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.
|
|
Thursday, 14 July 22
INDIA'S COAL IMPORTS HIT RECORD HIGH IN JUNE - REUTERS
India's coal imports hit a record high in June despite high global prices, data from three trade sources and Refinitiv ship tracking showed, as ...
Thursday, 14 July 22
CHINA'S JUNE COAL IMPORTS SLUMP AS TRADERS SHUN EXPENSIVE OVERSEAS CARGOES - REUTERS
China’s coal imports fell 33% in June from a year ago, with traders turning down expensive overseas cargoes in favor of domestic ones with ca ...
Wednesday, 13 July 22
KOWEPO TO IMPORT 2.79 MILLION TONS OF LOW TO MEDIUM COAL
COALspot.com: Korea Western Power Co., Ltd. (KOWEPO) has issued an International tender for Total 1360k MT of Min.4400 kcal/kg NCV coal and Total 1 ...
Wednesday, 13 July 22
HAVE MINERS MISSED THE BOAT TO INVEST AND GET AHEAD OF THE ENERGY TRANSITION? - WOOD MACKENZIE
Miners are in rude health, benefiting from economic stimuli, the post-pandemic recovery and associated supply constraints. Initially the Ukraine wa ...
Wednesday, 13 July 22
MARKET INSIGHT - INTERMODAL
Taking the previous market insight a step further, market sentiment remains bullish regarding the overall ROI of scrubbers, facing tailwinds from a ...
|
|
|
Showing 291 to 295 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bhatia International Limited - India
- Baramulti Group, Indonesia
- Global Business Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Orica Australia Pty. Ltd.
- Trasteel International SA, Italy
- Timah Investasi Mineral - Indoneisa
- Lanco Infratech Ltd - India
- Eastern Energy - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Minerals Council of Australia
- Therma Luzon, Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Carbofer General Trading SA - India
- Siam City Cement PLC, Thailand
- Edison Trading Spa - Italy
- Pendopo Energi Batubara - Indonesia
- GMR Energy Limited - India
- Simpson Spence & Young - Indonesia
- PTC India Limited - India
- Leighton Contractors Pty Ltd - Australia
- TeaM Sual Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- Uttam Galva Steels Limited - India
- Kideco Jaya Agung - Indonesia
- Larsen & Toubro Limited - India
- Dalmia Cement Bharat India
- Intertek Mineral Services - Indonesia
- Energy Development Corp, Philippines
- IHS Mccloskey Coal Group - USA
- Standard Chartered Bank - UAE
- Kalimantan Lumbung Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ambuja Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Posco Energy - South Korea
- Alfred C Toepfer International GmbH - Germany
- Sical Logistics Limited - India
- Petron Corporation, Philippines
- New Zealand Coal & Carbon
- Planning Commission, India
- Bhoruka Overseas - Indonesia
- Mercator Lines Limited - India
- Chamber of Mines of South Africa
- Mintek Dendrill Indonesia
- Port Waratah Coal Services - Australia
- Binh Thuan Hamico - Vietnam
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Maheswari Brothers Coal Limited - India
- Jaiprakash Power Ventures ltd
- Maharashtra Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Rashtriya Ispat Nigam Limited - India
- Ind-Barath Power Infra Limited - India
- Aditya Birla Group - India
- Africa Commodities Group - South Africa
- Straits Asia Resources Limited - Singapore
- Siam City Cement - Thailand
- Coalindo Energy - Indonesia
- Heidelberg Cement - Germany
- Makarim & Taira - Indonesia
- GAC Shipping (India) Pvt Ltd
- Metalloyd Limited - United Kingdom
- Goldman Sachs - Singapore
- Romanian Commodities Exchange
- GN Power Mariveles Coal Plant, Philippines
- Rio Tinto Coal - Australia
- Thiess Contractors Indonesia
- Semirara Mining Corp, Philippines
- Ministry of Mines - Canada
- Economic Council, Georgia
- The Treasury - Australian Government
- AsiaOL BioFuels Corp., Philippines
- White Energy Company Limited
- Globalindo Alam Lestari - Indonesia
- Bukit Makmur.PT - Indonesia
- Eastern Coal Council - USA
- Barasentosa Lestari - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Iligan Light & Power Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- International Coal Ventures Pvt Ltd - India
- Commonwealth Bank - Australia
- Banpu Public Company Limited - Thailand
- Asmin Koalindo Tuhup - Indonesia
- Manunggal Multi Energi - Indonesia
- Interocean Group of Companies - India
- Australian Commodity Traders Exchange
- Riau Bara Harum - Indonesia
- Semirara Mining and Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- ICICI Bank Limited - India
- CIMB Investment Bank - Malaysia
- Electricity Generating Authority of Thailand
- Medco Energi Mining Internasional
- San Jose City I Power Corp, Philippines
- Tamil Nadu electricity Board
- Coal and Oil Company - UAE
- Cigading International Bulk Terminal - Indonesia
- Central Electricity Authority - India
- Madhucon Powers Ltd - India
- Latin American Coal - Colombia
- Bukit Baiduri Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- Sree Jayajothi Cements Limited - India
- Ministry of Finance - Indonesia
- Meenaskhi Energy Private Limited - India
- Ministry of Transport, Egypt
- Central Java Power - Indonesia
- Kepco SPC Power Corporation, Philippines
- Attock Cement Pakistan Limited
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Sidhee Cement - India
- Bahari Cakrawala Sebuku - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- McConnell Dowell - Australia
- Electricity Authority, New Zealand
- Gujarat Electricity Regulatory Commission - India
- Bukit Asam (Persero) Tbk - Indonesia
- ASAPP Information Group - India
- Tata Chemicals Ltd - India
- Renaissance Capital - South Africa
- Bangladesh Power Developement Board
- IEA Clean Coal Centre - UK
- Parry Sugars Refinery, India
- Sarangani Energy Corporation, Philippines
- Sakthi Sugars Limited - India
- Bharathi Cement Corporation - India
- Agrawal Coal Company - India
- Parliament of New Zealand
- Kobexindo Tractors - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- Videocon Industries ltd - India
- Energy Link Ltd, New Zealand
- Sinarmas Energy and Mining - Indonesia
- Marubeni Corporation - India
- OPG Power Generation Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Thai Mozambique Logistica
- Deloitte Consulting - India
- European Bulk Services B.V. - Netherlands
- Indo Tambangraya Megah - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Wilmar Investment Holdings
- SMC Global Power, Philippines
- Mercuria Energy - Indonesia
- Australian Coal Association
- Directorate General of MIneral and Coal - Indonesia
- Anglo American - United Kingdom
- Merrill Lynch Commodities Europe
- Bayan Resources Tbk. - Indonesia
- Directorate Of Revenue Intelligence - India
- Bulk Trading Sa - Switzerland
- Billiton Holdings Pty Ltd - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Grasim Industreis Ltd - India
- Indogreen Group - Indonesia
- SN Aboitiz Power Inc, Philippines
- GVK Power & Infra Limited - India
- Indian Oil Corporation Limited
- Samtan Co., Ltd - South Korea
- Sindya Power Generating Company Private Ltd
- Oldendorff Carriers - Singapore
- Karaikal Port Pvt Ltd - India
- Indika Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Global Coal Blending Company Limited - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Price Waterhouse Coopers - Russia
- Borneo Indobara - Indonesia
- Singapore Mercantile Exchange
- Ceylon Electricity Board - Sri Lanka
- VISA Power Limited - India
- The University of Queensland
- Altura Mining Limited, Indonesia
- CNBM International Corporation - China
- Vedanta Resources Plc - India
- PNOC Exploration Corporation - Philippines
- Orica Mining Services - Indonesia
- Xindia Steels Limited - India
- Meralco Power Generation, Philippines
- Malabar Cements Ltd - India
- Antam Resourcindo - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indonesian Coal Mining Association
- SMG Consultants - Indonesia
- Mjunction Services Limited - India
- Georgia Ports Authority, United States
- Essar Steel Hazira Ltd - India
- Independent Power Producers Association of India
- South Luzon Thermal Energy Corporation
- Kartika Selabumi Mining - Indonesia
- India Bulls Power Limited - India
- Jindal Steel & Power Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Pipit Mutiara Jaya. PT, Indonesia
- The State Trading Corporation of India Ltd
- Sojitz Corporation - Japan
- PowerSource Philippines DevCo
- Cement Manufacturers Association - India
- Star Paper Mills Limited - India
- Wood Mackenzie - Singapore
- Power Finance Corporation Ltd., India
- Chettinad Cement Corporation Ltd - India
- MS Steel International - UAE
- Savvy Resources Ltd - HongKong
- Kumho Petrochemical, South Korea
- Neyveli Lignite Corporation Ltd, - India
- Global Green Power PLC Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- London Commodity Brokers - England
- Bhushan Steel Limited - India
- Vizag Seaport Private Limited - India
|
| |
| |
|
