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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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Friday, 02 August 24
COAL MARKET DEVELOPMENTS: FALLING PRICES AMID RECORD-HIGH OUTPUT - WORLD BANK
Coal prices inched up in May (m/m) following an 8 percent decline in 2024Q1. The Australian and South African benchmarks have plummeted more ...
Friday, 26 July 24
FUELEU MARITME IS COMING. IS YOUR CHARTERPARTY READY? - GARD
With less than six months to implementation of FuelEU Maritime in EU and EEA trades, there has been little published advice regarding how to alloca ...
Thursday, 04 July 24
INDIA'S COAL PRODUCTION RISES 14% IN JUNE - PTI
The country’s coal production rose by 14.49% to 84.63 million tonne (MT) in June. The country’s coal output was 73.92 MT in June last f ...
Tuesday, 02 July 24
NTPC CAPTIVE COAL OUTPUT GROWS 15% IN Q1; DESPATCH RISES 17%
State-owned NTPC on Monday reported a 15 per cent year-on-year increase in the production of coal from captives mines to 9.862 metric million tonne ...
Friday, 28 June 24
KOSPO INVITED BIDS FOR 400,000 MT OF MINIMUM 4000 NCV COAL FOR FIVE YEARS
Korea Southern Power Co., Ltd. (KOSPO), is inviting bids for total 400,000 MT of Low Calorific Value Coal for 5 years starting from July 2024 until ...
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- Indian Oil Corporation Limited
- Tamil Nadu electricity Board
- MS Steel International - UAE
- Mercator Lines Limited - India
- SMC Global Power, Philippines
- Siam City Cement PLC, Thailand
- Kobexindo Tractors - Indoneisa
- Commonwealth Bank - Australia
- Riau Bara Harum - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Independent Power Producers Association of India
- OPG Power Generation Pvt Ltd - India
- Mjunction Services Limited - India
- Central Electricity Authority - India
- Bukit Makmur.PT - Indonesia
- Eastern Coal Council - USA
- Binh Thuan Hamico - Vietnam
- Anglo American - United Kingdom
- Makarim & Taira - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Larsen & Toubro Limited - India
- Goldman Sachs - Singapore
- India Bulls Power Limited - India
- Savvy Resources Ltd - HongKong
- ICICI Bank Limited - India
- Medco Energi Mining Internasional
- London Commodity Brokers - England
- Intertek Mineral Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Jindal Steel & Power Ltd - India
- Aboitiz Power Corporation - Philippines
- Ministry of Mines - Canada
- Meenaskhi Energy Private Limited - India
- Attock Cement Pakistan Limited
- IHS Mccloskey Coal Group - USA
- Deloitte Consulting - India
- PetroVietnam Power Coal Import and Supply Company
- Karaikal Port Pvt Ltd - India
- Sakthi Sugars Limited - India
- Thiess Contractors Indonesia
- Krishnapatnam Port Company Ltd. - India
- Bukit Baiduri Energy - Indonesia
- McConnell Dowell - Australia
- Bharathi Cement Corporation - India
- SN Aboitiz Power Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- PTC India Limited - India
- Romanian Commodities Exchange
- Essar Steel Hazira Ltd - India
- Electricity Authority, New Zealand
- Indika Energy - Indonesia
- Port Waratah Coal Services - Australia
- Merrill Lynch Commodities Europe
- SMG Consultants - Indonesia
- The Treasury - Australian Government
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kapuas Tunggal Persada - Indonesia
- GVK Power & Infra Limited - India
- Timah Investasi Mineral - Indoneisa
- Malabar Cements Ltd - India
- Ministry of Finance - Indonesia
- GMR Energy Limited - India
- Wilmar Investment Holdings
- Ministry of Transport, Egypt
- White Energy Company Limited
- South Luzon Thermal Energy Corporation
- CIMB Investment Bank - Malaysia
- Maheswari Brothers Coal Limited - India
- Uttam Galva Steels Limited - India
- Posco Energy - South Korea
- PowerSource Philippines DevCo
- Sical Logistics Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Minerals Council of Australia
- Petrochimia International Co. Ltd.- Taiwan
- Barasentosa Lestari - Indonesia
- Wood Mackenzie - Singapore
- Pendopo Energi Batubara - Indonesia
- San Jose City I Power Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Kartika Selabumi Mining - Indonesia
- Global Business Power Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Interocean Group of Companies - India
- Therma Luzon, Inc, Philippines
- Borneo Indobara - Indonesia
- Global Coal Blending Company Limited - Australia
- GN Power Mariveles Coal Plant, Philippines
- Formosa Plastics Group - Taiwan
- Economic Council, Georgia
- Kaltim Prima Coal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Edison Trading Spa - Italy
- Siam City Cement - Thailand
- Kumho Petrochemical, South Korea
- Orica Mining Services - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- VISA Power Limited - India
- Madhucon Powers Ltd - India
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Bhatia International Limited - India
- Energy Link Ltd, New Zealand
- TeaM Sual Corporation - Philippines
- Indonesian Coal Mining Association
- Sree Jayajothi Cements Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Electricity Generating Authority of Thailand
- Videocon Industries ltd - India
- Agrawal Coal Company - India
- Energy Development Corp, Philippines
- The University of Queensland
- The State Trading Corporation of India Ltd
- Global Green Power PLC Corporation, Philippines
- Aditya Birla Group - India
- Samtan Co., Ltd - South Korea
- Lanco Infratech Ltd - India
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Parry Sugars Refinery, India
- ASAPP Information Group - India
- Georgia Ports Authority, United States
- Rio Tinto Coal - Australia
- Baramulti Group, Indonesia
- Gujarat Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Gujarat Sidhee Cement - India
- Thai Mozambique Logistica
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate Of Revenue Intelligence - India
- Heidelberg Cement - Germany
- Indo Tambangraya Megah - Indonesia
- Africa Commodities Group - South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Holcim Trading Pte Ltd - Singapore
- Tata Chemicals Ltd - India
- Globalindo Alam Lestari - Indonesia
- Mercuria Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Coal and Oil Company - UAE
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Australian Commodity Traders Exchange
- Petron Corporation, Philippines
- Central Java Power - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Grasim Industreis Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Xindia Steels Limited - India
- Straits Asia Resources Limited - Singapore
- Bulk Trading Sa - Switzerland
- Vedanta Resources Plc - India
- Indogreen Group - Indonesia
- Eastern Energy - Thailand
- Toyota Tsusho Corporation, Japan
- Sindya Power Generating Company Private Ltd
- Kideco Jaya Agung - Indonesia
- Latin American Coal - Colombia
- Ambuja Cements Ltd - India
- IEA Clean Coal Centre - UK
- Rashtriya Ispat Nigam Limited - India
- Sarangani Energy Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhushan Steel Limited - India
- Oldendorff Carriers - Singapore
- LBH Netherlands Bv - Netherlands
- Vizag Seaport Private Limited - India
- Australian Coal Association
- Semirara Mining Corp, Philippines
- Chamber of Mines of South Africa
- Bangladesh Power Developement Board
- European Bulk Services B.V. - Netherlands
- Marubeni Corporation - India
- Iligan Light & Power Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Manunggal Multi Energi - Indonesia
- Cement Manufacturers Association - India
- Bhoruka Overseas - Indonesia
- Orica Australia Pty. Ltd.
- Metalloyd Limited - United Kingdom
- Meralco Power Generation, Philippines
- Renaissance Capital - South Africa
- International Coal Ventures Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Mintek Dendrill Indonesia
- Billiton Holdings Pty Ltd - Australia
- Indian Energy Exchange, India
- Singapore Mercantile Exchange
- New Zealand Coal & Carbon
- Cigading International Bulk Terminal - Indonesia
- Power Finance Corporation Ltd., India
- Star Paper Mills Limited - India
- Dalmia Cement Bharat India
- Ind-Barath Power Infra Limited - India
- CNBM International Corporation - China
- Bahari Cakrawala Sebuku - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Planning Commission, India
- Trasteel International SA, Italy
- Standard Chartered Bank - UAE
- Sojitz Corporation - Japan
- Kohat Cement Company Ltd. - Pakistan
- Salva Resources Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Neyveli Lignite Corporation Ltd, - India
- Coalindo Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- GAC Shipping (India) Pvt Ltd
- Karbindo Abesyapradhi - Indoneisa
- Price Waterhouse Coopers - Russia
- Bayan Resources Tbk. - Indonesia
- Carbofer General Trading SA - India
- Parliament of New Zealand
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