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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—Russia began to manipulate Europe’s energy markets by trimming gas shipments and emptying gas storage facilities on the continent. To fill the supply gaps, Europe ramped up its purchases of liquefied natural gas (LNG). A global bidding war for LNG ensued. Wealthy European nations vied with buyers in Japan, South Korea, Taiwan, China, and developing nations for a limited LNG supply, and prices soared to previously unimaginable highs.
The gas price contagion quickly spread to American shores. U.S. LNG exporters bought all the gas they could handle, hoping to reap big profits by selling U.S. gas to overheated global markets. Surging exports, in turn, shortchanged U.S. supplies; domestic gas stockpiles fell to multi-year lows, and wholesale gas prices rocketed to their highest levels in more than a decade.
Those price spikes were largely passed on to U.S. consumers. According to the Energy Information Administration, total U.S. spending on natural gas soared to $269 billion in 2022, up from $150 billion in 2019, the last “normal” year before COVID-19 and Russia roiled U.S. gas markets.
It’s impossible to know exactly how much U.S. consumers would have spent if Russia hadn’t upended global gas markets. But there’s absolutely no doubt that surging LNG exports helped trigger the surge in U.S. gas prices.
Between 2020 and 2022, total gas production in the U.S. increased by 7 billion cubic feet per day (Bcf/d), while domestic consumption went up by just 4.6 Bcf/d. With domestic production rising faster than consumption, you might expect prices to stay muted. But exports changed the equation. LNG exports went up by 4 Bcf/d over the same period, and pipeline exports rose by 0.4 Bcf/d. All told, combining growth in bothdomestic consumption and exports, demand for U.S. gas went up about 2 Bcf/d faster than production.
With demand outpacing supply, prices soared. But if exports had grown more slowly, the U.S. gas market would have been in better balance, and prices would have been closer to—or perhaps less than—their long-term average.
In the years before Russia upended the U.S. gas market, the average monthly wholesale price for gas hovered at just over $3 per million metric British thermal units (MMBtu). FromSeptember 2021 through December 2022—the years of Russian-induced gas market chaos—prices nearly doubled their long-term average.
Higher wholesale prices fueled inflation for all U.S. consumers, including families heating their homes, businesses, and industries. It became more expensive to keep the lights on, as well. Gas-dependent electric utilities saw their costs rise, and many passed the increased costs to their customers. Some people saw the price increases directly in their utility bills, but much was hidden in the overall increase in prices for goods and services.
If domestic gas prices had remained at their long-term average, U.S. consumers would have spent roughly $111 billion less on wholesale natural gas purchases from September 2021 through December 2022. Or, said differently, the Russia-induced price spikes cost U.S. households and gas buyers $111 billion, but led to a $111 billion windfall for the gas industry.
The transfer of wealth from gas consumers to gas producers varied by sector. All told, homeowners and renters paid gas companies an additional $14 billion during the market havoc. Office buildings and other commercial users spent an additional $11 billion. U.S. industrial gas users transferred about $33 billion to oil and gas companies. And electric utilities paid a whopping $50 billion more for their fuel.
It’s high time for the consumer effects of LNG exports to receive the attention they deserve. After all, what’s happened before could happen again. When the circumstances are right—a cold snap in Asia, a pipeline explosion in Europe, unrest in the Middle East—overseas buyers will once again ramp up their demand for LNG and compete directly with U.S. consumers for a limited supply of U.S. gas. The more export capacity we have, the more likely it is that a gas supply disruption anywhere in the world will trigger a price spike here at home. It’s a twist on the old adage: When the world sneezes, the U.S. will catch cold.
Source: IEEFA
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Friday, 06 September 24
REBOUND IN OIL DEMAND COULD LIFT MARKET IN LATTER HALF OF 2024 - BIMCO
Supply/demand
Based on a strong second half demand, the supply/balance is forecast to strengthen in 2024 but weaken slightly in 2025 as n ...
Friday, 06 September 24
GLOBAL SEABORNE LNG TRADE HAS CONTINUED TO INCREASE LAST YEAR - BANCHERO COSTA
Global seaborne LNG trade has continued to increase last year, helped also by the events in Ukraine which forced Europe to diversify away from Russ ...
Wednesday, 28 August 24
SEABORNE COAL IMPORTS INTO INDIA INCREASED BY +9.9% Y-O-Y TO 146.6 MLN T - BANCHERO COSTA
Global coal trade has really picked up pace over the past year, and is now fully back to pre-Covid levels said Banchero Costa Research in its lates ...
Tuesday, 06 August 24
EXERCISE CAUTION WITH AMMONIA SWITCH - BALTIC EXCHANGE
A new study from the Massachusetts Institute of Technology (MIT) has thrown a spanner into the plan to transition ships from diesel fuel to ammonia ...
Friday, 02 August 24
ENERGY MARKET DEVELOPMENTS: COAL AND NATURAL GAS PRICES REACH RECORD HIGHS - WORLD BANK
The recent surge in natural gas and coal prices has been so swift that the main benchmarks were roughly three times higher in 2022Q2 compared to a ...
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- Bank of Tokyo Mitsubishi UFJ Ltd
- Orica Australia Pty. Ltd.
- Offshore Bulk Terminal Pte Ltd, Singapore
- Binh Thuan Hamico - Vietnam
- Indo Tambangraya Megah - Indonesia
- Carbofer General Trading SA - India
- Intertek Mineral Services - Indonesia
- Vedanta Resources Plc - India
- Sical Logistics Limited - India
- Sojitz Corporation - Japan
- Asia Pacific Energy Resources Ventures Inc, Philippines
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- McConnell Dowell - Australia
- Metalloyd Limited - United Kingdom
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- Pendopo Energi Batubara - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Ministry of Mines - Canada
- Price Waterhouse Coopers - Russia
- Sakthi Sugars Limited - India
- ICICI Bank Limited - India
- Thai Mozambique Logistica
- MS Steel International - UAE
- Bukit Baiduri Energy - Indonesia
- IEA Clean Coal Centre - UK
- Coalindo Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Parry Sugars Refinery, India
- Kartika Selabumi Mining - Indonesia
- Ministry of Transport, Egypt
- Coal and Oil Company - UAE
- Asmin Koalindo Tuhup - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Baramulti Group, Indonesia
- New Zealand Coal & Carbon
- Bhoruka Overseas - Indonesia
- Indian Oil Corporation Limited
- Rio Tinto Coal - Australia
- GAC Shipping (India) Pvt Ltd
- Bayan Resources Tbk. - Indonesia
- Grasim Industreis Ltd - India
- Savvy Resources Ltd - HongKong
- Madhucon Powers Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Trasteel International SA, Italy
- SMG Consultants - Indonesia
- Tamil Nadu electricity Board
- Samtan Co., Ltd - South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Independent Power Producers Association of India
- Alfred C Toepfer International GmbH - Germany
- PNOC Exploration Corporation - Philippines
- Singapore Mercantile Exchange
- CNBM International Corporation - China
- Global Green Power PLC Corporation, Philippines
- Wilmar Investment Holdings
- Semirara Mining Corp, Philippines
- Africa Commodities Group - South Africa
- Gujarat Sidhee Cement - India
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Energy Exchange, India
- Latin American Coal - Colombia
- SN Aboitiz Power Inc, Philippines
- Petron Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Kaltim Prima Coal - Indonesia
- Heidelberg Cement - Germany
- White Energy Company Limited
- TNB Fuel Sdn Bhd - Malaysia
- Toyota Tsusho Corporation, Japan
- Posco Energy - South Korea
- GN Power Mariveles Coal Plant, Philippines
- Antam Resourcindo - Indonesia
- GMR Energy Limited - India
- Meralco Power Generation, Philippines
- The University of Queensland
- Marubeni Corporation - India
- Bahari Cakrawala Sebuku - Indonesia
- Wood Mackenzie - Singapore
- TeaM Sual Corporation - Philippines
- Parliament of New Zealand
- Bhatia International Limited - India
- Xindia Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- London Commodity Brokers - England
- Salva Resources Pvt Ltd - India
- Mercuria Energy - Indonesia
- Bangladesh Power Developement Board
- CIMB Investment Bank - Malaysia
- Commonwealth Bank - Australia
- Goldman Sachs - Singapore
- Australian Commodity Traders Exchange
- ASAPP Information Group - India
- Mjunction Services Limited - India
- Billiton Holdings Pty Ltd - Australia
- Larsen & Toubro Limited - India
- Gujarat Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- Malabar Cements Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Makmur.PT - Indonesia
- Eastern Energy - Thailand
- Banpu Public Company Limited - Thailand
- Makarim & Taira - Indonesia
- Deloitte Consulting - India
- Leighton Contractors Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Port Waratah Coal Services - Australia
- Videocon Industries ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Eastern Coal Council - USA
- Aboitiz Power Corporation - Philippines
- Tata Chemicals Ltd - India
- Bhushan Steel Limited - India
- Indogreen Group - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Standard Chartered Bank - UAE
- Bharathi Cement Corporation - India
- India Bulls Power Limited - India
- Ambuja Cements Ltd - India
- Kumho Petrochemical, South Korea
- Karaikal Port Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Central Electricity Authority - India
- Iligan Light & Power Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- PowerSource Philippines DevCo
- SMC Global Power, Philippines
- Globalindo Alam Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- Simpson Spence & Young - Indonesia
- Minerals Council of Australia
- Indika Energy - Indonesia
- VISA Power Limited - India
- Merrill Lynch Commodities Europe
- Altura Mining Limited, Indonesia
- Essar Steel Hazira Ltd - India
- Manunggal Multi Energi - Indonesia
- Interocean Group of Companies - India
- PTC India Limited - India
- International Coal Ventures Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Therma Luzon, Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Formosa Plastics Group - Taiwan
- IHS Mccloskey Coal Group - USA
- Kepco SPC Power Corporation, Philippines
- Dalmia Cement Bharat India
- Power Finance Corporation Ltd., India
- Thiess Contractors Indonesia
- Vizag Seaport Private Limited - India
- LBH Netherlands Bv - Netherlands
- Ministry of Finance - Indonesia
- The Treasury - Australian Government
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Energy Development Corp, Philippines
- GVK Power & Infra Limited - India
- Jindal Steel & Power Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Mercator Lines Limited - India
- Straits Asia Resources Limited - Singapore
- Aditya Birla Group - India
- Renaissance Capital - South Africa
- Holcim Trading Pte Ltd - Singapore
- Cigading International Bulk Terminal - Indonesia
- Sarangani Energy Corporation, Philippines
- Lanco Infratech Ltd - India
- Siam City Cement - Thailand
- Jaiprakash Power Ventures ltd
- Borneo Indobara - Indonesia
- Planning Commission, India
- Edison Trading Spa - Italy
- Sindya Power Generating Company Private Ltd
- Anglo American - United Kingdom
- Global Coal Blending Company Limited - Australia
- Uttam Galva Steels Limited - India
- Agrawal Coal Company - India
- Ceylon Electricity Board - Sri Lanka
- Electricity Authority, New Zealand
- Medco Energi Mining Internasional
- Georgia Ports Authority, United States
- Kohat Cement Company Ltd. - Pakistan
- Maharashtra Electricity Regulatory Commission - India
- Chettinad Cement Corporation Ltd - India
- Romanian Commodities Exchange
- Orica Mining Services - Indonesia
- Electricity Generating Authority of Thailand
- Cement Manufacturers Association - India
- San Jose City I Power Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Riau Bara Harum - Indonesia
- Timah Investasi Mineral - Indoneisa
- Oldendorff Carriers - Singapore
- Star Paper Mills Limited - India
- Australian Coal Association
- Chamber of Mines of South Africa
- Energy Link Ltd, New Zealand
- Directorate Of Revenue Intelligence - India
- Neyveli Lignite Corporation Ltd, - India
- Siam City Cement PLC, Thailand
- OPG Power Generation Pvt Ltd - India
- Mintek Dendrill Indonesia
- Attock Cement Pakistan Limited
- Directorate General of MIneral and Coal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Ind-Barath Power Infra Limited - India
- Sinarmas Energy and Mining - Indonesia
- Central Java Power - Indonesia
- Economic Council, Georgia
- Sree Jayajothi Cements Limited - India
- The State Trading Corporation of India Ltd
- Indonesian Coal Mining Association
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