• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 11 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 7 days Energy Armageddon
  • 15 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 3 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 15 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 4 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days The Federal Reserve and Money...Aspects which are not widely known
  • 4 days Goldman Betting on Cryptocurrencies
  • 7 days Сryptocurrency predictions
  • 12 days Putin and Xi Bet on the Global South
Kazakhstan To Slash Coal Exports Ahead Of Winter

Kazakhstan To Slash Coal Exports Ahead Of Winter

Kazakhstan is planning a potential…

Could Nuclear Power Help Poland Kick Coal?

Could Nuclear Power Help Poland Kick Coal?

Pennsylvania-based nuclear giant Westinghouse is…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

This Japanese Energy Giant Is Still Backing Coal

As I’ve been discussing recently, there have been signs of life for the coal market the last few weeks.

And this week, the world’s most hated commodity got another big vote of confidence — from one of the newest major players in global energy markets.

That’s Japan’s Jera Co. A joint venture created last year between Japan’s two largest power companies, Tokyo Electric Power Co. Holdings Inc. and Chubu Electric Power Co.

And on Tuesday, Jera said it’s buying into coal — in a big way.

Specifically, Jera announced it will purchase the coal-trading arm of France’s EDF. Buying out the entirety of the coal division, which is one of the world’s largest clearinghouses for the commodity.

The move is a big step-out for Jera, which has been focusing on natural gas since its formation in April 2015. And the deal comes with not just a coal trading platform, but also gives the firm direct ownership in a number of important assets in the global coal industry.

That includes a direct stake in the Narrabri coal mine of Australia. As well as ownership of the Rietlanden coal shipping terminal in the Netherlands.

All told, the deal will instantly make Jera the largest thermal coal trader in Japan — with likely annual supply capacity of 30 million tonnes. Related: Are Market Conditions For U.S. LNG Improving?

Although the price for the deal wasn’t disclosed, it’s almost certainly a significant figure — possibly running into the billions. Showing that Jera is very serious about getting into this space.

That’s a big vote of confidence in coal, given it’s coming from two of the most important insider firms in the Japanese energy space. Obviously these players see coal demand in Japan remaining robust for the foreseeable future — meaning that fundamentals are still strong in one of the world’s most important consuming nations.

That suggests things may not be as bad as all the current doom and gloom would suggest. Watch for more deals coming on downtrodden assets — and to see who will be doing the strategic buying.

Here’s to placing your bets.

By Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News