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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, 23 February 24
STRONG OUTLOOK FOR THE TANKER MARKET IN 2024 AND BEYOND - DNV
Several factors have aligned over the past two years to create a robust and profitable market for tanker owners, which is expected to drive newbuil ...
Friday, 23 February 24
AUSTRALIAN COAL FLOWS TO ASIA HOVER ABOVE LAST YEAR’S VOLUME TONNES - SIGNAL GROUP
In the final days of February, the dry bulk freight market appeared to maintain a relatively stable momentum, particularly evident in the large ves ...
Friday, 23 February 24
RUSSIAN COAL SHIPMENTS FALL 14% AS SANCTIONS BITE - BIMCO
During the first seven weeks of 2024, Russian coal shipments have fallen 14% y/y. Volumes have gradually declined since October 2023 when logistica ...
Thursday, 22 February 24
BIMCO PUBLISHES SHIP FINANCING FORMS TO ENSURE UNINTERRUPTED USE OF SHIPS
BIMCO has published two standard Quiet Enjoyment Letters (QELs), the first standard form QELs available to the industry, to offer a tool that can e ...
Monday, 19 February 24
METALS INVESTMENT: THE DARKEST HOUR IS JUST BEFORE THE DAWN - WOOD MACKENZIE
Things often seem at their worst just before they get better. In terms of meeting our net zero 2050 scenario, we’ve reached a watershed momen ...
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Showing 31 to 35 news of total 6871 |
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- Videocon Industries ltd - India
- Rashtriya Ispat Nigam Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Alfred C Toepfer International GmbH - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Semirara Mining Corp, Philippines
- India Bulls Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- Vedanta Resources Plc - India
- Marubeni Corporation - India
- Global Business Power Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Georgia Ports Authority, United States
- Pendopo Energi Batubara - Indonesia
- Coal and Oil Company - UAE
- Sree Jayajothi Cements Limited - India
- Orica Australia Pty. Ltd.
- Planning Commission, India
- Indo Tambangraya Megah - Indonesia
- Karaikal Port Pvt Ltd - India
- Aditya Birla Group - India
- Iligan Light & Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Sical Logistics Limited - India
- European Bulk Services B.V. - Netherlands
- Merrill Lynch Commodities Europe
- OPG Power Generation Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Sindya Power Generating Company Private Ltd
- Altura Mining Limited, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Kalimantan Lumbung Energi - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Gujarat Sidhee Cement - India
- Bayan Resources Tbk. - Indonesia
- Therma Luzon, Inc, Philippines
- McConnell Dowell - Australia
- Port Waratah Coal Services - Australia
- ASAPP Information Group - India
- Savvy Resources Ltd - HongKong
- Eastern Energy - Thailand
- Madhucon Powers Ltd - India
- Trasteel International SA, Italy
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indian Energy Exchange, India
- San Jose City I Power Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Star Paper Mills Limited - India
- Australian Commodity Traders Exchange
- Simpson Spence & Young - Indonesia
- Minerals Council of Australia
- Electricity Authority, New Zealand
- Essar Steel Hazira Ltd - India
- IHS Mccloskey Coal Group - USA
- Makarim & Taira - Indonesia
- Medco Energi Mining Internasional
- Directorate General of MIneral and Coal - Indonesia
- Antam Resourcindo - Indonesia
- SN Aboitiz Power Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Dalmia Cement Bharat India
- IEA Clean Coal Centre - UK
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sakthi Sugars Limited - India
- Bukit Makmur.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Independent Power Producers Association of India
- Kepco SPC Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Baramulti Group, Indonesia
- Tata Chemicals Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Edison Trading Spa - Italy
- Anglo American - United Kingdom
- The State Trading Corporation of India Ltd
- Lanco Infratech Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Kapuas Tunggal Persada - Indonesia
- Ind-Barath Power Infra Limited - India
- Wilmar Investment Holdings
- Attock Cement Pakistan Limited
- Ambuja Cements Ltd - India
- GVK Power & Infra Limited - India
- Latin American Coal - Colombia
- Uttam Galva Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- South Luzon Thermal Energy Corporation
- Energy Development Corp, Philippines
- Bulk Trading Sa - Switzerland
- Barasentosa Lestari - Indonesia
- Economic Council, Georgia
- Grasim Industreis Ltd - India
- Energy Link Ltd, New Zealand
- Australian Coal Association
- Global Coal Blending Company Limited - Australia
- Sinarmas Energy and Mining - Indonesia
- Kobexindo Tractors - Indoneisa
- Miang Besar Coal Terminal - Indonesia
- Ministry of Transport, Egypt
- Vizag Seaport Private Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Indonesian Coal Mining Association
- Tamil Nadu electricity Board
- Jorong Barutama Greston.PT - Indonesia
- London Commodity Brokers - England
- Directorate Of Revenue Intelligence - India
- Timah Investasi Mineral - Indoneisa
- LBH Netherlands Bv - Netherlands
- Thiess Contractors Indonesia
- Mercator Lines Limited - India
- Price Waterhouse Coopers - Russia
- Xindia Steels Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Samtan Co., Ltd - South Korea
- Borneo Indobara - Indonesia
- Bharathi Cement Corporation - India
- Singapore Mercantile Exchange
- Indian Oil Corporation Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- New Zealand Coal & Carbon
- Kaltim Prima Coal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Manunggal Multi Energi - Indonesia
- Gujarat Electricity Regulatory Commission - India
- The Treasury - Australian Government
- Holcim Trading Pte Ltd - Singapore
- Parliament of New Zealand
- Thai Mozambique Logistica
- Aboitiz Power Corporation - Philippines
- Heidelberg Cement - Germany
- Mjunction Services Limited - India
- Chamber of Mines of South Africa
- Leighton Contractors Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- Coalindo Energy - Indonesia
- SMC Global Power, Philippines
- Straits Asia Resources Limited - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- White Energy Company Limited
- Parry Sugars Refinery, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Cement Manufacturers Association - India
- Bangladesh Power Developement Board
- Agrawal Coal Company - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Metalloyd Limited - United Kingdom
- Posco Energy - South Korea
- Gujarat Mineral Development Corp Ltd - India
- Bukit Baiduri Energy - Indonesia
- Interocean Group of Companies - India
- Kideco Jaya Agung - Indonesia
- CIMB Investment Bank - Malaysia
- Sojitz Corporation - Japan
- Ministry of Mines - Canada
- Kartika Selabumi Mining - Indonesia
- Mercuria Energy - Indonesia
- Electricity Generating Authority of Thailand
- Jindal Steel & Power Ltd - India
- Malabar Cements Ltd - India
- TeaM Sual Corporation - Philippines
- Sarangani Energy Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Riau Bara Harum - Indonesia
- Kumho Petrochemical, South Korea
- Deloitte Consulting - India
- Mintek Dendrill Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Cigading International Bulk Terminal - Indonesia
- Power Finance Corporation Ltd., India
- Siam City Cement - Thailand
- Meenaskhi Energy Private Limited - India
- Siam City Cement PLC, Thailand
- Goldman Sachs - Singapore
- Ceylon Electricity Board - Sri Lanka
- Romanian Commodities Exchange
- Central Electricity Authority - India
- PowerSource Philippines DevCo
- PNOC Exploration Corporation - Philippines
- Wood Mackenzie - Singapore
- The University of Queensland
- Rio Tinto Coal - Australia
- Maheswari Brothers Coal Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Oldendorff Carriers - Singapore
- Commonwealth Bank - Australia
- MS Steel International - UAE
- Standard Chartered Bank - UAE
- ICICI Bank Limited - India
- SMG Consultants - Indonesia
- VISA Power Limited - India
- Formosa Plastics Group - Taiwan
- Eastern Coal Council - USA
- Toyota Tsusho Corporation, Japan
- Intertek Mineral Services - Indonesia
- Coastal Gujarat Power Limited - India
- Indogreen Group - Indonesia
- Bhatia International Limited - India
- Central Java Power - Indonesia
- Bhushan Steel Limited - India
- Bhoruka Overseas - Indonesia
- CNBM International Corporation - China
- GAC Shipping (India) Pvt Ltd
- Ministry of Finance - Indonesia
- GMR Energy Limited - India
- Binh Thuan Hamico - Vietnam
- Carbofer General Trading SA - India
- Banpu Public Company Limited - Thailand
- Orica Mining Services - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Petron Corporation, Philippines
- Meralco Power Generation, Philippines
- Indika Energy - Indonesia
- Renaissance Capital - South Africa
- PTC India Limited - India
- Africa Commodities Group - South Africa
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