We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 02 May 12
CHINA BLACKOUTS HIGHLIGHT PRICING POLICY WEAKNESS - FITCH
 Fitch reported that, the likelihood of further electricity blackouts in China this summer underlines Fitch's view of the basic problem facing thermal electricity generators - that the tariff framework is not sustainable in the long term.
The problem centres on China's thermal or coal-fired plants, which in 2011 represented 72.5% of total electricity production of 4,692.8TWh, and are likely to remain the backbone of electricity generation for the foreseeable future. The problem is not with China's national electricity grid, which is well developed, but rather with the non-viability of the pricing mechanism for the coal-fired generators.
The Chinese thermal generators are unwilling to produce excess electricity in peak periods when their marginal generation costs are above the tariffs the government will allow them to charge the grid companies. Tariff adjustments have not been timely or sufficient despite the rising cost of coal, as the government has prioritised the management of inflation - thereby constraining profitability. The weak economics have also discouraged private-sector investment, while the state-linked thermal generators - Huaneng International ('BB+'/Stable), Datang International ('BB'/Stable), China Power International Development ('BB'/Stable), and Huadian International ('BB-'/Stable) - are now struggling with substantially weakened balance sheets.
Coal input prices for the thermal generators have increased dramatically over the past three years to end-2011, rising by an average of 16% pa. Meanwhile, the Chinese government has only allowed nationwide electricity tariffs to rise once in the last two years, by around 5% for non-residential customers in December 2011. Some tariff increases also occurred in selective provinces in April 2011, but the impact on generators' profitability was limited.
A 5% cap on annual coal price increases was introduced along with the December 2011 electricity tariff revision, but this applied only to contracted coal prices. These capped prices only represent around 30%-40% of the total needs of most thermal generators. Accordingly, large amounts of coal have to be bought on the spot market at substantially higher prices, making excess electricity production an uneconomic proposition. The substantial premium - typically 30% - on spot market prices against the capped contract coal price results in coal producers seeking ways to reduce their contracted sales in favour of spot sales, which is steadily eroding any benefit from the coal price caps.
A longer-term problem, and a potential cause of an eventual structural shortfall in generation capacity, is that limited profit - or losses - from thermal operations have since 2008 led to new capex in the industry being diverted away from thermal and into wind, hydro and vertical integration via coal mine acquisitions. A National Energy Administration (NEA) report dated 30 January 30 2012 confirmed that China's investment in thermal power assets fell again in 2011, by 26%, to CNY105.4bn. This trend, which cannot be reversed quickly due to the typical minimum two-year lead time to build new thermal capacity, is a serious concern given China's continued dependence on coal for its power generation.
The Chinese thermal generators are likely to face sustained weak operating cash flows and negative free cash generation under this heavily regulated environment, a situation which Fitch believes to be unsustainable in light of the continued growth in the Chinese economy. The agency believes that China is looking to introduce price reforms across the energy industries, but achieving a truly cost-reflective tariff regime is likely to take several more years, and will require a favourable inflationary climate. In the meantime, demand will continue to outstrip supply, even if - theoretically - the capacity exists within the generation system.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 25 January 24
THE RED SEA ESCALATION IMPLICATIONS ON GLOBAL SEABORNE TRADE - MARIA BERTZELETOU
In recent days, discussions have intensified about the potential impact on the seaborne trade and ton-miles due to the evolving dynamics of market ...
Thursday, 25 January 24
RED SEA SHIPPING DISRUPTIONS KEEP GEOPOLITICAL PREMIUM FOR COMMODITIES - FITCH RATINGS
Shipping disruptions and re-routing away from the Red Sea will maintain the geopolitical premium in the main commodity markets, including for oil a ...
Friday, 19 January 24
INDONESIA TARGETS 710 MLN METRIC TONS COAL OUTPUT IN 2024 AFTER RECORD 2023 - REUTERS
Indonesia, a major thermal coal exporter, aims to produce 710 million metric tons of coal in 2024, its mining minister said on Monday, after postin ...
Friday, 19 January 24
DRUMMOND COLOMBIA COAL OUTPUT ROSE 7.1% IN 2023 - REUTERS
Coal production from miner Drummond’s Colombia operations rose 7.1% in 2023 to 29.5 million metric tons, while exports declined by 2.6% to 27 ...
Friday, 19 January 24
CHINA'S 2023 COAL OUTPUT HITS RECORD HIGH - REUTERS
China’s coal output reached a record high in 2023, data from the statistics bureau showed on Wednesday, amid an ongoing focus on energy secur ...
|
|
|
Showing 51 to 55 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- SMC Global Power, Philippines
- Maheswari Brothers Coal Limited - India
- Ceylon Electricity Board - Sri Lanka
- Global Coal Blending Company Limited - Australia
- Bayan Resources Tbk. - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Indonesian Coal Mining Association
- Pendopo Energi Batubara - Indonesia
- Videocon Industries ltd - India
- Marubeni Corporation - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Savvy Resources Ltd - HongKong
- Cigading International Bulk Terminal - Indonesia
- Directorate Of Revenue Intelligence - India
- Vedanta Resources Plc - India
- Minerals Council of Australia
- Africa Commodities Group - South Africa
- Kobexindo Tractors - Indoneisa
- Sakthi Sugars Limited - India
- Madhucon Powers Ltd - India
- Banpu Public Company Limited - Thailand
- Formosa Plastics Group - Taiwan
- Ministry of Transport, Egypt
- Uttam Galva Steels Limited - India
- Semirara Mining Corp, Philippines
- South Luzon Thermal Energy Corporation
- IHS Mccloskey Coal Group - USA
- Oldendorff Carriers - Singapore
- Essar Steel Hazira Ltd - India
- PNOC Exploration Corporation - Philippines
- Thai Mozambique Logistica
- The State Trading Corporation of India Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parliament of New Zealand
- Krishnapatnam Port Company Ltd. - India
- PowerSource Philippines DevCo
- Sinarmas Energy and Mining - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Therma Luzon, Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Port Waratah Coal Services - Australia
- Standard Chartered Bank - UAE
- Asia Pacific Energy Resources Ventures Inc, Philippines
- SMG Consultants - Indonesia
- Binh Thuan Hamico - Vietnam
- Indogreen Group - Indonesia
- Coalindo Energy - Indonesia
- Indian Energy Exchange, India
- Merrill Lynch Commodities Europe
- ICICI Bank Limited - India
- Xindia Steels Limited - India
- Energy Link Ltd, New Zealand
- IEA Clean Coal Centre - UK
- Intertek Mineral Services - Indonesia
- Metalloyd Limited - United Kingdom
- Kideco Jaya Agung - Indonesia
- Lanco Infratech Ltd - India
- Electricity Generating Authority of Thailand
- Power Finance Corporation Ltd., India
- Goldman Sachs - Singapore
- Kaltim Prima Coal - Indonesia
- Wilmar Investment Holdings
- Medco Energi Mining Internasional
- Antam Resourcindo - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- Bahari Cakrawala Sebuku - Indonesia
- Commonwealth Bank - Australia
- Gujarat Sidhee Cement - India
- Baramulti Group, Indonesia
- Planning Commission, India
- Mintek Dendrill Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- London Commodity Brokers - England
- GAC Shipping (India) Pvt Ltd
- Altura Mining Limited, Indonesia
- Global Green Power PLC Corporation, Philippines
- Georgia Ports Authority, United States
- Rio Tinto Coal - Australia
- Orica Australia Pty. Ltd.
- Timah Investasi Mineral - Indoneisa
- Billiton Holdings Pty Ltd - Australia
- The Treasury - Australian Government
- Bangladesh Power Developement Board
- Singapore Mercantile Exchange
- Meralco Power Generation, Philippines
- Heidelberg Cement - Germany
- Barasentosa Lestari - Indonesia
- Mjunction Services Limited - India
- New Zealand Coal & Carbon
- Miang Besar Coal Terminal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Global Business Power Corporation, Philippines
- Orica Mining Services - Indonesia
- Price Waterhouse Coopers - Russia
- Grasim Industreis Ltd - India
- Ambuja Cements Ltd - India
- Interocean Group of Companies - India
- Kohat Cement Company Ltd. - Pakistan
- Vijayanagar Sugar Pvt Ltd - India
- Carbofer General Trading SA - India
- Romanian Commodities Exchange
- Chettinad Cement Corporation Ltd - India
- Makarim & Taira - Indonesia
- Vizag Seaport Private Limited - India
- Parry Sugars Refinery, India
- Gujarat Mineral Development Corp Ltd - India
- Latin American Coal - Colombia
- Electricity Authority, New Zealand
- Kumho Petrochemical, South Korea
- Posco Energy - South Korea
- CIMB Investment Bank - Malaysia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Directorate General of MIneral and Coal - Indonesia
- Australian Coal Association
- Mercuria Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Independent Power Producers Association of India
- San Jose City I Power Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Bukit Makmur.PT - Indonesia
- Edison Trading Spa - Italy
- Samtan Co., Ltd - South Korea
- Jaiprakash Power Ventures ltd
- Bharathi Cement Corporation - India
- Ind-Barath Power Infra Limited - India
- Bulk Trading Sa - Switzerland
- Aboitiz Power Corporation - Philippines
- Star Paper Mills Limited - India
- Indika Energy - Indonesia
- Eastern Energy - Thailand
- LBH Netherlands Bv - Netherlands
- Borneo Indobara - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Kepco SPC Power Corporation, Philippines
- Economic Council, Georgia
- European Bulk Services B.V. - Netherlands
- Semirara Mining and Power Corporation, Philippines
- Renaissance Capital - South Africa
- Ministry of Finance - Indonesia
- Tata Chemicals Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Malabar Cements Ltd - India
- Dalmia Cement Bharat India
- Petrochimia International Co. Ltd.- Taiwan
- Simpson Spence & Young - Indonesia
- GVK Power & Infra Limited - India
- Kapuas Tunggal Persada - Indonesia
- Straits Asia Resources Limited - Singapore
- Agrawal Coal Company - India
- Jindal Steel & Power Ltd - India
- Bhoruka Overseas - Indonesia
- Indian Oil Corporation Limited
- Sojitz Corporation - Japan
- TNB Fuel Sdn Bhd - Malaysia
- Alfred C Toepfer International GmbH - Germany
- Thiess Contractors Indonesia
- McConnell Dowell - Australia
- CNBM International Corporation - China
- Siam City Cement - Thailand
- Wood Mackenzie - Singapore
- Globalindo Alam Lestari - Indonesia
- Coastal Gujarat Power Limited - India
- ASAPP Information Group - India
- Sical Logistics Limited - India
- Coal and Oil Company - UAE
- Karaikal Port Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Australian Commodity Traders Exchange
- Trasteel International SA, Italy
- Neyveli Lignite Corporation Ltd, - India
- PTC India Limited - India
- White Energy Company Limited
- Sindya Power Generating Company Private Ltd
- Deloitte Consulting - India
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement PLC, Thailand
- Aditya Birla Group - India
- Meenaskhi Energy Private Limited - India
- GMR Energy Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Mercator Lines Limited - India
- Anglo American - United Kingdom
- Riau Bara Harum - Indonesia
- India Bulls Power Limited - India
- Petron Corporation, Philippines
- Larsen & Toubro Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Chamber of Mines of South Africa
- Toyota Tsusho Corporation, Japan
- Central Electricity Authority - India
- SN Aboitiz Power Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Eastern Coal Council - USA
- Cement Manufacturers Association - India
- VISA Power Limited - India
- Bhatia International Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Iligan Light & Power Inc, Philippines
- Attock Cement Pakistan Limited
- Gujarat Electricity Regulatory Commission - India
- Kartika Selabumi Mining - Indonesia
- Salva Resources Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- International Coal Ventures Pvt Ltd - India
- Bhushan Steel Limited - India
- OPG Power Generation Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- MS Steel International - UAE
- Ministry of Mines - Canada
- TeaM Sual Corporation - Philippines
- The University of Queensland
- Energy Development Corp, Philippines
|
| |
| |
|
