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Thursday, 23 September 21
RECORD-HIGH GAS PRICES AFFECT MANY EUROPEAN CORPORATE SECTORS - FITCH RATINGS
 Record-high natural gas prices are putting pressure on supply chains of many European corporate sectors, including non-integrated energy suppliers, fertiliser producers and consumer goods companies, Fitch Ratings says. Smaller companies in these industries are under the most pressure, while larger and more diversified issuers rated by Fitch are better positioned to mitigate the impact. Gas prices could remain high until the end of the winter heating season, given low levels of natural gas in European storage facilities. However, we expect prices to moderate once seasonal demand reduces.
High gas prices and working capital fluctuations have already caused several non-integrated UK gas suppliers (not rated by Fitch) to ask for state support in fulfilling their supply obligations to customers.
The Spanish government has introduced a levy on low-carbon power producers to support smaller suppliers.
Supply is typically a small part of larger Fitch-rated integrated utilities in Europe, which are able to pass costs on to most customer groups, or hedge. Although we expect higher gas prices to increase regulatory risks, the rated utilities’ diversification by jurisdiction and business line, including electricity production and distribution networks, cushions the impact. The unfolding situation in the European gas market may further accelerate the energy transition in the utility sector towards renewables.
Fertiliser producers have been severely affected by rising gas prices. Gas is a key input in ammonia production, which is further used in urea and DAP production. Several ammonia plants in Europe have cut their output or have temporarily shut down operations. Larger Fitch-rated fertiliser producers with a global presence are able to continue production in other regions or source ammonia from third parties, limiting the impact. Producers may also seek to increase fertiliser prices to pass costs onto consumers.
Agriculture and food producers are affected by challenges in the fertiliser sector. Agribusinesses may face shortages in fertiliser supplies and increased prices, most likely increasing their costs in the next season’s harvest. However, meat processors and carbonated drinks manufacturers, particularly in the UK, already face disruptions due to CO2 shortages, which is a by-product of ammonia manufacturing and is used in meat and fizzy drinks production. Geographically diversified food and beverages producers are better positioned to mitigate such shortages.
The record-high prices in Europe are driven by increased demand (due to the wider economic recovery and weather-related factors), competition with Asia for LNG, and a limited supply response from Gazprom, Europe’s largest supplier, providing about a third of Europe’s gas. Prices have also risen due to market fears of a gas deficit during the winter heating season due to low European storage utilisation compared to previous years.
Utilisation at Gazprom-linked storage facilities (around 10% of European capacity) is particularly low, affecting average utilisation rates in Austria, Germany and the Netherlands. Furthermore, unlike September in recent years, Gazprom has not offered any meaningful volumes for delivery this or next year via its electronic sales platform (a sales channel for short-term gas deliveries, used in addition to sales under long-term contracts). Gazprom’s total exports should increase in 2021 but this is unlikely to be sufficient to re-balance the market. Starting the new Nord Stream 2 pipeline, which is facing difficulties in obtaining necessary approvals from regulators in Europe, may affect the availability of additional gas volumes.
We have recently increased our short-term gas price assumptions. However, we expect a normalisation of demand and potential additional supplies to result in a return to mid-cycle pricing from 2023.
Source: Fitch Ratings
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Thursday, 01 February 24
INDIA REBUILDS COAL STOCKS TO ENSURE ELECTRIC RELIABILITY - REUTERS
India’s electricity supply is much more comfortable at the start of 2024 than in either 2023 or 2022 as coal production has ramped up and the ...
Wednesday, 31 January 24
CHINA'S INNER MONGOLIA COAL OUTPUT HIT 1.21B TONS IN 2023 - XINHUA
North China’s Inner Mongolia autonomous region churned out 1.21 billion tons of coal in 2023 as it strives to guarantee the country’s e ...
Wednesday, 31 January 24
GAS EXPORTS COST U.S. CONSUMERS MORE THAN $100 BILLION OVER 16-MONTH PERIOD - IEEFA
Limited Demand Growth Could Dampen the Dry Bulk Market in the Coming Months BIMCOStarting in late 2021—before its invasion of Ukraine—R ...
Tuesday, 30 January 24
LIMITED DEMAND GROWTH COULD DAMPEN THE DRY BULK MARKET IN THE COMING MONTHS - BIMCO
Demand
In our base scenario, we expect cargo demand to grow by 0-1% in 2024 and 0.5-1.5% in 2025. This is a 0.5 percentage point reduction for ...
Friday, 26 January 24
RED SEA DIVERSIONS ADD NEARLY A MILLION DOLLARS PER VOYAGE TO SHIPPING COSTS WHILE DOUBLING TRANSIT TIME - LSEG
The incremental costs of diverting a tanker from Asia to NW Europe via the Cape of Good Hope is accounting for an extra $932,905 USD per voyage whi ...
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Showing 21 to 25 news of total 6846 |
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- Metalloyd Limited - United Kingdom
- Tamil Nadu electricity Board
- Africa Commodities Group - South Africa
- New Zealand Coal & Carbon
- Thiess Contractors Indonesia
- Oldendorff Carriers - Singapore
- VISA Power Limited - India
- Cigading International Bulk Terminal - Indonesia
- Coastal Gujarat Power Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Central Electricity Authority - India
- Price Waterhouse Coopers - Russia
- Lanco Infratech Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Standard Chartered Bank - UAE
- OPG Power Generation Pvt Ltd - India
- Indika Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Port Waratah Coal Services - Australia
- Jorong Barutama Greston.PT - Indonesia
- Anglo American - United Kingdom
- The State Trading Corporation of India Ltd
- Australian Coal Association
- Bukit Makmur.PT - Indonesia
- Salva Resources Pvt Ltd - India
- Indogreen Group - Indonesia
- Mintek Dendrill Indonesia
- SN Aboitiz Power Inc, Philippines
- Carbofer General Trading SA - India
- Vizag Seaport Private Limited - India
- Eastern Energy - Thailand
- Barasentosa Lestari - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- White Energy Company Limited
- Kumho Petrochemical, South Korea
- Indian Oil Corporation Limited
- TeaM Sual Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Leighton Contractors Pty Ltd - Australia
- The Treasury - Australian Government
- Sinarmas Energy and Mining - Indonesia
- Grasim Industreis Ltd - India
- London Commodity Brokers - England
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Thai Mozambique Logistica
- Vedanta Resources Plc - India
- Bhushan Steel Limited - India
- Economic Council, Georgia
- Directorate General of MIneral and Coal - Indonesia
- McConnell Dowell - Australia
- Kohat Cement Company Ltd. - Pakistan
- Ambuja Cements Ltd - India
- Bangladesh Power Developement Board
- Goldman Sachs - Singapore
- Sojitz Corporation - Japan
- Bulk Trading Sa - Switzerland
- Orica Australia Pty. Ltd.
- Rio Tinto Coal - Australia
- Simpson Spence & Young - Indonesia
- International Coal Ventures Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Commonwealth Bank - Australia
- Mjunction Services Limited - India
- Gujarat Mineral Development Corp Ltd - India
- India Bulls Power Limited - India
- CNBM International Corporation - China
- Videocon Industries ltd - India
- Mercator Lines Limited - India
- Energy Development Corp, Philippines
- Parliament of New Zealand
- Latin American Coal - Colombia
- Interocean Group of Companies - India
- South Luzon Thermal Energy Corporation
- Global Coal Blending Company Limited - Australia
- Makarim & Taira - Indonesia
- Sakthi Sugars Limited - India
- Straits Asia Resources Limited - Singapore
- Deloitte Consulting - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Alfred C Toepfer International GmbH - Germany
- Petrochimia International Co. Ltd.- Taiwan
- Rashtriya Ispat Nigam Limited - India
- Banpu Public Company Limited - Thailand
- Miang Besar Coal Terminal - Indonesia
- Directorate Of Revenue Intelligence - India
- Indo Tambangraya Megah - Indonesia
- Savvy Resources Ltd - HongKong
- Meenaskhi Energy Private Limited - India
- Petron Corporation, Philippines
- Planning Commission, India
- Indonesian Coal Mining Association
- San Jose City I Power Corp, Philippines
- PowerSource Philippines DevCo
- GMR Energy Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Borneo Indobara - Indonesia
- SMG Consultants - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Sarangani Energy Corporation, Philippines
- Meralco Power Generation, Philippines
- Agrawal Coal Company - India
- Wilmar Investment Holdings
- Romanian Commodities Exchange
- Orica Mining Services - Indonesia
- Wood Mackenzie - Singapore
- Globalindo Alam Lestari - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Chettinad Cement Corporation Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Malabar Cements Ltd - India
- Riau Bara Harum - Indonesia
- Star Paper Mills Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Aboitiz Power Corporation - Philippines
- Heidelberg Cement - Germany
- Karbindo Abesyapradhi - Indoneisa
- Indian Energy Exchange, India
- Toyota Tsusho Corporation, Japan
- Coal and Oil Company - UAE
- Ministry of Mines - Canada
- Billiton Holdings Pty Ltd - Australia
- Global Business Power Corporation, Philippines
- Bhatia International Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Mercuria Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- MS Steel International - UAE
- Semirara Mining and Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- Posco Energy - South Korea
- Eastern Coal Council - USA
- Jindal Steel & Power Ltd - India
- Kepco SPC Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Manunggal Multi Energi - Indonesia
- Intertek Mineral Services - Indonesia
- Power Finance Corporation Ltd., India
- Bharathi Cement Corporation - India
- Bayan Resources Tbk. - Indonesia
- GVK Power & Infra Limited - India
- Sical Logistics Limited - India
- Holcim Trading Pte Ltd - Singapore
- Energy Link Ltd, New Zealand
- Trasteel International SA, Italy
- Singapore Mercantile Exchange
- Medco Energi Mining Internasional
- Pendopo Energi Batubara - Indonesia
- Siam City Cement - Thailand
- Independent Power Producers Association of India
- Tata Chemicals Ltd - India
- Marubeni Corporation - India
- Renaissance Capital - South Africa
- PetroVietnam Power Coal Import and Supply Company
- IEA Clean Coal Centre - UK
- The University of Queensland
- Bukit Baiduri Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Maheswari Brothers Coal Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Timah Investasi Mineral - Indoneisa
- CIMB Investment Bank - Malaysia
- Cement Manufacturers Association - India
- TNB Fuel Sdn Bhd - Malaysia
- Bhoruka Overseas - Indonesia
- Essar Steel Hazira Ltd - India
- Siam City Cement PLC, Thailand
- Parry Sugars Refinery, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Electricity Regulatory Commission - India
- Dalmia Cement Bharat India
- Kapuas Tunggal Persada - Indonesia
- IHS Mccloskey Coal Group - USA
- SMC Global Power, Philippines
- Chamber of Mines of South Africa
- GAC Shipping (India) Pvt Ltd
- PNOC Exploration Corporation - Philippines
- Merrill Lynch Commodities Europe
- Central Java Power - Indonesia
- Altura Mining Limited, Indonesia
- Australian Commodity Traders Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Coalindo Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Attock Cement Pakistan Limited
- Aditya Birla Group - India
- Edison Trading Spa - Italy
- Antam Resourcindo - Indonesia
- Samtan Co., Ltd - South Korea
- Ministry of Transport, Egypt
- Sree Jayajothi Cements Limited - India
- Therma Luzon, Inc, Philippines
- ICICI Bank Limited - India
- Xindia Steels Limited - India
- AsiaOL BioFuels Corp., Philippines
- Ministry of Finance - Indonesia
- Kobexindo Tractors - Indoneisa
- Baramulti Group, Indonesia
- Electricity Generating Authority of Thailand
- ASAPP Information Group - India
- Iligan Light & Power Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Uttam Galva Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Larsen & Toubro Limited - India
- Semirara Mining Corp, Philippines
- Electricity Authority, New Zealand
- Minerals Council of Australia
- Kalimantan Lumbung Energi - Indonesia
- PTC India Limited - India
- Gujarat Sidhee Cement - India
- Georgia Ports Authority, United States
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