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Monday, 20 October 14
CHINA'S ENVIRONMENTAL POLICIES DO NOT SPELL THE END FOR COAL - WOOD MACKENZIE
China's environmental policies do not spell the end for coal Analysis across energy commodities show coal still accounting for 64% of power mix by 2030, while overall gas demand growth in China will be strongest
As details for China's Air Pollution Prevention and Control Action Plan (APPCAP) have evolved through 2014, energy suppliers have raised concerns that the continual re-thinking of targets and goals is creating uncertainty for China's energy and resources demand. In 'A moving target - assessing the impact of China's environmental policies', Wood Mackenzie concludes that within the energy, resources and mining sectors, China's recent environmental policies broadly continue to encourage the expansion of natural gas. More surprisingly however, despite some industry belief that this will result in coal's decline, Wood Mackenzie says coal demand will actually be supported and remain the dominant fuel in China's power mix.
Wood Mackenzie forecasts that coal's role in power is likely to decline from 72% to 64% of China's power mix as a result of APPCAP but remains the primary fuel for China. In absolute terms, this translates to coal demand increasing by just over two billion tonnes from now until then. Mr David Brown, Northeast Asia Power Markets Manager, explains, "Tackling chronic air pollution is a clear government priority but not the only one: economic growth, energy security and low cost energy remain paramount. Although initial policy goals focused on expanding the role of gas through demand targets or caps on coal consumption, policy releases throughout 2014 have now evolved to focus on emissions control rather than mass fuel switching to gas."
Northeast Asia Mining and Metals Manager, Mr Rohan Kendall says "The latest APPCAP policies are not aimed at penalising coal, but are a major step towards sustainable policies encouraging clean-coal use. The impact of APPCAP policies will affect the type of coal consumed by coastal power plants and emissions control rather than absolute demand volumes. With a reduced emphasis on switching coal-fired plants to gas for example, utilities will become more prudent in plant operations and coal selection - supporting low-ash and low-sulphur imports".
Even with a reduced emphasis on coal switching to gas, Wood Mackenzie's analysis shows China's environmental policies as broadly positive for gas, despite an expectation of some near-term growing pains as new supplies ramp-up. Gas demand in China will increase from around 207 billion cubic metres (bcm) in 2014 to 335 bcm by 2017, with demand from power, transport and the residential/commercial sectors contributing most to the growth near term. Further on from 2020 to 2030, gas demand will see an annualised average growth rate above four-percent, reaching 655 bcm by this time as China becomes with world's second largest gas market after the US.
Beyond power, gas and coal, Wood Mackenzie expects environmental policies will have little impact on demand for petrochemicals, iron ore, steel and metals. Rather, capacity closures will impact these industries more. Capacity that is out-dated, with high emissions and low margins will gradually see shut downs as the government tightens credit, which has been the lifeline of these industries over the last several years. Still, these capacity closures will not have an impact on production with limited impact on raw material demand. The intention is to consolidate fragmented and less efficient operations, not lower output.
Mr Brown concludes, "The way China's environmental policies have evolved already shows that they do not work in isolation but in a more complex fashion, hand-in-hand with conomic goals. The new leadership is focused on formulating integrated policies that balance these objectives. This approach indicates China's evolving environmental policies are not intended to be destructive for energy, mining, and metals but will rather help these industries grow sustainably and efficiently through the long term."
About Wood Mackenzie
Wood Mackenzie is a global leader in commercial intelligence for the energy, metals and mining industries. We provide objective analysis and advice on assets, companies and markets, giving clients the insights they need to make better strategic decisions.
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Monday, 13 October 14
INDONESIAN COAL SWAPS FOR DELIVERY Q4' 2014 GAINED WEEK ON WEEK AND DAY ON DAY
COALspot.com: Indonesian coal swaps for delivery Q4' 2014 gained week on week and day on day.
The swap lost US$ 0.13 (-0.25%) month on mon ...
Monday, 13 October 14
Q1' 2015 CFR SOUTH CHINA COAL SWAP CLOSED US$ 0.31 PMT HIGHER THAN Q4' 2014 CLOSING
COALspot.com: API 8 CFR South China Coal swap for Q4’ 2014 delivery decreased US$ 0.66 (-1.00%) month over month and US$ 0.40 (-0.61%) ...
Sunday, 12 October 14
INDONESIA TO INDIA FREIGHT RATES ARE EXPECTED TO BE WEAK - VISTAAR
COALspot.com: This week all the segments softened. The BDI down 7.13 pct week on week and closed below 1000 points at 963 points.
The Cape ind ...
Saturday, 11 October 14
COAL PRODUCTION RISES ONLY SLIGHTLY AS GOVT LIMITS MINING OPERATIONS - THE JAKARTA POST
Indonesian coal production rose by only 4 percent in the first nine months of this year, a relatively low increase compared to previous years, as t ...
Friday, 10 October 14
INDONESIA TO DEVELOP DOWNSTREAM COAL INDUSTRY - JP
The government is planning to launch a program to develop the downstream coal industry to increase the commodity’s added value, an official h ...
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- Rio Tinto Coal - Australia
- CNBM International Corporation - China
- Tata Chemicals Ltd - India
- Renaissance Capital - South Africa
- Jaiprakash Power Ventures ltd
- Salva Resources Pvt Ltd - India
- Meralco Power Generation, Philippines
- Semirara Mining and Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- Banpu Public Company Limited - Thailand
- Parry Sugars Refinery, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Karaikal Port Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Baramulti Group, Indonesia
- ASAPP Information Group - India
- Singapore Mercantile Exchange
- Manunggal Multi Energi - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Coastal Gujarat Power Limited - India
- Wood Mackenzie - Singapore
- McConnell Dowell - Australia
- GMR Energy Limited - India
- PowerSource Philippines DevCo
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
- Straits Asia Resources Limited - Singapore
- The State Trading Corporation of India Ltd
- SMC Global Power, Philippines
- Bhushan Steel Limited - India
- Kepco SPC Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Minerals Council of Australia
- Savvy Resources Ltd - HongKong
- Wilmar Investment Holdings
- Commonwealth Bank - Australia
- Vedanta Resources Plc - India
- Holcim Trading Pte Ltd - Singapore
- Merrill Lynch Commodities Europe
- Timah Investasi Mineral - Indoneisa
- Petron Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Toyota Tsusho Corporation, Japan
- IEA Clean Coal Centre - UK
- Electricity Generating Authority of Thailand
- Kaltim Prima Coal - Indonesia
- Price Waterhouse Coopers - Russia
- Romanian Commodities Exchange
- Sojitz Corporation - Japan
- Orica Mining Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Global Coal Blending Company Limited - Australia
- Indika Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Rashtriya Ispat Nigam Limited - India
- Standard Chartered Bank - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Oldendorff Carriers - Singapore
- Central Java Power - Indonesia
- Anglo American - United Kingdom
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kobexindo Tractors - Indoneisa
- Medco Energi Mining Internasional
- Kohat Cement Company Ltd. - Pakistan
- Xindia Steels Limited - India
- Thiess Contractors Indonesia
- Heidelberg Cement - Germany
- Power Finance Corporation Ltd., India
- Interocean Group of Companies - India
- Kapuas Tunggal Persada - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GVK Power & Infra Limited - India
- OPG Power Generation Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Krishnapatnam Port Company Ltd. - India
- Georgia Ports Authority, United States
- Central Electricity Authority - India
- Trasteel International SA, Italy
- PTC India Limited - India
- Videocon Industries ltd - India
- Ind-Barath Power Infra Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Aditya Birla Group - India
- VISA Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Electricity Authority, New Zealand
- Binh Thuan Hamico - Vietnam
- Bhatia International Limited - India
- PNOC Exploration Corporation - Philippines
- Riau Bara Harum - Indonesia
- Mintek Dendrill Indonesia
- Metalloyd Limited - United Kingdom
- Africa Commodities Group - South Africa
- Mercuria Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Posco Energy - South Korea
- ICICI Bank Limited - India
- Intertek Mineral Services - Indonesia
- Latin American Coal - Colombia
- Planning Commission, India
- Alfred C Toepfer International GmbH - Germany
- Bulk Trading Sa - Switzerland
- Uttam Galva Steels Limited - India
- Ambuja Cements Ltd - India
- Sakthi Sugars Limited - India
- Samtan Co., Ltd - South Korea
- SN Aboitiz Power Inc, Philippines
- Ministry of Mines - Canada
- Bayan Resources Tbk. - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Bukit Baiduri Energy - Indonesia
- Marubeni Corporation - India
- Global Business Power Corporation, Philippines
- Goldman Sachs - Singapore
- Edison Trading Spa - Italy
- Chettinad Cement Corporation Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Independent Power Producers Association of India
- Vijayanagar Sugar Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Indogreen Group - Indonesia
- Deloitte Consulting - India
- Indonesian Coal Mining Association
- Star Paper Mills Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Makarim & Taira - Indonesia
- San Jose City I Power Corp, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Economic Council, Georgia
- The Treasury - Australian Government
- New Zealand Coal & Carbon
- India Bulls Power Limited - India
- Sindya Power Generating Company Private Ltd
- Energy Link Ltd, New Zealand
- Leighton Contractors Pty Ltd - Australia
- Jindal Steel & Power Ltd - India
- Siam City Cement - Thailand
- Mercator Lines Limited - India
- Bukit Makmur.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Bhoruka Overseas - Indonesia
- Kideco Jaya Agung - Indonesia
- Thai Mozambique Logistica
- Siam City Cement PLC, Thailand
- Kartika Selabumi Mining - Indonesia
- South Luzon Thermal Energy Corporation
- Directorate General of MIneral and Coal - Indonesia
- Iligan Light & Power Inc, Philippines
- Ministry of Finance - Indonesia
- Essar Steel Hazira Ltd - India
- Attock Cement Pakistan Limited
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- CIMB Investment Bank - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- European Bulk Services B.V. - Netherlands
- Coalindo Energy - Indonesia
- Carbofer General Trading SA - India
- Sical Logistics Limited - India
- Tamil Nadu electricity Board
- Antam Resourcindo - Indonesia
- Cement Manufacturers Association - India
- Parliament of New Zealand
- TeaM Sual Corporation - Philippines
- Sree Jayajothi Cements Limited - India
- Energy Development Corp, Philippines
- Borneo Indobara - Indonesia
- Eastern Energy - Thailand
- Semirara Mining Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Aboitiz Power Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Directorate Of Revenue Intelligence - India
- Eastern Coal Council - USA
- Vizag Seaport Private Limited - India
- Larsen & Toubro Limited - India
- Simpson Spence & Young - Indonesia
- Ceylon Electricity Board - Sri Lanka
- GN Power Mariveles Coal Plant, Philippines
- Malabar Cements Ltd - India
- Sarangani Energy Corporation, Philippines
- London Commodity Brokers - England
- Madhucon Powers Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- Port Waratah Coal Services - Australia
- Australian Coal Association
- Coal and Oil Company - UAE
- Grasim Industreis Ltd - India
- Chamber of Mines of South Africa
- Lanco Infratech Ltd - India
- Indian Oil Corporation Limited
- Bangladesh Power Developement Board
- White Energy Company Limited
- Kumho Petrochemical, South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Indian Energy Exchange, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Agrawal Coal Company - India
- Barasentosa Lestari - Indonesia
- Orica Australia Pty. Ltd.
- SMG Consultants - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- MS Steel International - UAE
- Jorong Barutama Greston.PT - Indonesia
- The University of Queensland
- Australian Commodity Traders Exchange
- Therma Luzon, Inc, Philippines
- Dalmia Cement Bharat India
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