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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.
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Sunday, 16 April 23
CHINA JUGGLES FOUR MAJOR ECONOMIC CHANGES IN 2023 - WOOD MACKENZIE
Change is afoot in China. Economic growth is slowing, while rising political tensions between China and the US, coupled with global supply chain re ...
Sunday, 16 April 23
CHINA'S MARCH COAL IMPORTS JUMP TO 3-YEAR HIGH - REUTERS
China’s coal imports surged in March to their highest in any month over the past three years as utilities increased purchases on expectations ...
Sunday, 16 April 23
OPEC KEEPS WORLD OIL DEMAND GROWTH OUTLOOK UNCHANGED
The OPEC Reference Basket (ORB) declined in March by $3.43, or 4.2%, m-o-m to average $78.45/b. The ICE Brent first-month contract fell by $4.33, o ...
Sunday, 16 April 23
CHEAPER SPOT LNG PRICES TEMPT SOME ASIAN BUYERS AMID SUPPLY GAINS - REUTERS
Cheaper spot prices for liquefied natural gas (LNG) are luring price-sensitive buyers back in Asia, with China and India recording rising imports i ...
Tuesday, 11 April 23
COAL USE CLIMBS WORLDWIDE DESPITE PROMISES TO SLASH IT - AAP
The burning of coal for electricity, cement, steel and other uses went up in 2022 despite global promises to phase down the fuel that is the bigges ...
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Showing 106 to 110 news of total 6871 |
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- Alfred C Toepfer International GmbH - Germany
- LBH Netherlands Bv - Netherlands
- Kapuas Tunggal Persada - Indonesia
- India Bulls Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- OPG Power Generation Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Sarangani Energy Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Lanco Infratech Ltd - India
- PNOC Exploration Corporation - Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Straits Asia Resources Limited - Singapore
- CIMB Investment Bank - Malaysia
- Sindya Power Generating Company Private Ltd
- Independent Power Producers Association of India
- Indika Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- PetroVietnam Power Coal Import and Supply Company
- Attock Cement Pakistan Limited
- Ambuja Cements Ltd - India
- Kumho Petrochemical, South Korea
- Meenaskhi Energy Private Limited - India
- Baramulti Group, Indonesia
- Deloitte Consulting - India
- Savvy Resources Ltd - HongKong
- Kepco SPC Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Orica Mining Services - Indonesia
- Siam City Cement PLC, Thailand
- Billiton Holdings Pty Ltd - Australia
- Iligan Light & Power Inc, Philippines
- MS Steel International - UAE
- Riau Bara Harum - Indonesia
- Medco Energi Mining Internasional
- Global Coal Blending Company Limited - Australia
- Gujarat Sidhee Cement - India
- Bukit Makmur.PT - Indonesia
- Star Paper Mills Limited - India
- ICICI Bank Limited - India
- Miang Besar Coal Terminal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indo Tambangraya Megah - Indonesia
- Karaikal Port Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Energy Development Corp, Philippines
- Sree Jayajothi Cements Limited - India
- South Luzon Thermal Energy Corporation
- Maharashtra Electricity Regulatory Commission - India
- The University of Queensland
- Coal and Oil Company - UAE
- Essar Steel Hazira Ltd - India
- Ministry of Mines - Canada
- McConnell Dowell - Australia
- Petron Corporation, Philippines
- Ministry of Finance - Indonesia
- Kideco Jaya Agung - Indonesia
- Eastern Energy - Thailand
- Kartika Selabumi Mining - Indonesia
- Kaltim Prima Coal - Indonesia
- Aboitiz Power Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Energy Link Ltd, New Zealand
- Heidelberg Cement - Germany
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Price Waterhouse Coopers - Russia
- Maheswari Brothers Coal Limited - India
- Salva Resources Pvt Ltd - India
- CNBM International Corporation - China
- Simpson Spence & Young - Indonesia
- Cement Manufacturers Association - India
- Africa Commodities Group - South Africa
- Mintek Dendrill Indonesia
- Vedanta Resources Plc - India
- Romanian Commodities Exchange
- Edison Trading Spa - Italy
- Chamber of Mines of South Africa
- Coastal Gujarat Power Limited - India
- Globalindo Alam Lestari - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Electricity Authority, New Zealand
- SMG Consultants - Indonesia
- Australian Coal Association
- Vizag Seaport Private Limited - India
- Agrawal Coal Company - India
- Bhatia International Limited - India
- The State Trading Corporation of India Ltd
- Oldendorff Carriers - Singapore
- GVK Power & Infra Limited - India
- Power Finance Corporation Ltd., India
- Semirara Mining Corp, Philippines
- Aditya Birla Group - India
- Rashtriya Ispat Nigam Limited - India
- Xindia Steels Limited - India
- Chettinad Cement Corporation Ltd - India
- GMR Energy Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Indogreen Group - Indonesia
- Central Electricity Authority - India
- Bukit Baiduri Energy - Indonesia
- Latin American Coal - Colombia
- Merrill Lynch Commodities Europe
- Anglo American - United Kingdom
- Leighton Contractors Pty Ltd - Australia
- Minerals Council of Australia
- Jorong Barutama Greston.PT - Indonesia
- Global Business Power Corporation, Philippines
- Videocon Industries ltd - India
- Manunggal Multi Energi - Indonesia
- Bharathi Cement Corporation - India
- Gujarat Mineral Development Corp Ltd - India
- Bayan Resources Tbk. - Indonesia
- Siam City Cement - Thailand
- Trasteel International SA, Italy
- Jaiprakash Power Ventures ltd
- Georgia Ports Authority, United States
- Vijayanagar Sugar Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Central Java Power - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Bhoruka Overseas - Indonesia
- Standard Chartered Bank - UAE
- Sinarmas Energy and Mining - Indonesia
- VISA Power Limited - India
- Tata Chemicals Ltd - India
- Sakthi Sugars Limited - India
- Dalmia Cement Bharat India
- Renaissance Capital - South Africa
- Bulk Trading Sa - Switzerland
- London Commodity Brokers - England
- Altura Mining Limited, Indonesia
- Toyota Tsusho Corporation, Japan
- Ministry of Transport, Egypt
- Bhushan Steel Limited - India
- Posco Energy - South Korea
- ASAPP Information Group - India
- Thiess Contractors Indonesia
- Antam Resourcindo - Indonesia
- Intertek Mineral Services - Indonesia
- SN Aboitiz Power Inc, Philippines
- Parliament of New Zealand
- Borneo Indobara - Indonesia
- Mjunction Services Limited - India
- Carbofer General Trading SA - India
- The Treasury - Australian Government
- Metalloyd Limited - United Kingdom
- Eastern Coal Council - USA
- Thai Mozambique Logistica
- Malabar Cements Ltd - India
- New Zealand Coal & Carbon
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Makarim & Taira - Indonesia
- Directorate Of Revenue Intelligence - India
- Petrochimia International Co. Ltd.- Taiwan
- Coalindo Energy - Indonesia
- White Energy Company Limited
- Binh Thuan Hamico - Vietnam
- Interocean Group of Companies - India
- Barasentosa Lestari - Indonesia
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Uttam Galva Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Banpu Public Company Limited - Thailand
- Sical Logistics Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Indian Oil Corporation Limited
- Global Green Power PLC Corporation, Philippines
- Mercuria Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- International Coal Ventures Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Orica Australia Pty. Ltd.
- Larsen & Toubro Limited - India
- Kalimantan Lumbung Energi - Indonesia
- PowerSource Philippines DevCo
- Mercator Lines Limited - India
- Indian Energy Exchange, India
- Rio Tinto Coal - Australia
- Wilmar Investment Holdings
- Grasim Industreis Ltd - India
- Australian Commodity Traders Exchange
- TeaM Sual Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Parry Sugars Refinery, India
- Pendopo Energi Batubara - Indonesia
- Commonwealth Bank - Australia
- Marubeni Corporation - India
- Port Waratah Coal Services - Australia
- Economic Council, Georgia
- TNB Fuel Sdn Bhd - Malaysia
- Therma Luzon, Inc, Philippines
- Indonesian Coal Mining Association
- Ceylon Electricity Board - Sri Lanka
- European Bulk Services B.V. - Netherlands
- SMC Global Power, Philippines
- PTC India Limited - India
- Tamil Nadu electricity Board
- Goldman Sachs - Singapore
- Wood Mackenzie - Singapore
- Bangladesh Power Developement Board
- Directorate General of MIneral and Coal - Indonesia
- Samtan Co., Ltd - South Korea
- Planning Commission, India
- IEA Clean Coal Centre - UK
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sojitz Corporation - Japan
- Jindal Steel & Power Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Meralco Power Generation, Philippines
- Timah Investasi Mineral - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
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