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