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Gas prices rise 14%, coal keeps track!

Jakarta, CNBC Indonesia – The price of coal was finally stretched after dropping last week. In Monday’s trade (14/11/2022), the price of December contract coal on the ICE Newcastle market was recorded at US $ 309 per ton. The price of black sand strengthened 3.2% compared to the last trade last week, Friday (11/11/2022).

Today’s strengthening brought black sand back to the level of US $ 300 per ton. In one week, the price of coal still fell 7.6% on a continuous basis point to point. In the past month, the price of coal also fell 22.3% but in a year it still jumped 112%.

The renewed increase in coal prices was supported by movements in European natural gas (LNG) prices. Gas prices rose due to problems with shipments from Norway and forecasts of colder temperatures in Europe this week.

The European Union Dutch TTF (EUR) price of natural gas yesterday jumped to 113.70 euros per megawatt-hour (MWh). The price jumped 16% a day.

Reported from Bloomberg, Weather forecasting agency Maxar Technologies LLC predicts European temperatures will plunge this week. The temperature in Berlin, Germany, is even expected to be below 0 degrees Celsius. With the lower temperature, residents are encouraged to use heaters.

Previously, the Copernicus Climate Change Service predicted that the 2022/2023 winter would tend to be warm. This condition will reduce energy use.

The increase in the price of gas was also triggered by the disruption of two gas facilities owned by Norway in Asgard. The facility stopped operating after experiencing a fire on Sunday (13/11/2022).

The new facility is expected to be operational by November 19 at the latest.

“The outlook for a warmer winter has reduced gas demand by 20% below normal. nonetheless, there is uncertainty about LNG supplies. This can be a positive factor (for gas), “said Deutsche Bank AG analyst, quoted from in. Bloomberg.

The increase in the price of gas helped coal not to fall too deeply. The price of black sand fell 14% last week due to a number of negative sentiments ranging from the threat of recession, weak demand, and inadequate supply.

Weak global demand mainly came from China. China’s imports fell this year due to the economic slowdown and insufficient production.

Beijing coal production reached 3.32 billion tons in January-September 2022, an increase of 11%. This increase in production made the supply of coal in the power plants reach 170 million tons, in September.

Meanwhile, the President of Mitsubishi Heavy Industries Seiji Izumisawa reminded Asian countries not to rush into fully renewable energy. Transition from fossil energy to renewable energy must be done gradually.

According to him, the discussion about the use of energy is not currently divided between those who use current technologies and those who support renewable energy.

“nonetheless, the current discussion is how to make the best use of the energy mix. You do not only think about renewable energy, but also use existing resources such as LNG and coal,” he said on the sidelines of the meeting B20 in Bali. , quoted in Reuters newspaper.


[Gambas:Video CNBC]

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