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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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Thursday, 25 January 24
RED SEA SHIPPING DISRUPTIONS KEEP GEOPOLITICAL PREMIUM FOR COMMODITIES - FITCH RATINGS
Shipping disruptions and re-routing away from the Red Sea will maintain the geopolitical premium in the main commodity markets, including for oil a ...
Friday, 19 January 24
INDONESIA TARGETS 710 MLN METRIC TONS COAL OUTPUT IN 2024 AFTER RECORD 2023 - REUTERS
Indonesia, a major thermal coal exporter, aims to produce 710 million metric tons of coal in 2024, its mining minister said on Monday, after postin ...
Friday, 19 January 24
DRUMMOND COLOMBIA COAL OUTPUT ROSE 7.1% IN 2023 - REUTERS
Coal production from miner Drummond’s Colombia operations rose 7.1% in 2023 to 29.5 million metric tons, while exports declined by 2.6% to 27 ...
Friday, 19 January 24
CHINA'S 2023 COAL OUTPUT HITS RECORD HIGH - REUTERS
China’s coal output reached a record high in 2023, data from the statistics bureau showed on Wednesday, amid an ongoing focus on energy secur ...
Monday, 08 January 24
KOSPO TO BUY 80000 MT OF INDONESIAN LOW CALORIFIC VALUE COAL FOR FEB 2024
Korea Southern Power Co., Ltd. (KOSPO), is inviting bids for the supply of Indonesian Low Calorific Value Coal from qualified suppliers for Korean ...
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- AsiaOL BioFuels Corp., Philippines
- Bharathi Cement Corporation - India
- Sical Logistics Limited - India
- Orica Mining Services - Indonesia
- Kaltim Prima Coal - Indonesia
- Renaissance Capital - South Africa
- GMR Energy Limited - India
- Ambuja Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Cigading International Bulk Terminal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Attock Cement Pakistan Limited
- Videocon Industries ltd - India
- Toyota Tsusho Corporation, Japan
- Energy Link Ltd, New Zealand
- Heidelberg Cement - Germany
- Indonesian Coal Mining Association
- SMC Global Power, Philippines
- ASAPP Information Group - India
- PTC India Limited - India
- Indian Energy Exchange, India
- Ministry of Transport, Egypt
- Rashtriya Ispat Nigam Limited - India
- The University of Queensland
- Siam City Cement - Thailand
- Grasim Industreis Ltd - India
- Pendopo Energi Batubara - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Orica Australia Pty. Ltd.
- Global Business Power Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Coastal Gujarat Power Limited - India
- Latin American Coal - Colombia
- Parry Sugars Refinery, India
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Meenaskhi Energy Private Limited - India
- Independent Power Producers Association of India
- Timah Investasi Mineral - Indoneisa
- Semirara Mining Corp, Philippines
- South Luzon Thermal Energy Corporation
- Bank of Tokyo Mitsubishi UFJ Ltd
- Edison Trading Spa - Italy
- Eastern Energy - Thailand
- Manunggal Multi Energi - Indonesia
- Bulk Trading Sa - Switzerland
- Sakthi Sugars Limited - India
- Indo Tambangraya Megah - Indonesia
- LBH Netherlands Bv - Netherlands
- Mintek Dendrill Indonesia
- Miang Besar Coal Terminal - Indonesia
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Makarim & Taira - Indonesia
- Sindya Power Generating Company Private Ltd
- IEA Clean Coal Centre - UK
- Chettinad Cement Corporation Ltd - India
- Standard Chartered Bank - UAE
- Aboitiz Power Corporation - Philippines
- Price Waterhouse Coopers - Russia
- Power Finance Corporation Ltd., India
- Eastern Coal Council - USA
- Agrawal Coal Company - India
- Indogreen Group - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Petron Corporation, Philippines
- Borneo Indobara - Indonesia
- Savvy Resources Ltd - HongKong
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Economic Council, Georgia
- Straits Asia Resources Limited - Singapore
- Central Electricity Authority - India
- Bhushan Steel Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Coal and Oil Company - UAE
- Global Coal Blending Company Limited - Australia
- Siam City Cement PLC, Thailand
- Vizag Seaport Private Limited - India
- Kartika Selabumi Mining - Indonesia
- Marubeni Corporation - India
- Baramulti Group, Indonesia
- Indika Energy - Indonesia
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- Maheswari Brothers Coal Limited - India
- Energy Development Corp, Philippines
- McConnell Dowell - Australia
- PowerSource Philippines DevCo
- Xindia Steels Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Mineral Development Corp Ltd - India
- Dalmia Cement Bharat India
- PNOC Exploration Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- Samtan Co., Ltd - South Korea
- Australian Coal Association
- Sojitz Corporation - Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Carbofer General Trading SA - India
- Intertek Mineral Services - Indonesia
- Minerals Council of Australia
- Aditya Birla Group - India
- Trasteel International SA, Italy
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Anglo American - United Kingdom
- Tamil Nadu electricity Board
- Wilmar Investment Holdings
- VISA Power Limited - India
- Kobexindo Tractors - Indoneisa
- Singapore Mercantile Exchange
- Tata Chemicals Ltd - India
- Ministry of Finance - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Krishnapatnam Port Company Ltd. - India
- Parliament of New Zealand
- European Bulk Services B.V. - Netherlands
- Planning Commission, India
- Bhatia International Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Alfred C Toepfer International GmbH - Germany
- CNBM International Corporation - China
- Interocean Group of Companies - India
- TeaM Sual Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- Larsen & Toubro Limited - India
- Formosa Plastics Group - Taiwan
- PetroVietnam Power Coal Import and Supply Company
- Petrochimia International Co. Ltd.- Taiwan
- Directorate Of Revenue Intelligence - India
- GAC Shipping (India) Pvt Ltd
- Lanco Infratech Ltd - India
- San Jose City I Power Corp, Philippines
- Altura Mining Limited, Indonesia
- International Coal Ventures Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Iligan Light & Power Inc, Philippines
- The Treasury - Australian Government
- Global Green Power PLC Corporation, Philippines
- Rio Tinto Coal - Australia
- IHS Mccloskey Coal Group - USA
- Merrill Lynch Commodities Europe
- Holcim Trading Pte Ltd - Singapore
- Deloitte Consulting - India
- Port Waratah Coal Services - Australia
- Central Java Power - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Sree Jayajothi Cements Limited - India
- Medco Energi Mining Internasional
- Billiton Holdings Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Kumho Petrochemical, South Korea
- Africa Commodities Group - South Africa
- Jindal Steel & Power Ltd - India
- Bangladesh Power Developement Board
- Coalindo Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- India Bulls Power Limited - India
- Sarangani Energy Corporation, Philippines
- Indian Oil Corporation Limited
- GVK Power & Infra Limited - India
- Commonwealth Bank - Australia
- Antam Resourcindo - Indonesia
- Georgia Ports Authority, United States
- Thiess Contractors Indonesia
- SN Aboitiz Power Inc, Philippines
- Star Paper Mills Limited - India
- Australian Commodity Traders Exchange
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- OPG Power Generation Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhoruka Overseas - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Simpson Spence & Young - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Bukit Baiduri Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Cement Manufacturers Association - India
- Jorong Barutama Greston.PT - Indonesia
- Mjunction Services Limited - India
- Ministry of Mines - Canada
- Ceylon Electricity Board - Sri Lanka
- Electricity Generating Authority of Thailand
- Malabar Cements Ltd - India
- Electricity Authority, New Zealand
- MS Steel International - UAE
- Meralco Power Generation, Philippines
- London Commodity Brokers - England
- Sinarmas Energy and Mining - Indonesia
- The State Trading Corporation of India Ltd
- White Energy Company Limited
- Ind-Barath Power Infra Limited - India
- Bukit Makmur.PT - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Romanian Commodities Exchange
- Mercator Lines Limited - India
- SMG Consultants - Indonesia
- Thai Mozambique Logistica
- Madhucon Powers Ltd - India
- ICICI Bank Limited - India
- Kideco Jaya Agung - Indonesia
- Wood Mackenzie - Singapore
- Therma Luzon, Inc, Philippines
- New Zealand Coal & Carbon
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