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Wednesday, 05 September 18
ASIAN DEMAND COULD CREATE DEFICIT IN GLOBAL LNG MARKET - FITCH RATINGS
 Growing gas demand from Asia, particularly from China, could swing the liquefied natural gas (LNG) market into a deficit by 2022-2025, Fitch Ratings says.
Market expectations of oversupply and weak gas prices have curtailed new investment activity in the sector in the past two years. Limited capacity additions beyond 2020 should be positive for spot prices, especially in Asia and Europe. This will benefit LNG projects with significant uncontracted volumes and those linked to gas spot prices.
An unprecedented wave of new projects becoming operational in 2016-2019 has not resulted in, and is unlikely to result in a material surplus in the LNG market in the medium term. Additional LNG volumes continue to find a home across a diverse array of countries and new buyers, and under more flexible contracts.
Funding for new LNG capacity is often structured as non-recourse project finance and is dependent on sponsors’ ability to secure long-term offtake agreements, which buyers have been less willing to sign in anticipation of larger volumes of uncontracted LNG coming to the market. Therefore, sponsors may need to commit a higher equity contribution to get funding for LNG projects, which will continue to delay final investment decisions (FIDs) for some time. A typical timeframe for a new LNG project to become operational following the FID is four to five years. Due to limited new FIDs very few new projects will come on stream in the early 2020s. FIDs in the next one to two years are likely to be limited to projects with lower capital and operating costs given constraints on the funding side.
We expect gas demand to continue its robust growth in the coming years, mostly driven by Asian markets that account for two-thirds of overall LNG demand. This is due a combination of healthy power demand growth in the region, natural gas being the fossil fuel of choice in pursuit of curbing air pollution, and the backlash against nuclear energy. Japan is currently the largest LNG importer, but China is catching up quickly and becoming the major market for LNG.
The LNG market could shift into deficit by 2022-2025. Gas pricing is therefore likely to improve in the major importer markets, benefiting LNG projects relying on spot and hub pricing and entities with significant LNG trading portfolios. We also expect oil companies to gradually return to their earlier LNG ambitions. This includes oil majors, like Shell, BP and Total, most of which emphasise the growing role of gas in the global energy mix.
The LNG market is still in its formative stage. Pricing mechanisms, contract terms and financing structures continue to evolve. Long-term oil-linked contracts are giving way to increased trading activity, which represented around a quarter of all new contracts in 2017, according to IGU World Gas LNG Report, compared to just 1% in 2012. New large LNG projects still rely on long-term contracts in order to secure financing. However, elsewhere contracts are becoming shorter, and the quality of counterparties is declining. Contract prices are increasingly de-linked from oil pricing with a growing focus on spot and hub-based gas pricing.
Fitch-rated rated LNG projects will not be significantly affected by the trend towards increasing commoditisation. In the US, rated projects, such as Cameron LNG and Sabine Pass, benefit from robust contractual frameworks that provide mitigation to completion risks and often employ tolling or tolling-like arrangements that protect cash flows from volume and price risks. RasGas in Qatar mostly relies on long-term oil-linked contracts.
Source: Fitch Ratings
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Saturday, 20 October 18
PANAMAX: THE PACIFIC SAW A LARGE VOLUME OF FIXING, WITH INDONESIA AGAIN THE DRIVING FORCE - THE BALTIC BRIEFING
Capesize
A positive end to last week after a shaky start, with a Coaltrans taking participants out of the market early on and with rates slippi ...
Thursday, 18 October 18
SUPRAMAX: INDO/WC INDIA SUPRAS ARE FIXING AROUND MID $14000S P/D BASIS SPORE DELIVERY
Capesize
The volatile Cape market continues this week, especially in the Pacific says Fearnleys in its latest weekly report.
...
Thursday, 18 October 18
COAL SHORTAGE HITS POWER SECTOR AGAIN; HOW INDIA CAN GET ITS PRODUCTION RIGHT - ANIL SWARUP
By convincing states of the value proposition of increased production, the record production of Fy15 & Fy16 can be emulated.
The ...
Thursday, 18 October 18
CHINA POWER REFORM NEUTRAL ON GRIDS, PRESSURES IPP MARGINS - FITCH RATINGS
China's power sector reform has a broadly neutral impact on transmission grids although it will pressure the power producers' margins, says ...
Wednesday, 17 October 18
ESCROW SERVICE FOR BALTIC MEMBERS NOW LIVE
The Baltic Exchange’s Escrow Service for its members to hold deposits for ship sale transactions goes live today (15 October). The service is ...
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Showing 1586 to 1590 news of total 6871 |
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- Simpson Spence & Young - Indonesia
- South Luzon Thermal Energy Corporation
- Chamber of Mines of South Africa
- Vizag Seaport Private Limited - India
- Renaissance Capital - South Africa
- Malabar Cements Ltd - India
- Binh Thuan Hamico - Vietnam
- Vedanta Resources Plc - India
- Planning Commission, India
- Timah Investasi Mineral - Indoneisa
- Gujarat Sidhee Cement - India
- Price Waterhouse Coopers - Russia
- Sree Jayajothi Cements Limited - India
- Makarim & Taira - Indonesia
- Medco Energi Mining Internasional
- Kumho Petrochemical, South Korea
- London Commodity Brokers - England
- Straits Asia Resources Limited - Singapore
- Wilmar Investment Holdings
- Bhatia International Limited - India
- Chettinad Cement Corporation Ltd - India
- Romanian Commodities Exchange
- Merrill Lynch Commodities Europe
- Sindya Power Generating Company Private Ltd
- The University of Queensland
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Electricity Authority, New Zealand
- Xindia Steels Limited - India
- Billiton Holdings Pty Ltd - Australia
- Mjunction Services Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Ministry of Transport, Egypt
- AsiaOL BioFuels Corp., Philippines
- Cement Manufacturers Association - India
- CNBM International Corporation - China
- Georgia Ports Authority, United States
- Star Paper Mills Limited - India
- Sical Logistics Limited - India
- MS Steel International - UAE
- Goldman Sachs - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Kobexindo Tractors - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- International Coal Ventures Pvt Ltd - India
- Indian Oil Corporation Limited
- Baramulti Group, Indonesia
- Samtan Co., Ltd - South Korea
- Borneo Indobara - Indonesia
- Pendopo Energi Batubara - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Alfred C Toepfer International GmbH - Germany
- Coalindo Energy - Indonesia
- Kapuas Tunggal Persada - Indonesia
- India Bulls Power Limited - India
- Energy Development Corp, Philippines
- Barasentosa Lestari - Indonesia
- Central Java Power - Indonesia
- Kideco Jaya Agung - Indonesia
- Indonesian Coal Mining Association
- Indo Tambangraya Megah - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Mines - Canada
- Therma Luzon, Inc, Philippines
- Australian Commodity Traders Exchange
- Global Coal Blending Company Limited - Australia
- Siam City Cement PLC, Thailand
- Parliament of New Zealand
- Ind-Barath Power Infra Limited - India
- McConnell Dowell - Australia
- Globalindo Alam Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Meenaskhi Energy Private Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Independent Power Producers Association of India
- Larsen & Toubro Limited - India
- The State Trading Corporation of India Ltd
- Deloitte Consulting - India
- Carbofer General Trading SA - India
- Pipit Mutiara Jaya. PT, Indonesia
- ICICI Bank Limited - India
- Interocean Group of Companies - India
- PowerSource Philippines DevCo
- Economic Council, Georgia
- Altura Mining Limited, Indonesia
- Bayan Resources Tbk. - Indonesia
- Essar Steel Hazira Ltd - India
- Electricity Generating Authority of Thailand
- Port Waratah Coal Services - Australia
- Lanco Infratech Ltd - India
- Eastern Coal Council - USA
- Jindal Steel & Power Ltd - India
- Posco Energy - South Korea
- Sojitz Corporation - Japan
- Sakthi Sugars Limited - India
- New Zealand Coal & Carbon
- Commonwealth Bank - Australia
- SMG Consultants - Indonesia
- Coastal Gujarat Power Limited - India
- Agrawal Coal Company - India
- Aboitiz Power Corporation - Philippines
- VISA Power Limited - India
- Videocon Industries ltd - India
- GVK Power & Infra Limited - India
- Tamil Nadu electricity Board
- Iligan Light & Power Inc, Philippines
- Thai Mozambique Logistica
- Aditya Birla Group - India
- Oldendorff Carriers - Singapore
- Uttam Galva Steels Limited - India
- Wood Mackenzie - Singapore
- White Energy Company Limited
- Mercuria Energy - Indonesia
- Mercator Lines Limited - India
- Latin American Coal - Colombia
- Metalloyd Limited - United Kingdom
- Asmin Koalindo Tuhup - Indonesia
- Bhoruka Overseas - Indonesia
- LBH Netherlands Bv - Netherlands
- Bhushan Steel Limited - India
- Heidelberg Cement - Germany
- Marubeni Corporation - India
- Intertek Mineral Services - Indonesia
- Indika Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- GN Power Mariveles Coal Plant, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sinarmas Energy and Mining - Indonesia
- Africa Commodities Group - South Africa
- GMR Energy Limited - India
- Eastern Energy - Thailand
- TNB Fuel Sdn Bhd - Malaysia
- Rio Tinto Coal - Australia
- Holcim Trading Pte Ltd - Singapore
- Petron Corporation, Philippines
- IEA Clean Coal Centre - UK
- Ambuja Cements Ltd - India
- Bharathi Cement Corporation - India
- Kalimantan Lumbung Energi - Indonesia
- Trasteel International SA, Italy
- Edison Trading Spa - Italy
- The Treasury - Australian Government
- Power Finance Corporation Ltd., India
- Singapore Mercantile Exchange
- Formosa Plastics Group - Taiwan
- OPG Power Generation Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Bangladesh Power Developement Board
- Karaikal Port Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Semirara Mining Corp, Philippines
- Directorate General of MIneral and Coal - Indonesia
- PNOC Exploration Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Riau Bara Harum - Indonesia
- European Bulk Services B.V. - Netherlands
- CIMB Investment Bank - Malaysia
- Indian Energy Exchange, India
- Tata Chemicals Ltd - India
- Australian Coal Association
- SN Aboitiz Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Global Business Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Directorate Of Revenue Intelligence - India
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Energy Link Ltd, New Zealand
- Antam Resourcindo - Indonesia
- Bulk Trading Sa - Switzerland
- Attock Cement Pakistan Limited
- Cigading International Bulk Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- SMC Global Power, Philippines
- Orica Australia Pty. Ltd.
- IHS Mccloskey Coal Group - USA
- Anglo American - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- Thiess Contractors Indonesia
- PTC India Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Kaltim Prima Coal - Indonesia
- Savvy Resources Ltd - HongKong
- Bank of Tokyo Mitsubishi UFJ Ltd
- ASAPP Information Group - India
- Manunggal Multi Energi - Indonesia
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Bukit Asam (Persero) Tbk - Indonesia
- Dalmia Cement Bharat India
- San Jose City I Power Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Bukit Baiduri Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Grasim Industreis Ltd - India
- Mintek Dendrill Indonesia
- Semirara Mining and Power Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Standard Chartered Bank - UAE
- Toyota Tsusho Corporation, Japan
- Sarangani Energy Corporation, Philippines
- Minerals Council of Australia
- Indogreen Group - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Banpu Public Company Limited - Thailand
- Parry Sugars Refinery, India
- Ministry of Finance - Indonesia
- Meralco Power Generation, Philippines
- Coal and Oil Company - UAE
- Central Electricity Authority - India
- Orica Mining Services - Indonesia
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