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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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Monday, 01 October 18
A NO-DEAL BREXIT WILL UNDOUBTEDLY HAVE CONSEQUENCES FOR IMPORTERS AND EXPORTERS - KATE JONES, THE BALTIC BRIEFING
If you live in the UK, you might be finding it difficult to get away from the Brexit debate. “Hard Brexit”, “soft Brexit”, ...
Friday, 28 September 18
INDONESIA 2018 COAL OUTPUT TARGET NOW AROUND 507 MLN T - ENERGY MINISTRY : REUTERS
Indonesia has increased its 2018 coal production target to around 507 million tonnes from a previous target of 485 million tonnes, the Energy Minis ...
Friday, 28 September 18
FITCH RATINGS: METALLURGICAL COAL MINERS MAY CURB COSTS AS PRICES SLIP
Strong cost inflation in the global metallurgical coal sector suggests that miners may focus on cost controls as prices decline from their current ...
Wednesday, 26 September 18
IS YOUR CHARTER PARTY READY FOR 2020? - METTE KRONHOLM FRAENDE, BIMCO
As the deadline for the IMO’s global low-sulphur fuel requirements fast approaches, it is necessary to carefully check the bunker clauses in ...
Wednesday, 26 September 18
SHIPPING MARKET INSIGHT - GEORGE ILIOPOULOS
Despite the fact that the dry bulk SnP market saw an admittedly busy summer season, there is a noticeable slowdown in activity during the past thre ...
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Showing 1606 to 1610 news of total 6871 |
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- Pipit Mutiara Jaya. PT, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Renaissance Capital - South Africa
- Altura Mining Limited, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Samtan Co., Ltd - South Korea
- Xindia Steels Limited - India
- CIMB Investment Bank - Malaysia
- GVK Power & Infra Limited - India
- Ministry of Transport, Egypt
- AsiaOL BioFuels Corp., Philippines
- Global Coal Blending Company Limited - Australia
- Barasentosa Lestari - Indonesia
- Mjunction Services Limited - India
- Eastern Coal Council - USA
- Kohat Cement Company Ltd. - Pakistan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Straits Asia Resources Limited - Singapore
- Orica Australia Pty. Ltd.
- Petrochimia International Co. Ltd.- Taiwan
- Ambuja Cements Ltd - India
- Riau Bara Harum - Indonesia
- Malabar Cements Ltd - India
- Agrawal Coal Company - India
- London Commodity Brokers - England
- Sree Jayajothi Cements Limited - India
- Larsen & Toubro Limited - India
- San Jose City I Power Corp, Philippines
- Electricity Authority, New Zealand
- Power Finance Corporation Ltd., India
- SMG Consultants - Indonesia
- Africa Commodities Group - South Africa
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sakthi Sugars Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Chamber of Mines of South Africa
- Economic Council, Georgia
- Vedanta Resources Plc - India
- CNBM International Corporation - China
- Independent Power Producers Association of India
- Banpu Public Company Limited - Thailand
- Asmin Koalindo Tuhup - Indonesia
- Aditya Birla Group - India
- TNB Fuel Sdn Bhd - Malaysia
- Interocean Group of Companies - India
- Pendopo Energi Batubara - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Marubeni Corporation - India
- Semirara Mining Corp, Philippines
- Makarim & Taira - Indonesia
- Aboitiz Power Corporation - Philippines
- Indonesian Coal Mining Association
- Meralco Power Generation, Philippines
- Antam Resourcindo - Indonesia
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Videocon Industries ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Savvy Resources Ltd - HongKong
- Indian Oil Corporation Limited
- Baramulti Group, Indonesia
- GAC Shipping (India) Pvt Ltd
- Cement Manufacturers Association - India
- Thai Mozambique Logistica
- Gujarat Mineral Development Corp Ltd - India
- Electricity Generating Authority of Thailand
- Merrill Lynch Commodities Europe
- Ind-Barath Power Infra Limited - India
- Kepco SPC Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Kumho Petrochemical, South Korea
- Globalindo Alam Lestari - Indonesia
- The State Trading Corporation of India Ltd
- TeaM Sual Corporation - Philippines
- Bhatia International Limited - India
- Gujarat Sidhee Cement - India
- Karbindo Abesyapradhi - Indoneisa
- Indika Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Bhoruka Overseas - Indonesia
- Salva Resources Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Lanco Infratech Ltd - India
- MS Steel International - UAE
- Bangladesh Power Developement Board
- IHS Mccloskey Coal Group - USA
- LBH Netherlands Bv - Netherlands
- Singapore Mercantile Exchange
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Grasim Industreis Ltd - India
- Wood Mackenzie - Singapore
- Global Green Power PLC Corporation, Philippines
- Planning Commission, India
- Anglo American - United Kingdom
- Mercuria Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Sical Logistics Limited - India
- The Treasury - Australian Government
- Orica Mining Services - Indonesia
- Attock Cement Pakistan Limited
- GN Power Mariveles Coal Plant, Philippines
- Rio Tinto Coal - Australia
- Timah Investasi Mineral - Indoneisa
- Therma Luzon, Inc, Philippines
- Bharathi Cement Corporation - India
- Billiton Holdings Pty Ltd - Australia
- Global Business Power Corporation, Philippines
- Standard Chartered Bank - UAE
- Parliament of New Zealand
- Oldendorff Carriers - Singapore
- PNOC Exploration Corporation - Philippines
- Georgia Ports Authority, United States
- Directorate Of Revenue Intelligence - India
- Metalloyd Limited - United Kingdom
- Kalimantan Lumbung Energi - Indonesia
- India Bulls Power Limited - India
- European Bulk Services B.V. - Netherlands
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
- OPG Power Generation Pvt Ltd - India
- McConnell Dowell - Australia
- Minerals Council of Australia
- Central Java Power - Indonesia
- Rashtriya Ispat Nigam Limited - India
- ASAPP Information Group - India
- Bukit Asam (Persero) Tbk - Indonesia
- SN Aboitiz Power Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Bukit Makmur.PT - Indonesia
- Manunggal Multi Energi - Indonesia
- Sarangani Energy Corporation, Philippines
- Indian Energy Exchange, India
- Vizag Seaport Private Limited - India
- White Energy Company Limited
- Binh Thuan Hamico - Vietnam
- Parry Sugars Refinery, India
- Coal and Oil Company - UAE
- Chettinad Cement Corporation Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Latin American Coal - Colombia
- Mercator Lines Limited - India
- Energy Link Ltd, New Zealand
- Ministry of Mines - Canada
- Mintek Dendrill Indonesia
- Leighton Contractors Pty Ltd - Australia
- Bulk Trading Sa - Switzerland
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Sindya Power Generating Company Private Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- New Zealand Coal & Carbon
- Port Waratah Coal Services - Australia
- Dalmia Cement Bharat India
- Jaiprakash Power Ventures ltd
- Kideco Jaya Agung - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Thiess Contractors Indonesia
- Commonwealth Bank - Australia
- Edison Trading Spa - Italy
- Australian Commodity Traders Exchange
- Holcim Trading Pte Ltd - Singapore
- Madhucon Powers Ltd - India
- Romanian Commodities Exchange
- Neyveli Lignite Corporation Ltd, - India
- Deloitte Consulting - India
- Carbofer General Trading SA - India
- Tamil Nadu electricity Board
- Energy Development Corp, Philippines
- Kapuas Tunggal Persada - Indonesia
- Siam City Cement - Thailand
- Eastern Energy - Thailand
- Bhushan Steel Limited - India
- Kartika Selabumi Mining - Indonesia
- Wilmar Investment Holdings
- IEA Clean Coal Centre - UK
- Australian Coal Association
- Essar Steel Hazira Ltd - India
- Tata Chemicals Ltd - India
- Borneo Indobara - Indonesia
- SMC Global Power, Philippines
- GMR Energy Limited - India
- Central Electricity Authority - India
- Uttam Galva Steels Limited - India
- PowerSource Philippines DevCo
- Bayan Resources Tbk. - Indonesia
- Bukit Baiduri Energy - Indonesia
- Ministry of Finance - Indonesia
- Trasteel International SA, Italy
- PTC India Limited - India
- Kaltim Prima Coal - Indonesia
- The University of Queensland
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement PLC, Thailand
- VISA Power Limited - India
- Meenaskhi Energy Private Limited - India
- Jindal Steel & Power Ltd - India
- Formosa Plastics Group - Taiwan
- ICICI Bank Limited - India
- South Luzon Thermal Energy Corporation
- Kobexindo Tractors - Indoneisa
- Simpson Spence & Young - Indonesia
- Heidelberg Cement - Germany
- Maharashtra Electricity Regulatory Commission - India
- Medco Energi Mining Internasional
- Indo Tambangraya Megah - Indonesia
- Goldman Sachs - Singapore
- Indogreen Group - Indonesia
- International Coal Ventures Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sojitz Corporation - Japan
- Price Waterhouse Coopers - Russia
- Petron Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ceylon Electricity Board - Sri Lanka
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