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