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Wednesday, 05 September 18
ASIAN DEMAND COULD CREATE DEFICIT IN GLOBAL LNG MARKET - FITCH RATINGS
 Growing gas demand from Asia, particularly from China, could swing the liquefied natural gas (LNG) market into a deficit by 2022-2025, Fitch Ratings says.
Market expectations of oversupply and weak gas prices have curtailed new investment activity in the sector in the past two years. Limited capacity additions beyond 2020 should be positive for spot prices, especially in Asia and Europe. This will benefit LNG projects with significant uncontracted volumes and those linked to gas spot prices.
An unprecedented wave of new projects becoming operational in 2016-2019 has not resulted in, and is unlikely to result in a material surplus in the LNG market in the medium term. Additional LNG volumes continue to find a home across a diverse array of countries and new buyers, and under more flexible contracts.
Funding for new LNG capacity is often structured as non-recourse project finance and is dependent on sponsors’ ability to secure long-term offtake agreements, which buyers have been less willing to sign in anticipation of larger volumes of uncontracted LNG coming to the market. Therefore, sponsors may need to commit a higher equity contribution to get funding for LNG projects, which will continue to delay final investment decisions (FIDs) for some time. A typical timeframe for a new LNG project to become operational following the FID is four to five years. Due to limited new FIDs very few new projects will come on stream in the early 2020s. FIDs in the next one to two years are likely to be limited to projects with lower capital and operating costs given constraints on the funding side.
We expect gas demand to continue its robust growth in the coming years, mostly driven by Asian markets that account for two-thirds of overall LNG demand. This is due a combination of healthy power demand growth in the region, natural gas being the fossil fuel of choice in pursuit of curbing air pollution, and the backlash against nuclear energy. Japan is currently the largest LNG importer, but China is catching up quickly and becoming the major market for LNG.
The LNG market could shift into deficit by 2022-2025. Gas pricing is therefore likely to improve in the major importer markets, benefiting LNG projects relying on spot and hub pricing and entities with significant LNG trading portfolios. We also expect oil companies to gradually return to their earlier LNG ambitions. This includes oil majors, like Shell, BP and Total, most of which emphasise the growing role of gas in the global energy mix.
The LNG market is still in its formative stage. Pricing mechanisms, contract terms and financing structures continue to evolve. Long-term oil-linked contracts are giving way to increased trading activity, which represented around a quarter of all new contracts in 2017, according to IGU World Gas LNG Report, compared to just 1% in 2012. New large LNG projects still rely on long-term contracts in order to secure financing. However, elsewhere contracts are becoming shorter, and the quality of counterparties is declining. Contract prices are increasingly de-linked from oil pricing with a growing focus on spot and hub-based gas pricing.
Fitch-rated rated LNG projects will not be significantly affected by the trend towards increasing commoditisation. In the US, rated projects, such as Cameron LNG and Sabine Pass, benefit from robust contractual frameworks that provide mitigation to completion risks and often employ tolling or tolling-like arrangements that protect cash flows from volume and price risks. RasGas in Qatar mostly relies on long-term oil-linked contracts.
Source: Fitch Ratings
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Wednesday, 31 January 24
CHINA'S INNER MONGOLIA COAL OUTPUT HIT 1.21B TONS IN 2023 - XINHUA
North China’s Inner Mongolia autonomous region churned out 1.21 billion tons of coal in 2023 as it strives to guarantee the country’s e ...
Wednesday, 31 January 24
GAS EXPORTS COST U.S. CONSUMERS MORE THAN $100 BILLION OVER 16-MONTH PERIOD - IEEFA
Limited Demand Growth Could Dampen the Dry Bulk Market in the Coming Months BIMCOStarting in late 2021—before its invasion of Ukraine—R ...
Tuesday, 30 January 24
LIMITED DEMAND GROWTH COULD DAMPEN THE DRY BULK MARKET IN THE COMING MONTHS - BIMCO
Demand
In our base scenario, we expect cargo demand to grow by 0-1% in 2024 and 0.5-1.5% in 2025. This is a 0.5 percentage point reduction for ...
Friday, 26 January 24
RED SEA DIVERSIONS ADD NEARLY A MILLION DOLLARS PER VOYAGE TO SHIPPING COSTS WHILE DOUBLING TRANSIT TIME - LSEG
The incremental costs of diverting a tanker from Asia to NW Europe via the Cape of Good Hope is accounting for an extra $932,905 USD per voyage whi ...
Friday, 26 January 24
HARD COAL GUARDIAN ANGEL OF THE ENERGY SUPPLY - GERMANY COAL IMPORTERS ASSOCIATION
- No security of supply without hard coal
- The Substitute Power Plant Provision Act (EKBG) must be extended
- Higher grid fees due to the ...
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Showing 46 to 50 news of total 6871 |
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- Dalmia Cement Bharat India
- Iligan Light & Power Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- LBH Netherlands Bv - Netherlands
- Coastal Gujarat Power Limited - India
- Orica Mining Services - Indonesia
- Pendopo Energi Batubara - Indonesia
- Kideco Jaya Agung - Indonesia
- Therma Luzon, Inc, Philippines
- Energy Link Ltd, New Zealand
- Global Green Power PLC Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Siam City Cement PLC, Thailand
- Aditya Birla Group - India
- Africa Commodities Group - South Africa
- Wilmar Investment Holdings
- Ministry of Finance - Indonesia
- Marubeni Corporation - India
- Riau Bara Harum - Indonesia
- Minerals Council of Australia
- Heidelberg Cement - Germany
- Leighton Contractors Pty Ltd - Australia
- AsiaOL BioFuels Corp., Philippines
- OPG Power Generation Pvt Ltd - India
- Romanian Commodities Exchange
- Meralco Power Generation, Philippines
- Madhucon Powers Ltd - India
- McConnell Dowell - Australia
- Kartika Selabumi Mining - Indonesia
- Karaikal Port Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Merrill Lynch Commodities Europe
- IEA Clean Coal Centre - UK
- Metalloyd Limited - United Kingdom
- Interocean Group of Companies - India
- South Luzon Thermal Energy Corporation
- Agrawal Coal Company - India
- Siam City Cement - Thailand
- Malabar Cements Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Indika Energy - Indonesia
- Orica Australia Pty. Ltd.
- Krishnapatnam Port Company Ltd. - India
- Anglo American - United Kingdom
- PNOC Exploration Corporation - Philippines
- Chamber of Mines of South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Planning Commission, India
- Parry Sugars Refinery, India
- Binh Thuan Hamico - Vietnam
- Global Coal Blending Company Limited - Australia
- Singapore Mercantile Exchange
- Bukit Asam (Persero) Tbk - Indonesia
- Carbofer General Trading SA - India
- Mercator Lines Limited - India
- The Treasury - Australian Government
- Miang Besar Coal Terminal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- MS Steel International - UAE
- Banpu Public Company Limited - Thailand
- Salva Resources Pvt Ltd - India
- The State Trading Corporation of India Ltd
- New Zealand Coal & Carbon
- Eastern Coal Council - USA
- Borneo Indobara - Indonesia
- Central Electricity Authority - India
- Posco Energy - South Korea
- Larsen & Toubro Limited - India
- Edison Trading Spa - Italy
- Alfred C Toepfer International GmbH - Germany
- SMC Global Power, Philippines
- Global Business Power Corporation, Philippines
- Bhushan Steel Limited - India
- Straits Asia Resources Limited - Singapore
- Australian Commodity Traders Exchange
- Semirara Mining and Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- GVK Power & Infra Limited - India
- Independent Power Producers Association of India
- Semirara Mining Corp, Philippines
- ASAPP Information Group - India
- Coalindo Energy - Indonesia
- Power Finance Corporation Ltd., India
- Kapuas Tunggal Persada - Indonesia
- Attock Cement Pakistan Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- London Commodity Brokers - England
- Sinarmas Energy and Mining - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Sical Logistics Limited - India
- Aboitiz Power Corporation - Philippines
- Latin American Coal - Colombia
- Baramulti Group, Indonesia
- Bangladesh Power Developement Board
- Kalimantan Lumbung Energi - Indonesia
- VISA Power Limited - India
- Eastern Energy - Thailand
- Electricity Generating Authority of Thailand
- Petron Corporation, Philippines
- Parliament of New Zealand
- GAC Shipping (India) Pvt Ltd
- Commonwealth Bank - Australia
- Bulk Trading Sa - Switzerland
- Karbindo Abesyapradhi - Indoneisa
- Jaiprakash Power Ventures ltd
- Vedanta Resources Plc - India
- Timah Investasi Mineral - Indoneisa
- Gujarat Sidhee Cement - India
- Antam Resourcindo - Indonesia
- CNBM International Corporation - China
- Electricity Authority, New Zealand
- Kumho Petrochemical, South Korea
- Formosa Plastics Group - Taiwan
- Neyveli Lignite Corporation Ltd, - India
- Georgia Ports Authority, United States
- Standard Chartered Bank - UAE
- Medco Energi Mining Internasional
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vizag Seaport Private Limited - India
- Ind-Barath Power Infra Limited - India
- Lanco Infratech Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Barasentosa Lestari - Indonesia
- Videocon Industries ltd - India
- TeaM Sual Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Wood Mackenzie - Singapore
- Kepco SPC Power Corporation, Philippines
- Star Paper Mills Limited - India
- Bharathi Cement Corporation - India
- PetroVietnam Power Coal Import and Supply Company
- Sakthi Sugars Limited - India
- Ambuja Cements Ltd - India
- Intertek Mineral Services - Indonesia
- IHS Mccloskey Coal Group - USA
- Uttam Galva Steels Limited - India
- Goldman Sachs - Singapore
- The University of Queensland
- Toyota Tsusho Corporation, Japan
- Indonesian Coal Mining Association
- PTC India Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Trasteel International SA, Italy
- SMG Consultants - Indonesia
- Mintek Dendrill Indonesia
- Savvy Resources Ltd - HongKong
- Altura Mining Limited, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Sojitz Corporation - Japan
- Bukit Makmur.PT - Indonesia
- PowerSource Philippines DevCo
- Meenaskhi Energy Private Limited - India
- Cement Manufacturers Association - India
- Bhatia International Limited - India
- CIMB Investment Bank - Malaysia
- Samtan Co., Ltd - South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Sarangani Energy Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Mjunction Services Limited - India
- Essar Steel Hazira Ltd - India
- Oldendorff Carriers - Singapore
- Ministry of Transport, Egypt
- Ministry of Mines - Canada
- European Bulk Services B.V. - Netherlands
- Rio Tinto Coal - Australia
- Tata Chemicals Ltd - India
- Australian Coal Association
- Jindal Steel & Power Ltd - India
- Sindya Power Generating Company Private Ltd
- International Coal Ventures Pvt Ltd - India
- Central Java Power - Indonesia
- Mercuria Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- Ceylon Electricity Board - Sri Lanka
- Coal and Oil Company - UAE
- GMR Energy Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Mineral Development Corp Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Directorate Of Revenue Intelligence - India
- Manunggal Multi Energi - Indonesia
- Renaissance Capital - South Africa
- Maheswari Brothers Coal Limited - India
- Price Waterhouse Coopers - Russia
- Jorong Barutama Greston.PT - Indonesia
- Indian Oil Corporation Limited
- Thiess Contractors Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Deloitte Consulting - India
- Indogreen Group - Indonesia
- Bhoruka Overseas - Indonesia
- Thai Mozambique Logistica
- Port Waratah Coal Services - Australia
- Cigading International Bulk Terminal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Economic Council, Georgia
- Xindia Steels Limited - India
- ICICI Bank Limited - India
- White Energy Company Limited
- Kaltim Prima Coal - Indonesia
- India Bulls Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Grasim Industreis Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Makarim & Taira - Indonesia
- Bayan Resources Tbk. - Indonesia
- San Jose City I Power Corp, Philippines
- Tamil Nadu electricity Board
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