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.
|
|
Saturday, 18 February 23
PAKISTAN PLANS TO QUADRUPLE DOMESTIC COAL-FIRED POWER, MOVE AWAY FROM GAS - REUTERS
Pakistan plans to quadruple its domestic coal-fired capacity to reduce power generation costs and will not build new gas-fired plants in the coming ...
Saturday, 18 February 23
2023 MARINE FUEL MARKET PREDICTIONS - JOHN BERGMAN, AURAMARINE
The drive for decarbonisation we witnessed in 2022 has continued into 2023, demonstrating the shipping’s industry positive strides in the fas ...
Saturday, 28 January 23
COAL GROWTH BLIP NOT TO BE REPEATED - BALTIC EXCHANGE
As 2022 drew to a close, global coal demand looked set to end the year just 1.2% up on the previous year. But that small increase was enough to pus ...
Thursday, 26 January 23
CHINA'S COAL OUTPUT INCREASES IN DECEMBER 2022 - XINHUA
China’s raw coal output posted stable expansion in December 2022, official data showed.
The country produced 400 million tonne ...
Thursday, 26 January 23
COKING COAL NARROWS THE GAP ON THERMAL AS CHINA REOPENS - REUTERS
The premium of high-grade thermal coal over coking coal in Asia is shrinking as China’s re-opening and ending of a ban on imports from Austra ...
|
|
|
Showing 141 to 145 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Xindia Steels Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Alfred C Toepfer International GmbH - Germany
- Central Electricity Authority - India
- Commonwealth Bank - Australia
- Leighton Contractors Pty Ltd - Australia
- Maheswari Brothers Coal Limited - India
- Makarim & Taira - Indonesia
- Dalmia Cement Bharat India
- ASAPP Information Group - India
- Essar Steel Hazira Ltd - India
- Banpu Public Company Limited - Thailand
- Standard Chartered Bank - UAE
- CNBM International Corporation - China
- Malabar Cements Ltd - India
- Metalloyd Limited - United Kingdom
- Gujarat Sidhee Cement - India
- Planning Commission, India
- Mjunction Services Limited - India
- Thiess Contractors Indonesia
- Energy Link Ltd, New Zealand
- Latin American Coal - Colombia
- MS Steel International - UAE
- Mercator Lines Limited - India
- Posco Energy - South Korea
- Sinarmas Energy and Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Africa Commodities Group - South Africa
- Kalimantan Lumbung Energi - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Bayan Resources Tbk. - Indonesia
- Coastal Gujarat Power Limited - India
- Eastern Energy - Thailand
- Kaltim Prima Coal - Indonesia
- Savvy Resources Ltd - HongKong
- Binh Thuan Hamico - Vietnam
- Siam City Cement - Thailand
- Renaissance Capital - South Africa
- Directorate Of Revenue Intelligence - India
- Energy Development Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Manunggal Multi Energi - Indonesia
- Jaiprakash Power Ventures ltd
- Australian Commodity Traders Exchange
- Billiton Holdings Pty Ltd - Australia
- Intertek Mineral Services - Indonesia
- Parry Sugars Refinery, India
- Karbindo Abesyapradhi - Indoneisa
- Wood Mackenzie - Singapore
- San Jose City I Power Corp, Philippines
- Samtan Co., Ltd - South Korea
- Kohat Cement Company Ltd. - Pakistan
- Simpson Spence & Young - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Sakthi Sugars Limited - India
- Bhatia International Limited - India
- Central Java Power - Indonesia
- Ministry of Finance - Indonesia
- Ind-Barath Power Infra Limited - India
- New Zealand Coal & Carbon
- GN Power Mariveles Coal Plant, Philippines
- Kumho Petrochemical, South Korea
- Antam Resourcindo - Indonesia
- SN Aboitiz Power Inc, Philippines
- London Commodity Brokers - England
- Aboitiz Power Corporation - Philippines
- PowerSource Philippines DevCo
- Coal and Oil Company - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Petron Corporation, Philippines
- Independent Power Producers Association of India
- Economic Council, Georgia
- South Luzon Thermal Energy Corporation
- Sarangani Energy Corporation, Philippines
- Wilmar Investment Holdings
- Salva Resources Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Trasteel International SA, Italy
- Gujarat Electricity Regulatory Commission - India
- Borneo Indobara - Indonesia
- Aditya Birla Group - India
- Videocon Industries ltd - India
- Georgia Ports Authority, United States
- Jorong Barutama Greston.PT - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- The Treasury - Australian Government
- Attock Cement Pakistan Limited
- Eastern Coal Council - USA
- SMC Global Power, Philippines
- Parliament of New Zealand
- Indian Oil Corporation Limited
- Electricity Generating Authority of Thailand
- Krishnapatnam Port Company Ltd. - India
- Price Waterhouse Coopers - Russia
- OPG Power Generation Pvt Ltd - India
- Cement Manufacturers Association - India
- Globalindo Alam Lestari - Indonesia
- Indogreen Group - Indonesia
- Rio Tinto Coal - Australia
- Indian Energy Exchange, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Barasentosa Lestari - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Singapore Mercantile Exchange
- Pendopo Energi Batubara - Indonesia
- PTC India Limited - India
- Power Finance Corporation Ltd., India
- Karaikal Port Pvt Ltd - India
- Baramulti Group, Indonesia
- Bharathi Cement Corporation - India
- Bangladesh Power Developement Board
- Heidelberg Cement - Germany
- Meenaskhi Energy Private Limited - India
- Goldman Sachs - Singapore
- Carbofer General Trading SA - India
- Bhushan Steel Limited - India
- TeaM Sual Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Interocean Group of Companies - India
- Jindal Steel & Power Ltd - India
- Iligan Light & Power Inc, Philippines
- Merrill Lynch Commodities Europe
- SMG Consultants - Indonesia
- GVK Power & Infra Limited - India
- Ambuja Cements Ltd - India
- India Bulls Power Limited - India
- Tamil Nadu electricity Board
- Star Paper Mills Limited - India
- Straits Asia Resources Limited - Singapore
- Deloitte Consulting - India
- Sical Logistics Limited - India
- European Bulk Services B.V. - Netherlands
- McConnell Dowell - Australia
- Grasim Industreis Ltd - India
- GMR Energy Limited - India
- Agrawal Coal Company - India
- Riau Bara Harum - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Therma Luzon, Inc, Philippines
- Edison Trading Spa - Italy
- Bukit Baiduri Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Global Coal Blending Company Limited - Australia
- Formosa Plastics Group - Taiwan
- Holcim Trading Pte Ltd - Singapore
- Indika Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The University of Queensland
- PNOC Exploration Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- Bulk Trading Sa - Switzerland
- Minerals Council of Australia
- Orica Australia Pty. Ltd.
- Vedanta Resources Plc - India
- Electricity Authority, New Zealand
- IEA Clean Coal Centre - UK
- Uttam Galva Steels Limited - India
- Semirara Mining Corp, Philippines
- ICICI Bank Limited - India
- Cigading International Bulk Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Ministry of Mines - Canada
- Meralco Power Generation, Philippines
- Bukit Makmur.PT - Indonesia
- Thai Mozambique Logistica
- Kideco Jaya Agung - Indonesia
- White Energy Company Limited
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Transport, Egypt
- Australian Coal Association
- Romanian Commodities Exchange
- Indo Tambangraya Megah - Indonesia
- Coalindo Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Chamber of Mines of South Africa
- VISA Power Limited - India
- Oldendorff Carriers - Singapore
- Timah Investasi Mineral - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Sindya Power Generating Company Private Ltd
- Bhoruka Overseas - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Indonesian Coal Mining Association
- Kobexindo Tractors - Indoneisa
- Madhucon Powers Ltd - India
- Orica Mining Services - Indonesia
- Lanco Infratech Ltd - India
- GAC Shipping (India) Pvt Ltd
- Siam City Cement PLC, Thailand
- Port Waratah Coal Services - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Altura Mining Limited, Indonesia
- CIMB Investment Bank - Malaysia
- Medco Energi Mining Internasional
- Mintek Dendrill Indonesia
- Tata Chemicals Ltd - India
- Anglo American - United Kingdom
- Larsen & Toubro Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The State Trading Corporation of India Ltd
- Sojitz Corporation - Japan
- Global Green Power PLC Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Vizag Seaport Private Limited - India
- LBH Netherlands Bv - Netherlands
- Kepco SPC Power Corporation, Philippines
- Marubeni Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- Mercuria Energy - Indonesia
|
| |
| |
|
