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India relaxes lockdown curbs, but concerns persist

  • Market: Coal
  • 15/04/20

India has listed economic activities that could be permitted to resume from next week as it contends with the fallout from the Covid-19 pandemic. But coal-consuming industries say the move might not yield the desired results.

The country will allow certain activities to resume from 20 April, the ministry of home affairs said today, offering hope that industries such as sponge iron and cement manufacturers can return to work, having been closed on 25 March. The government yesterday extended the lockdown until 3 May.

The relaxations could result in a staggered reopening. But the weak demand outlook and strict safety guidelines could weigh on efforts to support the economy.

Operations at ports, coal mining and movements of essential goods, such as coal, have been allowed to continue. But various challenges — not least a shortage of workers — could continue to disrupt operations.

Production units that require continuous process and their supply chain will be permitted to operate, the ministry said. Coal-consuming brick kilns will be allowed to resume operations in rural areas, as will certain construction activities. Strict social distancing must be observed.

But returning industries might operate at only a fraction of capacity, and weak demand might force them to close again.

Operations could resume at some sponge iron mills, but we "cannot say for how long", according to Sponge Iron Manufacturers Association president Rahul Mittal. "Sponge iron by nature is semi-perishable, unless there is continuous dispatch."

Those in the cement industry, a key consumer of coal and petroleum coke, are also concerned about demand.

Although the government has advised that some construction activities can restart, labourers would need to be available, an executive from a cement firm said. He added that he believes cement dealers are still not allowed to reopen retail outlets.

Indian cement producers have lost more than three weeks of sales and production since the lockdown began and are estimated to be sitting on large stocks.

An uptick in economic activity should support electricity generation and coal burn. India's coal-fired generation in March dropped by about 11TWh on the year to 77.19TWh, according to data from the Central Electricity Authority.

Indian receipts of seaborne thermal coal fell by 1.3mn t on the year to 14.72mn t in March, data from shipbroker Interocean show.

The lockdown relaxations follow calls by industry bodies for support and moves towards an "orderly and safe restart" of the economy. The IMF forecasts that India's economy will grow by just 1.9pc in the fiscal year to 31 March 2021, down from an estimated 4.2pc in 2019-20. The World Bank sees India's economy growing by 1.5-2.8pc in 2020-21.


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23/12/24

Japan’s Chugoku restarts Shimane nuclear reactor early

Japan’s Chugoku restarts Shimane nuclear reactor early

Osaka, 23 December (Argus) — Japanese utility Chugoku Electric Power restarted the 820MW Shimane No.2 nuclear reactor for test operations on 23 December, two days earlier than originally planned. The No.2 reactor at Shimane in west Japan's Shimane prefecture was reconnected to the country's power grids for the first time in nearly 13 years, after the reactor shut down in January 2012 for stricter safety inspections following the 2011 Fukushima nuclear meltdown disaster. Chugoku reactivated the Shimane No.2 reactor on 7 December, aiming to resume power generation on 25 December. But the target date for commercial operations remained unchanged on 10 January, despite the earlier than expected restart. The Shimane No.2 reactor will be a vital power source as the sole nuclear fleet in the Chugoku area, to help enhance the resilience of the power supply structure, stabilise retail electricity prices and reduce CO2 emissions, said Japan Atomic Industrial Forum's president Hideki Masui on 23 December. The Shimane No.2 reactor is the second boiling water reactor (BWR) to be restarted after the Fukushima disaster, following the 825MW Onagawa No.2 BWR unit that resumed test generation on 15 November, with normal operations scheduled to restart on 26 December. The BWR is the same type as that involved in the meltdown at the Fukushima Daiichi plant. The restart of the two BWRs would pave the way for Japan's nuclear restoration, as 15 BWRs — including advanced BWRs — are still closed in the wake of the Fukushima disaster. Japan has restored 14 reactors as of 23 December, including the Shimane and Onagaw reactors, of which 12 are installed with a pressurised water reactor (PWR) design. Nuclear power's share The Japanese government last week set a target of 20pc for nuclear power's share in the country's draft power mix for the April 2040-March 2041 fiscal year, under the triennial review for the country's Strategic Energy Plan (SEP). Tokyo is seeking to restart all existing reactors to achieve the 20pc goal, adding that replacement reactors would also be possible. The draft SEP allows nuclear power operators that had decommissioned reactors to build next-generation reactors at their nuclear sites, not limited to the same site. The previous SEP did not mention building new reactors or replacements. Japan's Federation of Electric Power Companies (FEPC) has applauded this progress, but FEPC chairman Kingo Hayashi noted that it was disappointing the SEP did not mention a nuclear capacity target which the FEPC had requested. It also did not include building new reactors or the expansion of existing nuclear plants, Hayashi added. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US government agencies set to shut down


20/12/24
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20/12/24

US government agencies set to shut down

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Trump backs new deal to avoid shutdown: Update


19/12/24
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19/12/24

Trump backs new deal to avoid shutdown: Update

Adds updates throughout Washington, 19 December (Argus) — US president-elect Donald Trump is offering his support for a rewritten spending bill that would avoid a government shutdown but leave out a provision authorizing year-round 15pc ethanol gasoline (E15) sales. The bill — which Republicans rewrote today after Trump attacked an earlier bipartisan agreement — would avoid a government shutdown starting Saturday, deliver agricultural aid and provide disaster relief. Trump said the bill was a "very good deal" that would also include a two-year suspension of the "very unnecessary" ceiling on federal debt, until 30 January 2027. "All Republicans, and even the Democrats, should do what is best for our Country, and vote 'YES' for this Bill, TONIGHT!" Trump wrote in a social media post. Passing the bill would require support from Democrats, who are still reeling after Trump and his allies — including Tesla chief executive Elon Musk — upended a spending deal they had spent weeks negotiating with US House speaker Mike Johnson (R-Louisiana). Democrats have not yet said if they would vote against the new agreement. "We are prepared to move forward with the bipartisan agreement that we thought was negotiated in good faith with House Republicans," House minority leader Hakeem Jeffries (D-New York) said earlier today. That earlier deal would have kept the government funded through 14 March, in addition to providing a one-year extension to the farm bill, $100bn in disaster relief and $10bn in aid for farmers. The bill would also provide a waiver that would avoid a looming ban on summertime sales of E15 across much of the US. Ethanol industry officials said they would urge lawmakers to vote against any package without the E15 provision. "Pulling E15 out of the bill makes absolutely no sense and is an insult to America's farmers and renewable fuel producers," Renewable Fuels Association chief executive Geoff Cooper said. If no agreement is reached by Friday at 11:59pm ET, federal agencies would have to furlough millions of workers and curtail services, although some agencies are able to continue operations in the event of a short-term funding lapse. Air travel is unlikely to face immediate interruptions because key federal workers are considered "essential," but some work on permits, agricultural and import data, and regulations could be curtailed. The US Federal Energy Regulatory Commission has funding to get through a "short-term" shutdown but could be affected by a longer shutdown, chairman Willie Phillips said. The US Department of Energy expects "no disruptions" if funding lapses for 1-5 days, according to its shutdown plan. The US Environmental Protection Agency would furlough about 90pc of its nearly 17,000 staff in the event of a shutdown, according to a plan it updated earlier this year. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US Congress passes waterways bill


19/12/24
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19/12/24

US Congress passes waterways bill

Houston, 19 December (Argus) — The US Senate has passed a bipartisan waterways infrastructure bill, providing a framework for further investment in the country's waterways system. The waterways bill, also known as the Water Resources and Development Act (WRDA), was approved by the Senate in a 97-1 vote on 18 December after clearing the US House of Representatives on 10 December. The WRDA's next stop is the desk of President Joe Biden, who is expected to sign the bill. The WRDA has been passed every two years, authorizing the US Army Corps of Engineers (Corps) to undertake waterways infrastructure and navigation projects. Funding for individual projects must still be approved by Congress. Several agriculture-based groups voiced their support for the bill, saying it will improve transit for agricultural products on US waterways. The bill also shifts the funding of waterways projects to 75pc from the federal government and 25pc from the Inland Waterways Trust Fund instead of the previous 65-35pc split. "Increasing the general fund portion of the cost-share structure will promote much needed investment for inland navigation projects, as well as provide confidence to the industry that much needed maintenance and modernization of our inland waterway system will happen," Fertilizer Institute president Corey Rosenbusch said. The bill includes a provision to assist with the damaged Wilson Lock along the Tennessee River in Alabama. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Reliability drives New Zealand power mix: Minister


19/12/24
News
19/12/24

Reliability drives New Zealand power mix: Minister

Sydney, 19 December (Argus) — New Zealand's conservative coalition government wants to ensure reliable generation, whether that is from coal, oil, gas, or geothermal resources, the country's resources minister Shane Jones told Argus this week. Jones was also clear about the need to draw a distinction between "the expectations on [a] small, open trading nation like [New Zealand] not to use coal and the major hope[s] and needs of the average New Zealander for affordable power, reliable power." "If [reliable power] comes from coal, that's the mix and the menu for the future," he added. Jones argued that existing renewable power sources cannot exclusively provide for New Zealand's energy needs. He instead suggested that his government is interested in promoting alternative power sources such as oil, gas and geothermal, through investments and policy changes. New Zealand's coal-fired power generation surged between July-September, according to the New Zealand's Ministry of Business Innovation and Employment (MBIE). Coal rose to 8pc of total generation from 3pc a year earlier, following a drop in hydroelectric power production. The country burned 363,513t of coal over those months, more than tripling its use for power generation purposes compared to the same period last year. Oil, gas Jones has taken steps to boost the country's oil sector since taking office in late 2023, following the coalition's victory over the centre-left Labour party. The minister introduced the Crown Minerals Amendment Bill in June, a piece of legislation that he described as being "aimed at increasing investor confidence in petroleum exploration and development." Jones told Argus that under the previous government, "people who may have been willing to [make] investment[s] and bring patient capital concluded that New Zealand was no longer available as a destination for oil and gas and this has resulted in a diminution in [oil] investment." The Crown Minerals Amendment Bill will overturn a 2018 ban on offshore oil exploration, which was introduced while Jones was serving in an earlier Labour-led coalition government. New Zealand's oil sector increased its annual well spending from NZ$110mn ($63.2mn) in 2018 to NZ$403mn, in the years following the ban in 2018. The total number of active oil permits in the country has plunged from 56 to 37 over the same period, MBIE data show. New Zealand likely houses at least 223.5bn m³ of undiscovered, offshore gas reserves; 249mn bl of undiscovered, offshore oil reserves; and 177mn bl of undiscovered, offshore NGL reserves, mostly scattered around the North Island, according to US Geological Survey (USGS) estimates in 2022. The country's discovered, recoverable reserves are at between 38.3mn-52.7mn bl of oil; 29.4bn-39.8bn m³ of gas; and between 1.2mn–1.4mn t of LPG as of 1 January 2024, according to the MBIE. Besides restarting oil exploration, the Crown Minerals Amendment Bill also seeks to change permitting processes to drive capital into the sector. Permits are currently allocated through a competitive tender process, Jones told Argus this week. The government wants "the flexibility to use alternative processes to match investor interest in the most efficient and effective way by allowing the option of using non-tender methods." MBIE has indicated that the government may start using ‘priority in time' tenders, which allocates permits to the first eligible projects that apply for them, once the bill passes. But the Crown Minerals Amendment Bill does not specify how the government will manage non-competitive tenders. The government is also not using the Crown Minerals Amendment Bill to "specifically intervene in coal mining operations" in New Zealand, Jones said. But coal demand will fall "in the event that [the government is] able to expand the supply of indigenous gas," he noted. Geothermal The government's energy strategy also appears to involve doubling down on domestic geothermal generation, which is New Zealand's second most common source of power. Geothermal generators produced 2,363GWh of power between July-September, accounting for 20.5pc of total generation, in line with historical averages, according to MBIE data. New Zealand's government seems to be trying to push that share up. The government in early December decided to allocate up to NZ$60mn of public infrastructure funding to research for deep, geothermal energy production. The work will focus on drilling geothermal wells up to 6km deep, nearly twice the depth of standard wells. Jones told Argus that New Zealand officials are currently in Japan, discussing supercritical geothermal generation opportunities with engineers and scientists. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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