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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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Saturday, 11 June 22
AIMTEK INTERNATIONAL CONFERENCE AND AWARDS
Press Release: The prestigious AIMTEK International Conference and Awards concluded successfully on June 7th, 2022 at Radisson Blu, Yas Island Abu ...
Thursday, 26 May 22
MARKET INSIGHT - INTERMODAL
The newbuilding market activity has been significantly positive from a dry bulk owner perspective during the first half of 2022. Indeed, the contra ...
Wednesday, 18 May 22
INDONESIAN COAL PRICE REFERENCE DROPPED 4.42% IN MAY
COALspot.com: Indonesian Coal Price Reference for May delivery drops 4.42 per cent month on month.
The Indonesian Coal Price Referen ...
Thursday, 12 May 22
MARKET INSIGHT - INTERMODAL
Almost through half of the year, the overall shipping market continues to show signs of healthiness, after plenty of festivities and holidays that ...
Wednesday, 27 April 22
EUROPEAN UNION'S LNG IMPORTS - BANCHERO COSTA
In 2021, the European Union (27) was the third largest seaborne importer of LNG in the world, with a 15.8% share.
It followed Mainla ...
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- Neyveli Lignite Corporation Ltd, - India
- Bangladesh Power Developement Board
- Economic Council, Georgia
- Global Coal Blending Company Limited - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Marubeni Corporation - India
- Bayan Resources Tbk. - Indonesia
- The University of Queensland
- IHS Mccloskey Coal Group - USA
- Goldman Sachs - Singapore
- Globalindo Alam Lestari - Indonesia
- Barasentosa Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Aboitiz Power Corporation - Philippines
- SMG Consultants - Indonesia
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- Metalloyd Limited - United Kingdom
- Standard Chartered Bank - UAE
- GVK Power & Infra Limited - India
- Banpu Public Company Limited - Thailand
- Indogreen Group - Indonesia
- Kepco SPC Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Deloitte Consulting - India
- Holcim Trading Pte Ltd - Singapore
- Semirara Mining Corp, Philippines
- ICICI Bank Limited - India
- Wood Mackenzie - Singapore
- Kumho Petrochemical, South Korea
- Billiton Holdings Pty Ltd - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Merrill Lynch Commodities Europe
- Bahari Cakrawala Sebuku - Indonesia
- Karaikal Port Pvt Ltd - India
- Parliament of New Zealand
- Vedanta Resources Plc - India
- CIMB Investment Bank - Malaysia
- Mercator Lines Limited - India
- Rashtriya Ispat Nigam Limited - India
- Africa Commodities Group - South Africa
- Anglo American - United Kingdom
- Lanco Infratech Ltd - India
- Ambuja Cements Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- The State Trading Corporation of India Ltd
- IEA Clean Coal Centre - UK
- Central Electricity Authority - India
- Attock Cement Pakistan Limited
- International Coal Ventures Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Georgia Ports Authority, United States
- Siam City Cement - Thailand
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- White Energy Company Limited
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- Wilmar Investment Holdings
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- Grasim Industreis Ltd - India
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- Krishnapatnam Port Company Ltd. - India
- OPG Power Generation Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Eastern Energy - Thailand
- Latin American Coal - Colombia
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- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Tamil Nadu electricity Board
- Sarangani Energy Corporation, Philippines
- Tata Chemicals Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Gujarat Mineral Development Corp Ltd - India
- Edison Trading Spa - Italy
- Coalindo Energy - Indonesia
- Bhatia International Limited - India
- Petron Corporation, Philippines
- Bharathi Cement Corporation - India
- Straits Asia Resources Limited - Singapore
- Bhushan Steel Limited - India
- Posco Energy - South Korea
- Larsen & Toubro Limited - India
- Kobexindo Tractors - Indoneisa
- Sindya Power Generating Company Private Ltd
- Central Java Power - Indonesia
- Toyota Tsusho Corporation, Japan
- Mjunction Services Limited - India
- Minerals Council of Australia
- LBH Netherlands Bv - Netherlands
- Energy Development Corp, Philippines
- Independent Power Producers Association of India
- Timah Investasi Mineral - Indoneisa
- MS Steel International - UAE
- The Treasury - Australian Government
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- Indika Energy - Indonesia
- Indian Energy Exchange, India
- Commonwealth Bank - Australia
- Makarim & Taira - Indonesia
- Medco Energi Mining Internasional
- Bukit Baiduri Energy - Indonesia
- Siam City Cement PLC, Thailand
- Formosa Plastics Group - Taiwan
- Mintek Dendrill Indonesia
- Coal and Oil Company - UAE
- Sree Jayajothi Cements Limited - India
- ASAPP Information Group - India
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- Antam Resourcindo - Indonesia
- Ceylon Electricity Board - Sri Lanka
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- Therma Luzon, Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Essar Steel Hazira Ltd - India
- Price Waterhouse Coopers - Russia
- Directorate General of MIneral and Coal - Indonesia
- San Jose City I Power Corp, Philippines
- Borneo Indobara - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Thai Mozambique Logistica
- Mercuria Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Uttam Galva Steels Limited - India
- London Commodity Brokers - England
- Intertek Mineral Services - Indonesia
- Agrawal Coal Company - India
- Chettinad Cement Corporation Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
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- Australian Commodity Traders Exchange
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- GMR Energy Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Romanian Commodities Exchange
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- Bulk Trading Sa - Switzerland
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- VISA Power Limited - India
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- Sakthi Sugars Limited - India
- Riau Bara Harum - Indonesia
- Ministry of Finance - Indonesia
- Iligan Light & Power Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Singapore Mercantile Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Mines - Canada
- Bhoruka Overseas - Indonesia
- Parry Sugars Refinery, India
- Sical Logistics Limited - India
- Altura Mining Limited, Indonesia
- Eastern Coal Council - USA
- Pendopo Energi Batubara - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Carbofer General Trading SA - India
- Indo Tambangraya Megah - Indonesia
- Manunggal Multi Energi - Indonesia
- Kideco Jaya Agung - Indonesia
- Chamber of Mines of South Africa
- Electricity Authority, New Zealand
- Ministry of Transport, Egypt
- SMC Global Power, Philippines
- Trasteel International SA, Italy
- Orica Mining Services - Indonesia
- Indian Oil Corporation Limited
- Australian Coal Association
- Aditya Birla Group - India
- European Bulk Services B.V. - Netherlands
- Thiess Contractors Indonesia
- Maheswari Brothers Coal Limited - India
- Oldendorff Carriers - Singapore
- Kartika Selabumi Mining - Indonesia
- Binh Thuan Hamico - Vietnam
- Semirara Mining and Power Corporation, Philippines
- Simpson Spence & Young - Indonesia
- McConnell Dowell - Australia
- Samtan Co., Ltd - South Korea
- AsiaOL BioFuels Corp., Philippines
- Sojitz Corporation - Japan
- PowerSource Philippines DevCo
- Xindia Steels Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Port Waratah Coal Services - Australia
- Rio Tinto Coal - Australia
- Jaiprakash Power Ventures ltd
- Malabar Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- Coastal Gujarat Power Limited - India
- GAC Shipping (India) Pvt Ltd
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- GN Power Mariveles Coal Plant, Philippines
- Alfred C Toepfer International GmbH - Germany
- PTC India Limited - India
- New Zealand Coal & Carbon
- Interocean Group of Companies - India
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- Jindal Steel & Power Ltd - India
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