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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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Monday, 17 September 18
GLENCORE RETURNS TO JAPAN COAL TALKS SCUPPERED BY HIGH PRICES - BLOOMBERG
Mining giant Glencore Plc and Japanese utilities have resumed thermal coal supply negotiations, restarting talks that fell apart earlier this year ...
Monday, 17 September 18
SMALL PERCENTAGE OF THE WORLD FLEET WILL FIT SCRUBBERS - FORECASTS : METTE KRONHOLM FRAENDE
In recent months, there have been numerous reports of a strong pick-up in demand for scrubbers. On 1 January 2020, however, the number of ships fit ...
Saturday, 15 September 18
POWERING SUSTAINABLE DEVELOPMENT WITH LOW EMISSION COAL TECHNOLOGIES - WCA
In its 5th Strategic Energy Plan this year (2018), the Japanese Cabinet recognised coal as an important energy resource, necessary for the country& ...
Friday, 14 September 18
10 YEARS ON FROM LEHMAN, HOW IS SHIPPING'S "HANGOVER"? - CLARKSONS RESEARCH
On 15th September 2008, the collapse of Lehman Brothers crystallised the financial crisis and the onset the worst economic downturn for a century. ...
Thursday, 13 September 18
OPEC SEES SLOWER 2019 OIL DEMAND GROWTH, WARNS ON ECONOMY
Crude Oil Price Movements
In August, the OPEC Reference Basket declined by $1.01 m-o-m, settling at $72.26/b. Crude oil futures were also down ...
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Showing 1616 to 1620 news of total 6871 |
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- Mintek Dendrill Indonesia
- Gujarat Sidhee Cement - India
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Indogreen Group - Indonesia
- LBH Netherlands Bv - Netherlands
- Karbindo Abesyapradhi - Indoneisa
- Star Paper Mills Limited - India
- Bhushan Steel Limited - India
- Deloitte Consulting - India
- Aboitiz Power Corporation - Philippines
- Wilmar Investment Holdings
- Trasteel International SA, Italy
- Semirara Mining and Power Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- Maheswari Brothers Coal Limited - India
- Altura Mining Limited, Indonesia
- SMG Consultants - Indonesia
- Wood Mackenzie - Singapore
- Port Waratah Coal Services - Australia
- New Zealand Coal & Carbon
- Standard Chartered Bank - UAE
- Carbofer General Trading SA - India
- Mercuria Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Latin American Coal - Colombia
- Energy Link Ltd, New Zealand
- GVK Power & Infra Limited - India
- Planning Commission, India
- Eastern Coal Council - USA
- Bhoruka Overseas - Indonesia
- Power Finance Corporation Ltd., India
- The Treasury - Australian Government
- Kohat Cement Company Ltd. - Pakistan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Energy - Thailand
- Kapuas Tunggal Persada - Indonesia
- McConnell Dowell - Australia
- PNOC Exploration Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- IHS Mccloskey Coal Group - USA
- Pipit Mutiara Jaya. PT, Indonesia
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Salva Resources Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Bharathi Cement Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Meralco Power Generation, Philippines
- Mjunction Services Limited - India
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Uttam Galva Steels Limited - India
- Bayan Resources Tbk. - Indonesia
- Central Java Power - Indonesia
- Coalindo Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Africa Commodities Group - South Africa
- Bangladesh Power Developement Board
- CNBM International Corporation - China
- India Bulls Power Limited - India
- Tata Chemicals Ltd - India
- Ministry of Finance - Indonesia
- Electricity Generating Authority of Thailand
- Directorate Of Revenue Intelligence - India
- Leighton Contractors Pty Ltd - Australia
- Parliament of New Zealand
- Attock Cement Pakistan Limited
- Ministry of Transport, Egypt
- Globalindo Alam Lestari - Indonesia
- International Coal Ventures Pvt Ltd - India
- Electricity Authority, New Zealand
- MS Steel International - UAE
- Kartika Selabumi Mining - Indonesia
- Bulk Trading Sa - Switzerland
- Gujarat Mineral Development Corp Ltd - India
- Meenaskhi Energy Private Limited - India
- Essar Steel Hazira Ltd - India
- GAC Shipping (India) Pvt Ltd
- Kalimantan Lumbung Energi - Indonesia
- Heidelberg Cement - Germany
- Directorate General of MIneral and Coal - Indonesia
- Orica Mining Services - Indonesia
- SN Aboitiz Power Inc, Philippines
- Independent Power Producers Association of India
- Bukit Asam (Persero) Tbk - Indonesia
- Ambuja Cements Ltd - India
- South Luzon Thermal Energy Corporation
- Timah Investasi Mineral - Indoneisa
- PetroVietnam Power Coal Import and Supply Company
- Agrawal Coal Company - India
- Banpu Public Company Limited - Thailand
- PowerSource Philippines DevCo
- Posco Energy - South Korea
- Kepco SPC Power Corporation, Philippines
- Thiess Contractors Indonesia
- Tamil Nadu electricity Board
- Oldendorff Carriers - Singapore
- Riau Bara Harum - Indonesia
- Ministry of Mines - Canada
- VISA Power Limited - India
- Edison Trading Spa - Italy
- GN Power Mariveles Coal Plant, Philippines
- Global Green Power PLC Corporation, Philippines
- TeaM Sual Corporation - Philippines
- ICICI Bank Limited - India
- Dalmia Cement Bharat India
- Toyota Tsusho Corporation, Japan
- Lanco Infratech Ltd - India
- Bukit Makmur.PT - Indonesia
- Indian Oil Corporation Limited
- Commonwealth Bank - Australia
- GMR Energy Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Samtan Co., Ltd - South Korea
- Bhatia International Limited - India
- Billiton Holdings Pty Ltd - Australia
- Siam City Cement PLC, Thailand
- Chamber of Mines of South Africa
- Cement Manufacturers Association - India
- Indika Energy - Indonesia
- The University of Queensland
- Sarangani Energy Corporation, Philippines
- Interocean Group of Companies - India
- Jaiprakash Power Ventures ltd
- Rashtriya Ispat Nigam Limited - India
- Mercator Lines Limited - India
- Savvy Resources Ltd - HongKong
- Vizag Seaport Private Limited - India
- Sical Logistics Limited - India
- Videocon Industries ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Miang Besar Coal Terminal - Indonesia
- OPG Power Generation Pvt Ltd - India
- London Commodity Brokers - England
- Semirara Mining Corp, Philippines
- Ceylon Electricity Board - Sri Lanka
- Grasim Industreis Ltd - India
- Siam City Cement - Thailand
- Alfred C Toepfer International GmbH - Germany
- Parry Sugars Refinery, India
- Borneo Indobara - Indonesia
- Medco Energi Mining Internasional
- Aditya Birla Group - India
- PTC India Limited - India
- Kaltim Prima Coal - Indonesia
- Petron Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Coastal Gujarat Power Limited - India
- Rio Tinto Coal - Australia
- IEA Clean Coal Centre - UK
- Anglo American - United Kingdom
- Pendopo Energi Batubara - Indonesia
- Barasentosa Lestari - Indonesia
- Orica Australia Pty. Ltd.
- Minerals Council of Australia
- Therma Luzon, Inc, Philippines
- Kideco Jaya Agung - Indonesia
- Coal and Oil Company - UAE
- Sinarmas Energy and Mining - Indonesia
- Straits Asia Resources Limited - Singapore
- San Jose City I Power Corp, Philippines
- Romanian Commodities Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Manunggal Multi Energi - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Jindal Steel & Power Ltd - India
- Binh Thuan Hamico - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Merrill Lynch Commodities Europe
- Antam Resourcindo - Indonesia
- ASAPP Information Group - India
- Baramulti Group, Indonesia
- Metalloyd Limited - United Kingdom
- Global Business Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- White Energy Company Limited
- Sindya Power Generating Company Private Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Makarim & Taira - Indonesia
- Australian Commodity Traders Exchange
- Economic Council, Georgia
- Marubeni Corporation - India
- Kobexindo Tractors - Indoneisa
- SMC Global Power, Philippines
- Xindia Steels Limited - India
- Sree Jayajothi Cements Limited - India
- Sojitz Corporation - Japan
- Energy Development Corp, Philippines
- Australian Coal Association
- CIMB Investment Bank - Malaysia
- Vedanta Resources Plc - India
- Singapore Mercantile Exchange
- Karaikal Port Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indian Energy Exchange, India
- Larsen & Toubro Limited - India
- Renaissance Capital - South Africa
- Krishnapatnam Port Company Ltd. - India
- Bukit Baiduri Energy - Indonesia
- Sakthi Sugars Limited - India
- Indonesian Coal Mining Association
- Neyveli Lignite Corporation Ltd, - India
- Cigading International Bulk Terminal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Goldman Sachs - Singapore
- Chettinad Cement Corporation Ltd - India
- Central Electricity Authority - India
- Malabar Cements Ltd - India
- Thai Mozambique Logistica
- Ind-Barath Power Infra Limited - India
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
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