Andy Home: Metal smelting will be the next major mineral crisis for the West.
The impact of China’s export controls on rare earths has already caused global supply chains to reel, but a more critical mineral threat is imminent. Western metal smelters face a crisis. China's rapid expansion in processing capacity is reducing margins for all metals. Recently, copper smelters located in Namibia and Philippines were placed under care and maintenance because their processing fees had fallen. There are more at risk. Glencore warned that the Mount Isa Copper Smelter in Australia was no longer financially viable after mining activities stopped this month.
Australia's Santos signs LNG deal with QatarEnergy unit
Santos, an Australian oil and natural gas producer, announced on Friday that it had signed a long-term contract for the supply of liquefied gas with QatarEnergy Trading. This is a unit owned by QatarEnergy which is the largest LNG exporter in the world. Santos has agreed to supply 0.5million tonnes of LNG annually over a two-year period starting in 2026. In a statement, the company said that it would supply the commodity from its wide portfolio of LNG assets. Qatar is the third largest liquefied gas exporter in the world after the U.S.A. and Australia.
Andy Home: Metal smelting will be the next major mineral crisis for the West.
The impact of China’s export controls on rare earths has already caused global supply chains to reel, but a greater threat from critical minerals is imminent. Western metal smelters face a crisis. China's rapid expansion in processing capacity is reducing margins for all metals. Recently, copper smelters located in Namibia and Philippines were placed under care and maintenance because their processing fees had fallen. There are more people at risk. Glencore warned that the Mount Isa Copper Smelter in Australia was no longer financially viable after mining activities ceased this month.
Thermal Coal May Offer An Affordable Solution As LNG Prices Rise
Thermal coal may end up as a major beneficiary of escalating hostilities in the Middle East, as the fuel used to generate electricity becomes cheaper than one of its main competitors liquefied natural gas (LNG).Much of the focus of the potential fallout from the conflict between Israel, and now the United States, and Iran is the threat to crude oil and refined fuels shipped through the Strait of Hormuz.But all of Qatar's LNG also goes through the narrow waterway separating the gulfs of Persia and Oman, and this amounts to almost 20% of the global seaborne supply of the super-chilled fuel.While there has yet to be any disruption of Qatar's LNG…
Russell: Iran tensions are a factor in making thermal coal more affordable than LNG.
The escalating conflict in the Middle East may result in thermal coal being a major winner, since the fuel used for electricity generation is now cheaper than its main competitor, liquefied gas (LNG). The threat of crude oil and refined fuels being shipped through the Strait of Hormuz is a major concern of those who are concerned about the possible fallout of the conflict between Israel and the United States and Iran. All of Qatar's LNG is also transported through the narrow waterway that separates the Gulfs of Persia & Oman. This amounts to nearly 20% of global seaborne supplies of super-chilled diesel fuel.
Russell: Iran tensions are a factor in making thermal coal more affordable than LNG.
The escalating conflict in the Middle East may result in thermal coal being a major winner, since the fuel used for electricity generation is now cheaper than its main competitor liquefied gas (LNG). The threat of crude oil and refined fuels being shipped through the Strait of Hormuz is a major concern of those who are concerned about the possible fallout of the conflict between Israel and the United States and Iran. All of Qatar's LNG is also transported through the narrow waterway that separates the Gulfs of Persia & Oman. This amounts to nearly 20% of global seaborne supplies of super-chilled diesel fuel.
Glencore asks government for help after claiming that the copper smelter in Australia is unviable
Glencore said that its Mount Isa copper-smelter is unviable, and it's waiting for the response to its requests from the state and federal governments in order to keep this facility open despite tough global conditions. The UK-listed company has been alarming local media regarding its Mount Isa Smelting Business in Queensland State as its mining operations will close next month. The company will have to purchase copper concentrates to process once global processing costs are at historic lows due to excess global smelting capacities.
Analysts say that 'deep pockets' may help Abu Dhabi gain regulatory approval for Santos' bid.
Analysts say that the Australian regulators who are concerned about gas supplies in Australia will be closely monitoring Abu Dhabi National Oil Company's bid of $18,7 billion for Santos. However, they could be won over by promises to accelerate new projects. Analysts say that Santos' shares closed Tuesday at A$7.73, a far cry from the $5.76 per share (A$8.89), which was the proposed takeover bid for Australia's 2nd largest gas producer, announced on Monday. This indicates investors believe that the deal will be rejected by regulators.
ADNOC consortium targets Australia's Santos
Abu Dhabi National Oil Company's (ADNOC) is looking to expand its global gas business and has proposed a $18,7 billion takeover bid of Australia's Santos, the second largest independent gas producer. Santos has supported the plan. Here are some key details about Santos, including its production and reserves (measured in millions of barrels of oil-equivalent (mmboe)), its domestic and foreign oil and gas assets and its long-term LNG deals. 2024 Production (mmboe). Santos is the operator of Darwin LNG, Gladstone LNG and PNG LNG in Australia. It also holds stakes in the undeveloped Papua LNG Project in Papua New Guinea.
ADNOC consortium offers $18.7 billion to takeover Australia's Santos
Santos, an Australian oil and natural gas company, said Monday that it would support a $18,7 billion bid by an international consortium led Abu Dhabi National Oil Company (ADNOC) to acquire the company. ADNOC has, via its investment arm XRG in conjunction with Abu Dhabi Development Holding Company, Carlyle and Abu Dhabi Development Holding Company, offered $5.76 ($8.89 A$) per Santos Share, a 28% increase over the closing price of Friday for the Australian firm. As oil prices rose to multi-week highs, Israel and Iran exchanged air strikes, causing concern that oil exports could be disrupted across the Middle East.
Experts say that Australia's investment in natural gas threatens its climate credentials
Experts and two Pacific Climate Ministers say that Australia's approval for a 40-year project extension has undermined its bid to be the host of a United Nations Climate Summit next year, and its green credentials. The centre-left government that came to power in 2022, with a mandate to reform climate policy, has approved Woodside Energy’s North West Shelf Project to continue until 2070. This is subject to a review. The company and energy industry hailed the move, citing the continued operation of LNG plants as an alternative fuel to coal.
Viva Energy, Australia's LNG terminal developer, gets approval to build the Geelong LNG Terminal amid fears of gas shortages
Viva Energy Group announced on Friday that the Victorian government had approved the construction of the terminal for liquefied gas (LNG) in Geelong. This comes amid increasing concerns about a possible gas shortage along the east coast. After the competition regulator of Australia warned that the east coast could face a long-term shortage, the Australian government actively sought gas supply commitments in order to close the gap between the supply and demand. The peak demand for gas in Australia during winter is due to the colder temperatures. Unexpected weather events and power plant failures can also increase the risk of shortages.
Glencore consolidates coal assets into a single Australian entity
Glencore announced on Thursday that it has restructured the coal business, combining its newly acquired Canadian mines under a single entity run from Australia. This makes it easier to manage. The Swiss miner and trader purchased Canadian miner Teck Resources’ steelmaking coal assets at a cost of $6.9 billion. Initially, the company had outlined plans to spin off its entire coal portfolio. This plan was abandoned. Glencore owns mines of coal in South Africa. It is one of the world's largest producers and exporters, with a mining capacity of 99,6 million tons of thermal coal in 2024. This compares to 106.1 millions in 2023.
Australia's bid to be listed as a World Heritage Site for ancient rock art is stalled over pollution
The U.N. advisory panel warned that industrial pollution near the site could threaten its World Heritage status. The International Council on Monuments and Sites recommended that UNESCO refer the nomination to the Australian Government so it can "prevent further industrial development adjacent and within the Murujuga Culture Landscape". The Murujuga Rock Art, located on the Burrup Peninsula, in the Western Australia State, is culturally and spiritually significant to the local Indigenous Australians. It was nominated in 2023 for a heritage listing.
Origin profits hit by Australia Pacific LNG price reduction for Sinopec
Origin Energy announced on Friday that Australia Pacific LNG had agreed to reduce the price of liquefied gas sold to Sinopec in China for the remaining ten years of their contract. Origin stated that the agreement was reached after a price review of their 20-year contract, out to 2035. "This has resulted in an improvement in the JCC-linked contracts slope, effective as of 1 January 2025," Origin added. The slope is the percentage of Japan Crude Cocktail benchmark prices to which LNG prices are linked. Origin said that the price reduction would reduce its earnings before interest…
Santos Australia gets the green light on $2.3 billion Narrabri Gas Project
Santos’ A$3.6 billion (2.32 billion) Narrabri Gas Project in Australia, can proceed. A tribunal has ruled that the project is allowed to go ahead, as the increase in energy supply for the Australian market outweighs concerns about the impact on the climate or damage to Indigenous heritage sites. The decision comes after a decade of fighting over the granting of leases to Santos, which would allow it to drill 850 wells in the northwest New South Wales area and extract coal seam gas. This area overlaps the culturally important Pilliga forest. Local Gomeroi have been against the development.
WGC-Woodside CEO: WGC-Woodside anticipates global gas consumption to increase by 50% between now and 2030
Meg O'Neill, CEO of Woodside Energy Australia, said that the company expects global gas consumption to grow by 50% between now and 2030. O'Neill stated at the World Gas Conference that "the message is very consistent and clear" regarding the need for reliable, affordable energy in nations who are on the road to net zero. Gas is a major part of this mix. She added that customers want to secure LNG supply until the 2040s. O'Neill stated that Woodside invests in projects with competitive costs because of the tremendous growth in gas demand.
Wood Mackenzie warns that Australia will not meet its renewable energy target.
Wood Mackenzie, a consultancy, said that Australia will fall well short of its target to generate 82% of electricity from renewable sources by 2030, due to state-level rollbacks and grid connection delays, as well as inadequate investment. Australia is one of the most polluting countries in the world per capita because it produces coal-powered electricity. It has plans to close all coal-fired power stations by 2038. The center-left Labor Government, reelected in the first week of this month, said that it would transition to a grid powered by wind and solar with gas, hydropower, and energy storage as backup.
Russell: Trade truce will not revive China's energy imports from the US
Markets have welcomed the move by China and the United States to negotiate and reduce tariffs, but this will not do much to restore trade in energy commodities. In a truce that will last 90 days, the United States will lower its tariffs for imports from China by 30% while Beijing reduces its duties on U.S. products to 10%. The agreement, which was reached after two days of discussions in Geneva last week between the two parties, has brought the trade relationship off the edge it was heading towards. It does not provide any certainty beyond 90 days and does little to encourage China's energy commodity purchases. Most likely, U.S.
Inpex executive says that the run rate of Ichthys LNG is nearing full capacity by end-April.
A company executive revealed on Tuesday that the run rate of the Ichthys LNG plant, operated by Japan’s largest oil and gas explorer Inpex Corp., in Australia had recovered to near full capacity at end-April. Senior vice president Daisuke YAMADA said at a press conference that the plant's running rate was down to about 80%-90% by mid-April because of a heat exchanger issue. He said that Ichthys will perform scheduled maintenance from mid-August until October. Inpex intends to replace the heat exchanging unit during this time.
