Sunday, October 24, 2021

Australia to benefit from global energy crisis

Australia’s resources and energy exports are expected to fetch a record $349 billion (US$253 billion) in 2021-22, according to a new report from the Department of Industry, Science, Energy and Resources.

While iron ore export gains will decline amid falling iron ore prices, rising demand for thermal and metallurgical coal will propel Australian resource and energy exports to new record lows.

“Unstable weather conditions in the Northern Hemisphere have fueled demand for Australian coal, and the new supply chain created following Chinese import restrictions has now strengthened and is starting to reap the benefits of experience and scale,” the report said. Have given.”

“Consumers in the Asian region may also attempt to build up a stockpile, increasing the likelihood that supply tightness will last for at least another year.”

Yug Times Photos
An aerial view of a modern large coal power plant in Daezhou City, Shandong Province, China, in this undated photo. (Chungqing/Adobe Stock)

The global energy crisis has pushed up coal and gas prices to the benefit of Australian exporters.

Newcastle coal prices, the benchmark for Asia, surpassed the previous record at US$203 (AU$280) a tonne. Global coal prices also jumped more than 13 percent in a single day on 27 September, when it broke US$200 (AU$279) a tonne, and have been climbing ever since.

Resources Minister Keith Pitt told The Australian: “These record prices confirm that, far from declining, global demand for Australian premium thermal coal is increasing, and forecasts suggest it will remain high for at least several years.” Will stay.”

“With metallurgical coal prices also at record levels and LNG (liquefied natural gas) prices high, the outlook for Australian exporters is very good.”

The Chinese Communist Party’s ban on Australian coal as part of its trade war with Australia has led to blackouts across the Asian nation, disrupting its factories and supply chains.

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Britain and Europe are also facing major energy shortages. At the same time, Russia, Europe’s largest exporter of natural gas, has not increased its gas supply, forcing Europe to compete with Asia for gas.

“Russia can do more to increase gas availability in Europe and ensure that storage is filled to sufficient levels in preparation for the warmer winter season to come,” the International Energy Agency said in a statement.

Energy Minister Angus Taylor said the global energy crisis is a “wake up call” for countries that are pushing for renewable energy without a reliable energy grid to back it up.

Yug Times Photos
Yug Times Photos
Energy Minister Angus Taylor looks for the opening remarks of the Leaders Summit on Climate hosted by the President of the United States, Joe Biden, on April 22, 2021 in Sydney, Australia. (You Image/Mick Tsikas)

“There are some who want to shut down these industries overnight. Watch around the world what happens when you cut supply lines,” Taylor told The Australian Financial Review. “It is not economically or politically sustainable to do so.”

“If you lose balance, you pay for it – you can’t have more renewable energy without dispatchable generation. That’s a hugely important lesson.”

In fact, the Australian energy market operator has already warned that the country faces a power shortage this decade unless a new generation is brought in to compensate for the run out of old coal plants.

Taylor said Australia had learned a lesson when there were grid reliability issues following the closure of coal plants in South Australia and Victoria.

“We got our wake-up call, and we’re determined not to be a third with Liddell,” he said, referring to the upcoming closure of another coal-fired plant in 2023.

Rebecca Zhu

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This News Originally From – The Epoch Times

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