COALspot.com keeps you connected across the coal world
  • MARCH 2020 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS INCLUDING POWER PRODUCERS FIXED AT US$ 67.08 A TON

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Sunday, 07 April 19
IMO 2020: READY OR NOT? - WOOD MACKENZIE
Wood MackenzieNew Year’s Day 2020 is firmly marked in the calendar as the refining and shipping industries prepare for change.

The International Maritime Organisation (IMO)’s rules, in force from 1 January 2020, will see the current maximum fuel oil sulphur limit of 3.5 weight per cent (wt%) reduced to 0.5 wt%. This is the largest reduction in the sulphur content of a transportation fuel undertaken at any one time.
 
With less than a year to go, there are still many uncertainties as to how the change will play out. Are European refiners ready to accommodate big shifts in fuel demand? What will the new specifications mean for refining margins and fuel product prices in the medium and longer term?
 
Replacing high sulphur fuel oil
We anticipate 85% compliance with the IMO’s regulation in 2020, rising to full compliance in 2025.
 
Currently, bunkers use around 3.4 million barrels per day (b/d) of high sulphur fuel oil (HSFO). This is set to fall by a substantial 2.1 million b/d by 2020.
 
What will replace it?
Shipping companies will need to choose between:
  1. Installing a scrubber to clean the emissions if they are to continue using HSFO as a fuel source;
  2. Sourcing 0.5% sulphur fuel oil (VLSFO);
  3. Using LNG;
  4. Or switching to marine gasoil from 2020.
     
Each of these choices has its limitations. What are our forecasts for fuel volumes and how will this impact refineries?
 
" It’s good news for most European refiners in 2020. The change in fuel specification will require increased runs that will support refinery margins across the board. Who’s going to benefit the most? Everyone’s a winner, but some won’t win by quite as much.
Jonathan Leitch" 
Research Director, EMEARC refining and oil products
 
" Widening product differentials mean that refiners will be assessing their crude diet very carefully come 2020.
Gordon McManus" 
Research Director, EMEARC Oils and Refining
 
1. Not enough low sulphur fuel to go around
Initially, we don’t expect there to be enough 0.5% VLSFO to meet demand. The gap will have to be met by the more expensive option, gasoil. The increase in gasoil demand will require higher refinery runs, which should be positive for the refining industry.
 
VLSFO is a relatively new product, and shippers could be reluctant to take the risk of buying it if they are concerned about its quality, despite its lower price. However, we assume that shippers will generally opt to buy the cheapest compliant fuel. Refiners meanwhile will aim to maximise the value of their residue streams by selling into this emerging market.
 
By 2024, VLSFO production should increase to 1.8 million b/d, from 1.4 million b/d in 2020, as the supply chain for this new fuel matures.
 
2. Slow growth for LNG
At the moment, LNG port infrastructure is in its infancy. Currently, there are 100 LNG vessels in the global fleet, with a further 200 either ordered or LNG ready.
 
As the market develops and there is further global trade in LNG, this will facilitate the development of an LNG bunker supply chain around regasification and liquefaction terminals. Container ships will be a key market for future growth.
 
But we still expect LNG to remain a small part of the marine fuels market in the medium term. LNG will only displace 100 kb/d of liquid marine fuels in 2020, rising to 340 kb/d in 2025.
 
3. Fuel price gap provides strong incentive for shippers to fit scrubbers
2020 will be a good year for gasoil. Crack spreads will improve, driven by increased demand from the bunker industry. We forecast an average crack spread of $19/ bbl versus Brent in 2020.
 
While the crack spreads for HSFO are particularly strong now, all that is set to change as the January 2020 deadline approaches. HSFO will lose its recent strength as demand collapses, with crack spreads dropping to negative $21/ bbl versus Brent in 2020.
 
The wide gap between gasoil and HSFO prices provides a strong incentive for shippers to run and operate scrubbers.
 
Around 2500 scrubbers are currently either fitted or on order, and we anticipate that 1700 ships will be fitted with scrubbers by 2020. This should rise to about 2500 by 2021 and 4500 by 2025 – approximately 7% of the global fleet.
 
Volumes of scrubbed HSFO will increase to around 1.3 million b/d by 2025.
 
What will the change in fuel demand mean for European refiners?
After a challenging second half in 2018, the IMO’s regulations will lessen the pain for the refining industry.
 
Gasoil and diesel demand is set to rise by 1.3 million b/d in 2020. Refiners will need to increase runs and add capacity to accommodate the expected surge in demand, which will have a positive impact on margins.
 
Without the IMO’s regulatory changes, the outlook would be decidedly less attractive.
 
All refiners stand to benefit from the IMO’s fuel specifications. However, some are bigger winners than others.
 
The biggest windfall in 2020 is for deep conversion units with a distillate orientation. A refiner that produces high yields of gasoil and middle distillates and low yields of HSFO will be in the best position. Simpler refiners focused on producing gasoline and fuel oil (FCC refiners) will see the smallest margin uplift.
 
Although there is still a large amount of uncertainty surrounding shipping companies’ choices as the IMO deadline approaches, the regulatory change provides a reason to be cheerful for the European refining industry.
 
Analysis by Jonathan Leitch and Gordon McManus, research directors for the EMEARC refining and oil products team.
Source: Wood Mackenzie


If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Tuesday, 10 May 16
VOLATILITY? VARIATION NO ENIGMA TO SHIPPING..... - CLARKSONS
Along with cyclicality, the other characteristic of the shipping markets which receives frequent mention is volatility. This is so evident that the ...


Monday, 09 May 16
INDONESIAN CS COAL INDICES UP CONTINUES; POSITIVE DIRECTION
COALspot.com: Average 5000 GAR coal index of Indonesian origin up 0.10 percent week over week to averaging $38.82 per ton on this past Wednesday, a ...


Monday, 09 May 16
DRY BULK SHIPPING TO WITNESS STEADY PROGRESS MOVING FORWARD ON THE BACK OF GROWING TRADE VOLUMES - BIMCO
In its latest short-term analysis of the shipping markets, BIMCO reiterated its optimism on the prospects of the dry bulk market moving forward. Ac ...


Monday, 09 May 16
BALTIC DRY INDEX ENDS WEEK ON A NEGATIVE NOTE
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities decline this week. The freight market was weak and a ...


Friday, 06 May 16
U.S. WEEKLY COAL PRODUCTION UP 9 PERCENT W/W; DOWN 35.3 PERCENT Y/Y - EIA
COALspot.com – U.S the world’s second largest coal producer has produced approximately totaled an estimated 11.3  million short to ...


   281 282 283 284 285   
Showing 1411 to 1415 news of total 5840
News by Category
Popular News
 
Total Members : 26,838
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • PNOC Exploration Corporation - Philippines
  • Electricity Generating Authority of Thailand
  • Grasim Industreis Ltd - India
  • Petrosea - Indonesia
  • Inspectorate - India
  • Panama Canal Authority
  • Energy Link Ltd, New Zealand
  • Bank of China, Malaysia
  • Sucofindo - Indonesia
  • Formosa Plastics Group - Taiwan
  • Bukit Baiduri Energy - Indonesia
  • Thriveni
  • BNP Paribas - Singapore
  • CCIC - Indonesia
  • Coeclerici Indonesia
  • PLN - Indonesia
  • J M Baxi & Co - India
  • Alfred C Toepfer International GmbH - Germany
  • JPMorgan - India
  • Cigading International Bulk Terminal - Indonesia
  • Ministry of Transport, Egypt
  • GNFC Limited - India
  • Vale Mozambique
  • Rio Tinto Coal - Australia
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • Economic Council, Georgia
  • OPG Power Generation Pvt Ltd - India
  • Core Mineral Indonesia
  • ING Bank NV - Singapore
  • SUEK AG - Indonesia
  • Mercuria Energy - Indonesia
  • Leighton Contractors Pty Ltd - Australia
  • Deutsche Bank - India
  • Adani Power Ltd - India
  • Coal and Oil Company - UAE
  • Bukit Asam (Persero) Tbk - Indonesia
  • Eastern Energy - Thailand
  • Tamil Nadu electricity Board
  • Enel Italy
  • CIMB Investment Bank - Malaysia
  • Lafarge - France
  • Ambuja Cements Ltd - India
  • Karaikal Port Pvt Ltd - India
  • PTC India Limited - India
  • Star Paper Mills Limited - India
  • GVK Power & Infra Limited - India
  • Bangladesh Power Developement Board
  • Barasentosa Lestari - Indonesia
  • TNPL - India
  • Ministry of Mines - Canada
  • Latin American Coal - Colombia
  • Minerals Council of Australia
  • JPower - Japan
  • Sojitz Corporation - Japan
  • NALCO India
  • SMG Consultants - Indonesia
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Uttam Galva Steels Limited - India
  • Tata Chemicals Ltd - India
  • Videocon Industries ltd - India
  • GAC Shipping (India) Pvt Ltd
  • Trasteel International SA, Italy
  • Infraline Energy - India
  • BRS Brokers - Singapore
  • Malabar Cements Ltd - India
  • LBH Netherlands Bv - Netherlands
  • Jaiprakash Power Ventures ltd
  • Sindya Power Generating Company Private Ltd
  • Thiess Contractors Indonesia
  • Directorate Of Revenue Intelligence - India
  • HSBC - Hong Kong
  • Fearnleys - India
  • DBS Bank - Singapore
  • Bukit Makmur.PT - Indonesia
  • New Zealand Coal & Carbon
  • Kartika Selabumi Mining - Indonesia
  • Noble Europe Ltd - UK
  • Manunggal Multi Energi - Indonesia
  • Ernst & Young Pvt. Ltd.
  • Gujarat Electricity Regulatory Commission - India
  • Jindal Steel & Power Ltd - India
  • Asmin Koalindo Tuhup - Indonesia
  • Coaltrans Conferences
  • Aditya Birla Group - India
  • GHCL Limited - India
  • KEPCO - South Korea
  • Surastha Cement
  • Mitsubishi Corporation
  • Global Coal Blending Company Limited - Australia
  • McKinsey & Co - India
  • Borneo Indobara - Indonesia
  • Bangkok Bank PCL
  • Oldendorff Carriers - Singapore
  • European Bulk Services B.V. - Netherlands
  • MS Steel International - UAE
  • Larsen & Toubro Limited - India
  • Asian Development Bank
  • Kideco Jaya Agung - Indonesia
  • Antam Resourcindo - Indonesia
  • Savvy Resources Ltd - HongKong
  • Attock Cement Pakistan Limited
  • Cosco
  • White Energy Company Limited
  • Geoservices-GeoAssay Lab
  • globalCOAL - UK
  • Siam City Cement - Thailand
  • Sree Jayajothi Cements Limited - India
  • SRK Consulting
  • Central Java Power - Indonesia
  • Bhushan Steel Limited - India
  • Xstrata Coal
  • Gupta Coal India Ltd
  • Standard Chartered Bank - UAE
  • Cemex - Philippines
  • ICICI Bank Limited - India
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Price Waterhouse Coopers - Russia
  • Jatenergy - Australia
  • Maheswari Brothers Coal Limited - India
  • PLN Batubara - Indonesia
  • Mintek Dendrill Indonesia
  • International Coal Ventures Pvt Ltd - India
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • TANGEDCO India
  • Mechel - Russia
  • Toyota Tsusho Corporation, Japan
  • Tanito Harum - Indonesia
  • TNB Fuel Sdn Bhd - Malaysia
  • Essar Steel Hazira Ltd - India
  • Indika Energy - Indonesia
  • Central Electricity Authority - India
  • ACC Limited - India
  • bp singapore
  • Clarksons - UK
  • Maybank - Singapore
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Coalindo Energy - Indonesia
  • The Treasury - Australian Government
  • Anglo American - United Kingdom
  • Parry Sugars Refinery, India
  • Asia Cement - Taiwan
  • Altura Mining Limited, Indonesia
  • PowerSource Philippines DevCo
  • Qatrana Cement - Jordan
  • Siam City Cement PLC, Thailand
  • Maersk Broker
  • Goldman Sachs - Singapore
  • ANZ Bank - Australia
  • Maruti Cements - India
  • Makarim & Taira - Indonesia
  • Vitol - Bahrain
  • Cargill India Pvt Ltd
  • Indonesia Power. PT
  • Indian School of Mines
  • Credit Suisse - India
  • Indo Tambangraya Megah - Indonesia
  • UOB Asia (HK) Ltd
  • NTPC Limited - India
  • CoalTek, United States
  • Ministry of Finance - Indonesia
  • Gujarat Sidhee Cement - India
  • Merrill Lynch Bank
  • Marubeni Corporation - India
  • Platou - Singapore
  • Rashtriya Ispat Nigam Limited - India
  • Africa Commodities Group - South Africa
  • Dalmia Cement Bharat India
  • Mitra SK Pvt Ltd - India
  • Planning Commission, India
  • Meenaskhi Energy Private Limited - India
  • Ince & co LLP
  • Kalimantan Lumbung Energi - Indonesia
  • Maharashtra Electricity Regulatory Commission - India
  • SGS (Thailand) Limited
  • Sakthi Sugars Limited - India
  • MEC Coal - Indonesia
  • ETA - Dubai
  • CESC Limited - India
  • Salva Resources Pvt Ltd - India
  • Renaissance Capital - South Africa
  • Deloitte Consulting - India
  • Orica Mining Services - Indonesia
  • Coal India Limited
  • Malco - India
  • Pinang Coal Indonesia
  • Total Coal South Africa
  • Thomson Reuters GRC
  • IMC Shipping - Singapore
  • IBC Asia (S) Pte Ltd
  • PetroVietnam Power Coal Import and Supply Company
  • Singapore Mercantile Exchange
  • McConnell Dowell - Australia
  • Shree Cement - India
  • Cardiff University - UK
  • Rudhra Energy - India
  • Indonesian Coal Mining Association
  • Reliance Power - India
  • Timah Investasi Mineral - Indoneisa
  • APGENCO India
  • Merrill Lynch Commodities Europe
  • Bank of America
  • Georgia Ports Authority, United States
  • Tata Power - India
  • Pendopo Energi Batubara - Indonesia
  • EMO - The Netherlands
  • Krishnapatnam Port Company Ltd. - India
  • Thailand Anthracite
  • Bhatia International Limited - India
  • Bayan Resources Tbk. - Indonesia
  • Orica Australia Pty. Ltd.
  • GMR Energy Limited - India
  • U S Energy Resources
  • Metalloyd Limited - United Kingdom
  • WorleyParsons
  • Interocean Group of Companies - India
  • The India Cements Ltd
  • Barclays Capital - USA
  • Commonwealth Bank - Australia
  • Madhucon Powers Ltd - India
  • VISA Power Limited - India
  • Freeport Indonesia
  • Runge Indonesia
  • Neyveli Lignite Corporation Ltd, - India
  • KPMG - USA
  • CNBM International Corporation - China
  • South Luzon Thermal Energy Corporation
  • SASOL - South Africa
  • Straits Asia Resources Limited - Singapore
  • Romanian Commodities Exchange
  • Banpu Public Company Limited - Thailand
  • Chamber of Mines of South Africa
  • Miang Besar Coal Terminal - Indonesia
  • Argus Media - Singapore
  • Gujarat Mineral Development Corp Ltd - India
  • Globalindo Alam Lestari - Indonesia
  • Posco Energy - South Korea
  • Mjunction Services Limited - India
  • Samsung - South Korea
  • Karbindo Abesyapradhi - Indoneisa
  • Agrawal Coal Company - India
  • Holcim Trading Pte Ltd - Singapore
  • Permata Bank - Indonesia
  • Lanco Infratech Ltd - India
  • Australian Commodity Traders Exchange
  • World Coal - UK
  • Chettinad Cement Corporation Ltd - India
  • Berau Coal - Indonesia
  • Britmindo - Indonesia
  • Vizag Seaport Private Limited - India
  • Vedanta Resources Plc - India
  • OCBC - Singapore
  • Platts
  • Sical Logistics Limited - India
  • Ind-Barath Power Infra Limited - India
  • Australian Coal Association
  • IEA Clean Coal Centre - UK
  • Mitsui
  • Moodys - Singapore
  • Bharathi Cement Corporation - India
  • Sinarmas Energy and Mining - Indonesia
  • World Bank
  • Bahari Cakrawala Sebuku - Indonesia
  • Kobe Steel Ltd - Japan
  • Wood Mackenzie - Singapore
  • Parliament of New Zealand
  • Shenhua Group - China
  • Wilmar Investment Holdings
  • The State Trading Corporation of India Ltd
  • Coal Orbis AG
  • IOL Indonesia
  • Bulk Trading Sa - Switzerland
  • UBS Singapore
  • Aboitiz Power Corporation - Philippines
  • Heidelberg Cement - Germany
  • Humpuss - Indonesia
  • Kumho Petrochemical, South Korea
  • Petrochimia International Co. Ltd.- Taiwan
  • Bhoruka Overseas - Indonesia
  • Vijayanagar Sugar Pvt Ltd - India
  • RBS Sempra - UK
  • Power Finance Corporation Ltd., India
  • ASAPP Information Group - India
  • Coastal Gujarat Power Limited - India
  • Port Waratah Coal Services - Australia
  • Xindia Steels Limited - India
  • Japan Coal Energy Center
  • Inco-Indonesia
  • Eastern Coal Council - USA
  • Simpson Spence & Young - Indonesia
  • Jorong Barutama Greston.PT - Indonesia
  • KPCL - India
  • GB Group - China
  • Kaltim Prima Coal - Indonesia
  • Medco Energi Mining Internasional
  • Adaro Indonesia
  • Billiton Holdings Pty Ltd - Australia
  • Edison Trading Spa - Italy
  • Kobexindo Tractors - Indoneisa
  • Indogreen Group - Indonesia
  • Peabody Energy - USA
  • TeaM Sual Corporation - Philippines
  • The University of Queensland
  • Ceylon Electricity Board - Sri Lanka
  • Riau Bara Harum - Indonesia
  • Kohat Cement Company Ltd. - Pakistan
  • Indian Oil Corporation Limited
  • Cement Manufacturers Association - India
  • KOWEPO - South Korea
  • Independent Power Producers Association of India
  • India Bulls Power Limited - India
  • London Commodity Brokers - England
  • IHS Mccloskey Coal Group - USA
  • Russian Coal LLC
  • Indorama - Singapore
  • Arch Coal - USA
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Thai Mozambique Logistica
  • Gresik Semen - Indonesia
  • Arutmin Indonesia
  • Mercator Lines Limited - India
  • Samtan Co., Ltd - South Korea
  • Kapuas Tunggal Persada - Indonesia
  • PetroVietnam
  • Directorate General of MIneral and Coal - Indonesia
  • Carbofer General Trading SA - India
  • Intertek Mineral Services - Indonesia
  • Thermax Limited - India
  • Binh Thuan Hamico - Vietnam
  • Glencore India Pvt. Ltd
  • Idemitsu - Japan
  • EIA - United States