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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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Friday, 28 June 24
INDIAN POWER STATIONS STOCKED WITH BUMPER COAL SUPPLY AS TRANSPORT WOES EASE - BUSINESS STANDARD
Even as power demand has touched a historic high of 250 gigawatts (Gw) amid sweltering heat this June, India’s power stations are stocked wit ...
Friday, 28 June 24
INDIA'S CY23 COAL USE LARGER THAN NORTH AMERICA, EUROPE COMBINED - THE HINDU
For the first time, India’s coal consumption surpassed that of North America and Europe combined in the calendar year 2023, said Energy Insti ...
Monday, 24 June 24
PLN'S FINANCIAL SUSTAINABILITY RESTS ON ACCELERATED COAL RETIREMENT AND RENEWABLES DEPLOYMENT - MUTYA YUSTIKA
On 28 May 2024, Indonesia’s national electricity utility, PT Perusahaan Listrik Negara (PLN), released its financial report for 2023. Althoug ...
Monday, 24 June 24
INDIA'S COAL-BASED POWER DEMAND AT ALL-TIME HIGH, GOVERNMENT SAYS - REUTERS
India’s demand for coal-based power has risen by 7.3% this fiscal year to an all-time high, the government said in a statement on Wednesday.
...
Monday, 24 June 24
CHINA'S COAL INDUSTRY TURNS GREENER THROUGH INNOVATIVE APPROACHES - PEOPLE'S DAILY
At an opencast mine operated by Inner Mongolia Pingzhuang Coal Group Co. Ltd., a subsidiary of CHN Energy Investment Group (CHN Energy), a 14-meter ...
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Showing 11 to 15 news of total 6871 |
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- Simpson Spence & Young - Indonesia
- Savvy Resources Ltd - HongKong
- Leighton Contractors Pty Ltd - Australia
- Samtan Co., Ltd - South Korea
- LBH Netherlands Bv - Netherlands
- Kartika Selabumi Mining - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Carbofer General Trading SA - India
- Thiess Contractors Indonesia
- SN Aboitiz Power Inc, Philippines
- San Jose City I Power Corp, Philippines
- Tata Chemicals Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Kobexindo Tractors - Indoneisa
- Edison Trading Spa - Italy
- New Zealand Coal & Carbon
- Cigading International Bulk Terminal - Indonesia
- Straits Asia Resources Limited - Singapore
- CIMB Investment Bank - Malaysia
- Billiton Holdings Pty Ltd - Australia
- Star Paper Mills Limited - India
- Jaiprakash Power Ventures ltd
- Minerals Council of Australia
- Vijayanagar Sugar Pvt Ltd - India
- Eastern Coal Council - USA
- GN Power Mariveles Coal Plant, Philippines
- White Energy Company Limited
- Meenaskhi Energy Private Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Merrill Lynch Commodities Europe
- Standard Chartered Bank - UAE
- Riau Bara Harum - Indonesia
- Salva Resources Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Maharashtra Electricity Regulatory Commission - India
- European Bulk Services B.V. - Netherlands
- India Bulls Power Limited - India
- Essar Steel Hazira Ltd - India
- MS Steel International - UAE
- Australian Commodity Traders Exchange
- Wilmar Investment Holdings
- Karaikal Port Pvt Ltd - India
- Sojitz Corporation - Japan
- Grasim Industreis Ltd - India
- Manunggal Multi Energi - Indonesia
- VISA Power Limited - India
- Sree Jayajothi Cements Limited - India
- Global Business Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Kohat Cement Company Ltd. - Pakistan
- Bulk Trading Sa - Switzerland
- Australian Coal Association
- Bukit Makmur.PT - Indonesia
- Iligan Light & Power Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Binh Thuan Hamico - Vietnam
- Deloitte Consulting - India
- Madhucon Powers Ltd - India
- Toyota Tsusho Corporation, Japan
- SMG Consultants - Indonesia
- Parry Sugars Refinery, India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Metalloyd Limited - United Kingdom
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Port Waratah Coal Services - Australia
- Directorate Of Revenue Intelligence - India
- Semirara Mining Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Neyveli Lignite Corporation Ltd, - India
- Anglo American - United Kingdom
- Makarim & Taira - Indonesia
- Marubeni Corporation - India
- Commonwealth Bank - Australia
- Lanco Infratech Ltd - India
- Borneo Indobara - Indonesia
- Baramulti Group, Indonesia
- Planning Commission, India
- Sakthi Sugars Limited - India
- Gujarat Mineral Development Corp Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Romanian Commodities Exchange
- Price Waterhouse Coopers - Russia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Banpu Public Company Limited - Thailand
- Chamber of Mines of South Africa
- Indogreen Group - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Electricity Authority, New Zealand
- GMR Energy Limited - India
- Tamil Nadu electricity Board
- Mercuria Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Georgia Ports Authority, United States
- Electricity Generating Authority of Thailand
- Bhoruka Overseas - Indonesia
- Kideco Jaya Agung - Indonesia
- Altura Mining Limited, Indonesia
- Larsen & Toubro Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Thai Mozambique Logistica
- Cement Manufacturers Association - India
- McConnell Dowell - Australia
- SMC Global Power, Philippines
- PetroVietnam Power Coal Import and Supply Company
- ASAPP Information Group - India
- Power Finance Corporation Ltd., India
- OPG Power Generation Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Africa Commodities Group - South Africa
- Global Green Power PLC Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- South Luzon Thermal Energy Corporation
- Holcim Trading Pte Ltd - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Indo Tambangraya Megah - Indonesia
- Eastern Energy - Thailand
- Trasteel International SA, Italy
- Singapore Mercantile Exchange
- Miang Besar Coal Terminal - Indonesia
- Oldendorff Carriers - Singapore
- Kumho Petrochemical, South Korea
- Jorong Barutama Greston.PT - Indonesia
- Renaissance Capital - South Africa
- Siam City Cement PLC, Thailand
- Malabar Cements Ltd - India
- Mjunction Services Limited - India
- Orica Australia Pty. Ltd.
- IHS Mccloskey Coal Group - USA
- Intertek Mineral Services - Indonesia
- Sical Logistics Limited - India
- Maheswari Brothers Coal Limited - India
- TeaM Sual Corporation - Philippines
- Petrochimia International Co. Ltd.- Taiwan
- CNBM International Corporation - China
- Bangladesh Power Developement Board
- Bukit Baiduri Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Wood Mackenzie - Singapore
- ICICI Bank Limited - India
- Pendopo Energi Batubara - Indonesia
- Coal and Oil Company - UAE
- Xindia Steels Limited - India
- Dalmia Cement Bharat India
- Kaltim Prima Coal - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Petron Corporation, Philippines
- Videocon Industries ltd - India
- Indian Energy Exchange, India
- Uttam Galva Steels Limited - India
- Ministry of Mines - Canada
- Karbindo Abesyapradhi - Indoneisa
- Kepco SPC Power Corporation, Philippines
- Central Electricity Authority - India
- Ministry of Finance - Indonesia
- Meralco Power Generation, Philippines
- Indonesian Coal Mining Association
- Independent Power Producers Association of India
- Coastal Gujarat Power Limited - India
- Barasentosa Lestari - Indonesia
- Chettinad Cement Corporation Ltd - India
- Bharathi Cement Corporation - India
- Sarangani Energy Corporation, Philippines
- Energy Development Corp, Philippines
- Vedanta Resources Plc - India
- Heidelberg Cement - Germany
- Indian Oil Corporation Limited
- Bayan Resources Tbk. - Indonesia
- Ind-Barath Power Infra Limited - India
- Interocean Group of Companies - India
- The State Trading Corporation of India Ltd
- Aditya Birla Group - India
- Parliament of New Zealand
- Formosa Plastics Group - Taiwan
- Central Java Power - Indonesia
- Latin American Coal - Colombia
- Ambuja Cements Ltd - India
- The Treasury - Australian Government
- Posco Energy - South Korea
- IEA Clean Coal Centre - UK
- Agrawal Coal Company - India
- PTC India Limited - India
- Directorate General of MIneral and Coal - Indonesia
- The University of Queensland
- Vizag Seaport Private Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Energy Link Ltd, New Zealand
- Semirara Mining and Power Corporation, Philippines
- Goldman Sachs - Singapore
- GVK Power & Infra Limited - India
- Mercator Lines Limited - India
- Coalindo Energy - Indonesia
- Antam Resourcindo - Indonesia
- Indika Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Aboitiz Power Corporation - Philippines
- Bhatia International Limited - India
- Attock Cement Pakistan Limited
- Orica Mining Services - Indonesia
- PowerSource Philippines DevCo
- Bahari Cakrawala Sebuku - Indonesia
- Jindal Steel & Power Ltd - India
- Therma Luzon, Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Mintek Dendrill Indonesia
- Economic Council, Georgia
- Ministry of Transport, Egypt
- Gujarat Sidhee Cement - India
- Rio Tinto Coal - Australia
- Bhushan Steel Limited - India
- London Commodity Brokers - England
- Offshore Bulk Terminal Pte Ltd, Singapore
- Siam City Cement - Thailand
- Medco Energi Mining Internasional
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