{"id":25653,"date":"2017-09-14T18:03:22","date_gmt":"2017-09-14T23:03:22","guid":{"rendered":"http:\/\/olduvai.ca\/?p=25653"},"modified":"2017-09-14T18:03:48","modified_gmt":"2017-09-14T23:03:48","slug":"super-critical-coal-shortage-sends-india-scrambling-for-natgas","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=25653","title":{"rendered":"\u201cSuper Critical\u201d Coal Shortage Sends India Scrambling For NatGas"},"content":{"rendered":"

\u201cSuper Critical\u201d Coal Shortage Sends India Scrambling For NatGas<\/a><\/h3>\n\"Coal\"<\/picture>\n
\n

Big disappointment in the global natural gas industry this week, with majors Total and Eni coming up largely dry in a much-anticipated well offshore Cyprus.<\/p>\n

But elsewhere things are turning extremely bullish for natgas. With one of the world\u2019s fastest-emerging energy consumers scrambling to get all the supply it can.<\/p>\n

India.<\/p>\n

Local media reported<\/a> this week that India\u2019s power generators are seeing a sudden surge in natgas buying because of an \u201cacute\u201d shortage in the country\u2019s go-to energy fuel: coal.<\/p>\n

After enjoying years of ample coal supply, India\u2019s power sector has seen inventories slip drastically into the red in recent months. With ten major power plants classified as \u201ccritical\u201d, with less than seven days of coal stocks \u2014 and five of those being \u201csuper critical\u201d with less than four days of coal supply.
\nAnd that drastic shortage has reportedly turned these generators to natural gas in a major way.<\/p>\n

Sources said India\u2019s generators have purchased 10 million cubic meters (350 million cubic feet) during \u201cthe last couple days\u201d. Indicating energy producers are getting desperate in keeping their operations in business amid the coal shortage.<\/p>\n

This potentially has long-term implications for global natural gas. Because of a peculiar feature of India\u2019s energy landscape: a fleet of unused gas-fired plants.<\/p>\n

India in fact has over 25 GW of installed gas-driven generating capacity. But here\u2019s the thing: 55 percent of that capacity usually never runs. Because it\u2019s \u201ctechnically stranded\u201d \u2014 having no access to natgas feed at commercially-competitive prices.<\/p>\n

But the coal crisis is changing the economics here. Power operators are so desperate to keep the lights on, they\u2019re willing to pay the higher prices required to deliver gas to the stranded power plants \u2014 causing this week\u2019s major surge in natgas buying.<\/p>\n

If the coal shortage persists, that demand could become permanent. Watch for weekly data on coal stocks at India\u2019s power plants, and stats on natural gas usage across India \u2014 which could have knock-on effects on imports.<\/p>\n

Here\u2019s to un-stranding,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u201cSuper Critical\u201d Coal Shortage Sends India Scrambling For NatGas Big disappointment in the global natural gas industry this week, with majors Total and Eni coming up largely dry in a much-anticipated well offshore Cyprus. But elsewhere things are turning extremely bullish for natgas. With one of the world\u2019s fastest-emerging energy consumers scrambling to get all […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[147,12739,422,5332],"class_list":["post-25653","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-coal","tag-dave-forest","tag-india","tag-oilprice-com"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25653","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25653"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25653\/revisions"}],"predecessor-version":[{"id":25654,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25653\/revisions\/25654"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}