine is served by both Union Pacific and BNSF Railway.

Vietnam Represents a Growing Import Market

Vietnam is a particularly noteworthy destination for the pilot shipment.

The country evolved from a coal exporter into a net coal importer as electricity demand and coal-fired generating capacity expanded. U.S. Energy Information Administration data show that Vietnam became a net coal importer in 2015 as domestic consumption outpaced supply.

U.S. coal shipments to Vietnam have historically represented a relatively small portion of American exports, but recent data demonstrate that a commercial market already exists. EIA figures show the United States exported approximately 330,000 short tons of coal to Vietnam during 2025, more than double the approximately 161,000 short tons shipped there in 2024.

The broader U.S. export market has recently faced headwinds. Total U.S. coal exports fell to approximately 93 million short tons in 2025 from 108 million tons in 2024, according to EIA. Thermal coal exports declined 18%, while metallurgical coal exports fell 11%.

That environment makes development of additional customers and export corridors potentially important to producers seeking to diversify beyond the domestic utility market.

Gordon Has Pushed for Export Access

Expanding international markets for Wyoming coal has been a recurring element of Gordon’s energy agenda during his eight years as governor.

According to the governor’s office, Gordon has promoted Powder River Basin coal during trade missions to Japan and Taiwan and has advocated for improved access to Pacific export facilities.

He also traveled to Washington State to testify in support of West Coast terminal access for Wyoming producers.

The governor’s office says Gordon has supported legal challenges involving federal regulations affecting coal-fired generation and opposed federal actions restricting coal leasing in the Powder River Basin. His administration also supported challenges to West Coast state actions affecting proposed coal-export infrastructure.

The governor’s office additionally highlighted Wyoming’s Energy Matching Funds program, including funding for studies examining a potential new coal-fired generating unit at Dry Fork Station.

Gordon’s administration has also supported Wyoming participation in efforts surrounding a proposed coal-export project in Oakland, California.

Peabody Also Looking at Oakland

Guaymas is not Peabody’s only attempt to establish additional Pacific access for Powder River Basin coal.

The company is exploring exports through a proposed terminal project at the Port of Oakland in California. Peabody has said that project could begin operations in late 2028.

Its latest investor materials list both Guaymas and Oakland as potential West Coast export channels and say the company is evaluating a second Guaymas shipment while continuing work on the Oakland opportunity.

For the Guaymas corridor, however, the most important question has already been answered: Powder River Basin coal can physically move from Wyoming across the U.S.-Mexico border, reach a Mexican Pacific port and be delivered successfully to an Asian customer.

Whether the route develops into a significant long-term export corridor will depend on coal prices, rail and port costs, Asian demand and the economics of competing suppliers.

But with multiple test trains completed, a Panamax vessel successfully loaded and delivered, and Peabody reporting interest from additional Asian buyers, the pilot has established a new potential pathway between the Powder River Basin and Pacific coal markets.