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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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Wednesday, 13 October 21
MARKET INSIGHT - INTERMODAL
Following up on our insight on May 2021, where we discussed about the Capesize market outlook for the second half of the year, we are pleased to se ...
Wednesday, 13 October 21
FBX INDEX: THE IMPOSSIBILITY OF SHORT-TERM FORECASTING - LARS JENSEN
Will freight rates on Asia-Europe or the Transpacific reach 40.000 USD/FFE in the run-up prior to Chinese New Year 2022? Or will they start droppin ...
Wednesday, 13 October 21
CHINA FLOODS: COAL PRICE HITS FRESH HIGH AS MINES SHUT - BBC
The price of coal used in China’s power plants has surged to a new record high as another of the country’s key mining regions is hit by ...
Tuesday, 12 October 21
BUMA SIGNS CONDITIONAL AGREEMENT FOR AUSTRALIAN ASSET ACQUISITION
PT Tbk. announced that its subsidiary, PT Bukit Makmur Mandiri Utama, through its newly incorporated Australian subsidiary, BUMA International Pty ...
Tuesday, 12 October 21
INDONESIA'S COAL-BASED POWER PLANTS ARE SUBJECT TO CARBON TAX NEXT YEAR, ELECTRICITY COSTS COULD RISE! - CNBC
The Indonesian government is planning plans to implement a carbon tax of IDR 30 per kilogram (kg) of carbon dioxide equivalent (CO2e) or equivalent ...
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- The Treasury - Australian Government
- Jindal Steel & Power Ltd - India
- Bukit Makmur.PT - Indonesia
- Kobexindo Tractors - Indoneisa
- Sinarmas Energy and Mining - Indonesia
- Formosa Plastics Group - Taiwan
- Parry Sugars Refinery, India
- Sakthi Sugars Limited - India
- San Jose City I Power Corp, Philippines
- Commonwealth Bank - Australia
- Billiton Holdings Pty Ltd - Australia
- India Bulls Power Limited - India
- Essar Steel Hazira Ltd - India
- Wood Mackenzie - Singapore
- Binh Thuan Hamico - Vietnam
- Borneo Indobara - Indonesia
- Power Finance Corporation Ltd., India
- Bukit Baiduri Energy - Indonesia
- Agrawal Coal Company - India
- Jorong Barutama Greston.PT - Indonesia
- Toyota Tsusho Corporation, Japan
- Neyveli Lignite Corporation Ltd, - India
- Iligan Light & Power Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Australian Commodity Traders Exchange
- Energy Link Ltd, New Zealand
- Ministry of Finance - Indonesia
- Directorate Of Revenue Intelligence - India
- LBH Netherlands Bv - Netherlands
- TNB Fuel Sdn Bhd - Malaysia
- International Coal Ventures Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Directorate General of MIneral and Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Chettinad Cement Corporation Ltd - India
- Meralco Power Generation, Philippines
- Sree Jayajothi Cements Limited - India
- MS Steel International - UAE
- Africa Commodities Group - South Africa
- Videocon Industries ltd - India
- Metalloyd Limited - United Kingdom
- Maheswari Brothers Coal Limited - India
- SN Aboitiz Power Inc, Philippines
- Rio Tinto Coal - Australia
- Mercator Lines Limited - India
- GVK Power & Infra Limited - India
- Mjunction Services Limited - India
- Indogreen Group - Indonesia
- Port Waratah Coal Services - Australia
- Global Business Power Corporation, Philippines
- Lanco Infratech Ltd - India
- Bhushan Steel Limited - India
- Merrill Lynch Commodities Europe
- Global Coal Blending Company Limited - Australia
- South Luzon Thermal Energy Corporation
- The State Trading Corporation of India Ltd
- Coal and Oil Company - UAE
- ASAPP Information Group - India
- Banpu Public Company Limited - Thailand
- New Zealand Coal & Carbon
- Thiess Contractors Indonesia
- Aditya Birla Group - India
- Savvy Resources Ltd - HongKong
- Bukit Asam (Persero) Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Malabar Cements Ltd - India
- Energy Development Corp, Philippines
- Australian Coal Association
- Planning Commission, India
- Pipit Mutiara Jaya. PT, Indonesia
- Minerals Council of Australia
- Kapuas Tunggal Persada - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Kalimantan Lumbung Energi - Indonesia
- TeaM Sual Corporation - Philippines
- Intertek Mineral Services - Indonesia
- Coastal Gujarat Power Limited - India
- Indonesian Coal Mining Association
- Xindia Steels Limited - India
- Eastern Coal Council - USA
- White Energy Company Limited
- Simpson Spence & Young - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Attock Cement Pakistan Limited
- Uttam Galva Steels Limited - India
- Marubeni Corporation - India
- Meenaskhi Energy Private Limited - India
- Orica Mining Services - Indonesia
- PNOC Exploration Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Leighton Contractors Pty Ltd - Australia
- The University of Queensland
- Trasteel International SA, Italy
- Kumho Petrochemical, South Korea
- Ministry of Transport, Egypt
- Interocean Group of Companies - India
- Latin American Coal - Colombia
- Mintek Dendrill Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Baramulti Group, Indonesia
- Tamil Nadu electricity Board
- Anglo American - United Kingdom
- Petron Corporation, Philippines
- Parliament of New Zealand
- Wilmar Investment Holdings
- Madhucon Powers Ltd - India
- CNBM International Corporation - China
- Bhoruka Overseas - Indonesia
- Central Java Power - Indonesia
- Siam City Cement PLC, Thailand
- Thai Mozambique Logistica
- Sindya Power Generating Company Private Ltd
- Bahari Cakrawala Sebuku - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Independent Power Producers Association of India
- Ministry of Mines - Canada
- Central Electricity Authority - India
- Singapore Mercantile Exchange
- Eastern Energy - Thailand
- Goldman Sachs - Singapore
- Makarim & Taira - Indonesia
- Karaikal Port Pvt Ltd - India
- IEA Clean Coal Centre - UK
- IHS Mccloskey Coal Group - USA
- Timah Investasi Mineral - Indoneisa
- Antam Resourcindo - Indonesia
- Standard Chartered Bank - UAE
- Orica Australia Pty. Ltd.
- Altura Mining Limited, Indonesia
- Romanian Commodities Exchange
- London Commodity Brokers - England
- Bulk Trading Sa - Switzerland
- PowerSource Philippines DevCo
- Coalindo Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Posco Energy - South Korea
- Kideco Jaya Agung - Indonesia
- SMC Global Power, Philippines
- Kaltim Prima Coal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vedanta Resources Plc - India
- Kepco SPC Power Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Holcim Trading Pte Ltd - Singapore
- OPG Power Generation Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Bharathi Cement Corporation - India
- Sojitz Corporation - Japan
- GMR Energy Limited - India
- Therma Luzon, Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Barasentosa Lestari - Indonesia
- Electricity Generating Authority of Thailand
- Bhatia International Limited - India
- Globalindo Alam Lestari - Indonesia
- Manunggal Multi Energi - Indonesia
- Indo Tambangraya Megah - Indonesia
- Pendopo Energi Batubara - Indonesia
- Economic Council, Georgia
- Bayan Resources Tbk. - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Vijayanagar Sugar Pvt Ltd - India
- Medco Energi Mining Internasional
- Carbofer General Trading SA - India
- Larsen & Toubro Limited - India
- Deloitte Consulting - India
- Bangladesh Power Developement Board
- Electricity Authority, New Zealand
- Georgia Ports Authority, United States
- Mercuria Energy - Indonesia
- Cement Manufacturers Association - India
- Rashtriya Ispat Nigam Limited - India
- Samtan Co., Ltd - South Korea
- PTC India Limited - India
- Riau Bara Harum - Indonesia
- CIMB Investment Bank - Malaysia
- Semirara Mining and Power Corporation, Philippines
- ICICI Bank Limited - India
- Siam City Cement - Thailand
- Dalmia Cement Bharat India
- Edison Trading Spa - Italy
- Jaiprakash Power Ventures ltd
- Sarangani Energy Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Heidelberg Cement - Germany
- Cigading International Bulk Terminal - Indonesia
- Indika Energy - Indonesia
- Indian Energy Exchange, India
- Miang Besar Coal Terminal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indian Oil Corporation Limited
- Grasim Industreis Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- GAC Shipping (India) Pvt Ltd
- Ambuja Cements Ltd - India
- Chamber of Mines of South Africa
- Star Paper Mills Limited - India
- VISA Power Limited - India
- Renaissance Capital - South Africa
- Krishnapatnam Port Company Ltd. - India
- Asmin Koalindo Tuhup - Indonesia
- Semirara Mining Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Sical Logistics Limited - India
- Tata Chemicals Ltd - India
- SMG Consultants - Indonesia
- McConnell Dowell - Australia
- Ind-Barath Power Infra Limited - India
- Kartika Selabumi Mining - Indonesia
- Aboitiz Power Corporation - Philippines
- Vizag Seaport Private Limited - India
- Alfred C Toepfer International GmbH - Germany
- Offshore Bulk Terminal Pte Ltd, Singapore
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