Japan’s Coal, Gas Demand Will Rise Following Earthquake, New Hope Says

Japan's coal and natural gas demand is likely to increase after the biggest earthquake in the nation this month knocked down nuclear power generators, said New Hope Corp, a coal producer in Australia.
"I would expect that higher requirements for burning coal and gas in the coming years," said Robert Neale, executive director of the Ispwich company, based in Queensland, today in a telephone interview. coking coal, in particular, would be necessary "because it will have at least five or more years of reconstruction, which will require steel," he said.
Japan, which relies on imported fuels for most of their needs is the search for alternatives to nuclear power after the March 11 earthquake forced the closure of 11 reactors. Five years may be needed for reconstruction after the disaster, said the World Bank.
New Hope fell 0.2 percent to $ 4.89 to close 4:10 pm in Sydney trading. The company's shares have risen 0. 8 percent this year compared with the S & P / ASX 200 falling 2.2 percent.
New Hope said its first-half profit of A $ 407,000,000 ($ 409 million), an increase of more than four times after the sale of the company's participation in Arrow Energy Ltd. The company has a cash balance of about 1.6 billion U.S. dollars after the 238 million U.S. dollars to acquire Northern Power SA, Neale said.
Coal demand will increase to compensate for the loss of nuclear capacity because it is cheaper than oil and gas, and also because of negative public perception towards nuclear power, Andrew Harrington, an analyst at Paterson Securities Ltd., said in a report. "We believe the negativity surrounding nuclear energy is increased demand for fossil fuels like coal and, above all."
Coal producers likely to benefit from increased demand include Gloucester Coal Ltd. (GCL), New Hope, Whitehaven Coal Ltd. and developers Aston Resources Ltd. (AZT), Cockatoo Coal Ltd. (COK) and Riversdale Mining Ltd. (FIR), said Harrington.