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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, 28 September 18
INDONESIA 2018 COAL OUTPUT TARGET NOW AROUND 507 MLN T - ENERGY MINISTRY : REUTERS
Indonesia has increased its 2018 coal production target to around 507 million tonnes from a previous target of 485 million tonnes, the Energy Minis ...
Friday, 28 September 18
FITCH RATINGS: METALLURGICAL COAL MINERS MAY CURB COSTS AS PRICES SLIP
Strong cost inflation in the global metallurgical coal sector suggests that miners may focus on cost controls as prices decline from their current ...
Wednesday, 26 September 18
IS YOUR CHARTER PARTY READY FOR 2020? - METTE KRONHOLM FRAENDE, BIMCO
As the deadline for the IMO’s global low-sulphur fuel requirements fast approaches, it is necessary to carefully check the bunker clauses in ...
Wednesday, 26 September 18
SHIPPING MARKET INSIGHT - GEORGE ILIOPOULOS
Despite the fact that the dry bulk SnP market saw an admittedly busy summer season, there is a noticeable slowdown in activity during the past thre ...
Tuesday, 25 September 18
THE INCONVENIENT TRUTH OF RISING COAL PRICES - FORBES
Coal prices are not supposed to be rising as governments tighten environmental controls but that’s precisely what is happening at the premium ...
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Showing 1606 to 1610 news of total 6871 |
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- Iligan Light & Power Inc, Philippines
- Romanian Commodities Exchange
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sakthi Sugars Limited - India
- Manunggal Multi Energi - Indonesia
- Altura Mining Limited, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Kobexindo Tractors - Indoneisa
- Malabar Cements Ltd - India
- Tata Chemicals Ltd - India
- New Zealand Coal & Carbon
- ICICI Bank Limited - India
- Sojitz Corporation - Japan
- Globalindo Alam Lestari - Indonesia
- Dalmia Cement Bharat India
- Therma Luzon, Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Thai Mozambique Logistica
- Bharathi Cement Corporation - India
- Jindal Steel & Power Ltd - India
- Mercuria Energy - Indonesia
- Electricity Generating Authority of Thailand
- Sical Logistics Limited - India
- Anglo American - United Kingdom
- Semirara Mining Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Coal and Oil Company - UAE
- Ind-Barath Power Infra Limited - India
- European Bulk Services B.V. - Netherlands
- Indogreen Group - Indonesia
- London Commodity Brokers - England
- Rio Tinto Coal - Australia
- Samtan Co., Ltd - South Korea
- Formosa Plastics Group - Taiwan
- Kideco Jaya Agung - Indonesia
- Port Waratah Coal Services - Australia
- White Energy Company Limited
- Medco Energi Mining Internasional
- SN Aboitiz Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Lanco Infratech Ltd - India
- LBH Netherlands Bv - Netherlands
- The University of Queensland
- Wilmar Investment Holdings
- Essar Steel Hazira Ltd - India
- Indian Energy Exchange, India
- Africa Commodities Group - South Africa
- Siam City Cement PLC, Thailand
- Parliament of New Zealand
- India Bulls Power Limited - India
- Commonwealth Bank - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Sinarmas Energy and Mining - Indonesia
- Jaiprakash Power Ventures ltd
- Bayan Resources Tbk. - Indonesia
- Standard Chartered Bank - UAE
- Global Business Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Riau Bara Harum - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- SMG Consultants - Indonesia
- Bukit Baiduri Energy - Indonesia
- Star Paper Mills Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Agrawal Coal Company - India
- Indika Energy - Indonesia
- Latin American Coal - Colombia
- CIMB Investment Bank - Malaysia
- PowerSource Philippines DevCo
- Bukit Makmur.PT - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Bahari Cakrawala Sebuku - Indonesia
- SMC Global Power, Philippines
- Eastern Coal Council - USA
- Eastern Energy - Thailand
- Borneo Indobara - Indonesia
- Bangladesh Power Developement Board
- Central Java Power - Indonesia
- The Treasury - Australian Government
- Intertek Mineral Services - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Central Electricity Authority - India
- GVK Power & Infra Limited - India
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- Georgia Ports Authority, United States
- Mjunction Services Limited - India
- Marubeni Corporation - India
- Cement Manufacturers Association - India
- Rashtriya Ispat Nigam Limited - India
- Interocean Group of Companies - India
- PTC India Limited - India
- Sree Jayajothi Cements Limited - India
- PNOC Exploration Corporation - Philippines
- Australian Commodity Traders Exchange
- ASAPP Information Group - India
- Renaissance Capital - South Africa
- Semirara Mining and Power Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Energy Development Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Carbofer General Trading SA - India
- Ceylon Electricity Board - Sri Lanka
- Grasim Industreis Ltd - India
- Simpson Spence & Young - Indonesia
- Parry Sugars Refinery, India
- Australian Coal Association
- Meralco Power Generation, Philippines
- Indonesian Coal Mining Association
- Bhushan Steel Limited - India
- IEA Clean Coal Centre - UK
- Oldendorff Carriers - Singapore
- Kepco SPC Power Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Larsen & Toubro Limited - India
- Chettinad Cement Corporation Ltd - India
- Trasteel International SA, Italy
- Deloitte Consulting - India
- Alfred C Toepfer International GmbH - Germany
- Planning Commission, India
- International Coal Ventures Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Tamil Nadu electricity Board
- Savvy Resources Ltd - HongKong
- Merrill Lynch Commodities Europe
- Videocon Industries ltd - India
- Salva Resources Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement - Thailand
- Madhucon Powers Ltd - India
- Indian Oil Corporation Limited
- Coalindo Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- Petron Corporation, Philippines
- Singapore Mercantile Exchange
- The State Trading Corporation of India Ltd
- Orica Australia Pty. Ltd.
- Meenaskhi Energy Private Limited - India
- Vedanta Resources Plc - India
- Bhoruka Overseas - Indonesia
- Heidelberg Cement - Germany
- South Luzon Thermal Energy Corporation
- Bulk Trading Sa - Switzerland
- PetroVietnam Power Coal Import and Supply Company
- AsiaOL BioFuels Corp., Philippines
- Xindia Steels Limited - India
- Billiton Holdings Pty Ltd - Australia
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Finance - Indonesia
- Metalloyd Limited - United Kingdom
- Mintek Dendrill Indonesia
- Directorate Of Revenue Intelligence - India
- Miang Besar Coal Terminal - Indonesia
- Edison Trading Spa - Italy
- Straits Asia Resources Limited - Singapore
- IHS Mccloskey Coal Group - USA
- San Jose City I Power Corp, Philippines
- Independent Power Producers Association of India
- Makarim & Taira - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Pendopo Energi Batubara - Indonesia
- Baramulti Group, Indonesia
- Power Finance Corporation Ltd., India
- Posco Energy - South Korea
- Sindya Power Generating Company Private Ltd
- Cigading International Bulk Terminal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- TeaM Sual Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Minerals Council of Australia
- Kumho Petrochemical, South Korea
- Timah Investasi Mineral - Indoneisa
- Economic Council, Georgia
- Gujarat Electricity Regulatory Commission - India
- MS Steel International - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Global Green Power PLC Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Vizag Seaport Private Limited - India
- Ambuja Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Goldman Sachs - Singapore
- Barasentosa Lestari - Indonesia
- GMR Energy Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Mineral Development Corp Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ministry of Transport, Egypt
- Orica Mining Services - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Electricity Authority, New Zealand
- Ministry of Mines - Canada
- Mercator Lines Limited - India
- VISA Power Limited - India
- Antam Resourcindo - Indonesia
- Gujarat Sidhee Cement - India
- Karaikal Port Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Chamber of Mines of South Africa
- Wood Mackenzie - Singapore
- Kalimantan Lumbung Energi - Indonesia
- McConnell Dowell - Australia
- Karbindo Abesyapradhi - Indoneisa
- Global Coal Blending Company Limited - Australia
- Maheswari Brothers Coal Limited - India
- Thiess Contractors Indonesia
- Bhatia International Limited - India
- Attock Cement Pakistan Limited
- Kartika Selabumi Mining - Indonesia
- Aditya Birla Group - India
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