COALspot.com keeps you connected across the coal world
  • SEPTEMBER 2020 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS INCLUDING POWER PRODUCERS FIXED AT US$ 49.42 A TON

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Monday, 16 September 19
SCRUBBERS AND FUEL PROFIT SHARE CLAUSES - CLYDE&CO
Clyde&CoFrom 1 January 2020, Regulation 14 of MARPOL Annex VI provides that the sulphur content in fuel oil used on board ships shall be reduced from a maximum limit of 3.5% to a maximum limit of 0.5% (the limit in emission control areas remains at 0.1%). Regulation 4 of MARPOL Annex VI permits equivalent methods of compliance provided such methods are at least as effective in terms of emissions reductions.
Whilst it is up to individual port state control and flag states to implement and enforce MARPOL Annex VI, the use of Exhaust Gas Cleaning Systems (“Scrubbers”) is widely expected to be a legitimate option as an equivalent method of compliance.
 
The anticipated key financial benefit for Owners that have invested or are considering in investing in Scrubber-fitted vessels, is that there will be substantial savings in the cost of trading the vessels due to the expected price differential between fuels with a high sulphur content and ‘compliant’ fuels with a low sulphur content. For example, this week press reports suggest that the fuels currently being traded result in a price differential of about $150-$250 per mt between 0.5% sulphur fuels and high sulphur fuels and predict a price differential of over $400 per mt in 2020 (the differential between high sulphur fuels and 0.1% sulphur fuels is greater).1
 
Owners have various options available to them in terms of benefitting from the expected fuel differential for Scrubber-fitted vessels.
 
For example, if Owners are spot trading their Scrubber-fitted vessels, typically it is Owners that pay for the fuel so Owners will therefore benefit from the lower costs of burning high sulphur fuels. If Owners are time chartering their vessel, typically under a time charterparty Charterers will pay for the fuel so Charterers will therefore benefit from the lower costs of burning high sulphur fuel. In consideration for providing this benefit under a time charter, Owners may simply demand a higher charter rate or a ‘scrubber premium’ on the market charter rate.
 
Alternatively, there are a number of creative ways in which Owners and Charterers can share the benefit of the expected or actual fuel savings for Scrubber-fitted vessels. One of these ways is through implementing a fuel profit-sharing scrubber clause (“FPS Scrubber Clause”) into the time charterparty. It has been reported in the press recently that these are being used with good effect by some owners to keep charter rates competitive.2
 
There are a number of different legal, operational and commercial factors which will have to be considered in negotiating and drafting FPS Scrubber Clauses and so it is unlikely there is a one-size fits all FPS Scrubber Clause that can be applied across the market. By way of example, the ongoing delay to an intended Bimco industry-standard scrubber clause is illustrative of the complexity and competing interests at play. For example, if owners are bearing the majority of the capital risk and operational risk of the Scrubber, then should owners be entitled to the majority of the benefit of the fuel differential? In the event that the Scrubber is not operational for technical or regulatory reasons, who is responsible for providing compliant low sulphur fuel?
 
An FPS Scrubber Clause is an innovative way for Owners and Charterers to allocate the anticipated risks and benefits of complying with the implementation of MARPOL Annex VI from 1 January 2020 through the use of Scrubbers. James Kennedy and Fanos Theophani have been involved in the negotiation and drafting of FPS Scrubber Clauses and are well placed to advise and assist the market on these issues.
 
1 “Songa Container pioneers profit-sharing scrubber clause” Tradewinds 30 August 2019
2 “IMO2020: RAI 2020 Marine Fuel Availability Study Re-Boot” Ship and Bunker 3 September 2019, and “IMO2020: Rollercoaster HSFO Prices Send Singapore VLSFO Premiums Under $85/mt” Ship and Bunker 30 August 2019
Source: Clyde&Co


If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Friday, 04 September 20
IN A DEEPENING DEBT HOLE OF $34 BILLION, INDONESIA’S PLN MUST STOP DIGGING - IEEFA
The utility has added IDR100 trillion in debt annually for the last five years Utilities globally started changing the way they do business ye ...


Friday, 04 September 20
KOMIPO INVITED BIDS FOR AUSTRALIAN MIN 5,700 NCV COAL FOR NOVEMBER
COALspot.com: Korea Midland Power Co. Ltd, has issued an International tender for 260,000 MT Min.5,700 kcal/kg NCV coal November, 2020 loading. Acc ...


Thursday, 03 September 20
BRINGING SERVICES OF FTCCI CLOSER TO THE EXPORTERS AT GMR AIR CARGO COMPLEX AT SHAMSHABAD
Press Release: “FTCCI Trade Facilitation Services at your doorstep now” says J.S. Chandrashekar, IRS., Principal Commissioner of Custom ...


Thursday, 03 September 20
CHINA'S BENCHMARK POWER COAL PRICE REMAINS FLAT - XINHUA
China’s benchmark power coal price remained flat during the past week.   The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...


Wednesday, 02 September 20
COAL PRODUCTION FALLS 7% IN APR-AUG; OFF TAKE DIPS 13.4% - FINANCIAL EXPRESS
In the month of August coal off take also increased 9.3% y-o-y to 44.34 MT as compared with 40.57 MT in the same period last year.   C ...


   2 3 4 5 6   
Showing 16 to 20 news of total 6089
News by Category
Popular News
 
Total Members : 27,083
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • Mercator Lines Limited - India
  • Riau Bara Harum - Indonesia
  • Manunggal Multi Energi - Indonesia
  • Japan Coal Energy Center
  • Total Coal South Africa
  • DBS Bank - Singapore
  • Runge Indonesia
  • Maruti Cements - India
  • Gresik Semen - Indonesia
  • GMR Energy Limited - India
  • Binh Thuan Hamico - Vietnam
  • TRAFIGURA, South Korea
  • Savvy Resources Ltd - HongKong
  • Argus Media - Singapore
  • Ince & co LLP
  • GVK Power & Infra Limited - India
  • TNPL - India
  • Kepco SPC Power Corporation, Philippines
  • Humpuss - Indonesia
  • World Coal - UK
  • Petrochimia International Co. Ltd.- Taiwan
  • Alfred C Toepfer International GmbH - Germany
  • Asia Cement - Taiwan
  • McConnell Dowell - Australia
  • globalCOAL - UK
  • Moodys - Singapore
  • Kapuas Tunggal Persada - Indonesia
  • Pendopo Energi Batubara - Indonesia
  • KPMG - USA
  • IOL Indonesia
  • TNB Fuel Sdn Bhd - Malaysia
  • Siam City Cement PLC, Thailand
  • Bank of China, Malaysia
  • Borneo Indobara - Indonesia
  • PetroVietnam Power Coal Import and Supply Company
  • Geoservices-GeoAssay Lab
  • Global Business Power Corporation, Philippines
  • Romanian Commodities Exchange
  • Jorong Barutama Greston.PT - Indonesia
  • Kobexindo Tractors - Indoneisa
  • Timah Investasi Mineral - Indoneisa
  • Vedanta Resources Plc - India
  • Kaltim Prima Coal - Indonesia
  • Shenhua Group - China
  • Dalmia Cement Bharat India
  • McKinsey & Co - India
  • WorleyParsons
  • Ind-Barath Power Infra Limited - India
  • Merrill Lynch Commodities Europe
  • PetroVietnam
  • Mitsubishi Corporation
  • Coal and Oil Company - UAE
  • Australian Commodity Traders Exchange
  • PTC India Limited - India
  • Coastal Gujarat Power Limited - India
  • Trasteel International SA, Italy
  • BNP Paribas - Singapore
  • Xindia Steels Limited - India
  • Xstrata Coal
  • Maheswari Brothers Coal Limited - India
  • GNFC Limited - India
  • Central Electricity Authority - India
  • Rashtriya Ispat Nigam Limited - India
  • Kideco Jaya Agung - Indonesia
  • Bangladesh Power Developement Board
  • Cargill India Pvt Ltd
  • OPG Power Generation Pvt Ltd - India
  • Surastha Cement
  • Vale Mozambique
  • APGENCO India
  • Banpu Public Company Limited - Thailand
  • Maybank - Singapore
  • Eastern Coal Council - USA
  • Bulk Trading Sa - Switzerland
  • Indorama - Singapore
  • Deutsche Bank - India
  • Sical Logistics Limited - India
  • IEA Clean Coal Centre - UK
  • Malabar Cements Ltd - India
  • Global Coal Blending Company Limited - Australia
  • Oldendorff Carriers - Singapore
  • London Commodity Brokers - England
  • Reliance Power - India
  • Siam City Cement - Thailand
  • SASOL - South Africa
  • KEPCO - South Korea
  • Enel Italy
  • Energy Link Ltd, New Zealand
  • Heidelberg Cement - Germany
  • VISA Power Limited - India
  • Russian Coal LLC
  • Barasentosa Lestari - Indonesia
  • Thomson Reuters GRC
  • ANZ Bank - Australia
  • Standard Chartered Bank - UAE
  • Ministry of Transport, Egypt
  • HSBC - Hong Kong
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • Thai Mozambique Logistica
  • Sinarmas Energy and Mining - Indonesia
  • Cemex - Philippines
  • PLN Batubara - Indonesia
  • Orica Australia Pty. Ltd.
  • AsiaOL BioFuels Corp., Philippines
  • Miang Besar Coal Terminal - Indonesia
  • MEC Coal - Indonesia
  • Star Paper Mills Limited - India
  • KPCL - India
  • Metalloyd Limited - United Kingdom
  • Britmindo - Indonesia
  • Therma Luzon, Inc, Philippines
  • Shree Cement - India
  • Directorate Of Revenue Intelligence - India
  • OCBC - Singapore
  • Wood Mackenzie - Singapore
  • Malco - India
  • Bukit Makmur.PT - Indonesia
  • Indika Energy - Indonesia
  • The India Cements Ltd
  • Anglo American - United Kingdom
  • Fearnleys - India
  • Merrill Lynch Bank
  • PLN - Indonesia
  • Chamber of Mines of South Africa
  • U S Energy Resources
  • Toyota Tsusho Corporation, Japan
  • Noble Europe Ltd - UK
  • SUEK AG - Indonesia
  • Billiton Holdings Pty Ltd - Australia
  • Sojitz Corporation - Japan
  • Samsung - South Korea
  • Port Waratah Coal Services - Australia
  • Medco Energi Mining Internasional
  • IBC Asia (S) Pte Ltd
  • GAC Shipping (India) Pvt Ltd
  • Platou - Singapore
  • Directorate General of MIneral and Coal - Indonesia
  • Coaltrans Conferences
  • bp singapore
  • Vijayanagar Sugar Pvt Ltd - India
  • JPower - Japan
  • Krishnapatnam Port Company Ltd. - India
  • Indo Tambangraya Megah - Indonesia
  • Eastern Energy - Thailand
  • Simpson Spence & Young - Indonesia
  • Commonwealth Bank - Australia
  • Inspectorate - India
  • Meralco Power Generation, Philippines
  • Ernst & Young Pvt. Ltd.
  • Bukit Asam (Persero) Tbk - Indonesia
  • Samtan Co., Ltd - South Korea
  • Clarksons - UK
  • Holcim Trading Pte Ltd - Singapore
  • The State Trading Corporation of India Ltd
  • Salva Resources Pvt Ltd - India
  • Latin American Coal - Colombia
  • Wilmar Investment Holdings
  • Ministry of Mines - Canada
  • ASAPP Information Group - India
  • NTPC Limited - India
  • Australian Coal Association
  • Adaro Indonesia
  • Cosco
  • Lanco Infratech Ltd - India
  • IMC Shipping - Singapore
  • ETA - Dubai
  • TANGEDCO India
  • Kobe Steel Ltd - Japan
  • LBH Netherlands Bv - Netherlands
  • SN Aboitiz Power Inc, Philippines
  • Bharathi Cement Corporation - India
  • Jindal Steel & Power Ltd - India
  • Thiess Contractors Indonesia
  • EIA - United States
  • GN Power Mariveles Coal Plant, Philippines
  • Intertek Mineral Services - Indonesia
  • Ceylon Electricity Board - Sri Lanka
  • Meenaskhi Energy Private Limited - India
  • RBS Sempra - UK
  • Bukit Baiduri Energy - Indonesia
  • Kalimantan Lumbung Energi - Indonesia
  • MS Steel International - UAE
  • Cardiff University - UK
  • Maharashtra Electricity Regulatory Commission - India
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Agrawal Coal Company - India
  • SMG Consultants - Indonesia
  • Asian Development Bank
  • Asmin Koalindo Tuhup - Indonesia
  • Georgia Ports Authority, United States
  • Indonesian Coal Mining Association
  • CIMB Investment Bank - Malaysia
  • Edison Trading Spa - Italy
  • Tata Power - India
  • Qatrana Cement - Jordan
  • Vizag Seaport Private Limited - India
  • TGV SRAAC LIMITED, India
  • Semirara Mining Corp, Philippines
  • Uttam Galva Steels Limited - India
  • Carbofer General Trading SA - India
  • Gujarat Electricity Regulatory Commission - India
  • SMC Global Power, Philippines
  • Marubeni Corporation - India
  • Bhushan Steel Limited - India
  • Larsen & Toubro Limited - India
  • Adani Power Ltd - India
  • Arch Coal - USA
  • Arutmin Indonesia
  • Tata Chemicals Ltd - India
  • Credit Suisse - India
  • Sakthi Sugars Limited - India
  • Mintek Dendrill Indonesia
  • Coal Orbis AG
  • India Bulls Power Limited - India
  • Vitol - Bahrain
  • Bangkok Bank PCL
  • TeaM Sual Corporation - Philippines
  • Kohat Cement Company Ltd. - Pakistan
  • The University of Queensland
  • Posco Energy - South Korea
  • Globalindo Alam Lestari - Indonesia
  • Grasim Industreis Ltd - India
  • Sindya Power Generating Company Private Ltd
  • Deloitte Consulting - India
  • Semirara Mining and Power Corporation, Philippines
  • Kartika Selabumi Mining - Indonesia
  • Indian School of Mines
  • PowerSource Philippines DevCo
  • Essar Steel Hazira Ltd - India
  • Coal India Limited
  • GHCL Limited - India
  • Aditya Birla Group - India
  • UBS Singapore
  • Parry Sugars Refinery, India
  • CoalTek, United States
  • Bhatia International Limited - India
  • UOB Asia (HK) Ltd
  • PNOC Exploration Corporation - Philippines
  • Jaiprakash Power Ventures ltd
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Power Finance Corporation Ltd., India
  • Indogreen Group - Indonesia
  • Platts
  • CESC Limited - India
  • Tamil Nadu electricity Board
  • Sucofindo - Indonesia
  • Panama Canal Authority
  • South Luzon Thermal Energy Corporation
  • Ministry of Finance - Indonesia
  • Glencore India Pvt. Ltd
  • CNBM International Corporation - China
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Karbindo Abesyapradhi - Indoneisa
  • IHS Mccloskey Coal Group - USA
  • Pinang Coal Indonesia
  • Straits Asia Resources Limited - Singapore
  • Tanito Harum - Indonesia
  • Mechel - Russia
  • The Treasury - Australian Government
  • Renaissance Capital - South Africa
  • Freeport Indonesia
  • Thriveni
  • Baramulti Group, Indonesia
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Leighton Contractors Pty Ltd - Australia
  • Gujarat Mineral Development Corp Ltd - India
  • Bayan Resources Tbk. - Indonesia
  • Mitsui
  • Cebu Energy, Philippines
  • Kumho Petrochemical, South Korea
  • Rio Tinto Coal - Australia
  • Permata Bank - Indonesia
  • Mitra SK Pvt Ltd - India
  • Iligan Light & Power Inc, Philippines
  • Cigading International Bulk Terminal - Indonesia
  • Chettinad Cement Corporation Ltd - India
  • Formosa Plastics Group - Taiwan
  • GB Group - China
  • Global Green Power PLC Corporation, Philippines
  • Coeclerici Indonesia
  • Barclays Capital - USA
  • New Zealand Coal & Carbon
  • ICICI Bank Limited - India
  • Altura Mining Limited, Indonesia
  • JPMorgan - India
  • SGS (Thailand) Limited
  • Interocean Group of Companies - India
  • Thailand Anthracite
  • Idemitsu - Japan
  • Mercuria Energy - Indonesia
  • Gujarat Sidhee Cement - India
  • Indonesia Power. PT
  • Goldman Sachs - Singapore
  • Electricity Generating Authority of Thailand
  • Orica Mining Services - Indonesia
  • Minerals Council of Australia
  • International Coal Ventures Pvt Ltd - India
  • KOWEPO - South Korea
  • Thermax Limited - India
  • J M Baxi & Co - India
  • World Bank
  • Aboitiz Power Corporation - Philippines
  • Bank of America
  • Jatenergy - Australia
  • Price Waterhouse Coopers - Russia
  • Rudhra Energy - India
  • Sarangani Energy Corporation, Philippines
  • Coalindo Energy - Indonesia
  • Independent Power Producers Association of India
  • Madhucon Powers Ltd - India
  • CCIC - Indonesia
  • Core Mineral Indonesia
  • White Energy Company Limited
  • Gupta Coal India Ltd
  • Infraline Energy - India
  • Pipit Mutiara Jaya. PT, Indonesia
  • Africa Commodities Group - South Africa
  • NALCO India
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Central Java Power - Indonesia
  • ACC Limited - India
  • ING Bank NV - Singapore
  • Indian Oil Corporation Limited
  • San Jose City I Power Corp, Philippines
  • Neyveli Lignite Corporation Ltd, - India
  • Bhoruka Overseas - Indonesia
  • Videocon Industries ltd - India
  • Cement Manufacturers Association - India
  • Peabody Energy - USA
  • Singapore Mercantile Exchange
  • Bahari Cakrawala Sebuku - Indonesia
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • European Bulk Services B.V. - Netherlands
  • Energy Development Corp, Philippines
  • BRS Brokers - Singapore
  • Makarim & Taira - Indonesia
  • Berau Coal - Indonesia
  • Lafarge - France
  • Inco-Indonesia
  • Mjunction Services Limited - India
  • Attock Cement Pakistan Limited
  • Parliament of New Zealand
  • EMO - The Netherlands
  • Petron Corporation, Philippines
  • Planning Commission, India
  • Sree Jayajothi Cements Limited - India
  • Economic Council, Georgia
  • Antam Resourcindo - Indonesia
  • Petrosea - Indonesia
  • Ambuja Cements Ltd - India
  • Maersk Broker
  • SRK Consulting
  • Karaikal Port Pvt Ltd - India