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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, 28 June 24
INDIAN POWER STATIONS STOCKED WITH BUMPER COAL SUPPLY AS TRANSPORT WOES EASE - BUSINESS STANDARD
Even as power demand has touched a historic high of 250 gigawatts (Gw) amid sweltering heat this June, India’s power stations are stocked wit ...
Friday, 28 June 24
INDIA'S CY23 COAL USE LARGER THAN NORTH AMERICA, EUROPE COMBINED - THE HINDU
For the first time, India’s coal consumption surpassed that of North America and Europe combined in the calendar year 2023, said Energy Insti ...
Monday, 24 June 24
PLN'S FINANCIAL SUSTAINABILITY RESTS ON ACCELERATED COAL RETIREMENT AND RENEWABLES DEPLOYMENT - MUTYA YUSTIKA
On 28 May 2024, Indonesia’s national electricity utility, PT Perusahaan Listrik Negara (PLN), released its financial report for 2023. Althoug ...
Monday, 24 June 24
INDIA'S COAL-BASED POWER DEMAND AT ALL-TIME HIGH, GOVERNMENT SAYS - REUTERS
India’s demand for coal-based power has risen by 7.3% this fiscal year to an all-time high, the government said in a statement on Wednesday.
...
Monday, 24 June 24
CHINA'S COAL INDUSTRY TURNS GREENER THROUGH INNOVATIVE APPROACHES - PEOPLE'S DAILY
At an opencast mine operated by Inner Mongolia Pingzhuang Coal Group Co. Ltd., a subsidiary of CHN Energy Investment Group (CHN Energy), a 14-meter ...
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- PowerSource Philippines DevCo
- Ind-Barath Power Infra Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- IEA Clean Coal Centre - UK
- Maharashtra Electricity Regulatory Commission - India
- Thiess Contractors Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Lanco Infratech Ltd - India
- Energy Development Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Iligan Light & Power Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Coalindo Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Indian Oil Corporation Limited
- Wilmar Investment Holdings
- Interocean Group of Companies - India
- Siam City Cement - Thailand
- Parliament of New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Global Business Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Kepco SPC Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Mintek Dendrill Indonesia
- Merrill Lynch Commodities Europe
- ASAPP Information Group - India
- Antam Resourcindo - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Petron Corporation, Philippines
- Borneo Indobara - Indonesia
- Coastal Gujarat Power Limited - India
- Carbofer General Trading SA - India
- Oldendorff Carriers - Singapore
- Banpu Public Company Limited - Thailand
- Tamil Nadu electricity Board
- Karbindo Abesyapradhi - Indoneisa
- Medco Energi Mining Internasional
- Energy Link Ltd, New Zealand
- Manunggal Multi Energi - Indonesia
- IHS Mccloskey Coal Group - USA
- GN Power Mariveles Coal Plant, Philippines
- Price Waterhouse Coopers - Russia
- Ministry of Transport, Egypt
- Orica Australia Pty. Ltd.
- SMG Consultants - Indonesia
- International Coal Ventures Pvt Ltd - India
- The University of Queensland
- Indian Energy Exchange, India
- Indo Tambangraya Megah - Indonesia
- Binh Thuan Hamico - Vietnam
- Commonwealth Bank - Australia
- Straits Asia Resources Limited - Singapore
- Bhatia International Limited - India
- Essar Steel Hazira Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Formosa Plastics Group - Taiwan
- Holcim Trading Pte Ltd - Singapore
- Maheswari Brothers Coal Limited - India
- Tata Chemicals Ltd - India
- Independent Power Producers Association of India
- Wood Mackenzie - Singapore
- Dalmia Cement Bharat India
- TeaM Sual Corporation - Philippines
- Chamber of Mines of South Africa
- Power Finance Corporation Ltd., India
- Coal and Oil Company - UAE
- OPG Power Generation Pvt Ltd - India
- Africa Commodities Group - South Africa
- Global Green Power PLC Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- LBH Netherlands Bv - Netherlands
- Kobexindo Tractors - Indoneisa
- CIMB Investment Bank - Malaysia
- Latin American Coal - Colombia
- Timah Investasi Mineral - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Siam City Cement PLC, Thailand
- Madhucon Powers Ltd - India
- Chettinad Cement Corporation Ltd - India
- Sojitz Corporation - Japan
- Meenaskhi Energy Private Limited - India
- Sical Logistics Limited - India
- Standard Chartered Bank - UAE
- Ambuja Cements Ltd - India
- Directorate Of Revenue Intelligence - India
- Videocon Industries ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhoruka Overseas - Indonesia
- Singapore Mercantile Exchange
- Metalloyd Limited - United Kingdom
- Bhushan Steel Limited - India
- San Jose City I Power Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Aboitiz Power Corporation - Philippines
- Attock Cement Pakistan Limited
- Globalindo Alam Lestari - Indonesia
- Goldman Sachs - Singapore
- Eastern Coal Council - USA
- Anglo American - United Kingdom
- India Bulls Power Limited - India
- Global Coal Blending Company Limited - Australia
- Electricity Authority, New Zealand
- Deloitte Consulting - India
- South Luzon Thermal Energy Corporation
- Central Java Power - Indonesia
- Port Waratah Coal Services - Australia
- Bulk Trading Sa - Switzerland
- Gujarat Electricity Regulatory Commission - India
- Bayan Resources Tbk. - Indonesia
- Mercator Lines Limited - India
- Edison Trading Spa - Italy
- Toyota Tsusho Corporation, Japan
- Asmin Koalindo Tuhup - Indonesia
- Cigading International Bulk Terminal - Indonesia
- MS Steel International - UAE
- Alfred C Toepfer International GmbH - Germany
- Rio Tinto Coal - Australia
- PTC India Limited - India
- Leighton Contractors Pty Ltd - Australia
- Savvy Resources Ltd - HongKong
- ICICI Bank Limited - India
- Parry Sugars Refinery, India
- Mjunction Services Limited - India
- Rashtriya Ispat Nigam Limited - India
- Intertek Mineral Services - Indonesia
- The State Trading Corporation of India Ltd
- Minerals Council of Australia
- Bangladesh Power Developement Board
- Uttam Galva Steels Limited - India
- Australian Coal Association
- Bukit Makmur.PT - Indonesia
- Electricity Generating Authority of Thailand
- Planning Commission, India
- Karaikal Port Pvt Ltd - India
- VISA Power Limited - India
- European Bulk Services B.V. - Netherlands
- Kumho Petrochemical, South Korea
- Georgia Ports Authority, United States
- Petrochimia International Co. Ltd.- Taiwan
- Indonesian Coal Mining Association
- Ministry of Finance - Indonesia
- Semirara Mining Corp, Philippines
- Indogreen Group - Indonesia
- Kapuas Tunggal Persada - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Aditya Birla Group - India
- CNBM International Corporation - China
- Agrawal Coal Company - India
- Meralco Power Generation, Philippines
- Baramulti Group, Indonesia
- Economic Council, Georgia
- London Commodity Brokers - England
- Australian Commodity Traders Exchange
- McConnell Dowell - Australia
- Gujarat Sidhee Cement - India
- Orica Mining Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Trasteel International SA, Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Bukit Baiduri Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Makarim & Taira - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Indika Energy - Indonesia
- Riau Bara Harum - Indonesia
- Jaiprakash Power Ventures ltd
- Pendopo Energi Batubara - Indonesia
- Renaissance Capital - South Africa
- Jorong Barutama Greston.PT - Indonesia
- White Energy Company Limited
- Therma Luzon, Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Vedanta Resources Plc - India
- SN Aboitiz Power Inc, Philippines
- Marubeni Corporation - India
- Salva Resources Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Samtan Co., Ltd - South Korea
- Heidelberg Cement - Germany
- Miang Besar Coal Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Ceylon Electricity Board - Sri Lanka
- SMC Global Power, Philippines
- New Zealand Coal & Carbon
- Cement Manufacturers Association - India
- Vizag Seaport Private Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Posco Energy - South Korea
- Grasim Industreis Ltd - India
- Sakthi Sugars Limited - India
- Kaltim Prima Coal - Indonesia
- Simpson Spence & Young - Indonesia
- Star Paper Mills Limited - India
- GVK Power & Infra Limited - India
- The Treasury - Australian Government
- Mercuria Energy - Indonesia
- Thai Mozambique Logistica
- Jindal Steel & Power Ltd - India
- Xindia Steels Limited - India
- Ministry of Mines - Canada
- Kalimantan Lumbung Energi - Indonesia
- Bharathi Cement Corporation - India
- Romanian Commodities Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Central Electricity Authority - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- GMR Energy Limited - India
- Eastern Energy - Thailand
- Altura Mining Limited, Indonesia
- Kartika Selabumi Mining - Indonesia
- Sarangani Energy Corporation, Philippines
- Malabar Cements Ltd - India
- Barasentosa Lestari - Indonesia
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