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Sources: TikTok owner considers data center in Brazil
Three people with knowledge of the matter said that ByteDance is considering a large investment in a Brazilian data center to harness the abundant wind power on Brazil's northeast coast. Two sources, who requested anonymity in order to discuss confidential negotiations, said that the company was in discussions to partner with renewable power producer Casa dos Ventos in developing a facility at the Pecem Port Complex in the state Ceara. Discussions are taking place as Latin America’s largest economy tries to position itself as the global hub for a fast-growing industry of data centers, by leveraging its abundant renewable energy. According to one source, initial discussions are centered on a data center of 300 megawatts (MW), but the project may eventually be expanded to 900MW in a subsequent phase. According to a second source, the total demand could be as high as 1 gigawatt. Brazil would become a key part of the Chinese firm's Western Hemisphere operations. ByteDance, a Chinese company, announced in February that it would invest $8.8 Billion in Thailand data centers over a five-year period. TikTok has declined to comment on the plans for Brazil. Pecem has been considered as a potential location for Brazilian data centres due to the nearby landing stations of submarine cables and the concentration in renewable energy generation. Casa dos Ventos has requested grid connection in Pecem for a project to build a datacenter. TotalEnergies and Casa dos Ventos have partnered on wind power in 2022. The Brazilian national grid operator ONS initially refused it because of stability concerns due to the high demands placed on such facilities. Two sources claim that the Brazilian Mines and Energy Ministry has begun evaluating the possibility of increasing grid capacity to support data center projects at Pecem and in other areas. TikTok, as well as the Ministry of Culture and Tourism, did not respond immediately to a comment request. ByteDance was not reachable. Casa dos Ventos refused to comment on ByteDance's talks, but stated in a press release that it was "committed" to turning the Pecem Port into a hub of technological innovation and energy transformation. The company is building the largest data center in the country and a green hydrogen project that will be powered with renewable energy. The company stated that it was evaluating partnerships with companies who can help implement both projects. (Reporting from Leticia Fucuchima, Sao Paulo; Marcela Ayres, Bernardo Caram and Brenda Goh at Shanghai; Fabio Teixeira at Rio de Janeiro. Editing by Marguerita Chôy.
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Vehicle Carriers Seek Relief from Wide US Port Fees
Three sources said that operators of hulking cars carriers were seeking relief from U.S. trade representative's surprise plan that would levy port charges on all foreign-built vessels in this segment, including the 20 vessels that guarantee transportation for the U.S. Military during a national emergency or war. USTR announced these fees on April 17, as part of a continuing effort to charge certain China-linked vessels calling at U.S. port fees in order to fund domestic shipbuilding and counter China's dominant position on the high seas. The fees were a shock to the industry because they did not only target ships built in China or owned by Chinese companies. According to two lawyers who asked to remain anonymous for fear of reprisals, the fees on vehicle carriers would affect the 20 U.S. flagged and U.S. crewed vehicle carriers that are admitted to the U.S. Maritime Security Program, which supports Washington's readiness. These fees would also impose massive costs on customers of vehicle carriers, who are already suffering from the 25% auto tariffs that President Donald Trump imposed. As the levies weren't mentioned in the USTR port fees proposal of February, vessel carriers did not have an opportunity to provide feedback. One of the lawyers said, "The fee for the car carrier came out of nowhere." Both parties said that the USTR had overreached, because the fees were levied on ships that are made in countries not included in the Biden administration’s fast-tracked investigation which found that China unfairly dominates global maritime, logistic and shipbuilding sectors. The World Shipping Council warned that on April 18, the new fees would affect almost all car carriers and could have unintended effects. WSC has declined to provide any further comment. Attorneys and an industry group have asked to meet with USTR in order to express their concerns. USTR has not yet commented on whether it will meet with representatives of vessel carriers. USTR will begin charging foreign-built vehicles carriers $150 per car they can carry. This fee will be implemented on October 14, 2014. The USTR plans to charge foreign-built vehicle carriers $150 for every car the ship has capacity to carry, beginning on October 14. MILITARY RISK? Vehicle carriers are essential to the U.S. Military's readiness, as they can transport large items such as aircraft, tanks and helicopters. American Roll-On Roll-Off Carrier Group of Florida, an operator of vehicle carriers under the U.S. flag, is a part of Wallenius Wilhelmsen Group. Liberty Global Logistics is a New York-based provider. Wallenius Wilhelmsen and ARC did not respond immediately to Wallenius's request for comment. Maersk Line Ltd., the U.S. division of the Danish container shipping company, which is part of MSP, has said that it is reviewing USTR's most recent information and is preparing for various scenarios. Port fees are not charged to operators of container ships, tankers, and other vessels that fall within the MSP. Alphaliner data shows that there are currently 1,466 vehicle carriers in use. Alphaliner reported that only 39 of these ships were constructed in the United States. (Reporting and editing by Peter Graff, Mark Potter, and Lisa Baertlein)
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Vehicle Carriers Seek Relief from Wide US Port Fees
Three sources said that operators of hulking cars carriers were seeking relief from U.S. trade representative's surprise plan that would levy port charges on all foreign-built vessels in this segment, including the 20 vessels that guarantee transportation for the U.S. Military during a national emergency or war. USTR announced these fees on April 17, as part of a continuing effort to charge certain China-linked vessels calling at U.S. port fees in order to fund domestic shipbuilding and counter China's dominant position on the high seas. The fees were a shock to the industry because they did not only target ships built in China or owned by Chinese companies. According to two lawyers who asked to remain anonymous for fear of reprisals, the fees on vehicle carriers would affect the 20 U.S. flagged and U.S. crewed vehicle carriers that are admitted to the U.S. Maritime Security Program that supports Washington's readiness. These fees would also impose massive costs on U.S. automobile manufacturers, already suffering from President Donald Trump's tariff policy. As the levies weren't mentioned in the USTR's original port fee proposal of February, vessel carriers did not have an opportunity to provide feedback. One of the lawyers said, "The fee for the car carrier came out of nowhere." Both parties said that the USTR had overreached, because the fees were levied on ships that are made in countries not included in the Biden administration’s fast-tracked investigation which found that China unfairly dominates global maritime, logistic and shipbuilding sectors. The World Shipping Council, whose members include Swedish car transporter Wallenius Wilhemsen on April 18, warned that the new fees would affect almost all car carriers and could have unintended effects. WSC has declined to provide any further comment. Attorneys and a group of industry representatives have asked to meet with USTR in order to express their concerns. USTR has not yet commented on whether it will meet with representatives of vessel carriers. USTR will begin charging foreign-built vehicles carriers $150 per car they can carry. This fee will be implemented on October 14th. The USTR plans to charge foreign-built vehicle carriers $150 for every car the ship has capacity to carry, beginning on October 14. MILITARY RISK? Vehicle carriers are essential to the U.S. Military's readiness, as they can transport large items such as aircraft, tanks and helicopters. American Roll-On Roll-Off Carrier Group of Florida, an operator of vehicle carriers under the U.S. flag, is a part of Wallenius Wilhelmsen Group. Liberty Global Logistics is a New York-based provider. Wallenius Wilhelmsen and ARC did not respond immediately to Wallenius's request for comment. Maersk Line Ltd., the U.S. division of the Danish container shipping company, which is part of MSP, has said that it is reviewing USTR's most recent information and is preparing for various scenarios. Alphaliner data shows that there are currently 1,466 vehicle carriers in use. Alphaliner reported that only 39 of these ships were constructed in the United States. (Reporting and editing by Peter Graff.)
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Asian spot prices remain at a 1-year low due to a tepid demand
The price of Asian spot LNG (liquefied natural gases) increased this week despite production problems in Asia and Europe. However, it was still at a near-year-low due to tepid overall demand. Average LNG price for delivery to North-east Asia in June Industry sources estimate that the price of a million British thermal unit (mmBtu) is now $11.80, up from last week's $11.50/mmBtu which was its lowest level since mid-May. Martin Senior, Argus' head of LNG pricing, stated that there are only a few buyers for immediate cargoes. Chinese and Indian importers are largely ignoring the market because prices are over $11.00/mmBtu. South Korea, however, is currently Asia's main spot buyer. He said that the South Korean demand was strong. Stocks held by Kogas (the country's state-owned company) were last heard of as being around 20 percent filled. This has led to interest from not only Kogas but also Komipo and Kospo, as well Prism. Private importers can benefit from buying cargoes at a lower price than Kogas' tariff. Siamak Adibi said that despite a recent outage of the Bintulu LNG Complex owned by Petronas, the supply situation is still good. Equinor's Hammerfest Terminal, Europe's biggest LNG export facility, was also offline for scheduled annual maintenance on Tuesday until July 19. Adibi said that the exports from Venture Global’s Plaquemines facility in the U.S. reached 1 million tonnes per month. BP also loaded the first cargo from its Greater Tortue Ahmeyim offshore Mauritania, and Senegal. He added that "we also expect the start-up of LNG Canada by mid-year, and a ramp up in supply from Corpus Christi" - referring to Cheniere Energy’s plant in the U.S. S&P Global Commodity Insights' daily North West Europe Gas Marker benchmark price for cargoes to be delivered in June was $10.49/mmBtu ex-ship on April 24. This represents a $0.70/mmBtu reduction from the gas price in June at the Dutch TTF Hub. Argus estimated the price for delivery in June at $10.58/mmBtu. Spark Commodities estimated the price for May at $10.376/mmBtu. Florence Schmit is an energy strategist with Rabobank London. She said that while Europe's demand for gas has begun to decline due to seasonal trends, there are still concerns about storage injections in the summer. She said that the winter premium on summer contracts was still trading at only 0.50 euros per Megawatt Hour, which is not enough incentive to encourage full injections. The EU's roadmap for the phase-out of Russian fuel supplies will also scupper any expectations that Russian pipeline supplies would return, and push European buyers even further to seaborne imports. According to Spark Commodities analyst Qasim Afghan, the Atlantic LNG freight rates increased to $35,750/day last Friday while Pacific LNG rates dropped to $22,250/day. He added that despite pointing towards Asia earlier in the week, the U.S. arbitrage for the front month to North-East Asia via Cape of Good Hope is now closed, and it's marginally pointing toward Europe.
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Mexico's largest port expands as it bets global trade despite Trump’s tariffs
Mexico is expanding its largest seaport as it bets on global trade and positive economic growth despite the grim outlook caused by U.S. president Donald Trump's tariff wars. According to the Mexican Navy which operates the facility, the Mexican Government aims to turn the Port of Manzanillo, on Mexico's Pacific Coast, into the busiest port in Latin America. It will be able to process 10 million 20-foot containers (6.1-meter-long) and can handle up to 10,000,000 cargoes. In 2024, it will be the largest port in Mexico and the third-largest in Latin America. It will handle nearly 4 million 20 foot containers. Claudia Sheinbaum, the Mexican president, has a major infrastructure project in mind. It is a multi-billion dollar port extension. Mexico is investing in order to combat an economic slump caused by Trump's trade conflicts. The International Monetary Fund cut its growth predictions for the majority of countries earlier this week. Mexico was one of the countries that saw their growth forecasts slashed by 0.3%. This is due to U.S. Tariffs affecting exports. Sheinbaum disagreed with the IMF's forecast and said that public investments would stop the economy from contracting. She also praised her government's Plan Mexico, an initiative to boost the domestic industry. According to a document released by the government earlier this month, the success of the plan depends in part on modernizing the country's port facilities, including Manzanillo. Julieta Juarez Ochoa is the commercialization manager at Manzanillo. She says that the U.S. Tariffs haven't slowed down trade in the port. She stated that the majority of imports to Manzanillo are from Asia, and they are used primarily in manufacturing at home. She said, "We don’t see any impact (of U.S. Tariffs) and we don’t anticipate a significant one." She said that the expansion would increase Manzanillo’s ability to handle containerized goods and hydrocarbon products. Sheinbaum said that the project is expected to be completed by 2030. Reporting by Diego Delgado in Manzanillo Mexico; Writing and Editing by Laura Gottesdiener
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Iranian Oil Minister in Moscow seeks to strengthen ties with Russia
Mohsen Paknejad, the Iranian Oil Minister, said that during his visit to Moscow last Friday, Iran would increase cooperation with Russia in banking and agriculture. He also stated that he would remove all barriers between Russia and Iran in any sphere of cooperation. Since the beginning of the conflict in Ukraine, Russia has strengthened its ties with Iran and signed an agreement for strategic partnership with Tehran in January. Both countries are subject to Western sanctions. Paknejad, speaking on state television earlier on Friday said that Iran would sign a $4-billion agreement with Russian companies for the development of seven Iranian oilfields. Russia and Iran have a long-standing history of co-operation. In fact, the first nuclear reactor in Iran was built at Bushehr, in the southern part of the country. At a January meeting in the Kremlin with his Iranian counterpart Masoud Peshkian, Russian President Vladimir Putin said that Russia could eventually supply Iran up to 55 billion cubic meters (bcm), though initially at lower volumes up to 2 bcm. The 55 bcm figure is similar to that of the Nord Stream 1 pipelines, which were damaged in blasts and stopped delivering gas to Europe after 2022. Gazprom, the Russian gas giant, signed a Memorandum with National Iranian Gas Company in June last year to supply Russian pipeline natural gas to Iran. The possible routes of the pipeline are not known. Paknejad said, in a speech to a Russia-Iran Intergovernmental Commission at Moscow, that Iran would implement agreements with Gazprom. This included a regional hub of distribution for gas. Both countries have been discussing the possibility of setting up a regional hub for gas distribution in Iran. Paknejad, Putin's representative for relations with the Organization of Petroleum Exporting Countries(OPEC), met Alexander Novak on Thursday. Three sources familiar with OPEC+ discussions said that the meeting was held as several members of OPEC+ - the group consisting of OPEC, its allies, and Russia - suggested that the group increase oil production in June by a second month running. The proposed increases highlight a growing dispute between members about compliance with production quotas. The announcements come in response to President Donald Trump's calls for OPEC members to lower oil costs and his return to a "maximum-pressure" policy on Iran, whose exports Washington wishes to reduce to zero. (Reporting and writing by Olesya Aastakhova, Anastasia Teterevleva, Vladimir Soldatkin, editing by Mark Trevelyan).
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China's demand for long-range Hybrids is surging, and automakers are rushing to meet it
Chinese automakers are competing with foreign automakers to launch ever-more advanced hybrids that can travel long distances. This is in response to the growing demand for cars on the largest auto market. China, unlike many other markets, treats EVs and Hybrids as a single "new energy vehicle sector" where brands compete to offer consumers a range of electrified vehicles with longer driving distances. Zeekr, a Geely division, unveiled this week the 9X, a large plug in hybrid SUV, which can travel 400 km (249 mi) on its own electric power before the gasoline engine kicks into action. This is a range that rivals many electric cars and is far greater than the typical plug-in hybrids sold in America, Europe and elsewhere. Chinese automakers also have a flourishing business in the so-called "extended-range electric vehicles" (EREVs), with small petrol engines which serve as generators to extend their large batteries' range. According to the China Passenger Car Association, both EREVs (electric hybrid vehicles) and plug-ins (plug-in hybrids) grew faster in China than pure EVs last year. The whole electrified segment now accounts for about half of the new cars sold. EREVs sales grew 79%, to 1.2 millions vehicles. Plug-in hybrids sales jumped by 76%, to 3.4million units. EV sales grew by 23% to 6.3million units. In the first quarter, fully electric models outgrew both hybrids and led China's new energy sector. The hybrid boom in China, and worldwide, has led to more traditional automakers including gasoline-electric models into their lineups. Previously they had focused solely on expanding EV options. Volkswagen is planning a new platform for full EVs, EREVs, and hybrids to help reverse the slowdown in sales of foreign automakers in China. VW board member Ralf brandstaetter said that drivetrain flexibility is critical for the German automaker's efforts to "find its edge." Ola Kaellenius, CEO of Mercedes-Benz, told reporters at the Shanghai auto show that hybrids were "definitely" a trend. He predicted they would "coexist for a longer time with battery-electric cars." TRANSITIONAL TECHNOLOGY Some automakers, notably Tesla, have dismissed hybrids. They claim that they are a technology in transition and will only slow down the rapid EV switchover needed to reduce climate change. This view is shared by many environmentalists in the U.S. Pure-play Chinese EV manufacturers are also sceptical about hybrids, especially in China where the government and industry built a massive EV charging network. William Li, CEO at Nio Electric Vehicles, said: "It doesn't even make sense." Many Chinese automakers want to give their customers whatever they ask for amid a price war with consumers that is continuing to threaten their profitability. Plug-in hybrids are also a way to get around trade barriers, especially in Europe. The European Union has placed tariffs on Chinese electric vehicles and hybrids. In February, Geely's Lynk & Co announced that in June, it would launch a plug in hybrid SUV called the 08 with a range of only 200 km. This is the longest in Europe. Felix Kuhnert is an automotive analyst with PwC Germany. He said that China's auto industry was "technologically more dogmatic" than other global competitors. This is the position taken by Chinese EV manufacturer Leapmotor. It has launched four EREVs, despite its CEO Zhu Jiangming saying that typical EV ranges of 500 km allow consumers to buy an electric car "without a problem." The company sees EREVs in the market as a way to offer consumers more range for a higher price. "We think this is only for luxury cars," an area where consumers are willing to pay an additional 20,000 yuan (2,744) in order to relieve range anxiety. MORE HYBRIDS COMING According to research firm JATO Dynamic, China's automakers will launch 16 new EREVs, 37 new plug-ins, and 32 new fully electric vehicles in 2024. According to a major automaker, EREVs, plug-in hybrids, and EVs together will account for approximately 35% of the sales in China, which is the largest auto market in the world, compared with about 45% for electric vehicles. CATL, a Chinese battery manufacturer, has invested in the sector. In October, it launched its first battery for extended-range hybrids with a 400 km range. CATL stated that the battery was used by several Chinese EV brands including Li Auto and would be installed into nearly 30 models by industry giants such as Geely or Chery. Bo Yu, an expert in China's market for research firm Jato Dynamics predicted that automakers would continue to invest and innovate in the segment of hybrid vehicles for the foreseeable. She said, "We will see them more."
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Sri Lanka begins talks with India and UAE about a new energy hub
Sri Lanka's energy minister announced on Friday that the country will begin work on plans next month to create an energy hub in collaboration with India and United Arab Emirates. The nation is looking to leverage its strategic position to cement a return from the financial crisis. The three signed the deal during the visit of India's PM Narendra Modi to the island this month. He was the first world leader to visit since Anura Kumara dissanayake became president last September. Dissanayake was elected with promises of stability, after the worst financial crises in decades three year ago caused runaway inflation and sent the local currency into freefall. Trincomalee, a harbour city in eastern Sri Lanka, will be the hub for the construction of the multi-product pipeline and bunkering facilities. A refinery could also be built. The project will also involve the development of an old storage tank farm from World War II, which is partly owned by a Sri Lankan subsidiary Indian Oil. Udayanga Hemiapala, Energy Ministry Secretary, announced that representatives from the state-run Ceylon Petroleum and Indian Oil, as well as AD Ports, will meet in Sri Lanka at the end of May to begin discussions on a business plan for a hub. Hemapala said that a joint project monitoring group has been formed to monitor the development of business plans and finalise detailed proposal. The president's office reported that President Dissanayake and UAE Deputy Premier Sheikh Abdullah Bin Zayed Al Nahyan also discussed energy co-operation in Colombo with each other this week. Sinopec, the Chinese state-owned energy company, has signed an agreement to build a $3.2billion oil refinery in Hambantota, a port city located on Sri Lanka's south coast. (Reporting and editing by Christopher Cushing; Uditha Jayasinghe)
Norway's wealth fund can begin offering Russian stocks, finance ministry states
Norway's $1.8 trillion sovereign wealth fund, the world's largest, can begin selling stocks it holds in Russian companies, as long as it complies with worldwide sanctions, the deputy finance minister told Reuters on Friday.
Permission to offer the fund's Russian stocks is given on the condition that the sale can be carried out in line with suitable sanctions, Ellen Reitan said in an email.
The Norwegian finance ministry bought a halt to all deals in the fund's Russian properties soon after Moscow's. invasion of Ukraine in February 2022 and stated at the time that. the ultimate goal was to divest its holdings.
The fund has actually up until now been not able from unloading Russian. properties because it is not allowed to offer to counterparties. under U.S. or EU sanctions.
On Wednesday, the reserve bank, which handles the fund,. asked the Norwegian finance ministry for consent to offer. parts of its Russian portfolio when possible, saying separated. transactions if and when divestment chances emerge is. currently the only method to sell parts of the portfolio.
Wednesday's letter did not state if the fund had actually discovered. buyers it might offer to.
Norway's fund, which holds the windfall generated by its oil. and gas production, owns 1.5% of all worldwide listed shares in. business.
Moscow thinks about U.S. and EU sanctions a type of economic. warfare, and states contacts us to divest Russian properties are hostile. acts of unfriendly states.
Philip Gabunia, deputy governor of Russia's reserve bank,. informed Reuters on Wednesday any decision to offer the assets inside. Russia would require Moscow's consent, given just with. engaging grounds.
If they want to sell in Russia, they should send a demand. to our Russian governmental commission. Only after that will the. matter be considered. Outside of Russia, they can offer to. another immigrant, however it will likewise remain frozen, Gabunia. said.
Asked about Gabunia's comment, the Norwegian deputy finance. minister did not resolve the concern in her emailed reply.
The worth of the fund's Russian equity portfolio was. approximated at just 1.5 billion crowns ($ 135 million) at the end. of June this year, the central bank has said.
The investments are across 49 Russian business, fund data. revealed, with the greatest holdings in Sberbank, Lukoil. and Gazprom, fund information showed.
That includes stocks of Russian companies listed outside. Russia, or which have a secondary listing outside Russia, which. would not require approval from Moscow.
Amongst them are Novatek, Yandex, Evraz. , Globaltrans Investments and Ozon Holdings. , fund data revealed.
In addition, the fund holds Russian roubles worth some 3.2. billion crowns in its custodian Citibank account with the. Russian National Settlement Depository
(source: Reuters)