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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
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Wednesday, 17 August 22
PAXOCEAN, HONG LAM MARINE AND BUREAU VERITAS SIGN MOU TO DEVELOP AMMONIA BUNKER VESSEL DESIGN - BUREAU VERITAS
PaxOcean Engineering Pte. Ltd. has signed a Memorandum of Understanding (MOU) with Singapore-based bunker vessel operator Hong Lam Marine and class ...
Wednesday, 17 August 22
GOODFUELSS ASIA-PACIFIC BRANCH KICKSTARTS SUSTAINABLE BIOFUEL DELIVERIES WITH NYK AS FIRST CLIENT - GOOD FUELS
GoodFuels, the leading biofuels pioneer for the global transport industry, has today announced that it has successfully supplied sustainable marine ...
Tuesday, 16 August 22
EU BAN ON RUSSIAN COAL IMPORTS COMES INTO FORCE - DEUTSCHE WELLE
The European Union banned Russian coal imports in response to the invasion of Ukraine as part of sanctions in April. Since then, it’s been sc ...
Thursday, 11 August 22
MARKET INSIGHT - INTERMODAL
On July 22nd, Ukraine signed a deal with Russia to release 22mn tons of grain from Ukraine’s 3 major ports (Yuzhny, Chornomorsk, Odesa). Such ...
Wednesday, 10 August 22
THE FUTURE OF COAL: EIGHT KEY THEMES FROM THE GLOBAL COAL FORUM - WOOD MACKENZIE
Coal investors face a multi-layered and unavoidable challenge: markets distorted by war, trade constraints and the existential threat of the energy ...
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Showing 261 to 265 news of total 6871 |
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- Directorate Of Revenue Intelligence - India
- Marubeni Corporation - India
- Uttam Galva Steels Limited - India
- Indika Energy - Indonesia
- Baramulti Group, Indonesia
- Eastern Energy - Thailand
- Price Waterhouse Coopers - Russia
- Maharashtra Electricity Regulatory Commission - India
- Central Electricity Authority - India
- Central Java Power - Indonesia
- Singapore Mercantile Exchange
- Indonesian Coal Mining Association
- Goldman Sachs - Singapore
- Maheswari Brothers Coal Limited - India
- Anglo American - United Kingdom
- The State Trading Corporation of India Ltd
- Rashtriya Ispat Nigam Limited - India
- London Commodity Brokers - England
- Vedanta Resources Plc - India
- Electricity Generating Authority of Thailand
- Parliament of New Zealand
- Therma Luzon, Inc, Philippines
- Essar Steel Hazira Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Commonwealth Bank - Australia
- Tamil Nadu electricity Board
- Global Green Power PLC Corporation, Philippines
- Makarim & Taira - Indonesia
- India Bulls Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Timah Investasi Mineral - Indoneisa
- Standard Chartered Bank - UAE
- Jindal Steel & Power Ltd - India
- LBH Netherlands Bv - Netherlands
- Mjunction Services Limited - India
- Kobexindo Tractors - Indoneisa
- Australian Coal Association
- Port Waratah Coal Services - Australia
- Billiton Holdings Pty Ltd - Australia
- Indian Energy Exchange, India
- Salva Resources Pvt Ltd - India
- Georgia Ports Authority, United States
- PowerSource Philippines DevCo
- Eastern Coal Council - USA
- Sarangani Energy Corporation, Philippines
- VISA Power Limited - India
- Sindya Power Generating Company Private Ltd
- Bhatia International Limited - India
- Kaltim Prima Coal - Indonesia
- Mercuria Energy - Indonesia
- Latin American Coal - Colombia
- Parry Sugars Refinery, India
- Meenaskhi Energy Private Limited - India
- Ceylon Electricity Board - Sri Lanka
- Chettinad Cement Corporation Ltd - India
- GAC Shipping (India) Pvt Ltd
- Dalmia Cement Bharat India
- Coalindo Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Economic Council, Georgia
- Aditya Birla Group - India
- Bayan Resources Tbk. - Indonesia
- Planning Commission, India
- New Zealand Coal & Carbon
- Borneo Indobara - Indonesia
- Orica Australia Pty. Ltd.
- ICICI Bank Limited - India
- Krishnapatnam Port Company Ltd. - India
- Iligan Light & Power Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Riau Bara Harum - Indonesia
- Sical Logistics Limited - India
- ASAPP Information Group - India
- Ambuja Cements Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Heidelberg Cement - Germany
- Energy Link Ltd, New Zealand
- Thai Mozambique Logistica
- South Luzon Thermal Energy Corporation
- MS Steel International - UAE
- Minerals Council of Australia
- Kepco SPC Power Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Coal and Oil Company - UAE
- Straits Asia Resources Limited - Singapore
- Global Business Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Posco Energy - South Korea
- Indogreen Group - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Rio Tinto Coal - Australia
- Independent Power Producers Association of India
- Edison Trading Spa - Italy
- Mercator Lines Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- European Bulk Services B.V. - Netherlands
- Bhushan Steel Limited - India
- Bharathi Cement Corporation - India
- SMC Global Power, Philippines
- Bukit Makmur.PT - Indonesia
- IEA Clean Coal Centre - UK
- Orica Mining Services - Indonesia
- IHS Mccloskey Coal Group - USA
- Aboitiz Power Corporation - Philippines
- Power Finance Corporation Ltd., India
- Bangladesh Power Developement Board
- Alfred C Toepfer International GmbH - Germany
- Attock Cement Pakistan Limited
- Binh Thuan Hamico - Vietnam
- PTC India Limited - India
- Intertek Mineral Services - Indonesia
- Videocon Industries ltd - India
- The Treasury - Australian Government
- Cement Manufacturers Association - India
- Trasteel International SA, Italy
- Formosa Plastics Group - Taiwan
- Bulk Trading Sa - Switzerland
- Electricity Authority, New Zealand
- Meralco Power Generation, Philippines
- Interocean Group of Companies - India
- Siam City Cement - Thailand
- Jorong Barutama Greston.PT - Indonesia
- McConnell Dowell - Australia
- TeaM Sual Corporation - Philippines
- Barasentosa Lestari - Indonesia
- CIMB Investment Bank - Malaysia
- Malabar Cements Ltd - India
- Xindia Steels Limited - India
- Agrawal Coal Company - India
- Petrochimia International Co. Ltd.- Taiwan
- Vizag Seaport Private Limited - India
- Coastal Gujarat Power Limited - India
- Mintek Dendrill Indonesia
- Larsen & Toubro Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Lanco Infratech Ltd - India
- Pendopo Energi Batubara - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Carbofer General Trading SA - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Sojitz Corporation - Japan
- SN Aboitiz Power Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Kartika Selabumi Mining - Indonesia
- GVK Power & Infra Limited - India
- Bukit Baiduri Energy - Indonesia
- Thiess Contractors Indonesia
- SMG Consultants - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Miang Besar Coal Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- Renaissance Capital - South Africa
- Karbindo Abesyapradhi - Indoneisa
- Energy Development Corp, Philippines
- Madhucon Powers Ltd - India
- Petron Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Samtan Co., Ltd - South Korea
- Altura Mining Limited, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Toyota Tsusho Corporation, Japan
- Chamber of Mines of South Africa
- Semirara Mining and Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Grasim Industreis Ltd - India
- Holcim Trading Pte Ltd - Singapore
- GMR Energy Limited - India
- Bhoruka Overseas - Indonesia
- Siam City Cement PLC, Thailand
- Wood Mackenzie - Singapore
- Ministry of Transport, Egypt
- Oldendorff Carriers - Singapore
- Metalloyd Limited - United Kingdom
- Ministry of Finance - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Globalindo Alam Lestari - Indonesia
- Kapuas Tunggal Persada - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Deloitte Consulting - India
- Tata Chemicals Ltd - India
- Merrill Lynch Commodities Europe
- Directorate General of MIneral and Coal - Indonesia
- Global Coal Blending Company Limited - Australia
- Africa Commodities Group - South Africa
- Wilmar Investment Holdings
- Gujarat Sidhee Cement - India
- Ministry of Mines - Canada
- Banpu Public Company Limited - Thailand
- International Coal Ventures Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Indo Tambangraya Megah - Indonesia
- Ind-Barath Power Infra Limited - India
- Sakthi Sugars Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Romanian Commodities Exchange
- Kohat Cement Company Ltd. - Pakistan
- Kumho Petrochemical, South Korea
- San Jose City I Power Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- OPG Power Generation Pvt Ltd - India
- CNBM International Corporation - China
- Medco Energi Mining Internasional
- The University of Queensland
- Indian Oil Corporation Limited
- White Energy Company Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Star Paper Mills Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
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