China import surge increases seaborne thermal coal price: Russell
The price recovery is due to a rebound in China's seaborne thermal coal imports, but this boost will only last a short time as the recent surge in coal-fired power generation has slowed. According to commodity analysts Kpler, China is the world's largest coal producer and consumer. It is expected to import 27,41 million metric tonnes of seaborne thermal coke in September. The strength of August's arrivals, which reached 28.68 millions tons, was the highest since December. The daily imports for September are 914,000 tonnes, just shy from the 925,000 tons in August.
Santos stock slides as $18.7 billion ADNOC-led deal collapses
Santos, the Australian gas producer, saw its shares fall as much as 13.6 percent on Thursday. A consortium led by Abu Dhabi-based ADNOC canceled their $18,7 billion offer for the company after commercial terms were not agreed. Santos announced in a press release issued early Thursday morning that it had told the XRG group on Monday that it would be willing to close a deal for $5.626 per share. Santos recently paid a dividend, so the original offer was $5.76 per share. That's $8.89 today. Santos shares fell to A$6.61 at the opening of trading on Thursday, their lowest price since June 10th. The benchmark S&P/ASX200 index was up 0.45%.
Santos said it was prepared to approve an ADNOC bid of $18,7 billion before the deal collapsed
Santos, the Australian gas producer, said that it would be willing to accept the ADNOC consortium's bid of $18,7 billion for the company if the international group did not withdraw the offer because commercial terms could no longer be agreed. Santos, in a Thursday morning statement, said that it had told the XRG group on Monday that it would be willing to close a deal for $5.626 per share. Original offer made in June at $5.76 per share, but adjusted to reflect Santos’s recent dividend payment. FactSet data shows that, after subtracting the net debt, Santos would have a value of A$36,4 billion ($24,2 billion).
ADNOC consortium withdraws bid of $18.7 Billion for Australia's Santos
After months of disagreements over valuation, Abu Dhabi National Oil Company has pulled its $18,7 billion bid to purchase Australian gas producer Santos. ADNOC may be slowing down its aggressive expansion overseas as it looks to invest the booming oil revenue in the country. This also shows the challenges foreign companies face when trying buy assets in Australia. ADNOC's overseas division XRG, Abu Dhabi sovereign fund ADQ, and private equity firm Carlyle's bid for Santos was the third unsuccessful bid to purchase Santos. Santos rejected an offer of $10.8 billion from Harbour Energy…
Australia pledges $735 million for biofuel development
The Australian government announced on Wednesday that it would invest A$1.1billion ($735m) in developing a low-carbon energy industry. This move was welcomed by agricultural groups who hope this will increase demand for biofuels feedstocks such as canola or sugarcane. In a press release, the government stated that this money will be released over ten years to encourage private investment in sustainable aviation fuel and biodiesel. Australia is one of the world's leading producers of fuel-producing crops, such as sugarcane, canola and sorghum. It imports most gasoline and exports a large portion of these crops.
Australia delays its first offshore wind auction due to global investment retreat
Victoria, Australia, has delayed its first auction of offshore wind farm financing, citing global investments hurdles. This is a blow to an industry that's deemed crucial to Australia's transition away from coal-fired energy to renewables. The state government announced on Tuesday it will delay the auction, originally scheduled for this month. A revised schedule is expected to be released by year's end. Lily D'Ambrosio, Minister of Energy and Resources, said that global investment headwinds made it unlikely an auction would attract enough participants.
Singapore Central Bank secures $510 Million to support green infrastructure in Asia
Singapore's central banks announced on Monday that it had secured $510m in committed capital to be used for a fund which would support green infrastructure in Southeast Asia and South Asia. The Monetary Authority of Singapore announced that it had secured funding from a variety of regional players including Asia-focused lender HSBC, the Australian Government and Singapore's State-owned Investor Temasek. Green Investments Partnership is a fund that will support sustainable transportation, renewable energy, and storage. It's part of the Financing Asia Transition Partnership initiative, launched by Singapore's central bank in 2023.
Russell: ADNOC must offer more than just money to make the Santos deal work.
Abu Dhabi National Oil Company's (ADNOC) $18.7billion bid for Australian liquefied gas producer Santos faces a much higher hurdle than the money offered. The politics surrounding the deal, which would represent Australia's biggest-ever cash takeover in history, are becoming increasingly difficult to overcome. ADNOC, Australia's second largest oil and gas company launched its bid in June, and a preliminary due diligence was to be completed no later than August. The deal was delayed from August 19 to September 19, despite the fact that no major problems were found with the transaction.
Russell: ADNOC must offer more than just money to make the Santos deal work.
Abu Dhabi National Oil Company's (ADNOC) $18,7 billion bid for Australian liquefied gas producer Santos faces a much higher hurdle than the money offered. The politics surrounding the deal, which would represent Australia's biggest-ever cash takeover in history, are becoming increasingly difficult to overcome. ADNOC began its bid in June for Santos, Australia’s second largest oil and gas company. A due diligence initial was to be completed before August. The deal was postponed from August to September 19, despite the fact that no major problems were found.
Investors await growth data; consumer and energy sectors drag Australian share prices lower
The Australian share market ended Tuesday with a lower closing price, due to thin trading. This was mainly caused by the consumer and energy sector, where heavyweight constituents were traded ex-dividend. Local traders also remained on the sidelines, waiting for economic growth figures that are expected later this week. The S&P/ASX 200 index fell 0.3% to 8,900.6, its third consecutive session in red. The 0.5% drop on Monday followed a strong August. Woolworths, the supermarket chain, fell 3.1%. Consumer stocks dropped 1.7%.
Andy Home: A quiet revolution is taking place in the mining industry
If the world wants to move away from fossil fuels, it will need to have a large amount of copper. Can the mining industry meet this demand? The challenges are enormous. The challenges are huge. The mining process has been highly wasteful and polluting in the past. According to a research paper from Germany's Fraunhofer Institute, the world discovered 650 million metric tonnes of copper between 1910-2010 but only 100 million tons made it to the market. The metal in the tailings ponds is still there, waiting for the right technology to unlock its potential.
Russell: China's thermal coal imports surge as India's tumble
In August, China's seaborne thermal coal imports are expected to reach their highest level this year while India's top buyers slump to a three-and-a half-year low. The two largest importers of this fuel, which is mainly used to generate electricity, have divergent trends. This is largely due to the interaction between coal production on their home markets and the increasing use of renewable energy. According to commodity analysts Kpler, China's seaborne thermal coal imports are expected to reach 25,63 million metric tonnes in August. This is up from 22,77 million metric tons during July, and the highest since December of last year.
Santos extends exclusive offer for ADNOC's $18.7 Billion, but profits decline
Santos, the Australian gas producer, agreed on Monday to extend exclusivity for an 18 billion dollar takeover bid by a group led Abu Dhabi National Oil Co. (ADNOC) and reported a 22% decline in profit that was better than expected. The shares of the company rose 1% at the opening of trading on September 19, after the due diligence period was extended to allow the consortium led ADNOC’s investment arm XRG to have more time to obtain the required internal approvals prior to making a takeover offer. Santos stated that the consortium…
Increasing US LNG Exports to Catalyze Shale Production Growth
U.S. liquefied natural gas exports will soar by roughly 10% a year through 2030 as energy firms double their LNG production capacity, according to analysts, providing a shot in the arm to the country's maturing shale industry which has seen growth slow and costs rise.The U.S. is the world's largest oil and natural gas producer, but many of its best drilling locations have been tapped. While oil production is expected to plateau or fall in coming months, gas remains a bright spot for the industry thanks primarily to the country's booming exports.U.S.
AGL's shares in Australia plunge after weaker results reflect the cost of going green
AGL Energy, Australia's largest power producer, reported on Wednesday a 21% decline in its annual underlying profit. It also missed expectations for earnings due to lower retail margins and increased costs associated with the transition to renewable energies. The shares closed at their lowest level since April 20,24 and had the weakest trading session in October 2007. The Sydney-based company - Australia's largest carbon emitter – said that it was confident in its investment in large batteries, once they were operational. He added that the batteries will also "more than compensate" for rising gas costs…
Rio Tinto: No economic incentives for green steel in Australia
Rio Tinto, along with BHP, played down Australia's chances of developing a "green-iron" sector to help decarbonise its steel industry on Thursday because the country lacked the economic incentives for doing so. Australia has worked to establish itself as a reliable supplier of green metals. It is the largest seaborne iron ore producer in the world. In February, the Australian government allocated A$1billion ($652.4m) to support green iron production and supply chains. Due to the fact that Australia's iron is not of a high enough quality to be processed directly into steel using renewable energy, an additional step must be taken.
Mining giants squeeze their dividends to fund growth
This earnings season has seen large miners pay out the lowest dividends they have paid in years. Mineral prices are falling and they must retain cash to fund their massive development plans, all while keeping costs down. BHP is expected to continue this trend when it releases its earnings on August 19, along with Anglo American, Rio Tinto and Glencore. After years of high profits driven by China, backed up by supply problems linked to COVID-19 and Russia, these companies are now facing lower profits, capital spending plans or, in the case Anglo American, a complete restructuring.
Asia thermal coal imports increase in July as Japan and South Korea purchase: Russell
Imports of seaborne coal from Asia increased in July, but this increase was driven by developed economies of North Asia rather than the heavyweights China or India. According to Kpler, the total seaborne imports for fuel used to generate electricity grew by 12% in July from June's figure of 63.02 millions tons. The increase in July imports coincides with a weaker trend among Asia's seaborne thermal coking coal shipments as the top buyers, China and India, reduced purchases due to abundant domestic supplies and increasing generation from renewables.
Inpex awards contracts for engineering design of Indonesian LNG Project
Inpex Corp, a Japanese oil and natural gas exploration company, announced on Monday that it had awarded several contracts for the early stages of design work in its $20 billion Abadi project for liquefied gas in Indonesia's Masela Block. This move indicates that early design is progressing towards the final investment decision. The project is expected to produce 9.5 million tons of LNG per year at its maximum. The Japanese explorer began the front-end design process in April. He reviewed and defined the technical details, including costs…
Trade groups and companies warn that Trump's America First policy on biodiesel could be costly to US businesses, consumers and trade groups.
According to some trade groups in refining and biofuels, the Trump administration's efforts to discourage the use foreign feedstocks for domestic biodiesel may lead to higher prices and a reduction of domestic production. The warning is a reflection of the ongoing tension between the Environmental Protection Agency under President Donald Trump and its traditional allies, the energy and agricultural industries. Trump has promised that he will lower consumer energy prices, but he is also trying to advance the America First agenda by supporting domestic production via trade protectionionism. This can sometimes lead to higher costs.