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Monday, 05 November 18
TIGHTER FUEL RULES COULD RAISE SHIPOWNERS' COSTS AND CAPEX - FITCH RATINGS
 More stringent fuel regulations regarding sulphur content could significantly increase global shipping companies’ operating costs and capex needs, Fitch Ratings says. This may negatively affect their credit quality unless they manage to pass these costs to customers. Many shipping companies have started implementing fuel surcharges to recover costs associated with the new sulphur cap regulation, but their ability to sustain these will depend on market fundamentals, which remain challenging.
Competitive dynamics may change in the longer term with companies that are less financially able to absorb additional costs, especially given higher oil prices, withdrawing from the market. Reduced competitive pressures could then support a better supply-demand balance and allow the remaining shipping companies to raise freight rates in a bid to recoup some of the extra costs. The change in shipping fuel consumption could also affect refineries.
International Maritime Organization rules requiring ships to use fuel with sulphur content no higher than 0.5% (compared with 3.5% currently) come into effect on 1 January 2020. This means that shipping companies need to switch to higher-quality and more expensive marine fuel, use special equipment (“scrubbers”) to reduce sulphur emissions or switch to alternative fuels, such as liquefied natural gas (LNG). The new regulation will apply globally. Sulphur Emission Control Areas were established in a limited number of sea areas in 2005 and the sulphur content limit for fuel in those areas was tightened to 0.1% in 2015.
The global shipping industry fuel cost bill could increase by up to USD60 billion a year as a result of the new rules from 2020 for a total merchant fleet of 60,000 vessels, according to Wood Mackenzie. According to Maersk Line, its additional fuel costs would be over USD2 billion with a cost for the container shipping industry as a whole of up to USD15 billion, based on the difference in price of fuel with 3.5% and 0.5% sulphur content.
Scrubbers could be a viable alternative for some companies, but require several million dollars in upfront investments for each ship. Furthermore, scrubbers’ manufacturing and installing capacity is limited to fitting only about 2,000 scrubbers by 2020, according to Norwegian bank SEB. The LNG option will also require investments to retrofit ship engines and capacity to carry high-volume LNG tanks. In addition, LNG refuelling infrastructure may not be readily available globally.
The impact of the new regulation is unlikely to be uniform across segments. Ship owners that lease out ships with fuel costs borne by the charterer will be significantly less affected than operators that cover the fuel bill themselves if fuel surcharges related to the sulphur cap are not sustained.
If a significant proportion of shipping companies opt for higher-quality, low-sulphur fuel to comply with the regulations, the balance in the oil products market, and therefore refineries, may be affected. The 4 million barrel a day marine fuel market has been absorbing residue from the refining process, so there may be a need for refineries to adjust processes if demand for heavy fuel drops.
Demand for higher-quality fuel could lead to higher prices and widen pricing differentials between low- and high-sulphur products. Refineries with a higher share of middle distillates in their output, which are required to produce low-sulphur marine fuel, will benefit from the change. Low-complexity refineries will be hit and may need to invest in upgrades to shift their output towards middle distillates.
Source: Fitch Ratings
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Friday, 04 January 19
FOCUS IS ON BOOSTING COAL PRODUCTION: INDIAN COAL MINISTER
The current focus of the government is on boosting production from operational coal mines, according to Minister for Coal, Piyush Goyal.
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Thursday, 03 January 19
CAPESIZE: A MORE POSITIVE START OF THE NEW YEAR THAN EXPECTED FOR THE BIG SHIPS - FEARNLEYS
Capesize
A more positive start of the new year than expected for the big ships, with average gains of US$ 500/day posted on the first tra ...
Tuesday, 01 January 19
INDONESIA: COAL PRODUCTION EXPECTED TO EXCEED THIS YEAR'S TARGET - JP
Indonesian coal production reached 456 million tons up to Thursday or 94.02 percent of this year’s total target of 485 million tons, accordin ...
Monday, 31 December 18
THE INDONESIAN COAL MARKET Q1 '19 FORECAST: LOOKS DIRECTIONLESS - TRADER
The Indonesian coal market looks directionless, an International coal trader said when we asked him to give his forecast for 1Q' 2019.
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Monday, 31 December 18
GLOBAL COAL DEMAND GREW BY 1% IN 2017; GLOBAL COAL POWER GENERATION INCREASED BY OVER 250 TWH - IEA
After two years of decline, global coal demand grew by 1% in 2017 to 7585 Mt as stronger global economic growth increased both industrial output an ...
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Showing 1506 to 1510 news of total 6871 |
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- Posco Energy - South Korea
- Kalimantan Lumbung Energi - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Altura Mining Limited, Indonesia
- Bukit Baiduri Energy - Indonesia
- Africa Commodities Group - South Africa
- Essar Steel Hazira Ltd - India
- Orica Mining Services - Indonesia
- Planning Commission, India
- Rashtriya Ispat Nigam Limited - India
- Parliament of New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- Grasim Industreis Ltd - India
- Ind-Barath Power Infra Limited - India
- Samtan Co., Ltd - South Korea
- Indogreen Group - Indonesia
- Binh Thuan Hamico - Vietnam
- Orica Australia Pty. Ltd.
- Kaltim Prima Coal - Indonesia
- VISA Power Limited - India
- Australian Commodity Traders Exchange
- CIMB Investment Bank - Malaysia
- Central Electricity Authority - India
- Ministry of Mines - Canada
- Australian Coal Association
- McConnell Dowell - Australia
- Makarim & Taira - Indonesia
- Gujarat Sidhee Cement - India
- LBH Netherlands Bv - Netherlands
- Sinarmas Energy and Mining - Indonesia
- Cement Manufacturers Association - India
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining and Power Corporation, Philippines
- Central Java Power - Indonesia
- Aboitiz Power Corporation - Philippines
- Sree Jayajothi Cements Limited - India
- Borneo Indobara - Indonesia
- Dalmia Cement Bharat India
- Power Finance Corporation Ltd., India
- Indian Energy Exchange, India
- Bahari Cakrawala Sebuku - Indonesia
- Vedanta Resources Plc - India
- Eastern Coal Council - USA
- Goldman Sachs - Singapore
- Electricity Authority, New Zealand
- Tata Chemicals Ltd - India
- Indika Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Riau Bara Harum - Indonesia
- Ministry of Transport, Egypt
- Asmin Koalindo Tuhup - Indonesia
- Port Waratah Coal Services - Australia
- Sojitz Corporation - Japan
- Ministry of Finance - Indonesia
- Indo Tambangraya Megah - Indonesia
- Price Waterhouse Coopers - Russia
- PetroVietnam Power Coal Import and Supply Company
- Sarangani Energy Corporation, Philippines
- Lanco Infratech Ltd - India
- Standard Chartered Bank - UAE
- Heidelberg Cement - Germany
- Holcim Trading Pte Ltd - Singapore
- New Zealand Coal & Carbon
- Eastern Energy - Thailand
- Deloitte Consulting - India
- Global Green Power PLC Corporation, Philippines
- SMG Consultants - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Kideco Jaya Agung - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Chettinad Cement Corporation Ltd - India
- Videocon Industries ltd - India
- Kepco SPC Power Corporation, Philippines
- GMR Energy Limited - India
- Kartika Selabumi Mining - Indonesia
- ICICI Bank Limited - India
- Rio Tinto Coal - Australia
- Kobexindo Tractors - Indoneisa
- Bukit Asam (Persero) Tbk - Indonesia
- Mjunction Services Limited - India
- Thiess Contractors Indonesia
- Baramulti Group, Indonesia
- Agrawal Coal Company - India
- Jorong Barutama Greston.PT - Indonesia
- Petron Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Karaikal Port Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Electricity Generating Authority of Thailand
- Tamil Nadu electricity Board
- Romanian Commodities Exchange
- Intertek Mineral Services - Indonesia
- Simpson Spence & Young - Indonesia
- Straits Asia Resources Limited - Singapore
- SMC Global Power, Philippines
- Siam City Cement - Thailand
- Bhoruka Overseas - Indonesia
- Billiton Holdings Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Minerals Council of Australia
- Miang Besar Coal Terminal - Indonesia
- Parry Sugars Refinery, India
- Thai Mozambique Logistica
- Economic Council, Georgia
- Indian Oil Corporation Limited
- Directorate Of Revenue Intelligence - India
- Coal and Oil Company - UAE
- IEA Clean Coal Centre - UK
- Trasteel International SA, Italy
- Barasentosa Lestari - Indonesia
- Maheswari Brothers Coal Limited - India
- Bangladesh Power Developement Board
- Metalloyd Limited - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- White Energy Company Limited
- Savvy Resources Ltd - HongKong
- European Bulk Services B.V. - Netherlands
- Georgia Ports Authority, United States
- OPG Power Generation Pvt Ltd - India
- Sakthi Sugars Limited - India
- PTC India Limited - India
- Oldendorff Carriers - Singapore
- Bhushan Steel Limited - India
- Energy Development Corp, Philippines
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Banpu Public Company Limited - Thailand
- GVK Power & Infra Limited - India
- Meenaskhi Energy Private Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Iligan Light & Power Inc, Philippines
- The Treasury - Australian Government
- Pipit Mutiara Jaya. PT, Indonesia
- PNOC Exploration Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- Star Paper Mills Limited - India
- Singapore Mercantile Exchange
- GN Power Mariveles Coal Plant, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Business Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Formosa Plastics Group - Taiwan
- Semirara Mining Corp, Philippines
- MS Steel International - UAE
- Bharathi Cement Corporation - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Wood Mackenzie - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Mercator Lines Limited - India
- Carbofer General Trading SA - India
- Salva Resources Pvt Ltd - India
- Commonwealth Bank - Australia
- Global Coal Blending Company Limited - Australia
- CNBM International Corporation - China
- IHS Mccloskey Coal Group - USA
- Bayan Resources Tbk. - Indonesia
- TeaM Sual Corporation - Philippines
- Indonesian Coal Mining Association
- Attock Cement Pakistan Limited
- Timah Investasi Mineral - Indoneisa
- Coastal Gujarat Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement PLC, Thailand
- London Commodity Brokers - England
- Antam Resourcindo - Indonesia
- Wilmar Investment Holdings
- Therma Luzon, Inc, Philippines
- Larsen & Toubro Limited - India
- Manunggal Multi Energi - Indonesia
- San Jose City I Power Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- PowerSource Philippines DevCo
- Bukit Makmur.PT - Indonesia
- ASAPP Information Group - India
- Ceylon Electricity Board - Sri Lanka
- The University of Queensland
- Interocean Group of Companies - India
- Independent Power Producers Association of India
- Mercuria Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Uttam Galva Steels Limited - India
- GAC Shipping (India) Pvt Ltd
- Edison Trading Spa - Italy
- Energy Link Ltd, New Zealand
- Chamber of Mines of South Africa
- Latin American Coal - Colombia
- Ambuja Cements Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Alfred C Toepfer International GmbH - Germany
- Bhatia International Limited - India
- Aditya Birla Group - India
- Meralco Power Generation, Philippines
- SN Aboitiz Power Inc, Philippines
- Renaissance Capital - South Africa
- Anglo American - United Kingdom
- Jaiprakash Power Ventures ltd
- International Coal Ventures Pvt Ltd - India
- Medco Energi Mining Internasional
- Marubeni Corporation - India
- Xindia Steels Limited - India
- Bulk Trading Sa - Switzerland
- AsiaOL BioFuels Corp., Philippines
- Coalindo Energy - Indonesia
- Sical Logistics Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Malabar Cements Ltd - India
- Pendopo Energi Batubara - Indonesia
- Madhucon Powers Ltd - India
- Toyota Tsusho Corporation, Japan
- Jindal Steel & Power Ltd - India
- Kumho Petrochemical, South Korea
- India Bulls Power Limited - India
- Merrill Lynch Commodities Europe
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