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Thursday, 22 December 22
COAL AND GAS PRICE CAPS MAY COMPOUND POLITICAL RISK FOR AUSTRALIAN CORPORATES - FITCH RATINGS
 Australia’s introduction of temporary price caps on domestic sales of gas and coal used for electricity generation will probably have limited direct near-term credit impact for energy-sector issuers rated by Fitch Ratings, according to the agency. However, the caps highlight that energy companies face mounting political risks that could influence investor perceptions of the sector and capex plans over the long term.
The caps have been proposed for 12 months, but even if they are extended, the direct impact should generally be limited if prices for coal and gas fall over the coming years, in line with Fitch’s base-case assumptions.
The near-term impact on Australian thermal coal miners’ financial profiles will be further mitigated, as typically around 80% of the thermal coal produced in the country is exported, and therefore is not subject to the cap.
The natural gas sector will be more exposed, as domestic demand accounts for a larger share of supply. Santos (BBB/Stable) and Woodside Energy Group (BBB+/Stable) are large suppliers of gas to the domestic market. Such sales account for more than 40% of Santos’s gas production, but we estimate that only around 15% of total production goes to the east coast markets that are exposed to the price cap.
Woodside’s domestic gas sales, including pipeline gas from the NWS Project, Pluto and Wheatstone, account for less than 6% of its gas production, with the rest exported as LNG. For both companies, most gas is already produced under long-term contracts, which will be unaffected by the caps, limiting the near-term impact. The proportion of output affected could nonetheless rise over time if the caps are extended beyond 12 months.
The prevalence of long-term supply contracts will also reduce the impact of the caps for most domestic electricity and gas retailers, including Origin Energy (BBB/Stable). If global energy prices remain high, it is possible that the caps could offer a competitive advantage to some retailers that rely more on short-term supply contracts. That said, the superior sourcing ability and flexibility in contracts should limit downside risks for large retailers. For electricity sales, the highest-cost power generator generally determines the wholesale energy market price, and we anticipate a neutral to marginally positive financial effect for entities like Origin that have flexibility in their generation portfolio.
The price caps will add to a perception that Australia’s mining sector faces mounting political risk, even though we do not believe they will have a major impact on Fitch-rated issuers in the near term. For example, the government has announced plans to implement a new system to protect sites important to Australia’s indigenous peoples. Firms in the sector, as in other parts of the world, also face political risks associated with official efforts to promote the transition to renewable energy sources.
Mounting political risk may influence investors’ perceptions of the sector, and therefore the terms on which companies are able to access finance. This could also have ramifications for M&A plans or long-term capex strategies. Nonetheless, it is likely to take time to assess the impact, which may also be offset by other market developments.
Australia’s parliament on 16 December passed legislation empowering the government to regulate gas prices, alongside an AUD1.5 billion relief package for firms and households. It remains unclear how the relief package will affect power and gas market dynamics, but we expect its impact to be temporary. The authorities plan to cap domestic gas prices at AUD12 per gigajoule. Domestic thermal coal sales prices in New South Wales and Queensland will also be capped at AUD125 per tonne.
Source: Fitch Ratings
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Tuesday, 23 May 23
INDIA: COAL OUTPUT UP 8.9%, SUPPLY RISES 11.7% IN APRIL - FINANCIAL EXPRESS
India’s coal production jumped 8.85% to 73.14 million tonne (MT) in April 2023 and the total coal despatch during the month went up 11.66% to ...
Tuesday, 23 May 23
CHINA COAL OUTPUT UP 4.5 PCT IN APRIL - XINHUA
China’s raw coal output posted stable expansion in April, official data showed.
The country produced 380 million tonnes of raw ...
Saturday, 20 May 23
NON-OPEC OIL SUPPLY DEVELOPMENT - OPEC
In 2022, non-OPEC supply is estimated to have increased by 1.9 mb/d y-o-y. Out of this, US liquids production increased by 1.2 mb/d, mainly on the ...
Saturday, 20 May 23
GLOBAL COAL TRADE HAS REALLY PICKED UP PACE IN RECENT MONTHS, NOW FULLY BACK TO PRE-COVID LEVELS - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels. In Jan-Apr 2023, total global seaborne coa ...
Saturday, 20 May 23
MARKET INSIGHT - INTERMODAL
India is one of the world's largest coal producers and one of the world's largest importers of coal. The country uses coal mainly for power ...
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Showing 101 to 105 news of total 6871 |
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- Altura Mining Limited, Indonesia
- Sojitz Corporation - Japan
- Ind-Barath Power Infra Limited - India
- Economic Council, Georgia
- Holcim Trading Pte Ltd - Singapore
- Madhucon Powers Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Sarangani Energy Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Simpson Spence & Young - Indonesia
- South Luzon Thermal Energy Corporation
- IHS Mccloskey Coal Group - USA
- Heidelberg Cement - Germany
- ASAPP Information Group - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Tamil Nadu electricity Board
- Parry Sugars Refinery, India
- Global Green Power PLC Corporation, Philippines
- Ministry of Finance - Indonesia
- Salva Resources Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Marubeni Corporation - India
- Energy Development Corp, Philippines
- Gujarat Sidhee Cement - India
- London Commodity Brokers - England
- Kapuas Tunggal Persada - Indonesia
- Indo Tambangraya Megah - Indonesia
- Agrawal Coal Company - India
- Latin American Coal - Colombia
- ICICI Bank Limited - India
- Krishnapatnam Port Company Ltd. - India
- Meenaskhi Energy Private Limited - India
- Gujarat Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- Bukit Baiduri Energy - Indonesia
- Videocon Industries ltd - India
- Power Finance Corporation Ltd., India
- Barasentosa Lestari - Indonesia
- Straits Asia Resources Limited - Singapore
- Wood Mackenzie - Singapore
- Coastal Gujarat Power Limited - India
- CIMB Investment Bank - Malaysia
- Directorate Of Revenue Intelligence - India
- Coal and Oil Company - UAE
- Sindya Power Generating Company Private Ltd
- Interocean Group of Companies - India
- Metalloyd Limited - United Kingdom
- Posco Energy - South Korea
- Ceylon Electricity Board - Sri Lanka
- Central Electricity Authority - India
- Therma Luzon, Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Anglo American - United Kingdom
- Eastern Energy - Thailand
- Electricity Generating Authority of Thailand
- Gujarat Mineral Development Corp Ltd - India
- Tata Chemicals Ltd - India
- Mintek Dendrill Indonesia
- PTC India Limited - India
- Commonwealth Bank - Australia
- Carbofer General Trading SA - India
- Binh Thuan Hamico - Vietnam
- Romanian Commodities Exchange
- Planning Commission, India
- Mercator Lines Limited - India
- Manunggal Multi Energi - Indonesia
- GMR Energy Limited - India
- Karbindo Abesyapradhi - Indoneisa
- McConnell Dowell - Australia
- Jaiprakash Power Ventures ltd
- European Bulk Services B.V. - Netherlands
- Sakthi Sugars Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Cement Manufacturers Association - India
- Kideco Jaya Agung - Indonesia
- Aditya Birla Group - India
- Vedanta Resources Plc - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- CNBM International Corporation - China
- Australian Coal Association
- PetroVietnam Power Coal Import and Supply Company
- Dalmia Cement Bharat India
- Indonesian Coal Mining Association
- Antam Resourcindo - Indonesia
- Indika Energy - Indonesia
- Independent Power Producers Association of India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The Treasury - Australian Government
- Thai Mozambique Logistica
- Renaissance Capital - South Africa
- Siam City Cement PLC, Thailand
- Timah Investasi Mineral - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Jindal Steel & Power Ltd - India
- Rio Tinto Coal - Australia
- Australian Commodity Traders Exchange
- Chettinad Cement Corporation Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Deloitte Consulting - India
- Pipit Mutiara Jaya. PT, Indonesia
- Indian Oil Corporation Limited
- Thiess Contractors Indonesia
- Eastern Coal Council - USA
- Billiton Holdings Pty Ltd - Australia
- Semirara Mining Corp, Philippines
- MS Steel International - UAE
- Chamber of Mines of South Africa
- LBH Netherlands Bv - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- Leighton Contractors Pty Ltd - Australia
- Samtan Co., Ltd - South Korea
- The University of Queensland
- Asmin Koalindo Tuhup - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Uttam Galva Steels Limited - India
- Indogreen Group - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Oldendorff Carriers - Singapore
- Meralco Power Generation, Philippines
- White Energy Company Limited
- Mjunction Services Limited - India
- Baramulti Group, Indonesia
- PowerSource Philippines DevCo
- Central Java Power - Indonesia
- IEA Clean Coal Centre - UK
- Borneo Indobara - Indonesia
- VISA Power Limited - India
- Port Waratah Coal Services - Australia
- Kepco SPC Power Corporation, Philippines
- Standard Chartered Bank - UAE
- Ambuja Cements Ltd - India
- Price Waterhouse Coopers - Russia
- Bangladesh Power Developement Board
- Jorong Barutama Greston.PT - Indonesia
- Africa Commodities Group - South Africa
- Merrill Lynch Commodities Europe
- Vizag Seaport Private Limited - India
- Georgia Ports Authority, United States
- The State Trading Corporation of India Ltd
- Siam City Cement - Thailand
- Larsen & Toubro Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Energy Link Ltd, New Zealand
- Parliament of New Zealand
- Minerals Council of Australia
- Bhushan Steel Limited - India
- Malabar Cements Ltd - India
- New Zealand Coal & Carbon
- Vijayanagar Sugar Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Mercuria Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Kumho Petrochemical, South Korea
- Banpu Public Company Limited - Thailand
- Kartika Selabumi Mining - Indonesia
- Grasim Industreis Ltd - India
- Kobexindo Tractors - Indoneisa
- Riau Bara Harum - Indonesia
- Savvy Resources Ltd - HongKong
- Toyota Tsusho Corporation, Japan
- San Jose City I Power Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Iligan Light & Power Inc, Philippines
- Orica Australia Pty. Ltd.
- International Coal Ventures Pvt Ltd - India
- Goldman Sachs - Singapore
- Makarim & Taira - Indonesia
- Sical Logistics Limited - India
- Trasteel International SA, Italy
- PNOC Exploration Corporation - Philippines
- Attock Cement Pakistan Limited
- Edison Trading Spa - Italy
- Bahari Cakrawala Sebuku - Indonesia
- Orica Mining Services - Indonesia
- SMG Consultants - Indonesia
- Kaltim Prima Coal - Indonesia
- Ministry of Transport, Egypt
- Bukit Makmur.PT - Indonesia
- Singapore Mercantile Exchange
- Rashtriya Ispat Nigam Limited - India
- Intertek Mineral Services - Indonesia
- Global Business Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Indian Energy Exchange, India
- Electricity Authority, New Zealand
- OPG Power Generation Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Globalindo Alam Lestari - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Karaikal Port Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Xindia Steels Limited - India
- Medco Energi Mining Internasional
- Lanco Infratech Ltd - India
- Ministry of Mines - Canada
- AsiaOL BioFuels Corp., Philippines
- Bulk Trading Sa - Switzerland
- Bhatia International Limited - India
- Global Coal Blending Company Limited - Australia
- Petron Corporation, Philippines
- SMC Global Power, Philippines
- Sree Jayajothi Cements Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Maharashtra Electricity Regulatory Commission - India
- India Bulls Power Limited - India
- Formosa Plastics Group - Taiwan
- Bharathi Cement Corporation - India
- GVK Power & Infra Limited - India
- Coalindo Energy - Indonesia
- Star Paper Mills Limited - India
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