The Energy And Market Page, T+245 -- September 22, 2017 -- Polish Coal Oversupply Turns To Shortage

Link here.

Phillips 66 Partners LP will buy more assets from Phillips 66 for $2.4 billion, the Houston-based companies announced Sept. 22.

The deal is expected to close in early October, and it's the largest acquisition the master limited partnership has made in its four-year history. Prior to this deal, the MLP’s largest was a $1.3 billion drop-down announced last October.

Phillips 66 is dropping down its 25 percent interest in both Dakota Access LLC and Energy Transfer Crude Oil Company LLC — Bakken Pipeline joint ventures — and its 100 percent interest in Merey Sweeny LP, which owns fuel-grade processing units at the Phillips 66 Sweeny Refinery.

Cheaper to buy than to build?

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Polish Planning

Polish coal oversupply turns to shortage.

Poland is facing a coal shortage before the heating season, which will test the government's long-term strategy of domestic coal dependency for power generation.

Polish coal producers may have gone too far in their efforts to redress production oversupply in 2012-16. They have reduced output capacity to a point where the government is concerned that production will not be able to satisfy domestic coal demand in the coming months.

Polish thermal and coking coal output in January-July fell by 5pc on the year to 38mn t, data from national statistics office GUS show. Falling supplies pushed stocks of unsold thermal coal below 1.5mn t in June last year, which was the lowest level since 2011. Producer stockpiles have declined, despite them mainly comprising low-calorie supply, which is usually blended with higher-quality coal.