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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, 12 June 24
CHINA ACCOUNTS FOR 16.3% OF AUSTRALIA'S COAL EXPORTS, FOLLOWED BY INDIA 14.4% - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels says Banchero Costa in its latest report.
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Wednesday, 12 June 24
LNG NEWBUILDING VALUES AT RECORD HIGH: 78 NEWBUILD ORDERS PLACED IN 2024, DOUBLING 2023 - VESON NAUTICAL
The number of LNG newbuilding orders have more than doubled from the same period last year where 34 orders were placed, compared to 78 in the first ...
Monday, 10 June 24
CHINA'S MAY COAL IMPORTS RISE 11% ON LOWER DOMESTIC OUTPUT - REUTERS
China’s imports of coal rose 11% in May from a year earlier, customs data and Reuters records showed on Friday, as lower domestic output this ...
Tuesday, 04 June 24
HOW DO WESTERN SANCTIONS ON RUSSIA IMPACT THE GLOBAL METALS, MINING AND COAL MARKETS - WOOD MACKENZIE
The geopolitical landscape for Russia, as a major supplier of various commodities, has undergone a dramatic transformation since the invasion of Uk ...
Friday, 22 March 24
CASE STUDY: DANGERS OF COAL CARGO - SKULD
Recently, a bulk cargo vessel carrying coal from South Africa to Singapore suffered a fatal accident, resulting in the deaths of three crew members ...
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Showing 21 to 25 news of total 6871 |
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- Grasim Industreis Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- SN Aboitiz Power Inc, Philippines
- Indonesian Coal Mining Association
- Maheswari Brothers Coal Limited - India
- Edison Trading Spa - Italy
- Gujarat Sidhee Cement - India
- Mintek Dendrill Indonesia
- Romanian Commodities Exchange
- Global Business Power Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Indogreen Group - Indonesia
- Eastern Coal Council - USA
- Wilmar Investment Holdings
- Chamber of Mines of South Africa
- Essar Steel Hazira Ltd - India
- Global Green Power PLC Corporation, Philippines
- Lanco Infratech Ltd - India
- Kaltim Prima Coal - Indonesia
- Toyota Tsusho Corporation, Japan
- Renaissance Capital - South Africa
- GAC Shipping (India) Pvt Ltd
- Dalmia Cement Bharat India
- Electricity Authority, New Zealand
- Planning Commission, India
- Trasteel International SA, Italy
- Karaikal Port Pvt Ltd - India
- GMR Energy Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Pipit Mutiara Jaya. PT, Indonesia
- Orica Mining Services - Indonesia
- Thai Mozambique Logistica
- Asmin Koalindo Tuhup - Indonesia
- Sree Jayajothi Cements Limited - India
- Merrill Lynch Commodities Europe
- PowerSource Philippines DevCo
- PetroVietnam Power Coal Import and Supply Company
- Bangladesh Power Developement Board
- Leighton Contractors Pty Ltd - Australia
- Gujarat Mineral Development Corp Ltd - India
- Mjunction Services Limited - India
- CNBM International Corporation - China
- Baramulti Group, Indonesia
- Sarangani Energy Corporation, Philippines
- Videocon Industries ltd - India
- Tamil Nadu electricity Board
- Ceylon Electricity Board - Sri Lanka
- CIMB Investment Bank - Malaysia
- Metalloyd Limited - United Kingdom
- Standard Chartered Bank - UAE
- Barasentosa Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Aboitiz Power Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Commonwealth Bank - Australia
- Alfred C Toepfer International GmbH - Germany
- Sical Logistics Limited - India
- Central Electricity Authority - India
- VISA Power Limited - India
- Star Paper Mills Limited - India
- Deloitte Consulting - India
- Aditya Birla Group - India
- Semirara Mining and Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Binh Thuan Hamico - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Meenaskhi Energy Private Limited - India
- White Energy Company Limited
- Orica Australia Pty. Ltd.
- Bayan Resources Tbk. - Indonesia
- South Luzon Thermal Energy Corporation
- Savvy Resources Ltd - HongKong
- Larsen & Toubro Limited - India
- Gujarat Electricity Regulatory Commission - India
- Sindya Power Generating Company Private Ltd
- Parry Sugars Refinery, India
- Petrochimia International Co. Ltd.- Taiwan
- Medco Energi Mining Internasional
- Australian Coal Association
- Indian Energy Exchange, India
- Pendopo Energi Batubara - Indonesia
- Wood Mackenzie - Singapore
- Carbofer General Trading SA - India
- Heidelberg Cement - Germany
- OPG Power Generation Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Altura Mining Limited, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- GVK Power & Infra Limited - India
- Global Coal Blending Company Limited - Australia
- Attock Cement Pakistan Limited
- Kohat Cement Company Ltd. - Pakistan
- Kartika Selabumi Mining - Indonesia
- Jindal Steel & Power Ltd - India
- Energy Development Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Independent Power Producers Association of India
- Borneo Indobara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- Africa Commodities Group - South Africa
- Minerals Council of Australia
- India Bulls Power Limited - India
- IHS Mccloskey Coal Group - USA
- Karbindo Abesyapradhi - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Port Waratah Coal Services - Australia
- SMG Consultants - Indonesia
- Makarim & Taira - Indonesia
- Riau Bara Harum - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Vedanta Resources Plc - India
- Cement Manufacturers Association - India
- Goldman Sachs - Singapore
- AsiaOL BioFuels Corp., Philippines
- Ministry of Finance - Indonesia
- Petron Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Parliament of New Zealand
- Posco Energy - South Korea
- Ministry of Transport, Egypt
- Meralco Power Generation, Philippines
- Samtan Co., Ltd - South Korea
- San Jose City I Power Corp, Philippines
- Sakthi Sugars Limited - India
- Rio Tinto Coal - Australia
- Economic Council, Georgia
- PNOC Exploration Corporation - Philippines
- Ind-Barath Power Infra Limited - India
- Iligan Light & Power Inc, Philippines
- Singapore Mercantile Exchange
- GN Power Mariveles Coal Plant, Philippines
- Madhucon Powers Ltd - India
- LBH Netherlands Bv - Netherlands
- Kapuas Tunggal Persada - Indonesia
- SMC Global Power, Philippines
- Indian Oil Corporation Limited
- Neyveli Lignite Corporation Ltd, - India
- Manunggal Multi Energi - Indonesia
- New Zealand Coal & Carbon
- Offshore Bulk Terminal Pte Ltd, Singapore
- The State Trading Corporation of India Ltd
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mercuria Energy - Indonesia
- Antam Resourcindo - Indonesia
- Indo Tambangraya Megah - Indonesia
- McConnell Dowell - Australia
- Kepco SPC Power Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kideco Jaya Agung - Indonesia
- Siam City Cement - Thailand
- Sinarmas Energy and Mining - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Interocean Group of Companies - India
- Siam City Cement PLC, Thailand
- Latin American Coal - Colombia
- Therma Luzon, Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Bhatia International Limited - India
- Ambuja Cements Ltd - India
- Thiess Contractors Indonesia
- Mercator Lines Limited - India
- PTC India Limited - India
- Kobexindo Tractors - Indoneisa
- IEA Clean Coal Centre - UK
- Rashtriya Ispat Nigam Limited - India
- Bhushan Steel Limited - India
- Jaiprakash Power Ventures ltd
- Intertek Mineral Services - Indonesia
- Eastern Energy - Thailand
- Malabar Cements Ltd - India
- Marubeni Corporation - India
- Timah Investasi Mineral - Indoneisa
- The University of Queensland
- TNB Fuel Sdn Bhd - Malaysia
- Directorate Of Revenue Intelligence - India
- Xindia Steels Limited - India
- Central Java Power - Indonesia
- MS Steel International - UAE
- Indika Energy - Indonesia
- Vizag Seaport Private Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Mines - Canada
- Bank of Tokyo Mitsubishi UFJ Ltd
- Anglo American - United Kingdom
- Salva Resources Pvt Ltd - India
- Agrawal Coal Company - India
- Price Waterhouse Coopers - Russia
- ASAPP Information Group - India
- TeaM Sual Corporation - Philippines
- Coal and Oil Company - UAE
- Power Finance Corporation Ltd., India
- Bukit Asam (Persero) Tbk - Indonesia
- Uttam Galva Steels Limited - India
- ICICI Bank Limited - India
- Electricity Generating Authority of Thailand
- Kalimantan Lumbung Energi - Indonesia
- Tata Chemicals Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- London Commodity Brokers - England
- Bukit Makmur.PT - Indonesia
- Energy Link Ltd, New Zealand
- Oldendorff Carriers - Singapore
- The Treasury - Australian Government
- Bharathi Cement Corporation - India
- Georgia Ports Authority, United States
- Australian Commodity Traders Exchange
- Sojitz Corporation - Japan
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