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Wednesday, 31 January 24
GAS EXPORTS COST U.S. CONSUMERS MORE THAN $100 BILLION OVER 16-MONTH PERIOD - IEEFA
 Limited Demand Growth Could Dampen the Dry Bulk Market in the Coming Months BIMCOStarting in late 2021—before its invasion of Ukraine—Russia began to manipulate Europe’s energy markets by trimming gas shipments and emptying gas storage facilities on the continent. To fill the supply gaps, Europe ramped up its purchases of liquefied natural gas (LNG). A global bidding war for LNG ensued. Wealthy European nations vied with buyers in Japan, South Korea, Taiwan, China, and developing nations for a limited LNG supply, and prices soared to previously unimaginable highs.
The gas price contagion quickly spread to American shores. U.S. LNG exporters bought all the gas they could handle, hoping to reap big profits by selling U.S. gas to overheated global markets. Surging exports, in turn, shortchanged U.S. supplies; domestic gas stockpiles fell to multi-year lows, and wholesale gas prices rocketed to their highest levels in more than a decade.
Those price spikes were largely passed on to U.S. consumers. According to the Energy Information Administration, total U.S. spending on natural gas soared to $269 billion in 2022, up from $150 billion in 2019, the last “normal” year before COVID-19 and Russia roiled U.S. gas markets.
It’s impossible to know exactly how much U.S. consumers would have spent if Russia hadn’t upended global gas markets. But there’s absolutely no doubt that surging LNG exports helped trigger the surge in U.S. gas prices.
Between 2020 and 2022, total gas production in the U.S. increased by 7 billion cubic feet per day (Bcf/d), while domestic consumption went up by just 4.6 Bcf/d. With domestic production rising faster than consumption, you might expect prices to stay muted. But exports changed the equation. LNG exports went up by 4 Bcf/d over the same period, and pipeline exports rose by 0.4 Bcf/d. All told, combining growth in bothdomestic consumption and exports, demand for U.S. gas went up about 2 Bcf/d faster than production.
With demand outpacing supply, prices soared. But if exports had grown more slowly, the U.S. gas market would have been in better balance, and prices would have been closer to—or perhaps less than—their long-term average.
In the years before Russia upended the U.S. gas market, the average monthly wholesale price for gas hovered at just over $3 per million metric British thermal units (MMBtu). FromSeptember 2021 through December 2022—the years of Russian-induced gas market chaos—prices nearly doubled their long-term average.
Higher wholesale prices fueled inflation for all U.S. consumers, including families heating their homes, businesses, and industries. It became more expensive to keep the lights on, as well. Gas-dependent electric utilities saw their costs rise, and many passed the increased costs to their customers. Some people saw the price increases directly in their utility bills, but much was hidden in the overall increase in prices for goods and services.
If domestic gas prices had remained at their long-term average, U.S. consumers would have spent roughly $111 billion less on wholesale natural gas purchases from September 2021 through December 2022. Or, said differently, the Russia-induced price spikes cost U.S. households and gas buyers $111 billion, but led to a $111 billion windfall for the gas industry.
The transfer of wealth from gas consumers to gas producers varied by sector. All told, homeowners and renters paid gas companies an additional $14 billion during the market havoc. Office buildings and other commercial users spent an additional $11 billion. U.S. industrial gas users transferred about $33 billion to oil and gas companies. And electric utilities paid a whopping $50 billion more for their fuel.
It’s high time for the consumer effects of LNG exports to receive the attention they deserve. After all, what’s happened before could happen again. When the circumstances are right—a cold snap in Asia, a pipeline explosion in Europe, unrest in the Middle East—overseas buyers will once again ramp up their demand for LNG and compete directly with U.S. consumers for a limited supply of U.S. gas. The more export capacity we have, the more likely it is that a gas supply disruption anywhere in the world will trigger a price spike here at home. It’s a twist on the old adage: When the world sneezes, the U.S. will catch cold.
Source: IEEFA
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Monday, 08 January 24
SEABORNE TRADE REACHES 12.4BN TONNES - CLARKSONS
China will establish a back-up coal production system by 2027 to stabilise prices and secure coal supply, the state planner said on Wednesday, even ...
Monday, 08 January 24
CAPESIZES START THE NEW YEAR ON POSITIVE NOTE - BALTIC EXCHANGE
Capesize
This week the capsize market has been marked by a mix of activities and challenges. Despite a slow start following the Christmas and N ...
Friday, 05 January 24
MORGAN STANLEY SEES LOWER OIL PRICES IN 2024 ON OVERSUPPLY CONCERNS - REUTERS
Morgan Stanley sees Brent crude prices anchored near $80 per barrel in the first half in 2024 before declining towards the end of the year as it ex ...
Friday, 05 January 24
INDIA'S COAL OUTPUT RISES NEARLY 11 PC IN DEC TO 92.87 MT - PTI
India’s coal production increased by 10.75 per cent to 92.87 million tonne in December 2023 as compared to the year-ago period, an official s ...
Friday, 05 January 24
BANGLADESH’S 2023 COAL-FIRED POWER OUTPUT TRIPLED, EASING SHORTAGES - REUTERS
Bangladesh nearly tripled its coal-fired power output in 2023, a Reuters analysis of government data showed, helping it tide over the worst power s ...
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- Jorong Barutama Greston.PT - Indonesia
- Samtan Co., Ltd - South Korea
- Vizag Seaport Private Limited - India
- Eastern Energy - Thailand
- Bukit Baiduri Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Savvy Resources Ltd - HongKong
- Gujarat Mineral Development Corp Ltd - India
- Parry Sugars Refinery, India
- Directorate Of Revenue Intelligence - India
- Oldendorff Carriers - Singapore
- Port Waratah Coal Services - Australia
- Medco Energi Mining Internasional
- Uttam Galva Steels Limited - India
- Coalindo Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- MS Steel International - UAE
- Mercator Lines Limited - India
- Indo Tambangraya Megah - Indonesia
- Power Finance Corporation Ltd., India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- SMC Global Power, Philippines
- Agrawal Coal Company - India
- Holcim Trading Pte Ltd - Singapore
- Singapore Mercantile Exchange
- Star Paper Mills Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- TeaM Sual Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Globalindo Alam Lestari - Indonesia
- Orica Australia Pty. Ltd.
- Jindal Steel & Power Ltd - India
- Mjunction Services Limited - India
- Bulk Trading Sa - Switzerland
- Salva Resources Pvt Ltd - India
- PTC India Limited - India
- Xindia Steels Limited - India
- Eastern Coal Council - USA
- Intertek Mineral Services - Indonesia
- Indonesian Coal Mining Association
- Therma Luzon, Inc, Philippines
- VISA Power Limited - India
- Baramulti Group, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Binh Thuan Hamico - Vietnam
- Bhatia International Limited - India
- Sarangani Energy Corporation, Philippines
- The Treasury - Australian Government
- Toyota Tsusho Corporation, Japan
- Lanco Infratech Ltd - India
- Meenaskhi Energy Private Limited - India
- The State Trading Corporation of India Ltd
- Orica Mining Services - Indonesia
- San Jose City I Power Corp, Philippines
- Altura Mining Limited, Indonesia
- Merrill Lynch Commodities Europe
- Energy Link Ltd, New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Jaiprakash Power Ventures ltd
- Minerals Council of Australia
- Central Java Power - Indonesia
- International Coal Ventures Pvt Ltd - India
- Mercuria Energy - Indonesia
- Gujarat Sidhee Cement - India
- Asmin Koalindo Tuhup - Indonesia
- Metalloyd Limited - United Kingdom
- Attock Cement Pakistan Limited
- Karaikal Port Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Manunggal Multi Energi - Indonesia
- Kaltim Prima Coal - Indonesia
- Ministry of Transport, Egypt
- GAC Shipping (India) Pvt Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- SN Aboitiz Power Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mintek Dendrill Indonesia
- CIMB Investment Bank - Malaysia
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- Edison Trading Spa - Italy
- Global Green Power PLC Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Global Business Power Corporation, Philippines
- GMR Energy Limited - India
- Parliament of New Zealand
- Deloitte Consulting - India
- Dalmia Cement Bharat India
- Marubeni Corporation - India
- Ministry of Finance - Indonesia
- Ceylon Electricity Board - Sri Lanka
- The University of Queensland
- Kartika Selabumi Mining - Indonesia
- Makarim & Taira - Indonesia
- Cement Manufacturers Association - India
- Maharashtra Electricity Regulatory Commission - India
- Indika Energy - Indonesia
- Meralco Power Generation, Philippines
- European Bulk Services B.V. - Netherlands
- Miang Besar Coal Terminal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Simpson Spence & Young - Indonesia
- Planning Commission, India
- Petrochimia International Co. Ltd.- Taiwan
- Larsen & Toubro Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- Malabar Cements Ltd - India
- Indian Oil Corporation Limited
- Interocean Group of Companies - India
- Romanian Commodities Exchange
- Trasteel International SA, Italy
- Electricity Authority, New Zealand
- Bhushan Steel Limited - India
- Sree Jayajothi Cements Limited - India
- Kumho Petrochemical, South Korea
- Energy Development Corp, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Central Electricity Authority - India
- Grasim Industreis Ltd - India
- Renaissance Capital - South Africa
- Kideco Jaya Agung - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Pendopo Energi Batubara - Indonesia
- Tata Chemicals Ltd - India
- Madhucon Powers Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Posco Energy - South Korea
- Alfred C Toepfer International GmbH - Germany
- Chettinad Cement Corporation Ltd - India
- Electricity Generating Authority of Thailand
- Sical Logistics Limited - India
- Gujarat Electricity Regulatory Commission - India
- SMG Consultants - Indonesia
- London Commodity Brokers - England
- White Energy Company Limited
- Thai Mozambique Logistica
- Standard Chartered Bank - UAE
- Tamil Nadu electricity Board
- Cigading International Bulk Terminal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Goldman Sachs - Singapore
- Independent Power Producers Association of India
- Price Waterhouse Coopers - Russia
- Essar Steel Hazira Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Iligan Light & Power Inc, Philippines
- Barasentosa Lestari - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Borneo Indobara - Indonesia
- Sindya Power Generating Company Private Ltd
- Rio Tinto Coal - Australia
- Ambuja Cements Ltd - India
- IEA Clean Coal Centre - UK
- Videocon Industries ltd - India
- ASAPP Information Group - India
- Georgia Ports Authority, United States
- Sojitz Corporation - Japan
- Australian Commodity Traders Exchange
- Straits Asia Resources Limited - Singapore
- Bayan Resources Tbk. - Indonesia
- Ministry of Mines - Canada
- Semirara Mining Corp, Philippines
- Directorate General of MIneral and Coal - Indonesia
- GVK Power & Infra Limited - India
- Petron Corporation, Philippines
- Indian Energy Exchange, India
- Wood Mackenzie - Singapore
- Semirara Mining and Power Corporation, Philippines
- India Bulls Power Limited - India
- CNBM International Corporation - China
- Timah Investasi Mineral - Indoneisa
- Bangladesh Power Developement Board
- Economic Council, Georgia
- Ind-Barath Power Infra Limited - India
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- Bharathi Cement Corporation - India
- Wilmar Investment Holdings
- Sakthi Sugars Limited - India
- Antam Resourcindo - Indonesia
- Latin American Coal - Colombia
- Heidelberg Cement - Germany
- LBH Netherlands Bv - Netherlands
- Sinarmas Energy and Mining - Indonesia
- ICICI Bank Limited - India
- Bhoruka Overseas - Indonesia
- Chamber of Mines of South Africa
- Kapuas Tunggal Persada - Indonesia
- PowerSource Philippines DevCo
- Coal and Oil Company - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Carbofer General Trading SA - India
- Billiton Holdings Pty Ltd - Australia
- Indogreen Group - Indonesia
- Banpu Public Company Limited - Thailand
- Siam City Cement - Thailand
- Riau Bara Harum - Indonesia
- McConnell Dowell - Australia
- Maheswari Brothers Coal Limited - India
- Thiess Contractors Indonesia
- Aditya Birla Group - India
- Aboitiz Power Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Commonwealth Bank - Australia
- Bukit Makmur.PT - Indonesia
- Australian Coal Association
- Kalimantan Lumbung Energi - Indonesia
- New Zealand Coal & Carbon
- Kobexindo Tractors - Indoneisa
- Anglo American - United Kingdom
- Africa Commodities Group - South Africa
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