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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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- Miang Besar Coal Terminal - Indonesia
- McConnell Dowell - Australia
- Toyota Tsusho Corporation, Japan
- Posco Energy - South Korea
- VISA Power Limited - India
- Tata Chemicals Ltd - India
- New Zealand Coal & Carbon
- Electricity Authority, New Zealand
- Wood Mackenzie - Singapore
- Gujarat Mineral Development Corp Ltd - India
- Kobexindo Tractors - Indoneisa
- Formosa Plastics Group - Taiwan
- IHS Mccloskey Coal Group - USA
- Trasteel International SA, Italy
- Sree Jayajothi Cements Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- SMG Consultants - Indonesia
- Parliament of New Zealand
- Kumho Petrochemical, South Korea
- Standard Chartered Bank - UAE
- Coalindo Energy - Indonesia
- Larsen & Toubro Limited - India
- Price Waterhouse Coopers - Russia
- Georgia Ports Authority, United States
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Cigading International Bulk Terminal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Singapore Mercantile Exchange
- Australian Coal Association
- Meenaskhi Energy Private Limited - India
- Marubeni Corporation - India
- European Bulk Services B.V. - Netherlands
- Indonesian Coal Mining Association
- Billiton Holdings Pty Ltd - Australia
- Videocon Industries ltd - India
- PTC India Limited - India
- PNOC Exploration Corporation - Philippines
- MS Steel International - UAE
- Holcim Trading Pte Ltd - Singapore
- Latin American Coal - Colombia
- Indogreen Group - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Borneo Indobara - Indonesia
- Sical Logistics Limited - India
- Samtan Co., Ltd - South Korea
- Ind-Barath Power Infra Limited - India
- AsiaOL BioFuels Corp., Philippines
- Bangladesh Power Developement Board
- Thiess Contractors Indonesia
- Ministry of Mines - Canada
- Jorong Barutama Greston.PT - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Agrawal Coal Company - India
- Commonwealth Bank - Australia
- Attock Cement Pakistan Limited
- Banpu Public Company Limited - Thailand
- Barasentosa Lestari - Indonesia
- Central Electricity Authority - India
- Antam Resourcindo - Indonesia
- Oldendorff Carriers - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Bharathi Cement Corporation - India
- International Coal Ventures Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- SMC Global Power, Philippines
- Indian Energy Exchange, India
- Central Java Power - Indonesia
- Timah Investasi Mineral - Indoneisa
- Sinarmas Energy and Mining - Indonesia
- Parry Sugars Refinery, India
- Indian Oil Corporation Limited
- South Luzon Thermal Energy Corporation
- Orica Australia Pty. Ltd.
- Goldman Sachs - Singapore
- Ministry of Transport, Egypt
- Tamil Nadu electricity Board
- Deloitte Consulting - India
- Electricity Generating Authority of Thailand
- Energy Development Corp, Philippines
- Star Paper Mills Limited - India
- Kapuas Tunggal Persada - Indonesia
- The Treasury - Australian Government
- Maharashtra Electricity Regulatory Commission - India
- Rio Tinto Coal - Australia
- Indika Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Intertek Mineral Services - Indonesia
- The University of Queensland
- Grasim Industreis Ltd - India
- Altura Mining Limited, Indonesia
- Leighton Contractors Pty Ltd - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Carbofer General Trading SA - India
- Kartika Selabumi Mining - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kepco SPC Power Corporation, Philippines
- Edison Trading Spa - Italy
- Manunggal Multi Energi - Indonesia
- Africa Commodities Group - South Africa
- Siam City Cement - Thailand
- CNBM International Corporation - China
- Interocean Group of Companies - India
- Independent Power Producers Association of India
- PowerSource Philippines DevCo
- Bhatia International Limited - India
- Dalmia Cement Bharat India
- Coastal Gujarat Power Limited - India
- Coal and Oil Company - UAE
- Sindya Power Generating Company Private Ltd
- Chamber of Mines of South Africa
- Iligan Light & Power Inc, Philippines
- LBH Netherlands Bv - Netherlands
- Simpson Spence & Young - Indonesia
- GAC Shipping (India) Pvt Ltd
- Directorate Of Revenue Intelligence - India
- GN Power Mariveles Coal Plant, Philippines
- Xindia Steels Limited - India
- Bukit Baiduri Energy - Indonesia
- Heidelberg Cement - Germany
- Malabar Cements Ltd - India
- Bayan Resources Tbk. - Indonesia
- Eastern Coal Council - USA
- CIMB Investment Bank - Malaysia
- Vizag Seaport Private Limited - India
- SN Aboitiz Power Inc, Philippines
- Vedanta Resources Plc - India
- Lanco Infratech Ltd - India
- Uttam Galva Steels Limited - India
- Chettinad Cement Corporation Ltd - India
- TeaM Sual Corporation - Philippines
- The State Trading Corporation of India Ltd
- Savvy Resources Ltd - HongKong
- Ministry of Finance - Indonesia
- Mercator Lines Limited - India
- Economic Council, Georgia
- Pendopo Energi Batubara - Indonesia
- Sojitz Corporation - Japan
- Eastern Energy - Thailand
- Krishnapatnam Port Company Ltd. - India
- Global Business Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- ASAPP Information Group - India
- Bhoruka Overseas - Indonesia
- London Commodity Brokers - England
- Makarim & Taira - Indonesia
- Salva Resources Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- White Energy Company Limited
- Mintek Dendrill Indonesia
- Sarangani Energy Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Power Finance Corporation Ltd., India
- Semirara Mining Corp, Philippines
- Sakthi Sugars Limited - India
- Port Waratah Coal Services - Australia
- Kaltim Prima Coal - Indonesia
- Aditya Birla Group - India
- Thai Mozambique Logistica
- Medco Energi Mining Internasional
- Straits Asia Resources Limited - Singapore
- Romanian Commodities Exchange
- Jaiprakash Power Ventures ltd
- IEA Clean Coal Centre - UK
- Madhucon Powers Ltd - India
- Wilmar Investment Holdings
- Merrill Lynch Commodities Europe
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement PLC, Thailand
- Karbindo Abesyapradhi - Indoneisa
- Jindal Steel & Power Ltd - India
- Bhushan Steel Limited - India
- Renaissance Capital - South Africa
- Karaikal Port Pvt Ltd - India
- Ambuja Cements Ltd - India
- San Jose City I Power Corp, Philippines
- Global Green Power PLC Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- GVK Power & Infra Limited - India
- Aboitiz Power Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Bulk Trading Sa - Switzerland
- Rashtriya Ispat Nigam Limited - India
- OPG Power Generation Pvt Ltd - India
- Orica Mining Services - Indonesia
- ICICI Bank Limited - India
- Baramulti Group, Indonesia
- Global Coal Blending Company Limited - Australia
- Gujarat Sidhee Cement - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Globalindo Alam Lestari - Indonesia
- GMR Energy Limited - India
- Essar Steel Hazira Ltd - India
- India Bulls Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Binh Thuan Hamico - Vietnam
- Petron Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Maheswari Brothers Coal Limited - India
- Therma Luzon, Inc, Philippines
- Mercuria Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Anglo American - United Kingdom
- Alfred C Toepfer International GmbH - Germany
- Cement Manufacturers Association - India
- Riau Bara Harum - Indonesia
- Mjunction Services Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indo Tambangraya Megah - Indonesia
- Australian Commodity Traders Exchange
- Planning Commission, India
- Metalloyd Limited - United Kingdom
- Meralco Power Generation, Philippines
- Minerals Council of Australia
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