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Wednesday, 12 February 20
CHANGES IN LNG MARKET COULD UNDERCUT PLANS FOR NEW JAPANESE COAL PLANTS - CLYDE RUSSELL
Reuters: Clyde Russell
The collapse in the spot price of liquefied natural gas (LNG) in Asia is a short-term phenomenon that may well end up having a longer-term impact, especially on thermal coal.
The spot price dropped to $2.95 per million British thermal units (mmBtu) for the week ended Feb. 7, the lowest price in records stretching back to 2010. It has lost 57% of its value since the pre-winter peak of $6.80 per mmBtu in mid-October, and is down 74% from the peak price in 2018 and 86% from the all-time high from February 2014.
While it’s unlikely that spot LNG prices will stay at the current depressed levels indefinitely, the trend toward structurally lower prices appears sustainable. There is still no shortage of LNG projects being built, with 17 million tonnes of capacity due to be commissioned this year alone, and considerably more likely in the next five years, as projects from Russia to East Africa start to come online.
This supply surge is likely to have two impacts on prices. Firstly, it will ensure that spot prices remain under downward pressure, and secondly, it will likely accelerate the shift away from long-term, oil-linked contracts to shorter-term, more flexibly priced deals.
This change in the way LNG is priced should give pause for considerable thought to any would-be developers of thermal coal power projects based on imported fuel in Asia, especially Japan. As a country that relies on imports for virtually all its energy, Japan has long prioritized security of supply and diversity in its energy mix. But perhaps the sands have shifted enough to lead to a re-think.
It would in all likelihood be possible to sign long-term or medium-term LNG supply pacts that are not linked to the price of crude oil, but rather to other instruments such as U.S. Henry Hub natural gas, or European gas prices, or even seaborne thermal coal costs. This could give Japan the security of supply it desires, but virtually eliminate the problem LNG has always had, its high cost relative to thermal coal.
Source: IEEFA | Reuters
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Friday, 23 September 22
CHINA DIGS DEEP TO RAISE COAL OUTPUT TO RECORD HIGH - REUTERS
China’s coal production has surged this year as the government seeks to improve energy security by reducing dependence on imports and amassin ...
Friday, 23 September 22
EUROPEAN STEEL BUYERS SEEK DIRECTION IN VOLATILE MARKET - MEPS INTERNATIONAL
Demand for steel is slow to recover, after the summer break. Mill production costs continue to increase. Steel purchasers are uncertain about the f ...
Friday, 23 September 22
BUOYANT COAL INDUSTRY SEEKS WAYS TO STAY IN THE LONG-TERM ENERGY MIX - REUTERS
There’s no doubt that the global coal industry has been a major beneficiary of Russia’s invasion of Ukraine and the subsequent energy c ...
Friday, 23 September 22
MARKET INSIGHT - INTERMODAL
In view of the forthcoming winter, Europe is trying to escape from its energy (oil & gas) dependency from Russia to ensure energy abundance eve ...
Tuesday, 20 September 22
CHINA'S DAILY COAL OUTPUT HITS 3-MONTH LOW IN AUGUST ON RAINS, COVID CURBS - REUTERS
China’s daily coal output in August slipped to a three-month low as some mines in its biggest coal mining regions reduced operations or even ...
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- Bukit Baiduri Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Metalloyd Limited - United Kingdom
- Essar Steel Hazira Ltd - India
- Energy Development Corp, Philippines
- Wood Mackenzie - Singapore
- Coastal Gujarat Power Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Barasentosa Lestari - Indonesia
- Electricity Generating Authority of Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mintek Dendrill Indonesia
- CNBM International Corporation - China
- Price Waterhouse Coopers - Russia
- Intertek Mineral Services - Indonesia
- ASAPP Information Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- Eastern Energy - Thailand
- Bulk Trading Sa - Switzerland
- GMR Energy Limited - India
- Larsen & Toubro Limited - India
- Binh Thuan Hamico - Vietnam
- Australian Coal Association
- Aboitiz Power Corporation - Philippines
- Grasim Industreis Ltd - India
- Romanian Commodities Exchange
- Coal and Oil Company - UAE
- Indonesian Coal Mining Association
- Jaiprakash Power Ventures ltd
- Vizag Seaport Private Limited - India
- Tata Chemicals Ltd - India
- Toyota Tsusho Corporation, Japan
- Marubeni Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Heidelberg Cement - Germany
- Standard Chartered Bank - UAE
- The Treasury - Australian Government
- Krishnapatnam Port Company Ltd. - India
- CIMB Investment Bank - Malaysia
- Aditya Birla Group - India
- Meenaskhi Energy Private Limited - India
- Electricity Authority, New Zealand
- Savvy Resources Ltd - HongKong
- Thiess Contractors Indonesia
- Tamil Nadu electricity Board
- Makarim & Taira - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Interocean Group of Companies - India
- Petron Corporation, Philippines
- Indian Oil Corporation Limited
- VISA Power Limited - India
- IEA Clean Coal Centre - UK
- Deloitte Consulting - India
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- Star Paper Mills Limited - India
- GAC Shipping (India) Pvt Ltd
- Maheswari Brothers Coal Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Parry Sugars Refinery, India
- Ministry of Transport, Egypt
- Jindal Steel & Power Ltd - India
- Carbofer General Trading SA - India
- Rashtriya Ispat Nigam Limited - India
- Malabar Cements Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Goldman Sachs - Singapore
- Rio Tinto Coal - Australia
- Global Green Power PLC Corporation, Philippines
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- International Coal Ventures Pvt Ltd - India
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- Baramulti Group, Indonesia
- Meralco Power Generation, Philippines
- Energy Link Ltd, New Zealand
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- Karaikal Port Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Sidhee Cement - India
- Mercator Lines Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Medco Energi Mining Internasional
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- The State Trading Corporation of India Ltd
- Global Business Power Corporation, Philippines
- Central Java Power - Indonesia
- Posco Energy - South Korea
- White Energy Company Limited
- Sakthi Sugars Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- SMG Consultants - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Port Waratah Coal Services - Australia
- Directorate Of Revenue Intelligence - India
- Bhoruka Overseas - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Mjunction Services Limited - India
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- Pendopo Energi Batubara - Indonesia
- Sojitz Corporation - Japan
- Vedanta Resources Plc - India
- Renaissance Capital - South Africa
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- Anglo American - United Kingdom
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- Coalindo Energy - Indonesia
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- Gujarat Mineral Development Corp Ltd - India
- Bhatia International Limited - India
- Singapore Mercantile Exchange
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- Billiton Holdings Pty Ltd - Australia
- Eastern Coal Council - USA
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- Kumho Petrochemical, South Korea
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- SMC Global Power, Philippines
- Edison Trading Spa - Italy
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- Sarangani Energy Corporation, Philippines
- Sree Jayajothi Cements Limited - India
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- TeaM Sual Corporation - Philippines
- GVK Power & Infra Limited - India
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- MS Steel International - UAE
- South Luzon Thermal Energy Corporation
- Indian Energy Exchange, India
- India Bulls Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
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- Jorong Barutama Greston.PT - Indonesia
- Salva Resources Pvt Ltd - India
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- Sical Logistics Limited - India
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- Banpu Public Company Limited - Thailand
- Semirara Mining Corp, Philippines
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- Bharathi Cement Corporation - India
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- Wilmar Investment Holdings
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- The University of Queensland
- Bhushan Steel Limited - India
- Minerals Council of Australia
- Formosa Plastics Group - Taiwan
- Siam City Cement PLC, Thailand
- Sindya Power Generating Company Private Ltd
- PNOC Exploration Corporation - Philippines
- Alfred C Toepfer International GmbH - Germany
- Merrill Lynch Commodities Europe
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- Kaltim Prima Coal - Indonesia
- Independent Power Producers Association of India
- Mercuria Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Lanco Infratech Ltd - India
- Chamber of Mines of South Africa
- Global Coal Blending Company Limited - Australia
- Antam Resourcindo - Indonesia
- Cement Manufacturers Association - India
- European Bulk Services B.V. - Netherlands
- PTC India Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Therma Luzon, Inc, Philippines
- Bukit Makmur.PT - Indonesia
- London Commodity Brokers - England
- Economic Council, Georgia
- Bahari Cakrawala Sebuku - Indonesia
- PowerSource Philippines DevCo
- Asmin Koalindo Tuhup - Indonesia
- SN Aboitiz Power Inc, Philippines
- LBH Netherlands Bv - Netherlands
- Ministry of Mines - Canada
- Planning Commission, India
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- Power Finance Corporation Ltd., India
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- Parliament of New Zealand
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- Samtan Co., Ltd - South Korea
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- New Zealand Coal & Carbon
- Gujarat Electricity Regulatory Commission - India
- Altura Mining Limited, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Bangladesh Power Developement Board
- Xindia Steels Limited - India
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