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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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Monday, 08 January 24
SEABORNE TRADE REACHES 12.4BN TONNES - CLARKSONS
China will establish a back-up coal production system by 2027 to stabilise prices and secure coal supply, the state planner said on Wednesday, even ...
Monday, 08 January 24
CAPESIZES START THE NEW YEAR ON POSITIVE NOTE - BALTIC EXCHANGE
Capesize
This week the capsize market has been marked by a mix of activities and challenges. Despite a slow start following the Christmas and N ...
Friday, 05 January 24
MORGAN STANLEY SEES LOWER OIL PRICES IN 2024 ON OVERSUPPLY CONCERNS - REUTERS
Morgan Stanley sees Brent crude prices anchored near $80 per barrel in the first half in 2024 before declining towards the end of the year as it ex ...
Friday, 05 January 24
INDIA'S COAL OUTPUT RISES NEARLY 11 PC IN DEC TO 92.87 MT - PTI
India’s coal production increased by 10.75 per cent to 92.87 million tonne in December 2023 as compared to the year-ago period, an official s ...
Friday, 05 January 24
BANGLADESH’S 2023 COAL-FIRED POWER OUTPUT TRIPLED, EASING SHORTAGES - REUTERS
Bangladesh nearly tripled its coal-fired power output in 2023, a Reuters analysis of government data showed, helping it tide over the worst power s ...
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- Parliament of New Zealand
- Uttam Galva Steels Limited - India
- LBH Netherlands Bv - Netherlands
- Eastern Energy - Thailand
- Kaltim Prima Coal - Indonesia
- Globalindo Alam Lestari - Indonesia
- GVK Power & Infra Limited - India
- Electricity Generating Authority of Thailand
- Malabar Cements Ltd - India
- Coal and Oil Company - UAE
- Karaikal Port Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- VISA Power Limited - India
- Goldman Sachs - Singapore
- San Jose City I Power Corp, Philippines
- CNBM International Corporation - China
- OPG Power Generation Pvt Ltd - India
- Singapore Mercantile Exchange
- Economic Council, Georgia
- Ministry of Finance - Indonesia
- Makarim & Taira - Indonesia
- Straits Asia Resources Limited - Singapore
- Meenaskhi Energy Private Limited - India
- Global Coal Blending Company Limited - Australia
- GN Power Mariveles Coal Plant, Philippines
- Eastern Coal Council - USA
- Sindya Power Generating Company Private Ltd
- Planning Commission, India
- Meralco Power Generation, Philippines
- Chettinad Cement Corporation Ltd - India
- Madhucon Powers Ltd - India
- European Bulk Services B.V. - Netherlands
- Maheswari Brothers Coal Limited - India
- Orica Mining Services - Indonesia
- IEA Clean Coal Centre - UK
- Australian Coal Association
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Baiduri Energy - Indonesia
- Bhatia International Limited - India
- Indo Tambangraya Megah - Indonesia
- Formosa Plastics Group - Taiwan
- Borneo Indobara - Indonesia
- Australian Commodity Traders Exchange
- IHS Mccloskey Coal Group - USA
- Bhushan Steel Limited - India
- PowerSource Philippines DevCo
- Intertek Mineral Services - Indonesia
- Bulk Trading Sa - Switzerland
- Rashtriya Ispat Nigam Limited - India
- Kumho Petrochemical, South Korea
- Wilmar Investment Holdings
- McConnell Dowell - Australia
- AsiaOL BioFuels Corp., Philippines
- Salva Resources Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Interocean Group of Companies - India
- Indian Energy Exchange, India
- Baramulti Group, Indonesia
- Energy Development Corp, Philippines
- Standard Chartered Bank - UAE
- Ministry of Transport, Egypt
- Chamber of Mines of South Africa
- Oldendorff Carriers - Singapore
- Manunggal Multi Energi - Indonesia
- White Energy Company Limited
- Deloitte Consulting - India
- Vizag Seaport Private Limited - India
- Semirara Mining Corp, Philippines
- Aditya Birla Group - India
- Aboitiz Power Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- India Bulls Power Limited - India
- Altura Mining Limited, Indonesia
- Coastal Gujarat Power Limited - India
- London Commodity Brokers - England
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Videocon Industries ltd - India
- Heidelberg Cement - Germany
- MS Steel International - UAE
- Bhoruka Overseas - Indonesia
- Central Java Power - Indonesia
- Kobexindo Tractors - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- Binh Thuan Hamico - Vietnam
- Banpu Public Company Limited - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ind-Barath Power Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Indika Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Tata Chemicals Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Power Finance Corporation Ltd., India
- Latin American Coal - Colombia
- PetroVietnam Power Coal Import and Supply Company
- Bayan Resources Tbk. - Indonesia
- Renaissance Capital - South Africa
- Neyveli Lignite Corporation Ltd, - India
- Pipit Mutiara Jaya. PT, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indonesian Coal Mining Association
- Petron Corporation, Philippines
- Antam Resourcindo - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Sical Logistics Limited - India
- Essar Steel Hazira Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- CIMB Investment Bank - Malaysia
- Mercator Lines Limited - India
- ICICI Bank Limited - India
- Dalmia Cement Bharat India
- Siam City Cement PLC, Thailand
- Kalimantan Lumbung Energi - Indonesia
- Siam City Cement - Thailand
- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
- Semirara Mining and Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Attock Cement Pakistan Limited
- Timah Investasi Mineral - Indoneisa
- Larsen & Toubro Limited - India
- Rio Tinto Coal - Australia
- Carbofer General Trading SA - India
- Directorate Of Revenue Intelligence - India
- Sojitz Corporation - Japan
- The State Trading Corporation of India Ltd
- Orica Australia Pty. Ltd.
- Trasteel International SA, Italy
- Price Waterhouse Coopers - Russia
- Alfred C Toepfer International GmbH - Germany
- Cement Manufacturers Association - India
- Ambuja Cements Ltd - India
- Ministry of Mines - Canada
- Jaiprakash Power Ventures ltd
- Minerals Council of Australia
- Thai Mozambique Logistica
- Anglo American - United Kingdom
- Grasim Industreis Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Mjunction Services Limited - India
- Billiton Holdings Pty Ltd - Australia
- Bangladesh Power Developement Board
- Mercuria Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Central Electricity Authority - India
- Wood Mackenzie - Singapore
- ASAPP Information Group - India
- Port Waratah Coal Services - Australia
- Electricity Authority, New Zealand
- Kartika Selabumi Mining - Indonesia
- Pendopo Energi Batubara - Indonesia
- Xindia Steels Limited - India
- Mintek Dendrill Indonesia
- Barasentosa Lestari - Indonesia
- Toyota Tsusho Corporation, Japan
- Sakthi Sugars Limited - India
- Africa Commodities Group - South Africa
- Kohat Cement Company Ltd. - Pakistan
- Agrawal Coal Company - India
- Independent Power Producers Association of India
- PTC India Limited - India
- Edison Trading Spa - Italy
- Gujarat Sidhee Cement - India
- Riau Bara Harum - Indonesia
- Sree Jayajothi Cements Limited - India
- Kideco Jaya Agung - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Merrill Lynch Commodities Europe
- Global Business Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Star Paper Mills Limited - India
- New Zealand Coal & Carbon
- Samtan Co., Ltd - South Korea
- SMG Consultants - Indonesia
- Therma Luzon, Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Thiess Contractors Indonesia
- Jindal Steel & Power Ltd - India
- Indian Oil Corporation Limited
- Simpson Spence & Young - Indonesia
- International Coal Ventures Pvt Ltd - India
- Bharathi Cement Corporation - India
- SMC Global Power, Philippines
- South Luzon Thermal Energy Corporation
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vedanta Resources Plc - India
- Tamil Nadu electricity Board
- Ceylon Electricity Board - Sri Lanka
- Metalloyd Limited - United Kingdom
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Lanco Infratech Ltd - India
- Parry Sugars Refinery, India
- Indogreen Group - Indonesia
- Commonwealth Bank - Australia
- Posco Energy - South Korea
- Georgia Ports Authority, United States
- Gujarat Mineral Development Corp Ltd - India
- Marubeni Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- GMR Energy Limited - India
- Coalindo Energy - Indonesia
- Medco Energi Mining Internasional
- Jorong Barutama Greston.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Bukit Makmur.PT - Indonesia
- The Treasury - Australian Government
- TeaM Sual Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- The University of Queensland
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