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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, 24 June 24
PHILIPPINES COAL SUPPLY ENOUGH UNTIL 2030 - PHILSTAR GLOBAL
The country’s existing coal-fired power plants are sufficient to ensure enough base load capacity in the next six years, Energy Secretary Rap ...
Friday, 14 June 24
NEXTDECADE, SAUDI ARAMCO SIGN 20-YEAR LNG SUPPLY DEAL - REUTERS
U.S. liquefied natural gas (LNG) provider NextDecade has signed a non-binding agreement with Saudi Aramco 2222.SE to supply 1.2 million tonnes per ...
Friday, 14 June 24
NEWBUILDING PRICES CLIMB 3% TO HIGHEST LEVEL IN 16 YEARS - NIELS RASMUSSEN
“Since the start of the year, newbuilding prices have risen 3% to their highest level since 2008. Compared to their most recent low in late 2 ...
Friday, 14 June 24
INDIA TARGETS HIGHER DOMESTIC COAL PRODUCTION, REDUCED IMPORTS: GOVT - REUTERS
India wants to reduce coal imports and increase domestic production, federal coal minister G. Kishan Reddy said on Thursday.
The cou ...
Thursday, 13 June 24
US LNG TO ASIA FOR POWER GENERATION EXPECTED TO CUT EMISSIONS VERSUS COAL - RYSTAD ENERGY
The value-chain emissions of liquified natural gas (LNG) are lower on average than for coal-fired power generation, even when the fuel is shipp ...
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- Ministry of Mines - Canada
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- Indian Oil Corporation Limited
- Heidelberg Cement - Germany
- Energy Development Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GMR Energy Limited - India
- Mercuria Energy - Indonesia
- Thiess Contractors Indonesia
- Commonwealth Bank - Australia
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- AsiaOL BioFuels Corp., Philippines
- Binh Thuan Hamico - Vietnam
- Uttam Galva Steels Limited - India
- The Treasury - Australian Government
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- Trasteel International SA, Italy
- Therma Luzon, Inc, Philippines
- Electricity Authority, New Zealand
- SMC Global Power, Philippines
- Global Green Power PLC Corporation, Philippines
- The University of Queensland
- Barasentosa Lestari - Indonesia
- Gujarat Electricity Regulatory Commission - India
- New Zealand Coal & Carbon
- LBH Netherlands Bv - Netherlands
- Indogreen Group - Indonesia
- Latin American Coal - Colombia
- TNB Fuel Sdn Bhd - Malaysia
- Alfred C Toepfer International GmbH - Germany
- Parry Sugars Refinery, India
- Cement Manufacturers Association - India
- Wilmar Investment Holdings
- Aboitiz Power Corporation - Philippines
- Mjunction Services Limited - India
- CNBM International Corporation - China
- Rio Tinto Coal - Australia
- Globalindo Alam Lestari - Indonesia
- Metalloyd Limited - United Kingdom
- Indo Tambangraya Megah - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- PNOC Exploration Corporation - Philippines
- Petron Corporation, Philippines
- Merrill Lynch Commodities Europe
- Asmin Koalindo Tuhup - Indonesia
- Mintek Dendrill Indonesia
- Sical Logistics Limited - India
- Sakthi Sugars Limited - India
- Siam City Cement PLC, Thailand
- Makarim & Taira - Indonesia
- Manunggal Multi Energi - Indonesia
- Aditya Birla Group - India
- European Bulk Services B.V. - Netherlands
- Agrawal Coal Company - India
- Deloitte Consulting - India
- Maheswari Brothers Coal Limited - India
- Renaissance Capital - South Africa
- Economic Council, Georgia
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- Semirara Mining and Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Iligan Light & Power Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Intertek Mineral Services - Indonesia
- IEA Clean Coal Centre - UK
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Thai Mozambique Logistica
- Sindya Power Generating Company Private Ltd
- Global Coal Blending Company Limited - Australia
- Ministry of Transport, Egypt
- ASAPP Information Group - India
- Bhatia International Limited - India
- Kepco SPC Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Coastal Gujarat Power Limited - India
- SN Aboitiz Power Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chettinad Cement Corporation Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Karaikal Port Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Bharathi Cement Corporation - India
- PowerSource Philippines DevCo
- Formosa Plastics Group - Taiwan
- Vizag Seaport Private Limited - India
- Coal and Oil Company - UAE
- Straits Asia Resources Limited - Singapore
- Cigading International Bulk Terminal - Indonesia
- Jindal Steel & Power Ltd - India
- Larsen & Toubro Limited - India
- Meenaskhi Energy Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Electricity Generating Authority of Thailand
- Oldendorff Carriers - Singapore
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Medco Energi Mining Internasional
- Sarangani Energy Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Malabar Cements Ltd - India
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- Kapuas Tunggal Persada - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Orica Australia Pty. Ltd.
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- Simpson Spence & Young - Indonesia
- Kobexindo Tractors - Indoneisa
- TeaM Sual Corporation - Philippines
- The State Trading Corporation of India Ltd
- MS Steel International - UAE
- Directorate General of MIneral and Coal - Indonesia
- Indonesian Coal Mining Association
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- McConnell Dowell - Australia
- Baramulti Group, Indonesia
- Australian Coal Association
- Ind-Barath Power Infra Limited - India
- Interocean Group of Companies - India
- Vedanta Resources Plc - India
- India Bulls Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Bukit Makmur.PT - Indonesia
- Africa Commodities Group - South Africa
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- Orica Mining Services - Indonesia
- Bhoruka Overseas - Indonesia
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- Pipit Mutiara Jaya. PT, Indonesia
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- Central Electricity Authority - India
- Wood Mackenzie - Singapore
- Planning Commission, India
- Eastern Energy - Thailand
- Mercator Lines Limited - India
- Dalmia Cement Bharat India
- Ceylon Electricity Board - Sri Lanka
- Kohat Cement Company Ltd. - Pakistan
- GN Power Mariveles Coal Plant, Philippines
- Parliament of New Zealand
- Standard Chartered Bank - UAE
- White Energy Company Limited
- Chamber of Mines of South Africa
- Georgia Ports Authority, United States
- Videocon Industries ltd - India
- Tata Chemicals Ltd - India
- Singapore Mercantile Exchange
- Essar Steel Hazira Ltd - India
- Savvy Resources Ltd - HongKong
- Marubeni Corporation - India
- Sree Jayajothi Cements Limited - India
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- Romanian Commodities Exchange
- Global Business Power Corporation, Philippines
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- Tamil Nadu electricity Board
- Borneo Indobara - Indonesia
- Meralco Power Generation, Philippines
- Directorate Of Revenue Intelligence - India
- Riau Bara Harum - Indonesia
- Eastern Coal Council - USA
- Bahari Cakrawala Sebuku - Indonesia
- South Luzon Thermal Energy Corporation
- Xindia Steels Limited - India
- Gujarat Sidhee Cement - India
- GAC Shipping (India) Pvt Ltd
- Coalindo Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Power Finance Corporation Ltd., India
- PTC India Limited - India
- Siam City Cement - Thailand
- CIMB Investment Bank - Malaysia
- Sojitz Corporation - Japan
- Miang Besar Coal Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- SMG Consultants - Indonesia
- Rashtriya Ispat Nigam Limited - India
- GVK Power & Infra Limited - India
- Krishnapatnam Port Company Ltd. - India
- Indian Energy Exchange, India
- Jaiprakash Power Ventures ltd
- Edison Trading Spa - Italy
- Star Paper Mills Limited - India
- Minerals Council of Australia
- Toyota Tsusho Corporation, Japan
- Posco Energy - South Korea
- Australian Commodity Traders Exchange
- Attock Cement Pakistan Limited
- VISA Power Limited - India
- Bukit Baiduri Energy - Indonesia
- Indika Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- ICICI Bank Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Kartika Selabumi Mining - Indonesia
- OPG Power Generation Pvt Ltd - India
- Samtan Co., Ltd - South Korea
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- Goldman Sachs - Singapore
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- Independent Power Producers Association of India
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- Grasim Industreis Ltd - India
- Anglo American - United Kingdom
- Altura Mining Limited, Indonesia
- Port Waratah Coal Services - Australia
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