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.
|
|
Friday, 09 September 22
GREECE WILL KEEP COAL-FIRED PLANTS RUNNING FOR LONGER AMID GAS CRISIS - REUTERS
Greece will keep seven coal-fired plants running for longer than previously planned as European countries adjust to a cut in gas flows coming from ...
Friday, 09 September 22
CHINA'S DROUGHT INTENSIFIES GLOBAL COAL SHORTAGE - REUTERS
China’s drought has sent coal prices surging as traders anticipate the lack of hydroelectric generation will force it to burn more coal to me ...
Thursday, 08 September 22
MOODY.S AFFIRMS ABM INVESTAMA'S B1 RATINGS FOLLOWING PLANNED MINORITY INVESTMENT IN COAL MINER; OUTLOOK STABLE
Moody's Investors Service has affirmed ABM Investama Tbk (P.T.)'s B1 corporate family rating (CFR), along with the B1 rating on its senior ...
Thursday, 08 September 22
MARKET INSIGHT - INTERMODAL
While the energy markets are historically stretched, Russian flows of crude oil are closely monitored as the oil trade is ultimately realigned. Mor ...
Friday, 02 September 22
INDONESIA COAL PRICE REFERENCE SLIPS SLIGHTLY IN SEPTEMBER 2022
COALspot.com: Indonesian Coal Price Reference for September delivery drops 0.74 per cent month on month.
The Indonesian Coal Price R ...
|
|
|
Showing 241 to 245 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Romanian Commodities Exchange
- Cement Manufacturers Association - India
- India Bulls Power Limited - India
- Ind-Barath Power Infra Limited - India
- Trasteel International SA, Italy
- Price Waterhouse Coopers - Russia
- Coalindo Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Sinarmas Energy and Mining - Indonesia
- Wilmar Investment Holdings
- Petrochimia International Co. Ltd.- Taiwan
- Indika Energy - Indonesia
- McConnell Dowell - Australia
- Tamil Nadu electricity Board
- Orica Australia Pty. Ltd.
- Siam City Cement PLC, Thailand
- Lanco Infratech Ltd - India
- Ambuja Cements Ltd - India
- Energy Development Corp, Philippines
- Ministry of Mines - Canada
- Eastern Energy - Thailand
- Global Green Power PLC Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- VISA Power Limited - India
- Essar Steel Hazira Ltd - India
- Carbofer General Trading SA - India
- Indian Oil Corporation Limited
- Madhucon Powers Ltd - India
- Videocon Industries ltd - India
- Orica Mining Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Singapore Mercantile Exchange
- Marubeni Corporation - India
- Meenaskhi Energy Private Limited - India
- Maheswari Brothers Coal Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sarangani Energy Corporation, Philippines
- Sical Logistics Limited - India
- Larsen & Toubro Limited - India
- Holcim Trading Pte Ltd - Singapore
- Bhatia International Limited - India
- Vizag Seaport Private Limited - India
- Edison Trading Spa - Italy
- Sojitz Corporation - Japan
- Malabar Cements Ltd - India
- Samtan Co., Ltd - South Korea
- ASAPP Information Group - India
- Straits Asia Resources Limited - Singapore
- Ministry of Transport, Egypt
- Kideco Jaya Agung - Indonesia
- Central Java Power - Indonesia
- Indian Energy Exchange, India
- Directorate Of Revenue Intelligence - India
- Mjunction Services Limited - India
- Gujarat Sidhee Cement - India
- Metalloyd Limited - United Kingdom
- Parry Sugars Refinery, India
- Simpson Spence & Young - Indonesia
- Australian Commodity Traders Exchange
- Chamber of Mines of South Africa
- Timah Investasi Mineral - Indoneisa
- Petron Corporation, Philippines
- Deloitte Consulting - India
- Kobexindo Tractors - Indoneisa
- Independent Power Producers Association of India
- Agrawal Coal Company - India
- Indogreen Group - Indonesia
- Coastal Gujarat Power Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Makmur.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- TeaM Sual Corporation - Philippines
- Baramulti Group, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Karaikal Port Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Energy Link Ltd, New Zealand
- European Bulk Services B.V. - Netherlands
- Chettinad Cement Corporation Ltd - India
- CNBM International Corporation - China
- GAC Shipping (India) Pvt Ltd
- Parliament of New Zealand
- Antam Resourcindo - Indonesia
- ICICI Bank Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Australian Coal Association
- Kapuas Tunggal Persada - Indonesia
- Heidelberg Cement - Germany
- Intertek Mineral Services - Indonesia
- Eastern Coal Council - USA
- Port Waratah Coal Services - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- IEA Clean Coal Centre - UK
- Kepco SPC Power Corporation, Philippines
- Electricity Authority, New Zealand
- Indonesian Coal Mining Association
- Directorate General of MIneral and Coal - Indonesia
- MS Steel International - UAE
- Xindia Steels Limited - India
- AsiaOL BioFuels Corp., Philippines
- Asmin Koalindo Tuhup - Indonesia
- International Coal Ventures Pvt Ltd - India
- Vedanta Resources Plc - India
- The University of Queensland
- Karbindo Abesyapradhi - Indoneisa
- Siam City Cement - Thailand
- Rashtriya Ispat Nigam Limited - India
- Kaltim Prima Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- SMC Global Power, Philippines
- Attock Cement Pakistan Limited
- Goldman Sachs - Singapore
- Bulk Trading Sa - Switzerland
- Bukit Baiduri Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Tata Chemicals Ltd - India
- Barasentosa Lestari - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Aditya Birla Group - India
- The Treasury - Australian Government
- New Zealand Coal & Carbon
- Mercuria Energy - Indonesia
- GVK Power & Infra Limited - India
- Commonwealth Bank - Australia
- Globalindo Alam Lestari - Indonesia
- Central Electricity Authority - India
- Star Paper Mills Limited - India
- Bhoruka Overseas - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Bhushan Steel Limited - India
- Standard Chartered Bank - UAE
- Bayan Resources Tbk. - Indonesia
- LBH Netherlands Bv - Netherlands
- Wood Mackenzie - Singapore
- Savvy Resources Ltd - HongKong
- PNOC Exploration Corporation - Philippines
- Salva Resources Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Sree Jayajothi Cements Limited - India
- Mercator Lines Limited - India
- Thiess Contractors Indonesia
- Borneo Indobara - Indonesia
- Coal and Oil Company - UAE
- IHS Mccloskey Coal Group - USA
- Bahari Cakrawala Sebuku - Indonesia
- Pendopo Energi Batubara - Indonesia
- CIMB Investment Bank - Malaysia
- The State Trading Corporation of India Ltd
- Kohat Cement Company Ltd. - Pakistan
- Thai Mozambique Logistica
- Banpu Public Company Limited - Thailand
- Miang Besar Coal Terminal - Indonesia
- Toyota Tsusho Corporation, Japan
- Kalimantan Lumbung Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Bharathi Cement Corporation - India
- San Jose City I Power Corp, Philippines
- OPG Power Generation Pvt Ltd - India
- Dalmia Cement Bharat India
- Altura Mining Limited, Indonesia
- Kumho Petrochemical, South Korea
- Mintek Dendrill Indonesia
- Global Business Power Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Grasim Industreis Ltd - India
- Uttam Galva Steels Limited - India
- SMG Consultants - Indonesia
- Georgia Ports Authority, United States
- Sindya Power Generating Company Private Ltd
- Africa Commodities Group - South Africa
- Planning Commission, India
- Posco Energy - South Korea
- Ministry of Finance - Indonesia
- Binh Thuan Hamico - Vietnam
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- Ceylon Electricity Board - Sri Lanka
- London Commodity Brokers - England
- Formosa Plastics Group - Taiwan
- Bangladesh Power Developement Board
- Sakthi Sugars Limited - India
- Anglo American - United Kingdom
- Global Coal Blending Company Limited - Australia
- Electricity Generating Authority of Thailand
- GMR Energy Limited - India
- White Energy Company Limited
- Rio Tinto Coal - Australia
- Merrill Lynch Commodities Europe
- Alfred C Toepfer International GmbH - Germany
- Renaissance Capital - South Africa
- Semirara Mining Corp, Philippines
- Jaiprakash Power Ventures ltd
- Riau Bara Harum - Indonesia
- PTC India Limited - India
- Oldendorff Carriers - Singapore
- Makarim & Taira - Indonesia
- Economic Council, Georgia
- PowerSource Philippines DevCo
- Latin American Coal - Colombia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Therma Luzon, Inc, Philippines
- Medco Energi Mining Internasional
- Cigading International Bulk Terminal - Indonesia
- Power Finance Corporation Ltd., India
- Krishnapatnam Port Company Ltd. - India
- Meralco Power Generation, Philippines
- Minerals Council of Australia
|
| |
| |
|
