Tuesday, October 29, 2013

FW: Export Coal Mkt News Oct 29

The most relevant coal news from the last two weeks of clippings:
China's coal market to remain well supplied in Q4 could but could slip to oversupply in 2014 if growth slows http://in.mobile.reuters.com/article/idINL3N0IC0WN20131022?irpc=932
Chinese coal producers want to rescind export tax http://feedly.com/k/Hkw9Oe

China thermal coal price war that erupted in late June, causing a collapse of nearly 15% in prices, is over http://blogs.barrons.com/emergingmarketsdaily/2013/10/15/china-coal-sector-price-war-is-over-jpm-ups-yanzhou-to-neutral/
Bohai steam coal index goes up for first time this year. Signal a turning point? http://ift.tt/17u1YtC

China coal giant Shenhua cuts 2013 sales target after profit fall - Reuters http://in.mobile.reuters.com/article/idINL3N0IF2Y220131025?irpc=932
Glencore and Sumitomo buy Rio coal mine http://on.ft.com/1gMgt5Q
Rio Tinto sells stake in Australia's Clermont thermal coal mine for US$1.02 billion http://u.afp.com/UCh

Smog suffocates Harbin; Pm 2.5 readings of 1000 in some places http://mobile.reuters.com/article/idUSBRE99K02Z20131021?irpc=932
Harbin Smog Crisis Highlights China's Coal Problem Natl Geographic http://feedly.com/k/179VDXO

NDRC: raise retail rates for electricity made by burning nat gas and lower rates for coal-fired http://news.hexun.com/2013-10-26/159087509.html

Michael Lelyveld RFA: Multiple Motives Drive China's Plans to Cut Number of Coal Mines http://feedly.com/k/1bvZ626
Fatih Birol IEA chief economist says coal to maintain edge over gas for power in China http://interfaxenergy.com/natural-gas-news-analysis/asia-pacific/coal-to-maintain-edge-over-gas-for-power-in-china/

Half of China's power generation capacity to be built between 2012 and 2020 will be coal-fired, said Woodmackenzie http://www.reuters.com/article/2013/10/14/coal-demand-idUSL3N0I40SN20131014
Coal will surpass oil as the key fuel for the global economy by 2020 says Wood Mackenzie http://www.reuters.com/article/2013/10/14/coal-demand-idUSL3N0I40SN20131014

Emerging markets expected to make up for China's waning coal appetite http://www.mining.com/emerging-markets-expected-to-make-up-for-chinas-waning-coal-appetite-62518/
Indonesia mining at risk over export ban http://on.ft.com/HfRVBH
China coal imports to keep growing in the years to come, albeit at a slower rate http://feedly.com/k/19PXuNR

Outsourcing Beijing's coal pollution to Xinjiang - Michael Lelyveld in RFA http://www.rfa.org/english/commentaries/energy_watch/gas-10212013104621.html
WRI says China's plan to combat air pollution will deplete water supply http://ow.ly/qc734
Water: All dried up in Northern China http://econ.st/1acfXVL

The rest of the clippings:
Graphic of the Day: Myanmar's Mineral Resources http://bit.ly/1a5tI7Y


China aims to cut costs associated with shale natural gas production http://bit.ly/1f04H3f

Sinopec field could reignite China shale hopes: more than doubled its 2015 output target for field in Sichuan basin http://mobile.reuters.com/article/idUSBRE99R0G720131028?irpc=932

Mongolia pushing for rail, pipeline links with China, Russia, official says http://reut.rs/1g67CL3
Mongolia Premier Welcomes Foreign Investors as Boom Slows http://bloom.bg/1dA0DJe

China's coal barons set sights on new jobs - Xinhua http://feedly.com/k/1imVkKS 

China's troubled shift to a green economy - The Globe and Mail http://feedly.com/k/Hajxsd

Clive Palmer's $6bn China First coalmine faces last two hurdles  http://feedly.com/k/Hhcnmm

China nat resources minister: Gas is the new coal, prices will go up 能源局局长：未来天然气占比将上升 价格要上涨|天然气|能源|价格_新浪财经_新浪网" http://feedly.com/k/1ikKuF9

Bo Xilai and the collapse of Canada's China policy, which had been built around his rise: http://www.theglobeandmail.com/news/world/the-inglorious-exit-of-bo-xilai-canadas-closest-ally-in-chinas-power-structure/article15097314/

Inner Mong CTG to help clean capitol air; in rush to fix air, BJ ignores GHG impact 内蒙古清洁能源助力华北雾霾治理 http://bit.ly/18UUGTG

Nat gas consumption through Q3 increased 13.5% vs last year; imports up 27% vs last year 发改委：前三季度国内天然气消费增长13.5%|新浪网 http://feedly.com/k/1hgAkrF

Is haggling over price really the obstacle to China-Russia gas deal?  气价不是俄气同中国天然气合同的主要问题 http://bit.ly/1c2sC0b

Exclusive: In rare China sale, Sinopec seeks partner for Canada shale http://reut.rs/1fZ0fF6

Chinese Acquisition Appetites Shift From Resources http://on.wsj.com/H2gPF5

China shale policy flailing: Beijing writes shale gas policy in NOC's wake http://feedly.com/k/167ajWW

China needs 200 nuclear power plant according to this http://ow.ly/q8uY3

China's new clean air strategies aggravate the confrontation between energy and water http://bit.ly/HhzRIf  More at http://bit.ly/HhzRIh

Caterpillar cuts forecast on mining slump - increased China mkt share and quarterly sales in China increased 30% http://feedly.com/k/1iesmNg

The US Shale "Boom": A Fantasy Concocted By Politicians & Industry Bigwigs?  http://bit.ly/1ahnLHI

The pipeline that cried wolf: Will the Russia-China deal ever close? http://feedly.com/k/1aGqBEl

Cities switching too quickly from coal to gas - China says to control gas use as winter shortages loom http://in.mobile.reuters.com/article/idINL3N0IB1S720131021?irpc=932 …


Fenxi to mine 400mm tonnes of coal in Kenya MT @AfricaAlert: …begin work in 2014 on 950MW power plant  http://bit.ly/1gRR48e

Qinhuangdao coal shipments Sept Ytd up 5% yoy -- China's coal shipments by railway totaled 193 million mt in Sept" http://feedly.com/k/1aXa6oW

Bohai steam coal prices move up"煤炭：环渤海煤价将快速上涨 - 煤炭价格走势 - CMEN.CC" http://feedly.com/k/19f0OVS

Beijing has a new plan to temporarily and dramatically cut emissions when pollution is severe for three straight days http://news.xinhuanet.com/energy/2013-10/18/c_125558411.htm

China risks severe shortfalls with gas expansion and could shorten field life through too hasty development http://feedly.com/k/1aT2BPQ

Focusing a Lens on China's Environmental Challenges http://feedly.com/k/17P6lPh
China's 3rd shale gas auction could kill hope for a shale revolution http://bit.ly/1cTOwXa

China Development Bank role in Africa set to grow even more, CDB current loans in region already total US$ 18.9bn http://bit.ly/1hSKRH1

Xi dreams of camel bells . . . and access to oil and gas: China bypasses American 'New Silk Road' http://wapo.st/1gEyYqa

ADB says Asia Pac will be 50% of global energy consumption in 2035 and invest $20tn "2035年亚太国家对能源的投资或增至19.9万亿美元 http://radiovr.com.cn/news/2013_10_14/246488460/

FW: Pacific export thermal coal in the news Oct. 16


Subject: Pacific export thermal coal in the news Oct. 16
Japan on gas, coal power building spree to fill nuclear void. Regional power monopolies will construct 12 gas-fired units next year, while two new coal power plants will be completed by December 2013, according to a Reuters survey of utilities. http://reut.rs/1fBhVXa

China's state planning agency (NDRC) has issued a notice to cut the on-grid price of thermal electricity in order to reflect a fall in coal prices and encourage renewable power generation, Chinese utility SDIC Power said on Thursday. http://reut.rs/1fkmtB8

China, the world's top producer and consumer of coal, is considering scrapping a 10 percent tariff on exports of steam coal from 2014 to rebalance domestic supplies, the 21st Century Business Herald reported. The proposal, if implemented, would increase seaborne coal supplies in the Asia Pacific market and threaten Australia's market share as a key supplier to North Asia, where Japan and South Korea are among the world's top importers of steam coal. http://t.co/zZKmMHQixN

China thermal coal price war that erupted in late June, causing a collapse of nearly 15% in prices is over http://t.co/bPzbSEKBnR

Bohai steam coal index goes up for first time this year perhaps signalling a turning point http://ift.tt/17u1YtC

China's coal producers struggle to compete, analyst says  http://feedly.com/k/19D7rEo

NDRC: China will raise on-grid prices paid to power generators using natural gas http://t.co/nw7Ghhqloy

China's 3rd shale gas auction could kill hope for a shale revolution http://bit.ly/1cTOwXa

Canada's Natural Resources Minister heads back to China to reassure investors on LNG prospects after bleak message from former official http://bit.ly/1atx9Hz

China bypasses American 'New Silk Road' (Simon Denyer) http://wapo.st/1gEyYqa

$30bn coal gasification plant to be built in Xinjiang will need an input of 90 million tons of coal per year http://nyti.ms/17hLALU

Beijing to replace coal plants in $7.79bn investment http://bit.ly/19eHwAJ  

Demand for coal will be driven by China and India -  ... an opposing camp that argues just as strongly that predictions of coal's demise are exaggerated and that demand will not stop growing. "We think the idea of peak coal is a myth," says Andy Roberts, principal analyst for thermal coal at Wood Mackenzie, the consultancy. http://on.ft.com/15JsfH2

Woodmackenzie: coal will surpass oil as the key fuel for the global economy by 2020 and half of China's power generation capacity to be built between 2012 and 2020 will be coal-fired, said Woodmackenzie http://t.co/GaKWSbaI8r

Peak Coal in China, or Long and High Plateau? http://goo.gl/fb/uXG6y   

ADB says Asia Pac will be 50% of global energy consumption in 2035 and invest $20tn  http://t.co/4XWXc4pnoT

Will China build hundreds of new coal plants and then shut them off ? Wishful thinking http://bit.ly/1c9qDrI

China is set to ramp up acquisitions of overseas oil and gas companies to feed its soaring growth in energy demand  http://reut.rs/17uaQyr


Saturday, October 12, 2013

Export Coal Mkt New Update - Oct. 1st 2013

CHINA


Coal Splutters as China Seeks Breath of Fresh Air - MoneyBeat - WSJ There is already too much coal on the market, so China's decision to cut down its "energy intensity" will hurt miners. Australia has said it will scale back production. Australian thermal coal destined for Asia is near its lowest price since 2009, with Goldman Sachs suggesting a target of $83 a ton for 2014. And not only does China plan to buy less, it also wants to shop locally. China has trillions of tons of coal reserves that it could exploit.

China's rail shipments of coal up 10.7 percent in Aug On September 22, China's National Development and Reform Commission (NDRC) announced that in August this year China's coal shipments by railway totaled 190 million mt, up 18.27 million mt or 10.7 percent year on year. In the January-August period, China's rail shipments of coal amounted to 1.514 billion mt, up 4.16 million mt or 0.3 percent year on year. In particular, China's rail shipments of thermal coal in August alone and in the January-August period in the current year amounted to 132 million mt and 1.059 billion mt, up 9.7 percent and down 1.4 percent, respectively, both on year-on-year basis.

Worst polluting Chinese cities to be named and shamed each month | South China Morning Post The central government set its first provincial-level coal-reduction targets yesterday in a bid to clean up its air, as a foreign car executive said his mainland counterparts could do more to reduce emissions. The industrial region surrounding Beijing will be required to make cuts in its coal use and phase out the dirtiest industries under new, more detailed air pollution targets released yesterday by the Ministry of Environmental Protection. Four northern areas - Beijing, Tianjin , Hebei and Shandong - have been asked to cut teir annual coal consumption by a total of 83 million tonnes by 2017, according to an official document. The four areas currently use a combined 670 million tonnes of coal annually.

CNPC conducts trial LNG shipment to Tibet via rail - Interfax China National Petroleum Corp. has successfully transported an LNG shipment along a section of rail from Qinghai to Tibet, the state-run parent of PetroChina said on Sunday.

Wood Mackenzie sees Russian energy focus shifting to China - UPI.com Wood Mackenzie, a global energy research company, published a report Thursday on Russia's "pivot" to energy-hungry China. "As legacy West Siberian oil production declines, Russia is undergoing a period of renewed interest in exploring and developing the energy resources of its Far East and East Siberia regions," Ian Thom, director of the company's Russian research division, said in a statement Thursday. "These key provinces are sparsely populated, highly resource rich and adjacent to a large and resource-hungry Chinese population, and their development is a major priority for the Russian government."

China's Synthetic Natural Gas Plants Could Accelerate Climate Change - Businessweek Moreover, the scarcely populated hinterland regions earmarked for the SNG plants are dry, while converting coal to gas is a water-intensive process. "The water consumption for [synthetic natural gas] production could worsen water shortages in areas already under significant water stress," write Yang and Jackson. "Overall, the large-scale deployment of SNG will dramatically increase water use, [greenhouse gas] emissions, and additional air and water pollution.

China Faces Steep Climb to Exploit Its Shale Riches - NYTimes.com Several factors stand in the way of shale development. Most of China's shale deposits lie in the earthquake-prone and mountainous southwest or the remote arid deserts of the far west. ...The gas deposits are also deeper — often 4 kilometers, or 13,000 feet, below the surface, compared with 2 to 4 kilometers in the United States. ...According to the E.I.A., the first horizontal shale well drilled by PetroChina, the Chinese oil and gas firm that has been exploring shale most aggressively, took 11 months to drill compared with the usual two weeks in North America.The rough terrain, lack of paved roads and need to drill deeper "will require additional investment and higher upfront costs," says Fei Kwok, ....Unlike the deserts where much of China's shale deposits are located, the Sichuan basin has ample supplies of the water needed for the hydraulic fracturing process, better known as fracking, that unlocks the gas deep underground in the rock. ...Still, Mr. Beveridge believes that the biggest risk to shale gas development may be conflict over water. 

China Gains New Friends in Its Quest for Energy - NYTimes.com On the northern reaches of the Caspian Sea, not far from this old Soviet town known for its oil and sturgeon, lies a vast new oil find, the biggest outside the Middle East. China was rebuffed when it asked for a stake 10 years ago. But when the pumps finally started this month , the China National Petroleum Corporation had won a share in the project, known as Kashagan, and President Xi Jinping was in the region recently to celebrate, another indication that China's influence has eclipsed even Russia's across the former Soviet republics of Central Asia. ...

China's ENN Group eyes investments in Canadian LNG - Natural Gas | Platts News Article & Story Chinese energy firm ENN Group has started "preliminary" talks with Canadian LNG companies to invest in proposed greenfield gas liquefaction and export facilities in British Columbia, the company's international legal director Dong Ren said Tuesday. The group will primarily focus on acquiring an equity stake in the upstream and midstream sectors of an LNG project as well as enter into long-term offtake deals, she said in an interview on the sidelines of the Canada LNG Export Forum, hosted by the DMG Group. "We have identified some companies that are investing in LNG facilities and are in talks with them," she said, without identifying any firms. "Our talks now are focused on the percentage of equity stake, pricing of the equity stake and related commercial elements."...In late-2010, ENN signed a memorandum of understanding with the US' Cheniere to buy 1.5 million mt/year of LNG from the latter's Sabine Pass facility in Louisiana. But, there were no further developments. ...Five major LNG projects are planned for in British Columbia along the Canadian Pacific Coast. They are: Kitimat LNG, backed by Chevron and Apache; the Shell-led LNG Canada; WCC LNG by ExxonMobil and Imperial Oil; Petronas-backed Pacific Northwest LNG; and Prince Rupert LNG led by BG Group.

 INDONESIA
Indonesia Weighs Limit on Coal-Export Terminals, Official Says - Bloomberg Indonesia may restrict the number of terminals allowed to export coal as it seeks to control shipments and boost revenue. "Coal can currently be exported from any loading point,which makes it difficult for us to control," Edi Prasodjo, the coal director at the Energy and Mineral Resources Ministry, said in an interview at an industry meeting in Bali today."We're discussing restricting exports in the future to certain ports or shipping points to avoid illegal deliveries."

UK banks financing coal boom destroying Borneo rainforests | The Economic Voice The top 5 UK banks (HSBC, Barclays, Standard Chartered, RBS and Lloyds) are complicit in fuelling climate change and destroying communities and the environment in the rainforests of Indonesian Borneo through their financing of an Indonesian coal boom, according to a new report released today (see video below).

UK-financed coal mining is devastating Indonesian Borneo - Campaigning - The Ecologist 83 per cent of coal produced in Indonesia's top coal mining province, East Kalimantan, is mined by companies part-financed by UK banks. The top 5 banks, HSBC, Barclays, Standard Chartered, RBS and Lloyds, are all involved in bankrolling the coal boom.  The indigenous Dayak people of Kalimantan, who in recent decades have seen industrial logging seriously deplete the forests they rely on, are now confronting destruction on a much greater scale. Many have had to leave their homes to make way for coal mines, particularly in East Kalimantan where Indonesian company Bumi Resources runs a mining project with concessions covering 90,000 hectares. One Dayak community, Segading, has been displaced three times by the mines, and the local leader, Gagay, says his people are fighting against attempts to force them to move yet again.  Open pit coal mining is a far cry from the deep underground mines we associate with the industry in the UK. Bumi Resources' mines have required the clearing of large areas of forest, with hillsides being cut open to expose layers of coal and earth. Once an area has been mined, the company moves on, leaving open scars and tailing ponds full of toxic waste.

AUSTRALIA
Chinese Demand for Coal Easing - WSJ.com ...Producers of thermal coal are scaling back plans, particularly in Australia, which is second only to Indonesia in thermal coal exports. A proposal to double capacity at Newcastle port, the world's largest coal export facility, has been shelved. Analysts predict that many new mines may become unviable, and that the most expensive existing mines will be forced to cut back or close. Smaller Australian miners will find it increasingly difficult to finance projects, while large, diversified resources companies are likely to shift their focus toward more attractive commodities. ...Global coal consumption could grow as little as 2% a year through 2017 in the face of weakening Chinese demand, according to the International Energy Agency's most recent coal-market report. Long-term estimates for Chinese coal demand, for the year 2035, range from 3.66 billion tons of coal equivalent, up from 2.29 billion tons in 2010, to as low as 1.51 billion tons, depending on Beijing's environmental policies. Further darkening the picture for international producers, most of the coal that Chinese utilities are likely to buy in the future will be local. That's because the country sits on trillions of tons of coal reserves, so domestic mines should meet most of China's demand for thermal coal as long as prices remain low and transportation costs affordable, says a Beijing-based coal trader who declined to be named. As a result, UBS expects Chinese coal imports to decline steadily.


S. KOREA
'50 dirtiest' US power plants emit more greenhouse gases than South Korea - CSMonitor.com A new study by an environmental group suggests that reining in a handful of America's coal-fired power plants would have a major impact on greenhouse gas emissions. The study by Environment America paints a bulls-eye on the nation's biggest coal-fired power plants, suggesting that reining in a relatively small share of America's 6,000 electric generating facilities could have a significant impact on greenhouse gas emissions. The report comes as the Obama administration is preparing the nation's first-ever greenhouse gas emissions regulations for US power plants, which could be released as soon as this month. The administration's goal is to have power plant emissions regulations in place by 2015, and the new study provides a window into which plants could face steep federal fines unless they slash emissions or close.

JAPAN
ASIA THERMAL COAL: Newcastle spot prices jump as contract talks start in Japan - Coal | Platts News Article & Story A rapid rise in screen-traded Newcastle thermal coal prices overnight to $80/mt FOB got the Asian market talking Thursday, with some participants drawing a link between the higher prices and the start of discussions in Japan for October 1 yearlong supply contracts for Australian thermal coal. The price increase caught some Asian market participants by surprise, as they had not observed any significant changes in the Asian seaborne market that could drive Newcastle 6,300 kcal/kg gross-as-received basis prices higher, sources said. Japan's only functioning nuclear reactor at the Ooi power plant went offline last weekend for maintenance, but market sources did not consider it significant for Japanese thermal coal demand.

J-Power Plans to Start Japan Coal-Price Index to Cut Fuel Cost - Bloomberg Electric Power Development Co. (9513) ,Japan 's largest thermal coal buyer, wants to start a local coal-price index that includes freight and insurance as it seeks toreduce fuel costs. The power wholesaler, known as J-Power, and at least onecounterparty started a system that matches bids and offers toset a monthly price for Australian coal delivered to Japan,Atsushi Yoshida, the director of the company's energy businessdepartment, said in an interview today in Tokyo.

US
Coal Giant's Financials Reveal Export Weakness It's not unusual for commodities-based industries to use hedging as a kind of insurance against losses. But if you subtract the money Cloud Peak made from betting coal prices would fall, they earned only $200,000 exporting coal between April and the end of June. Williams-Derry says with prices expected to remain well below the highs that triggered the export terminal proposals in the first place, that window of opportunity may be closing.

The Local Election That Could Determine The Future Of American Coal - Think Progress The seven-member Whatcom County Council that will be elected next month will decide by majority vote whether to approve what is called a shoreline permit for the proposed export terminal. Four 'no' votes, and it's a goner. "It's a kill strategy: win and be done with it," said Brendon Cechovic, executive director of Washington Conservation Voters. But it's not an all or nothing strategy; if terminal opponents lose they have other opportunities, including the state commissioner of public lands' decision on whether to grant a marine permit and Gov. Jay Inslee's decision regarding clean water permits.

Exports Dip, But Coal Remains King  Coal's dismal domestic outlook due to slumping coal export markets and increased environmental regulations from the Obama Administration resulted in no bids at a recent lease sale on federal coal land in Wyoming—the first time ever that no bids were received. In August, Cloud Peak Energy surprised many by not bidding to develop 145 million tons of federal coal adjacent to its Cordero Rojo site in Wyoming. According to Rick Curtsinger, a Cloud Peak spokesman, the decision not to bid on the coal reflected concerns about the ability to profitably mine the coal for sale to U.S. power producers, which would be the primary market for Wyoming coal. The company is telling us that because of coal's poor domestic outlook, it chose not to bid. The Obama Administration's "war on coal" through over regulation is having some unpleasant effects, which in addition to lost job opportunities,  is reduced revenue from coal lease sales, which means less money for the U.S. Treasury and the states.


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