Insight
| |
4 Pages

Galilee Basin coal projects may get infrastructure boost


Galilee Basin coal projects may get infrastructure boost

Report summary

Speculation is rife about a possible federal government loan of US$740 million (A$1 billion) for Adani's Carmichael Rail Network (CRN). The potential loan would be paid out of the Northern Australian Infrastructure Fund (NAIF), but no details have been finalised. We evaluate the benefits to government should the NAIF loan provide enough stimulus for the Galilee Basin to proceed, against the commercial risks. It may not be the right time for NAIF to invest in Galilee Basin rail infrastructure given our expected timing on the need for Carmichael's coal in the market. Under our current price assumptions Carmichael does not generate a positive NPV and we only forecast a need for Galilee Basin coal from 2025.

What's included?

This report includes 2 file(s)

  • Galilee Basin coal projects may get infrastructure boost PDF - 293.98 KB 4 Pages, 0 Tables, 2 Figures
  • Galilee Basin coal projects may get infrastructure boost.xls XLS - 371.50 KB

Description

This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

Wood Mackenzie is the only coal industry service provider that offers a market outlook integrated with other sector analyses, including macroeconomics, coal supply, steel markets and gas and power markets.

Our coal analysts are based in the markets they analyse. They work with objective, proprietary data to help you maximise your current and future decision making. From market dynamics to trade patterns, we give you confidence in your strategic planning.

  • How do Galilee Basin coal projects stack up?
  • Government benefit
  • Commercial risks could outweigh the benefits
  • Conclusion

In this report there are 2 tables or charts, including:

  • How do Galilee Basin coal projects stack up?
    • Australia thermal coal export project incentive prices (Real 2016 terms, 15% IRR)
  • Government benefit
  • Commercial risks could outweigh the benefits
    • Australia total coal port capacity and demand (Mt)
  • Conclusion
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions

Mailenquiries@woodmac.com
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...