• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 27 mins California is the second biggest consumer of oil in the U.S. after Texas.
  • 5 mins Permafrost Melting Will Cost Us $70 Trillion
  • 15 hours At Kim-Putin Summit: Theater For Two
  • 4 hours Let's just get rid of the Jones Act once and for all
  • 15 hours NAFTA, a view from Mexico: 'Don't Shoot Yourself In The Foot'
  • 22 hours UNCONFIRMED : US airstrikes target 32 oil tankers near Syria’s Deir al-Zor
  • 12 hours "Undeniable" Shale Slowdown?
  • 23 hours Nothing Better than Li-Ion on the Horizon
  • 1 day New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 22 hours Russia To Start Deliveries Of S-400 To Turkey In July
  • 22 hours How many drilling sites are left in the Permian?
  • 15 hours Gas Flaring
  • 7 hours Liberal Heads Explode as U.S. Senate Confirms Oil Lobbyist David Bernhardt as Interior Secretary
Alt Text

India’s Coal Reliance Deepens

Despite significant efforts to boost…

Alt Text

Trump’s Bizarre Bid To Bailout Coal And Nuclear

The Trump administration is doing…

Alt Text

Is This The Next Coal Megaproject?

A new Russo-Chinese megaproject could…

Dave Forest

Dave Forest

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

More Info

Trending Discussions

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

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News