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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, 22 March 24
INDONESIA APPROVES 922.14 MLN T COAL PRODUCTION QUOTA FOR 2024, ABOVE TARGET - REUTERS
Indonesia has approved coal production quotas totalling 922.14 million metric tons for 2024, Bambang Suswantono, a senior official at the mining mi ...
Friday, 22 March 24
CHINA COAL INDUSTRY GROUP EXPECTS OUTPUT GROWTH TO SLOW IN 2024 - REUTERS
China’s coal output is expected to increase 36 million metric tons, or 0.8%, to about 4.7 billion tonnes in 2024, a Chinese coal industry gro ...
Monday, 18 March 24
THREE KEY TAKEAWAYS FROM OUR EUROPE GAS MARKETS SHORT-TERM OUTLOOK Q1 2024 - WOOD MACKENZIE
European gas prices are currently back to pre-crisis levels, but with a complex series of factors affecting future supply and demand, are they set ...
Wednesday, 06 March 24
INDONESIA AIMS TO FINISH MINING OUTPUT QUOTAS APPROVAL BY END-MARCH, OFFICIAL SAYS - REUTERS
Indonesia’s has approved the mining production quotarequests from more than 120mineral companies and aims to complete the approval process th ...
Monday, 04 March 24
IS YOUR GUARANTEE A GUARANTEE? NOTE TO SHIPOWNERS - GARD
KNOWLEDGE TO ELEVATE
The law of guarantees is not always obvious or easy to understand without proper guidance. This article clarifies the dif ...
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- The University of Queensland
- Coal and Oil Company - UAE
- Electricity Generating Authority of Thailand
- Carbofer General Trading SA - India
- Globalindo Alam Lestari - Indonesia
- Mjunction Services Limited - India
- MS Steel International - UAE
- Antam Resourcindo - Indonesia
- Madhucon Powers Ltd - India
- Pendopo Energi Batubara - Indonesia
- New Zealand Coal & Carbon
- Orica Mining Services - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Formosa Plastics Group - Taiwan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ministry of Transport, Egypt
- Orica Australia Pty. Ltd.
- Coastal Gujarat Power Limited - India
- Wilmar Investment Holdings
- Rio Tinto Coal - Australia
- GAC Shipping (India) Pvt Ltd
- PetroVietnam Power Coal Import and Supply Company
- Siam City Cement - Thailand
- London Commodity Brokers - England
- Sarangani Energy Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- PowerSource Philippines DevCo
- TeaM Sual Corporation - Philippines
- IEA Clean Coal Centre - UK
- Medco Energi Mining Internasional
- Semirara Mining and Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- PNOC Exploration Corporation - Philippines
- Essar Steel Hazira Ltd - India
- Videocon Industries ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Chettinad Cement Corporation Ltd - India
- Sindya Power Generating Company Private Ltd
- Grasim Industreis Ltd - India
- Intertek Mineral Services - Indonesia
- White Energy Company Limited
- Independent Power Producers Association of India
- Aditya Birla Group - India
- Sree Jayajothi Cements Limited - India
- Anglo American - United Kingdom
- The Treasury - Australian Government
- Trasteel International SA, Italy
- Planning Commission, India
- Thai Mozambique Logistica
- Indian Energy Exchange, India
- Latin American Coal - Colombia
- Bukit Makmur.PT - Indonesia
- Kaltim Prima Coal - Indonesia
- Price Waterhouse Coopers - Russia
- Rashtriya Ispat Nigam Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Mintek Dendrill Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GVK Power & Infra Limited - India
- Posco Energy - South Korea
- Cement Manufacturers Association - India
- Straits Asia Resources Limited - Singapore
- Power Finance Corporation Ltd., India
- Sinarmas Energy and Mining - Indonesia
- Central Electricity Authority - India
- Maheswari Brothers Coal Limited - India
- Makarim & Taira - Indonesia
- Lanco Infratech Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Coalindo Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Bhoruka Overseas - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Vedanta Resources Plc - India
- Asmin Koalindo Tuhup - Indonesia
- Star Paper Mills Limited - India
- Kideco Jaya Agung - Indonesia
- Samtan Co., Ltd - South Korea
- Chamber of Mines of South Africa
- Global Business Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- GMR Energy Limited - India
- International Coal Ventures Pvt Ltd - India
- Oldendorff Carriers - Singapore
- CIMB Investment Bank - Malaysia
- Singapore Mercantile Exchange
- Meenaskhi Energy Private Limited - India
- South Luzon Thermal Energy Corporation
- Kepco SPC Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Energy Link Ltd, New Zealand
- Indogreen Group - Indonesia
- Xindia Steels Limited - India
- Barasentosa Lestari - Indonesia
- Eastern Energy - Thailand
- Parry Sugars Refinery, India
- Timah Investasi Mineral - Indoneisa
- PTC India Limited - India
- Gujarat Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Commonwealth Bank - Australia
- Tata Chemicals Ltd - India
- Bangladesh Power Developement Board
- Altura Mining Limited, Indonesia
- Central Java Power - Indonesia
- Kapuas Tunggal Persada - Indonesia
- SMC Global Power, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Ceylon Electricity Board - Sri Lanka
- SN Aboitiz Power Inc, Philippines
- Agrawal Coal Company - India
- Eastern Coal Council - USA
- Bahari Cakrawala Sebuku - Indonesia
- Therma Luzon, Inc, Philippines
- Uttam Galva Steels Limited - India
- LBH Netherlands Bv - Netherlands
- CNBM International Corporation - China
- Karaikal Port Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Indika Energy - Indonesia
- Siam City Cement PLC, Thailand
- Minerals Council of Australia
- Miang Besar Coal Terminal - Indonesia
- Petron Corporation, Philippines
- Economic Council, Georgia
- Meralco Power Generation, Philippines
- McConnell Dowell - Australia
- Savvy Resources Ltd - HongKong
- Wood Mackenzie - Singapore
- SMG Consultants - Indonesia
- Georgia Ports Authority, United States
- Sical Logistics Limited - India
- AsiaOL BioFuels Corp., Philippines
- Kalimantan Lumbung Energi - Indonesia
- The State Trading Corporation of India Ltd
- Malabar Cements Ltd - India
- Borneo Indobara - Indonesia
- Global Coal Blending Company Limited - Australia
- ASAPP Information Group - India
- Sakthi Sugars Limited - India
- Metalloyd Limited - United Kingdom
- Renaissance Capital - South Africa
- OPG Power Generation Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Ministry of Finance - Indonesia
- Thiess Contractors Indonesia
- Edison Trading Spa - Italy
- Bhushan Steel Limited - India
- Bhatia International Limited - India
- Energy Development Corp, Philippines
- Simpson Spence & Young - Indonesia
- Mercuria Energy - Indonesia
- Goldman Sachs - Singapore
- Krishnapatnam Port Company Ltd. - India
- ICICI Bank Limited - India
- Indo Tambangraya Megah - Indonesia
- Directorate Of Revenue Intelligence - India
- Kartika Selabumi Mining - Indonesia
- Gujarat Sidhee Cement - India
- Bayan Resources Tbk. - Indonesia
- Marubeni Corporation - India
- Interocean Group of Companies - India
- European Bulk Services B.V. - Netherlands
- Banpu Public Company Limited - Thailand
- Ministry of Mines - Canada
- Maharashtra Electricity Regulatory Commission - India
- Cigading International Bulk Terminal - Indonesia
- Bulk Trading Sa - Switzerland
- Baramulti Group, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Standard Chartered Bank - UAE
- Africa Commodities Group - South Africa
- Vizag Seaport Private Limited - India
- Kobexindo Tractors - Indoneisa
- Mercator Lines Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Dalmia Cement Bharat India
- Semirara Mining Corp, Philippines
- Deloitte Consulting - India
- Ind-Barath Power Infra Limited - India
- Salva Resources Pvt Ltd - India
- Heidelberg Cement - Germany
- Jaiprakash Power Ventures ltd
- Gujarat Mineral Development Corp Ltd - India
- VISA Power Limited - India
- Iligan Light & Power Inc, Philippines
- India Bulls Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Electricity Authority, New Zealand
- Larsen & Toubro Limited - India
- Australian Commodity Traders Exchange
- Billiton Holdings Pty Ltd - Australia
- Indian Oil Corporation Limited
- Australian Coal Association
- Parliament of New Zealand
- Kumho Petrochemical, South Korea
- Jindal Steel & Power Ltd - India
- Merrill Lynch Commodities Europe
- Sojitz Corporation - Japan
- Leighton Contractors Pty Ltd - Australia
- Port Waratah Coal Services - Australia
- Ambuja Cements Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Manunggal Multi Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Global Green Power PLC Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Neyveli Lignite Corporation Ltd, - India
- Directorate General of MIneral and Coal - Indonesia
- Romanian Commodities Exchange
- Attock Cement Pakistan Limited
- Tamil Nadu electricity Board
- Riau Bara Harum - Indonesia
- Bharathi Cement Corporation - India
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