• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 2 hours WTI @ 67.50, charts show $62.50 next
  • 11 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 54 mins Venezuela set to raise gasoline prices to international levels.
  • 12 hours Mike Shellman's musings on "Cartoon of the Week"
  • 7 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 36 mins The Discount Airline Model Is Coming for Europe’s Railways
  • 16 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 1 hour Pakistan: "Heart" Of Terrorism and Global Threat
  • 22 hours Corporations Are Buying More Renewables Than Ever
  • 11 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 23 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 12 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 13 hours France Will Close All Coal Fired Power Stations By 2021

Breaking News:

SEC Tesla Probe Not New: Report

Dave Forest

Dave Forest

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

More Info

Trending Discussions

China Just Spent $1.6 Billion Here

Rounding out the week where we began it. On the subject of changes happening in the critical Chinese coal market.

A very interesting news item surfaced on that front last week. With Chinese interests moving to take control of a key piece of global infrastructure in the coal trade.

That's Australia's Newcastle port. One of the largest export points for thermal coal in the world.

Local authorities confirmed that Chinese interests will buy a 98 year lease on the Newcastle port for $1.6 billion. With the group being led by Hong Kong-based infrastructure specialists China Merchants Group.

This is a major development in the coal space. Last year, Newcastle shipped over 140 million tonnes of coal--making it one of the most critical spots involved in worldwide exports.

Even more interesting than the size of the deal is the timing. With the buy coming just as rumours have been surfacing about changes afoot for China's coal import rules.

Sources suggest that a ban on low-quality coal shipments into China is all but assured. Which would mean a significant shift in buying patterns here.

Most importantly, much of the supply China currently receives from Indonesia will no longer pass muster. Meaning Chinese buyers will need to look elsewhere for imports.

Australia is an obvious choice. A port like Newcastle ships mainly higher-quality coal--of the kind that will now be required for Chinese buyers.

Could the port purchase be a sign that China's merchants are preparing for this shift? After all, if Australia is about to become a go-to coal supplier, it only makes sense to own the import conduit.

If so, this is one more signal that the coal market in places like Australia may have a lot more potential than most observers recognize.

Here's to controlling supply,

By Dave Forest




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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