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Tuesday, 23 March 21
LOWER WHOLESALE PRICES PUT PRESSURE ON AUSTRALIAN ENERGY RETAILERS - FITCH RATINGS
 Fitch Ratings expects the low wholesale energy prices in the Australian National Energy Market to persist through to 2022, which will affect electricity generators and retailers. This is despite recent agreements to continue operating an aluminium smelter that accounts for around 10% of the State of Victoria's energy demand.
Lower demand due to mild weather and 3,700MW of new renewable generation capacity starting up resulted in average wholesale spot electricity prices falling by 23%-58% in 2020. Fitch expects pricing pressure to persist through to 2022, as more renewable generation comes online, and demand remains subdued. Prices may partially recover in 2023 as the planned closure of AGL's 2,000MW Liddell Coal power plant will remove some generation capacity from the market and as weather conditions normalise.
The lower prices are likely to reduce the earnings of power producers and retailers. Origin Energy Ltd (BBB/Stable) cut its guidance for Energy Markets division EBITDA for the financial year ended 30 June 2021 (FY21) to AUD1.00 billion-1.14 billion (FY20: AUD1.46 billion. AGL Energy Ltd also announced AUD2.7 billion of charges, reflecting onerous contracts primarily related to high-cost wind farm offtake agreements, as well as AUD532 million of impairments to the value of its generation fleet and natural gas assets.
Fitch expects Origin's Energy Markets earnings to fall further in FY22 as the decline in wholesale prices leads to lower retail prices. The Australian Energy Regulator's (AER) draft Default Market Offer (DMO) for the year to 1 July 2021 included price reductions of between 4.6% and 7.9% for residential customers, and 4.1% and 8.5% for small business customers. The regulated DMO acts as a maximum cap that electricity retailers can charge customers, and Fitch expects further reductions in non-regulated market offers, as retailers pass on lower wholesale prices to customers to win or maintain market share.
Fitch expects lower earnings from Origin's Energy Markets division to reduce the headroom available in its rating. Origin typically generates around 16TWh of energy annually from its Eraring coal-fired plant, but the recent price decreases have seen Origin reduce Earring's output due to its relatively high cost compared to market prices. The completion of the 530MW Stockyard Hill wind farm by the end of 2021 should increase Origin's access to lower-cost generation, although this is unlikely to be sufficient to fully offset the fall in retail prices.
Origin's rating incorporates the benefits of cash distributions from its investment in APLNG, which operates a gas liquefaction project. Origin has guided cash receipts of between AUD575 million and AUD675 million in FY21, and Fitch expects receipts to rise in FY22 as oil prices recover. These increased receipts will help partially offset lower energy markets earnings, but larger-than-expected declines in earnings from this segment or lower-than-forecast receipts from APLNG could place pressure on Origin's rating.
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Sunday, 18 April 21
INDONESIA LIKELY TO WITNESS 119 OIL AND GAS PROJECTS STARTS ACROSS VALUE CHAIN BY 2025, SAYS GLOBALDATA
Indonesia is expected to witness 119 oil and gas projects commencing their operations across value chain during 2021-2025, accounting for 6% of the ...
Sunday, 18 April 21
WORLDSTEEL RAISES 2021 STEEL DEMAND GROWTH FORECAST TO 5.8% - WORLDSTEEL
The World Steel Association (worldsteel) today released its Short Range Outlook (SRO) for 2021 and 2022. worldsteel forecasts that steel demand wil ...
Sunday, 18 April 21
CHINA'S Q1 COAL OUTPUT RISES 16% ON STRONG DEMAND FOR WINTER HEATING - REUTERS
China’s coal output rose 16% in the first quarter from the same period last year, bolstered by strong demand for winter heating and robust in ...
Wednesday, 14 April 21
INDIA HAS A RECORD LEVEL OF STOCKPILED COAL DAMPENING NEED FOR NEW DOMESTIC MINES - IEEFA
Proposed coal mining expansions at odds with excess supply
India has stockpiled a record 132 million tonnes of coal – enough t ...
Wednesday, 14 April 21
BANGLADESH NEEDS A RENEWABLES FOCUS, NOT A SWITCH FROM 'COAL TO GAS' - IEEFA
Renewables are cheaper and more sustainable than gas imports, and can provide better energy security in developing nations
The emerg ...
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- Grasim Industreis Ltd - India
- Mintek Dendrill Indonesia
- Vizag Seaport Private Limited - India
- Makarim & Taira - Indonesia
- Anglo American - United Kingdom
- Sindya Power Generating Company Private Ltd
- Larsen & Toubro Limited - India
- Iligan Light & Power Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Barasentosa Lestari - Indonesia
- Leighton Contractors Pty Ltd - Australia
- ICICI Bank Limited - India
- MS Steel International - UAE
- TeaM Sual Corporation - Philippines
- Borneo Indobara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Orica Australia Pty. Ltd.
- Cigading International Bulk Terminal - Indonesia
- Economic Council, Georgia
- SMC Global Power, Philippines
- Aboitiz Power Corporation - Philippines
- SMG Consultants - Indonesia
- VISA Power Limited - India
- Goldman Sachs - Singapore
- Directorate Of Revenue Intelligence - India
- GAC Shipping (India) Pvt Ltd
- GN Power Mariveles Coal Plant, Philippines
- Malabar Cements Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The University of Queensland
- Indika Energy - Indonesia
- Thiess Contractors Indonesia
- European Bulk Services B.V. - Netherlands
- Coalindo Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- Vedanta Resources Plc - India
- Banpu Public Company Limited - Thailand
- Indonesian Coal Mining Association
- Heidelberg Cement - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- CNBM International Corporation - China
- Baramulti Group, Indonesia
- Port Waratah Coal Services - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- ASAPP Information Group - India
- Singapore Mercantile Exchange
- Bangladesh Power Developement Board
- Edison Trading Spa - Italy
- Eastern Coal Council - USA
- Independent Power Producers Association of India
- Coal and Oil Company - UAE
- Intertek Mineral Services - Indonesia
- Thai Mozambique Logistica
- Petron Corporation, Philippines
- Mjunction Services Limited - India
- Binh Thuan Hamico - Vietnam
- Manunggal Multi Energi - Indonesia
- Kumho Petrochemical, South Korea
- Xindia Steels Limited - India
- Planning Commission, India
- Australian Coal Association
- Kaltim Prima Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Ambuja Cements Ltd - India
- Aditya Birla Group - India
- Tamil Nadu electricity Board
- Bukit Makmur.PT - Indonesia
- Indogreen Group - Indonesia
- Deloitte Consulting - India
- CIMB Investment Bank - Malaysia
- Trasteel International SA, Italy
- Samtan Co., Ltd - South Korea
- Siam City Cement PLC, Thailand
- Ministry of Transport, Egypt
- Globalindo Alam Lestari - Indonesia
- Parliament of New Zealand
- Romanian Commodities Exchange
- Sojitz Corporation - Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jorong Barutama Greston.PT - Indonesia
- Medco Energi Mining Internasional
- Merrill Lynch Commodities Europe
- Standard Chartered Bank - UAE
- Dalmia Cement Bharat India
- Jindal Steel & Power Ltd - India
- Parry Sugars Refinery, India
- Semirara Mining Corp, Philippines
- Riau Bara Harum - Indonesia
- IHS Mccloskey Coal Group - USA
- Salva Resources Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- PowerSource Philippines DevCo
- Gujarat Sidhee Cement - India
- Power Finance Corporation Ltd., India
- Ind-Barath Power Infra Limited - India
- OPG Power Generation Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Kideco Jaya Agung - Indonesia
- Savvy Resources Ltd - HongKong
- Energy Link Ltd, New Zealand
- Renaissance Capital - South Africa
- Lanco Infratech Ltd - India
- Australian Commodity Traders Exchange
- Attock Cement Pakistan Limited
- Carbofer General Trading SA - India
- Chamber of Mines of South Africa
- Siam City Cement - Thailand
- Sarangani Energy Corporation, Philippines
- Ministry of Finance - Indonesia
- Bulk Trading Sa - Switzerland
- GMR Energy Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Altura Mining Limited, Indonesia
- Alfred C Toepfer International GmbH - Germany
- Videocon Industries ltd - India
- Energy Development Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GVK Power & Infra Limited - India
- Orica Mining Services - Indonesia
- Rio Tinto Coal - Australia
- Therma Luzon, Inc, Philippines
- Bhushan Steel Limited - India
- Interocean Group of Companies - India
- New Zealand Coal & Carbon
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Agrawal Coal Company - India
- Rashtriya Ispat Nigam Limited - India
- Central Java Power - Indonesia
- Antam Resourcindo - Indonesia
- Minerals Council of Australia
- Tata Chemicals Ltd - India
- Ministry of Mines - Canada
- Indian Energy Exchange, India
- Commonwealth Bank - Australia
- Wilmar Investment Holdings
- Mercuria Energy - Indonesia
- South Luzon Thermal Energy Corporation
- Georgia Ports Authority, United States
- Krishnapatnam Port Company Ltd. - India
- Karbindo Abesyapradhi - Indoneisa
- The Treasury - Australian Government
- Posco Energy - South Korea
- Kepco SPC Power Corporation, Philippines
- McConnell Dowell - Australia
- Jaiprakash Power Ventures ltd
- Gujarat Mineral Development Corp Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Wood Mackenzie - Singapore
- Kapuas Tunggal Persada - Indonesia
- Chettinad Cement Corporation Ltd - India
- White Energy Company Limited
- Coastal Gujarat Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- SN Aboitiz Power Inc, Philippines
- Uttam Galva Steels Limited - India
- AsiaOL BioFuels Corp., Philippines
- IEA Clean Coal Centre - UK
- Bhatia International Limited - India
- Karaikal Port Pvt Ltd - India
- London Commodity Brokers - England
- Directorate General of MIneral and Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Star Paper Mills Limited - India
- Madhucon Powers Ltd - India
- Metalloyd Limited - United Kingdom
- Electricity Authority, New Zealand
- Bayan Resources Tbk. - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Formosa Plastics Group - Taiwan
- Kobexindo Tractors - Indoneisa
- LBH Netherlands Bv - Netherlands
- Meenaskhi Energy Private Limited - India
- Semirara Mining and Power Corporation, Philippines
- Bharathi Cement Corporation - India
- The State Trading Corporation of India Ltd
- Cement Manufacturers Association - India
- Sakthi Sugars Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Straits Asia Resources Limited - Singapore
- India Bulls Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Africa Commodities Group - South Africa
- Essar Steel Hazira Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Neyveli Lignite Corporation Ltd, - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Price Waterhouse Coopers - Russia
- Bahari Cakrawala Sebuku - Indonesia
- Meralco Power Generation, Philippines
- Global Business Power Corporation, Philippines
- Latin American Coal - Colombia
- Gujarat Electricity Regulatory Commission - India
- Toyota Tsusho Corporation, Japan
- Mercator Lines Limited - India
- Sree Jayajothi Cements Limited - India
- Marubeni Corporation - India
- Electricity Generating Authority of Thailand
- Global Coal Blending Company Limited - Australia
- Asmin Koalindo Tuhup - Indonesia
- Kartika Selabumi Mining - Indonesia
- Eastern Energy - Thailand
- Sical Logistics Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Indian Oil Corporation Limited
- TNB Fuel Sdn Bhd - Malaysia
- Central Electricity Authority - India
- PNOC Exploration Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Oldendorff Carriers - Singapore
- Bukit Baiduri Energy - Indonesia
- PTC India Limited - India
- Maheswari Brothers Coal Limited - India
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