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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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Wednesday, 12 June 24
CHINA ACCOUNTS FOR 16.3% OF AUSTRALIA'S COAL EXPORTS, FOLLOWED BY INDIA 14.4% - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels says Banchero Costa in its latest report.
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Wednesday, 12 June 24
LNG NEWBUILDING VALUES AT RECORD HIGH: 78 NEWBUILD ORDERS PLACED IN 2024, DOUBLING 2023 - VESON NAUTICAL
The number of LNG newbuilding orders have more than doubled from the same period last year where 34 orders were placed, compared to 78 in the first ...
Monday, 10 June 24
CHINA'S MAY COAL IMPORTS RISE 11% ON LOWER DOMESTIC OUTPUT - REUTERS
China’s imports of coal rose 11% in May from a year earlier, customs data and Reuters records showed on Friday, as lower domestic output this ...
Tuesday, 04 June 24
HOW DO WESTERN SANCTIONS ON RUSSIA IMPACT THE GLOBAL METALS, MINING AND COAL MARKETS - WOOD MACKENZIE
The geopolitical landscape for Russia, as a major supplier of various commodities, has undergone a dramatic transformation since the invasion of Uk ...
Friday, 22 March 24
CASE STUDY: DANGERS OF COAL CARGO - SKULD
Recently, a bulk cargo vessel carrying coal from South Africa to Singapore suffered a fatal accident, resulting in the deaths of three crew members ...
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Showing 21 to 25 news of total 6871 |
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- McConnell Dowell - Australia
- London Commodity Brokers - England
- Barasentosa Lestari - Indonesia
- Global Business Power Corporation, Philippines
- Siam City Cement PLC, Thailand
- Kapuas Tunggal Persada - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Ministry of Mines - Canada
- Indian Oil Corporation Limited
- Semirara Mining Corp, Philippines
- Jindal Steel & Power Ltd - India
- Sindya Power Generating Company Private Ltd
- Kaltim Prima Coal - Indonesia
- Orica Mining Services - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Cement Manufacturers Association - India
- Marubeni Corporation - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Posco Energy - South Korea
- Rio Tinto Coal - Australia
- Maheswari Brothers Coal Limited - India
- PowerSource Philippines DevCo
- Ministry of Finance - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Australian Commodity Traders Exchange
- Leighton Contractors Pty Ltd - Australia
- Lanco Infratech Ltd - India
- OPG Power Generation Pvt Ltd - India
- Videocon Industries ltd - India
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Ceylon Electricity Board - Sri Lanka
- Africa Commodities Group - South Africa
- PetroVietnam Power Coal Import and Supply Company
- The State Trading Corporation of India Ltd
- Ind-Barath Power Infra Limited - India
- Power Finance Corporation Ltd., India
- Central Java Power - Indonesia
- Minerals Council of Australia
- Bukit Makmur.PT - Indonesia
- Manunggal Multi Energi - Indonesia
- Interocean Group of Companies - India
- Directorate Of Revenue Intelligence - India
- The Treasury - Australian Government
- Antam Resourcindo - Indonesia
- Meralco Power Generation, Philippines
- Romanian Commodities Exchange
- Aditya Birla Group - India
- Coastal Gujarat Power Limited - India
- Indian Energy Exchange, India
- LBH Netherlands Bv - Netherlands
- Tamil Nadu electricity Board
- Globalindo Alam Lestari - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Borneo Indobara - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Salva Resources Pvt Ltd - India
- MS Steel International - UAE
- PNOC Exploration Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- Grasim Industreis Ltd - India
- Siam City Cement - Thailand
- Alfred C Toepfer International GmbH - Germany
- Bharathi Cement Corporation - India
- SMG Consultants - Indonesia
- Sical Logistics Limited - India
- Semirara Mining and Power Corporation, Philippines
- Thai Mozambique Logistica
- Economic Council, Georgia
- Tata Chemicals Ltd - India
- IHS Mccloskey Coal Group - USA
- Altura Mining Limited, Indonesia
- Kideco Jaya Agung - Indonesia
- Ambuja Cements Ltd - India
- Larsen & Toubro Limited - India
- Gujarat Sidhee Cement - India
- Samtan Co., Ltd - South Korea
- Oldendorff Carriers - Singapore
- GAC Shipping (India) Pvt Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Medco Energi Mining Internasional
- Petrochimia International Co. Ltd.- Taiwan
- Directorate General of MIneral and Coal - Indonesia
- Iligan Light & Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- SN Aboitiz Power Inc, Philippines
- Mintek Dendrill Indonesia
- Toyota Tsusho Corporation, Japan
- Sakthi Sugars Limited - India
- Indonesian Coal Mining Association
- Sinarmas Energy and Mining - Indonesia
- Bangladesh Power Developement Board
- White Energy Company Limited
- Karbindo Abesyapradhi - Indoneisa
- Electricity Generating Authority of Thailand
- Thiess Contractors Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Mjunction Services Limited - India
- Electricity Authority, New Zealand
- Energy Development Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- GMR Energy Limited - India
- Metalloyd Limited - United Kingdom
- Heidelberg Cement - Germany
- Merrill Lynch Commodities Europe
- Baramulti Group, Indonesia
- Central Electricity Authority - India
- Indogreen Group - Indonesia
- Bulk Trading Sa - Switzerland
- Indo Tambangraya Megah - Indonesia
- PTC India Limited - India
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
- Chamber of Mines of South Africa
- Miang Besar Coal Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Kepco SPC Power Corporation, Philippines
- Coal and Oil Company - UAE
- Sojitz Corporation - Japan
- Dalmia Cement Bharat India
- Australian Coal Association
- Parry Sugars Refinery, India
- Global Green Power PLC Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Eastern Energy - Thailand
- Anglo American - United Kingdom
- Petron Corporation, Philippines
- Ministry of Transport, Egypt
- Bukit Baiduri Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Trasteel International SA, Italy
- Attock Cement Pakistan Limited
- ASAPP Information Group - India
- Edison Trading Spa - Italy
- Vedanta Resources Plc - India
- Vijayanagar Sugar Pvt Ltd - India
- Makarim & Taira - Indonesia
- Simpson Spence & Young - Indonesia
- Sarangani Energy Corporation, Philippines
- SMC Global Power, Philippines
- Xindia Steels Limited - India
- Bhushan Steel Limited - India
- Uttam Galva Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Mercuria Energy - Indonesia
- Bhoruka Overseas - Indonesia
- Timah Investasi Mineral - Indoneisa
- Indika Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- Kobexindo Tractors - Indoneisa
- Independent Power Producers Association of India
- Wood Mackenzie - Singapore
- Chettinad Cement Corporation Ltd - India
- Banpu Public Company Limited - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Port Waratah Coal Services - Australia
- Orica Australia Pty. Ltd.
- Georgia Ports Authority, United States
- Price Waterhouse Coopers - Russia
- Formosa Plastics Group - Taiwan
- Savvy Resources Ltd - HongKong
- Global Coal Blending Company Limited - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Neyveli Lignite Corporation Ltd, - India
- Eastern Coal Council - USA
- Meenaskhi Energy Private Limited - India
- Billiton Holdings Pty Ltd - Australia
- Wilmar Investment Holdings
- Planning Commission, India
- TeaM Sual Corporation - Philippines
- CNBM International Corporation - China
- Carbofer General Trading SA - India
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Goldman Sachs - Singapore
- Malabar Cements Ltd - India
- European Bulk Services B.V. - Netherlands
- Singapore Mercantile Exchange
- Star Paper Mills Limited - India
- Gujarat Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- Intertek Mineral Services - Indonesia
- Sree Jayajothi Cements Limited - India
- Jorong Barutama Greston.PT - Indonesia
- AsiaOL BioFuels Corp., Philippines
- VISA Power Limited - India
- Deloitte Consulting - India
- South Luzon Thermal Energy Corporation
- Renaissance Capital - South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- Coalindo Energy - Indonesia
- Bhatia International Limited - India
- GVK Power & Infra Limited - India
- Therma Luzon, Inc, Philippines
- Madhucon Powers Ltd - India
- IEA Clean Coal Centre - UK
- Mercator Lines Limited - India
- Vizag Seaport Private Limited - India
- Riau Bara Harum - Indonesia
- India Bulls Power Limited - India
- The University of Queensland
- Jaiprakash Power Ventures ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Commonwealth Bank - Australia
- Bayan Resources Tbk. - Indonesia
- New Zealand Coal & Carbon
- Parliament of New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Kumho Petrochemical, South Korea
- Maharashtra Electricity Regulatory Commission - India
- Essar Steel Hazira Ltd - India
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