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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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Wednesday, 07 December 22
INDIA'S STEEL MINISTRY SEEKS IMPORT TAX WAIVER FOR COKING COAL - SOURCES REUTERS REPORTED
India’s steel ministry has asked the finance ministry for a waiver of import tax on coking coal among a slew of raw materials, as it scramble ...
Tuesday, 06 December 22
INDIA'S COAL PRODUCTION RISES 17% IN APR-NOV PERIOD - PTI
The country’s coal production increased 17 per cent to 524.20 million tonnes in the April-November period of the ongoing fiscal.
...
Tuesday, 06 December 22
INDONESIA AIMS TO STARTS COLLECTING COAL LEVY IN Q1 2023 - MINISTER, REUTERS REPORTED
Indonesia aims to establish a coal fund agency and start collecting a coal levy in the first quarter next year, to help ensure supply security for ...
Saturday, 03 December 22
COMPLEX RUSSIAN PRICE CAP MAKES MARITIME VISIBILITY A MUST - WINDWARD
Many commentators and analysts are speculating about the potential impact the Russian seaborne oil price cap will have on organizations and entitie ...
Friday, 02 December 22
INDONESIAN COAL PRICE REFERENCE PLUNGE TOWARD US$ 281.48 A TON AS DEMAND DROPS WORLDWIDE
COALspot.com: The cost of coal is falling so fast that it is beginning to put real money back in the pockets of end-users.
Indonesia ...
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Showing 176 to 180 news of total 6871 |
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- Formosa Plastics Group - Taiwan
- SN Aboitiz Power Inc, Philippines
- Dalmia Cement Bharat India
- Tamil Nadu electricity Board
- Trasteel International SA, Italy
- Makarim & Taira - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhoruka Overseas - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Manunggal Multi Energi - Indonesia
- Essar Steel Hazira Ltd - India
- Sical Logistics Limited - India
- IEA Clean Coal Centre - UK
- Sindya Power Generating Company Private Ltd
- Wood Mackenzie - Singapore
- Latin American Coal - Colombia
- Maheswari Brothers Coal Limited - India
- Cigading International Bulk Terminal - Indonesia
- Salva Resources Pvt Ltd - India
- Africa Commodities Group - South Africa
- GVK Power & Infra Limited - India
- Vedanta Resources Plc - India
- Australian Commodity Traders Exchange
- Ministry of Transport, Egypt
- Sakthi Sugars Limited - India
- New Zealand Coal & Carbon
- International Coal Ventures Pvt Ltd - India
- Central Electricity Authority - India
- Georgia Ports Authority, United States
- Binh Thuan Hamico - Vietnam
- Energy Link Ltd, New Zealand
- PowerSource Philippines DevCo
- Jaiprakash Power Ventures ltd
- Metalloyd Limited - United Kingdom
- Medco Energi Mining Internasional
- Bulk Trading Sa - Switzerland
- Eastern Coal Council - USA
- Coal and Oil Company - UAE
- Holcim Trading Pte Ltd - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Coal Blending Company Limited - Australia
- Interocean Group of Companies - India
- Attock Cement Pakistan Limited
- Altura Mining Limited, Indonesia
- Mercator Lines Limited - India
- Vizag Seaport Private Limited - India
- Siam City Cement - Thailand
- Sarangani Energy Corporation, Philippines
- The State Trading Corporation of India Ltd
- Lanco Infratech Ltd - India
- Carbofer General Trading SA - India
- Goldman Sachs - Singapore
- ICICI Bank Limited - India
- Merrill Lynch Commodities Europe
- Kartika Selabumi Mining - Indonesia
- Deloitte Consulting - India
- Bhushan Steel Limited - India
- Kumho Petrochemical, South Korea
- Electricity Generating Authority of Thailand
- Banpu Public Company Limited - Thailand
- Intertek Mineral Services - Indonesia
- Global Business Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- CIMB Investment Bank - Malaysia
- Sree Jayajothi Cements Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Eastern Energy - Thailand
- TNB Fuel Sdn Bhd - Malaysia
- Petron Corporation, Philippines
- Indika Energy - Indonesia
- Larsen & Toubro Limited - India
- Gujarat Electricity Regulatory Commission - India
- Meralco Power Generation, Philippines
- Star Paper Mills Limited - India
- Ceylon Electricity Board - Sri Lanka
- San Jose City I Power Corp, Philippines
- Renaissance Capital - South Africa
- Timah Investasi Mineral - Indoneisa
- European Bulk Services B.V. - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- Madhucon Powers Ltd - India
- The University of Queensland
- Toyota Tsusho Corporation, Japan
- Pendopo Energi Batubara - Indonesia
- McConnell Dowell - Australia
- Jorong Barutama Greston.PT - Indonesia
- White Energy Company Limited
- Tata Chemicals Ltd - India
- Marubeni Corporation - India
- Kapuas Tunggal Persada - Indonesia
- South Luzon Thermal Energy Corporation
- Chettinad Cement Corporation Ltd - India
- VISA Power Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Orica Mining Services - Indonesia
- Commonwealth Bank - Australia
- Bayan Resources Tbk. - Indonesia
- Jindal Steel & Power Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Price Waterhouse Coopers - Russia
- Chamber of Mines of South Africa
- Cement Manufacturers Association - India
- Global Green Power PLC Corporation, Philippines
- Thai Mozambique Logistica
- TeaM Sual Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Leighton Contractors Pty Ltd - Australia
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Sidhee Cement - India
- Grasim Industreis Ltd - India
- Savvy Resources Ltd - HongKong
- Baramulti Group, Indonesia
- OPG Power Generation Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Indo Tambangraya Megah - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Straits Asia Resources Limited - Singapore
- Heidelberg Cement - Germany
- PTC India Limited - India
- Indian Oil Corporation Limited
- Semirara Mining and Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Ind-Barath Power Infra Limited - India
- Uttam Galva Steels Limited - India
- Orica Australia Pty. Ltd.
- Simpson Spence & Young - Indonesia
- Therma Luzon, Inc, Philippines
- Port Waratah Coal Services - Australia
- Kepco SPC Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Aditya Birla Group - India
- Posco Energy - South Korea
- Mercuria Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Independent Power Producers Association of India
- Bukit Baiduri Energy - Indonesia
- Power Finance Corporation Ltd., India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Planning Commission, India
- Economic Council, Georgia
- Kideco Jaya Agung - Indonesia
- IHS Mccloskey Coal Group - USA
- Bank of Tokyo Mitsubishi UFJ Ltd
- Central Java Power - Indonesia
- Borneo Indobara - Indonesia
- Barasentosa Lestari - Indonesia
- Globalindo Alam Lestari - Indonesia
- Parry Sugars Refinery, India
- Oldendorff Carriers - Singapore
- SMG Consultants - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Parliament of New Zealand
- The Treasury - Australian Government
- Neyveli Lignite Corporation Ltd, - India
- Standard Chartered Bank - UAE
- Ambuja Cements Ltd - India
- Anglo American - United Kingdom
- Indogreen Group - Indonesia
- Karaikal Port Pvt Ltd - India
- Singapore Mercantile Exchange
- Australian Coal Association
- SMC Global Power, Philippines
- Sojitz Corporation - Japan
- Electricity Authority, New Zealand
- Rio Tinto Coal - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Ministry of Mines - Canada
- London Commodity Brokers - England
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- Minerals Council of Australia
- Gujarat Mineral Development Corp Ltd - India
- PNOC Exploration Corporation - Philippines
- Agrawal Coal Company - India
- Indonesian Coal Mining Association
- Kalimantan Lumbung Energi - Indonesia
- Thiess Contractors Indonesia
- Aboitiz Power Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Coastal Gujarat Power Limited - India
- Malabar Cements Ltd - India
- Edison Trading Spa - Italy
- Meenaskhi Energy Private Limited - India
- Iligan Light & Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- Kobexindo Tractors - Indoneisa
- Mjunction Services Limited - India
- LBH Netherlands Bv - Netherlands
- Krishnapatnam Port Company Ltd. - India
- GAC Shipping (India) Pvt Ltd
- Energy Development Corp, Philippines
- Xindia Steels Limited - India
- India Bulls Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Ministry of Finance - Indonesia
- Alfred C Toepfer International GmbH - Germany
- GMR Energy Limited - India
- Romanian Commodities Exchange
- Semirara Mining Corp, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Antam Resourcindo - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Directorate Of Revenue Intelligence - India
- Coalindo Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- CNBM International Corporation - China
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Wilmar Investment Holdings
- Bharathi Cement Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- Videocon Industries ltd - India
- MS Steel International - UAE
- Bhatia International Limited - India
- Bangladesh Power Developement Board
- Indian Energy Exchange, India
- Mintek Dendrill Indonesia
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