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