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Thursday, 26 November 20
DECLINE IN COAL EXPORTS ADDS TO NAVAJO-OWNED COMPANY'S PROBLEMS - IEEFA U.S.
 Weak demand and low prices are likely creating steep losses for NTEC
U.S. coal exports to Asia—once heralded as the saving grace for struggling coal producers in the western United States—are facing new strains from low prices and weak demand in the wake of the global COVID-19 crisis.
In its third-quarter financial statement released earlier this month, Westshore Terminals in British Columbia, the primary terminal for U.S. thermal coal bound for the Pacific Rim of Asia, reported a 47% quarter-over-quarter drop in thermal coal exports. Quarterly thermal coal shipments from the terminal fell to their lowest level since 2016, when global coal markets were overwhelmed by a massive supply glut that sent seaborne coal prices crashing.
Even though the Westshore terminal is in Canada, virtually all of its shipments of thermal coal—the type burned in power plants—come from U.S. mines, mostly located in Montana. Data from the U.S. Mine Safety and Health Administration suggest that Montana’s Spring Creek mine, owned by the Navajo Transitional Energy Company (NTEC), bore the brunt of the decline. Coal production at Spring Creek totaled 2.2 million tons during the third quarter of 2020, down from about 3.9 million tons during the year-ago quarter. On an annualized basis, Spring Creek production has now fallen to its lowest level since 2003 (See Figure 1).
Meanwhile, production at the Signal Peak mine, the other major U.S. thermal coal exporter that ships through Westshore, held roughly steady compared to the year-ago quarter. (Signal Peak has been in the news for other reasons, having to do with a fraud and embezzlement scheme perpetrated by former executives. Signal Peak is partially owned by FirstEnergy, also in the news for fraud allegations.) Westshore doesn’t disclose its customer volumes, but Signal Peak’s relatively stable production during the quarter suggests that NTEC’s Spring Creek mine accounted for the bulk of the decline in thermal coal exports through Westshore.
In a related wrinkle, Westshore reported that it took in “$2.6 million [Canadian] of customer shortfall payments” from July through September. This means that at least one of the terminal’s shippers is paying penalties for shipping less coal than promised.
If last quarter’s shortfall payments are indeed coming from NTEC, the company is probably paying even more in penalties to BNSF, the rail company that moves Spring Creek coal to Westshore. (Documents from the 2019 bankruptcy filing of Cloud Peak Energy, the previous owner of the mine, suggest the company paid a little over $25 per ton in rail fees, more than twice as much as Westshore charges to ship a ton of coal.)
Cloud Peak shelled out millions of dollars in such payments to both BNSF and Westshore during times of low international prices, and—ironically enough—frequently shipped coal at a loss to avoid even steeper losses from contractual penalties.
NTEC touted its purchase in 2019 of Powder River Basin mines as a “prudent investment,” pointing to a study (commissioned by the company itself) arguing that Spring Creek exports held the “potential for high profitability.” Yet Cloud Peak had also had made big bets on Spring Creek exports—and those bets helped cement the company’s financial collapse.
Now, NTEC’s gamble on coal exports is backfiring—just as it backfired on Cloud Peak.
This will only worsen difficulties for NTEC, which has recently agreed to an ill-advised expansion of its stake in the aging coal-fired Four Corners power plant in New Mexico and whose core business—coal production for the domestic electricity industry—is in severe decline, and not just because of COVID but because utility companies continue to aggressively abandon coal for cheaper and more modern forms of generation.
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Tuesday, 29 December 20
CORROSION-RESISTANT STEELS FOR CARGO OIL TANKS - DNV GL
KNOWLEDGE TO ELEVATE
Crude oil is a complex mixture of substances at varying ratios and in most cases contains at least some salt water. ...
Tuesday, 29 December 20
CHINA COKING COAL FUTURES RISE FOR THIRD DAY ON SUPPLY WORRIES - REUTERS
Chinese coking coal futures extended gains into a third session on Monday, jumping as much as 6.2% as lower imports, sliding inventories and mines ...
Wednesday, 23 December 20
COKING COAL'S DECLINE LIKELY TO FOLLOW THE PATH OF THERMAL COAL’S PROGRESSIVE DEMISE - IEEFA
Technology disruption the likely theme of global energy markets in 2021
There has been a growing tsunami of climate commitment annou ...
Wednesday, 23 December 20
MARKET INSIGHT - INTERMODAL
As we all know, China forges more steel than the rest of the world combined, and even during this unprecedented pandemic, the nation is set to brea ...
Tuesday, 22 December 20
2021 DRY BULK OUTLOOK - SUPPLY GROWTH - TORVALD KLAVENESS
In the first article in the series we mentioned that dry bulk freight was in a super cycle between 2001 and 2008. The growth in global yard capacit ...
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- Jorong Barutama Greston.PT - Indonesia
- Jindal Steel & Power Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Australian Coal Association
- Bhushan Steel Limited - India
- Formosa Plastics Group - Taiwan
- Parry Sugars Refinery, India
- Vedanta Resources Plc - India
- Bangladesh Power Developement Board
- Agrawal Coal Company - India
- Iligan Light & Power Inc, Philippines
- GVK Power & Infra Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Renaissance Capital - South Africa
- Mjunction Services Limited - India
- ASAPP Information Group - India
- Makarim & Taira - Indonesia
- CNBM International Corporation - China
- Bukit Makmur.PT - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Xindia Steels Limited - India
- Barasentosa Lestari - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Sojitz Corporation - Japan
- Interocean Group of Companies - India
- Rashtriya Ispat Nigam Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Central Electricity Authority - India
- PowerSource Philippines DevCo
- Posco Energy - South Korea
- Kaltim Prima Coal - Indonesia
- European Bulk Services B.V. - Netherlands
- Attock Cement Pakistan Limited
- Power Finance Corporation Ltd., India
- Petron Corporation, Philippines
- Heidelberg Cement - Germany
- Lanco Infratech Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- ICICI Bank Limited - India
- Kepco SPC Power Corporation, Philippines
- Ministry of Finance - Indonesia
- Mintek Dendrill Indonesia
- Electricity Authority, New Zealand
- GAC Shipping (India) Pvt Ltd
- India Bulls Power Limited - India
- Ministry of Transport, Egypt
- Indonesian Coal Mining Association
- Directorate Of Revenue Intelligence - India
- Orica Mining Services - Indonesia
- Tata Chemicals Ltd - India
- Malabar Cements Ltd - India
- Coal and Oil Company - UAE
- Sakthi Sugars Limited - India
- Merrill Lynch Commodities Europe
- Globalindo Alam Lestari - Indonesia
- Siam City Cement PLC, Thailand
- Miang Besar Coal Terminal - Indonesia
- Deloitte Consulting - India
- Simpson Spence & Young - Indonesia
- Indo Tambangraya Megah - Indonesia
- Oldendorff Carriers - Singapore
- Ambuja Cements Ltd - India
- Parliament of New Zealand
- Manunggal Multi Energi - Indonesia
- Bhoruka Overseas - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Riau Bara Harum - Indonesia
- Metalloyd Limited - United Kingdom
- Billiton Holdings Pty Ltd - Australia
- Therma Luzon, Inc, Philippines
- Altura Mining Limited, Indonesia
- Energy Link Ltd, New Zealand
- Timah Investasi Mineral - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- Kideco Jaya Agung - Indonesia
- Bulk Trading Sa - Switzerland
- Electricity Generating Authority of Thailand
- Latin American Coal - Colombia
- Coalindo Energy - Indonesia
- Economic Council, Georgia
- Bukit Baiduri Energy - Indonesia
- Baramulti Group, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- Mercator Lines Limited - India
- Krishnapatnam Port Company Ltd. - India
- Kumho Petrochemical, South Korea
- Karaikal Port Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sree Jayajothi Cements Limited - India
- SMC Global Power, Philippines
- Rio Tinto Coal - Australia
- Australian Commodity Traders Exchange
- Goldman Sachs - Singapore
- Indika Energy - Indonesia
- Indogreen Group - Indonesia
- Uttam Galva Steels Limited - India
- Meralco Power Generation, Philippines
- SN Aboitiz Power Inc, Philippines
- GMR Energy Limited - India
- Vizag Seaport Private Limited - India
- New Zealand Coal & Carbon
- LBH Netherlands Bv - Netherlands
- Pipit Mutiara Jaya. PT, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Kartika Selabumi Mining - Indonesia
- Tamil Nadu electricity Board
- IHS Mccloskey Coal Group - USA
- VISA Power Limited - India
- Star Paper Mills Limited - India
- Ministry of Mines - Canada
- IEA Clean Coal Centre - UK
- Commonwealth Bank - Australia
- Minerals Council of Australia
- Gujarat Electricity Regulatory Commission - India
- Grasim Industreis Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Wilmar Investment Holdings
- Standard Chartered Bank - UAE
- Aditya Birla Group - India
- Meenaskhi Energy Private Limited - India
- Larsen & Toubro Limited - India
- Pendopo Energi Batubara - Indonesia
- Romanian Commodities Exchange
- Holcim Trading Pte Ltd - Singapore
- International Coal Ventures Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Leighton Contractors Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Thiess Contractors Indonesia
- Semirara Mining and Power Corporation, Philippines
- Eastern Coal Council - USA
- Price Waterhouse Coopers - Russia
- Neyveli Lignite Corporation Ltd, - India
- Essar Steel Hazira Ltd - India
- Bharathi Cement Corporation - India
- Kobexindo Tractors - Indoneisa
- Chamber of Mines of South Africa
- Singapore Mercantile Exchange
- South Luzon Thermal Energy Corporation
- Carbofer General Trading SA - India
- Mercuria Energy - Indonesia
- Madhucon Powers Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- AsiaOL BioFuels Corp., Philippines
- Bayan Resources Tbk. - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- The University of Queensland
- Alfred C Toepfer International GmbH - Germany
- Videocon Industries ltd - India
- TeaM Sual Corporation - Philippines
- Medco Energi Mining Internasional
- Anglo American - United Kingdom
- Asmin Koalindo Tuhup - Indonesia
- Jaiprakash Power Ventures ltd
- Indian Energy Exchange, India
- Ind-Barath Power Infra Limited - India
- Samtan Co., Ltd - South Korea
- Eastern Energy - Thailand
- OPG Power Generation Pvt Ltd - India
- London Commodity Brokers - England
- Central Java Power - Indonesia
- White Energy Company Limited
- PNOC Exploration Corporation - Philippines
- Thai Mozambique Logistica
- TNB Fuel Sdn Bhd - Malaysia
- Intertek Mineral Services - Indonesia
- Port Waratah Coal Services - Australia
- San Jose City I Power Corp, Philippines
- Sical Logistics Limited - India
- McConnell Dowell - Australia
- Toyota Tsusho Corporation, Japan
- Aboitiz Power Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- CIMB Investment Bank - Malaysia
- Planning Commission, India
- Antam Resourcindo - Indonesia
- Independent Power Producers Association of India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Dalmia Cement Bharat India
- PTC India Limited - India
- Bhatia International Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Sarangani Energy Corporation, Philippines
- Edison Trading Spa - Italy
- Cement Manufacturers Association - India
- Indian Oil Corporation Limited
- Trasteel International SA, Italy
- Salva Resources Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Semirara Mining Corp, Philippines
- Siam City Cement - Thailand
- Vijayanagar Sugar Pvt Ltd - India
- MS Steel International - UAE
- Wood Mackenzie - Singapore
- Banpu Public Company Limited - Thailand
- Karbindo Abesyapradhi - Indoneisa
- Straits Asia Resources Limited - Singapore
- Global Coal Blending Company Limited - Australia
- Africa Commodities Group - South Africa
- The Treasury - Australian Government
- The State Trading Corporation of India Ltd
- Marubeni Corporation - India
- Georgia Ports Authority, United States
- Global Green Power PLC Corporation, Philippines
- SMG Consultants - Indonesia
- Chettinad Cement Corporation Ltd - India
- Orica Australia Pty. Ltd.
- Energy Development Corp, Philippines
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