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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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- International Coal Ventures Pvt Ltd - India
- Eastern Coal Council - USA
- Baramulti Group, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Formosa Plastics Group - Taiwan
- Grasim Industreis Ltd - India
- European Bulk Services B.V. - Netherlands
- TeaM Sual Corporation - Philippines
- Wood Mackenzie - Singapore
- Antam Resourcindo - Indonesia
- Independent Power Producers Association of India
- Singapore Mercantile Exchange
- Lanco Infratech Ltd - India
- Heidelberg Cement - Germany
- Savvy Resources Ltd - HongKong
- Kepco SPC Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Bukit Makmur.PT - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- New Zealand Coal & Carbon
- Bangladesh Power Developement Board
- South Luzon Thermal Energy Corporation
- VISA Power Limited - India
- Straits Asia Resources Limited - Singapore
- Siam City Cement - Thailand
- Power Finance Corporation Ltd., India
- Cigading International Bulk Terminal - Indonesia
- Sojitz Corporation - Japan
- Parry Sugars Refinery, India
- Wilmar Investment Holdings
- Miang Besar Coal Terminal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Trasteel International SA, Italy
- Binh Thuan Hamico - Vietnam
- SN Aboitiz Power Inc, Philippines
- Bhushan Steel Limited - India
- Intertek Mineral Services - Indonesia
- Riau Bara Harum - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Kumho Petrochemical, South Korea
- Marubeni Corporation - India
- LBH Netherlands Bv - Netherlands
- Mintek Dendrill Indonesia
- Indo Tambangraya Megah - Indonesia
- Commonwealth Bank - Australia
- Goldman Sachs - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Minerals Council of Australia
- Indika Energy - Indonesia
- Barasentosa Lestari - Indonesia
- The University of Queensland
- Larsen & Toubro Limited - India
- Sinarmas Energy and Mining - Indonesia
- San Jose City I Power Corp, Philippines
- Leighton Contractors Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- Gujarat Electricity Regulatory Commission - India
- Tamil Nadu electricity Board
- Price Waterhouse Coopers - Russia
- GN Power Mariveles Coal Plant, Philippines
- Jindal Steel & Power Ltd - India
- Malabar Cements Ltd - India
- Borneo Indobara - Indonesia
- Vizag Seaport Private Limited - India
- Kaltim Prima Coal - Indonesia
- SMG Consultants - Indonesia
- Rio Tinto Coal - Australia
- Posco Energy - South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- Samtan Co., Ltd - South Korea
- Latin American Coal - Colombia
- Iligan Light & Power Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- India Bulls Power Limited - India
- Pendopo Energi Batubara - Indonesia
- ASAPP Information Group - India
- Meralco Power Generation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Ambuja Cements Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kobexindo Tractors - Indoneisa
- Indogreen Group - Indonesia
- SMC Global Power, Philippines
- Carbofer General Trading SA - India
- Jorong Barutama Greston.PT - Indonesia
- Kideco Jaya Agung - Indonesia
- GMR Energy Limited - India
- Bulk Trading Sa - Switzerland
- Manunggal Multi Energi - Indonesia
- PNOC Exploration Corporation - Philippines
- Billiton Holdings Pty Ltd - Australia
- Vedanta Resources Plc - India
- White Energy Company Limited
- Thai Mozambique Logistica
- Asmin Koalindo Tuhup - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Interocean Group of Companies - India
- Africa Commodities Group - South Africa
- Semirara Mining and Power Corporation, Philippines
- Thiess Contractors Indonesia
- Sindya Power Generating Company Private Ltd
- Holcim Trading Pte Ltd - Singapore
- Mercuria Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Sarangani Energy Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- Romanian Commodities Exchange
- Port Waratah Coal Services - Australia
- Coal and Oil Company - UAE
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Banpu Public Company Limited - Thailand
- OPG Power Generation Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Ministry of Mines - Canada
- Coalindo Energy - Indonesia
- Electricity Authority, New Zealand
- Bhatia International Limited - India
- Energy Development Corp, Philippines
- Ind-Barath Power Infra Limited - India
- Sree Jayajothi Cements Limited - India
- Metalloyd Limited - United Kingdom
- Petron Corporation, Philippines
- Deloitte Consulting - India
- Madhucon Powers Ltd - India
- Bayan Resources Tbk. - Indonesia
- Indian Energy Exchange, India
- Standard Chartered Bank - UAE
- Orica Australia Pty. Ltd.
- Global Business Power Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- CIMB Investment Bank - Malaysia
- The Treasury - Australian Government
- Petrochimia International Co. Ltd.- Taiwan
- Edison Trading Spa - Italy
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ministry of Transport, Egypt
- Karbindo Abesyapradhi - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Global Green Power PLC Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Semirara Mining Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Videocon Industries ltd - India
- Bharathi Cement Corporation - India
- Economic Council, Georgia
- PowerSource Philippines DevCo
- Global Coal Blending Company Limited - Australia
- Kapuas Tunggal Persada - Indonesia
- Dalmia Cement Bharat India
- Ceylon Electricity Board - Sri Lanka
- MS Steel International - UAE
- Oldendorff Carriers - Singapore
- Anglo American - United Kingdom
- Eastern Energy - Thailand
- Tata Chemicals Ltd - India
- Merrill Lynch Commodities Europe
- Cement Manufacturers Association - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- London Commodity Brokers - England
- Sakthi Sugars Limited - India
- Central Java Power - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Medco Energi Mining Internasional
- Sical Logistics Limited - India
- Bhoruka Overseas - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- McConnell Dowell - Australia
- Gujarat Sidhee Cement - India
- Makarim & Taira - Indonesia
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
- GVK Power & Infra Limited - India
- Electricity Generating Authority of Thailand
- Orica Mining Services - Indonesia
- Parliament of New Zealand
- Rashtriya Ispat Nigam Limited - India
- Ministry of Finance - Indonesia
- Indonesian Coal Mining Association
- Mjunction Services Limited - India
- Directorate Of Revenue Intelligence - India
- Bahari Cakrawala Sebuku - Indonesia
- Globalindo Alam Lestari - Indonesia
- Therma Luzon, Inc, Philippines
- Aditya Birla Group - India
- IHS Mccloskey Coal Group - USA
- TNB Fuel Sdn Bhd - Malaysia
- Attock Cement Pakistan Limited
- Energy Link Ltd, New Zealand
- Renaissance Capital - South Africa
- Siam City Cement PLC, Thailand
- Timah Investasi Mineral - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Indian Oil Corporation Limited
- Australian Commodity Traders Exchange
- CNBM International Corporation - China
- Vijayanagar Sugar Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Planning Commission, India
- Salva Resources Pvt Ltd - India
- PTC India Limited - India
- Central Electricity Authority - India
- Bukit Baiduri Energy - Indonesia
- Chamber of Mines of South Africa
- IEA Clean Coal Centre - UK
- Mercator Lines Limited - India
- Coastal Gujarat Power Limited - India
- Australian Coal Association
- Jaiprakash Power Ventures ltd
- Chettinad Cement Corporation Ltd - India
- Georgia Ports Authority, United States
- Agrawal Coal Company - India
- Xindia Steels Limited - India
- ICICI Bank Limited - India
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