We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Thursday, 22 December 22
COAL AND GAS PRICE CAPS MAY COMPOUND POLITICAL RISK FOR AUSTRALIAN CORPORATES - FITCH RATINGS
 Australia’s introduction of temporary price caps on domestic sales of gas and coal used for electricity generation will probably have limited direct near-term credit impact for energy-sector issuers rated by Fitch Ratings, according to the agency. However, the caps highlight that energy companies face mounting political risks that could influence investor perceptions of the sector and capex plans over the long term.
The caps have been proposed for 12 months, but even if they are extended, the direct impact should generally be limited if prices for coal and gas fall over the coming years, in line with Fitch’s base-case assumptions.
The near-term impact on Australian thermal coal miners’ financial profiles will be further mitigated, as typically around 80% of the thermal coal produced in the country is exported, and therefore is not subject to the cap.
The natural gas sector will be more exposed, as domestic demand accounts for a larger share of supply. Santos (BBB/Stable) and Woodside Energy Group (BBB+/Stable) are large suppliers of gas to the domestic market. Such sales account for more than 40% of Santos’s gas production, but we estimate that only around 15% of total production goes to the east coast markets that are exposed to the price cap.
Woodside’s domestic gas sales, including pipeline gas from the NWS Project, Pluto and Wheatstone, account for less than 6% of its gas production, with the rest exported as LNG. For both companies, most gas is already produced under long-term contracts, which will be unaffected by the caps, limiting the near-term impact. The proportion of output affected could nonetheless rise over time if the caps are extended beyond 12 months.
The prevalence of long-term supply contracts will also reduce the impact of the caps for most domestic electricity and gas retailers, including Origin Energy (BBB/Stable). If global energy prices remain high, it is possible that the caps could offer a competitive advantage to some retailers that rely more on short-term supply contracts. That said, the superior sourcing ability and flexibility in contracts should limit downside risks for large retailers. For electricity sales, the highest-cost power generator generally determines the wholesale energy market price, and we anticipate a neutral to marginally positive financial effect for entities like Origin that have flexibility in their generation portfolio.
The price caps will add to a perception that Australia’s mining sector faces mounting political risk, even though we do not believe they will have a major impact on Fitch-rated issuers in the near term. For example, the government has announced plans to implement a new system to protect sites important to Australia’s indigenous peoples. Firms in the sector, as in other parts of the world, also face political risks associated with official efforts to promote the transition to renewable energy sources.
Mounting political risk may influence investors’ perceptions of the sector, and therefore the terms on which companies are able to access finance. This could also have ramifications for M&A plans or long-term capex strategies. Nonetheless, it is likely to take time to assess the impact, which may also be offset by other market developments.
Australia’s parliament on 16 December passed legislation empowering the government to regulate gas prices, alongside an AUD1.5 billion relief package for firms and households. It remains unclear how the relief package will affect power and gas market dynamics, but we expect its impact to be temporary. The authorities plan to cap domestic gas prices at AUD12 per gigajoule. Domestic thermal coal sales prices in New South Wales and Queensland will also be capped at AUD125 per tonne.
Source: Fitch Ratings
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Sunday, 02 October 22
MISC STRENGTHENS ITS PARTNERSHIP WITH SEARIVER MARITIME
MISC Berhad (MISC) today announced that its subsidiaries Polaris LNG Three Pte. Ltd. and Polaris LNG Four Pte. Ltd. have secured long-term time cha ...
Thursday, 29 September 22
MARKET INSIGHT - INTERMODAL
This week, focus turns to the 38th APPEC Conference, where leading professionals from the global oil industry will discuss the future key drivers o ...
Thursday, 29 September 22
HIGH COAL PRICES REMAIN A CONCERN FOR DOMESTIC NON-FERROUS METAL COMPANIES - ICRA
According to ICRA on Monday, the high price of coal will have a negative effect on the profitability of domestic non-ferrous metal companies that m ...
Tuesday, 27 September 22
14% INCREASE IN EUROPEAN COAL DEMAND TO BE SHORT-TERM TREND - WOOD MACKENZIE
European seaborne thermal coal demand is projected to increase 14% or 12 million metric tonnes (Mt) this year to 98 Mt as it grapples with the curr ...
Friday, 23 September 22
CHINA DIGS DEEP TO RAISE COAL OUTPUT TO RECORD HIGH - REUTERS
China’s coal production has surged this year as the government seeks to improve energy security by reducing dependence on imports and amassin ...
|
|
|
Showing 221 to 225 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Energy Link Ltd, New Zealand
- Global Coal Blending Company Limited - Australia
- Jindal Steel & Power Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Kaltim Prima Coal - Indonesia
- Indian Oil Corporation Limited
- OPG Power Generation Pvt Ltd - India
- Standard Chartered Bank - UAE
- Siam City Cement PLC, Thailand
- Jorong Barutama Greston.PT - Indonesia
- Australian Coal Association
- CIMB Investment Bank - Malaysia
- Chamber of Mines of South Africa
- Indika Energy - Indonesia
- Electricity Generating Authority of Thailand
- Sindya Power Generating Company Private Ltd
- Indo Tambangraya Megah - Indonesia
- Meenaskhi Energy Private Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Ind-Barath Power Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Kartika Selabumi Mining - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Coal and Oil Company - UAE
- Timah Investasi Mineral - Indoneisa
- Parry Sugars Refinery, India
- Ambuja Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Bhatia International Limited - India
- San Jose City I Power Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- New Zealand Coal & Carbon
- Planning Commission, India
- Mercuria Energy - Indonesia
- Energy Development Corp, Philippines
- Australian Commodity Traders Exchange
- Cigading International Bulk Terminal - Indonesia
- MS Steel International - UAE
- Rio Tinto Coal - Australia
- Karaikal Port Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Bukit Makmur.PT - Indonesia
- PowerSource Philippines DevCo
- Bhushan Steel Limited - India
- Toyota Tsusho Corporation, Japan
- Barasentosa Lestari - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Minerals Council of Australia
- Agrawal Coal Company - India
- Global Business Power Corporation, Philippines
- Thiess Contractors Indonesia
- Mjunction Services Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Videocon Industries ltd - India
- Indian Energy Exchange, India
- Chettinad Cement Corporation Ltd - India
- Larsen & Toubro Limited - India
- Marubeni Corporation - India
- LBH Netherlands Bv - Netherlands
- Georgia Ports Authority, United States
- Salva Resources Pvt Ltd - India
- Xindia Steels Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Attock Cement Pakistan Limited
- Eastern Coal Council - USA
- Essar Steel Hazira Ltd - India
- Jaiprakash Power Ventures ltd
- Vizag Seaport Private Limited - India
- PNOC Exploration Corporation - Philippines
- Africa Commodities Group - South Africa
- Karbindo Abesyapradhi - Indoneisa
- The State Trading Corporation of India Ltd
- Lanco Infratech Ltd - India
- Ministry of Finance - Indonesia
- Indogreen Group - Indonesia
- Cement Manufacturers Association - India
- Latin American Coal - Colombia
- Savvy Resources Ltd - HongKong
- Alfred C Toepfer International GmbH - Germany
- ASAPP Information Group - India
- Kideco Jaya Agung - Indonesia
- Goldman Sachs - Singapore
- Bayan Resources Tbk. - Indonesia
- McConnell Dowell - Australia
- Borneo Indobara - Indonesia
- Central Electricity Authority - India
- SMG Consultants - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Sical Logistics Limited - India
- Ministry of Transport, Egypt
- Pendopo Energi Batubara - Indonesia
- Wood Mackenzie - Singapore
- Sojitz Corporation - Japan
- CNBM International Corporation - China
- Formosa Plastics Group - Taiwan
- Grasim Industreis Ltd - India
- Iligan Light & Power Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Directorate Of Revenue Intelligence - India
- Kobexindo Tractors - Indoneisa
- Oldendorff Carriers - Singapore
- Thai Mozambique Logistica
- Carbofer General Trading SA - India
- Simpson Spence & Young - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Gujarat Electricity Regulatory Commission - India
- Samtan Co., Ltd - South Korea
- Intertek Mineral Services - Indonesia
- India Bulls Power Limited - India
- GMR Energy Limited - India
- Sinarmas Energy and Mining - Indonesia
- Parliament of New Zealand
- Mintek Dendrill Indonesia
- The Treasury - Australian Government
- GN Power Mariveles Coal Plant, Philippines
- Coastal Gujarat Power Limited - India
- Posco Energy - South Korea
- Gujarat Sidhee Cement - India
- Electricity Authority, New Zealand
- Heidelberg Cement - Germany
- Orica Australia Pty. Ltd.
- Metalloyd Limited - United Kingdom
- IEA Clean Coal Centre - UK
- VISA Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Romanian Commodities Exchange
- Trasteel International SA, Italy
- Altura Mining Limited, Indonesia
- Mercator Lines Limited - India
- Central Java Power - Indonesia
- PTC India Limited - India
- Bharathi Cement Corporation - India
- Bulk Trading Sa - Switzerland
- Holcim Trading Pte Ltd - Singapore
- Coalindo Energy - Indonesia
- Medco Energi Mining Internasional
- Semirara Mining Corp, Philippines
- The University of Queensland
- South Luzon Thermal Energy Corporation
- Ministry of Mines - Canada
- Price Waterhouse Coopers - Russia
- Uttam Galva Steels Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Malabar Cements Ltd - India
- Anglo American - United Kingdom
- ICICI Bank Limited - India
- Bhoruka Overseas - Indonesia
- Sree Jayajothi Cements Limited - India
- Singapore Mercantile Exchange
- Edison Trading Spa - Italy
- Ceylon Electricity Board - Sri Lanka
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- GAC Shipping (India) Pvt Ltd
- European Bulk Services B.V. - Netherlands
- Semirara Mining and Power Corporation, Philippines
- Economic Council, Georgia
- Petron Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Star Paper Mills Limited - India
- Aditya Birla Group - India
- Tamil Nadu electricity Board
- Baramulti Group, Indonesia
- Madhucon Powers Ltd - India
- Independent Power Producers Association of India
- Interocean Group of Companies - India
- Sarangani Energy Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Renaissance Capital - South Africa
- Siam City Cement - Thailand
- Kapuas Tunggal Persada - Indonesia
- Deloitte Consulting - India
- Merrill Lynch Commodities Europe
- Bangladesh Power Developement Board
- Vedanta Resources Plc - India
- Dalmia Cement Bharat India
- Therma Luzon, Inc, Philippines
- Kumho Petrochemical, South Korea
- Straits Asia Resources Limited - Singapore
- Tata Chemicals Ltd - India
- White Energy Company Limited
- TNB Fuel Sdn Bhd - Malaysia
- SMC Global Power, Philippines
- AsiaOL BioFuels Corp., Philippines
- Orica Mining Services - Indonesia
- Bukit Baiduri Energy - Indonesia
- Makarim & Taira - Indonesia
- London Commodity Brokers - England
- Wilmar Investment Holdings
- Kepco SPC Power Corporation, Philippines
- Eastern Energy - Thailand
- SN Aboitiz Power Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Port Waratah Coal Services - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meralco Power Generation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- GVK Power & Infra Limited - India
- Maheswari Brothers Coal Limited - India
- Billiton Holdings Pty Ltd - Australia
- Antam Resourcindo - Indonesia
- IHS Mccloskey Coal Group - USA
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Commonwealth Bank - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Globalindo Alam Lestari - Indonesia
- Sakthi Sugars Limited - India
- Power Finance Corporation Ltd., India
|
| |
| |
|
