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Official: Kuwait Petroleum offers refined fuels and oil outside of Hormuz for buyers
A company official announced on Wednesday that Kuwait Petroleum Corp offers its customers the option to transfer their crude oil and petroleum product outside of the Strait of Hormuz for safe transportation to final destinations. Khaled Al-Sabah is the managing director for international marketing at KPC. He spoke at the APPEC conference. He said that buyers and shipping firms are avoiding cargoes lifted from?ports within the strait because of the risks associated with the U.S. - Iran war. The crude oil from other Middle Eastern producers, such as Qatar and the United Arab Emirates, is also available for sale at ports outside of the Strait. Emad A. M. Al-Kandari is the deputy managing director of KPC's international marketing. He said that when it was safe to do so, they would pass some ships through the Strait of Hormuz. Documents reviewed by revealed that the company offered to deliver naphtha from ships in a few?tenders held in August and September. Market sources said that some of its cargoes sold at a premium of up to $60 per metric tonne to Japan's quoted prices on a?delivered?basis. KPC offered free naphtha before the U.S./Iran War began. In June, it resumed its cargo?offers for the first since the war began in February. Data from the shiptracker Kpler revealed that Kuwait exported an average of 200,000 barrels of naphtha per day in the first two months of 2018. This dropped to zero by April. In the last two month, its exports have remained at half pre-war levels.
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Officials say that Russian drones killed two people at the Ukraine-Moldova border crossing
Officials from Ukraine and Moldova said that Russian drones killed two people when they hit a 'border crossing' between Ukraine and Moldova, in the southern region of Odesa. This was part of Moscow’s campaign to target a trade and logistics route and cause economic damage. Officials in Ukraine said that Russian forces also attacked Kyiv with jet-powered drones overnight and on Wednesday, causing fires, disrupting school and business operations, and causing other damage. Mayor Vitali Klitschko reported that nine people had been injured by the attacks in the capital. Oleh Kiper, regional governor of Odesa in southwest Ukraine, said that two civilians died and three were injured during the attack at the Starokozache Border Crossing. The attack on the checkpoint, which is about 1 km away from Moldovan territory and used by thousands of people every day, caused passenger and vehicle traffic to be halted. Moldovan officials confirmed that this was due to the attack. Andriy Demochenko, the spokesman of Ukrainian border guards on national TV, said: "Most probably, Russia wants disrupt logistics routes." The Ukrainian border guards reported that Russia had struck five border crossings over the past few weeks -- four along the border with Moldova and one near its border with Romania, which is a NATO member. This is a worrying trend for Kyiv. It has become more dependent on land routes to export its goods as Russian attacks against its Black Sea ports disrupted massively maritime exports. Ukraine, in turn, has used drones to attack Russian oil terminals, commercial warehouses, and refineries. This was often done deep within Russia. The Russian drone intrusions into the airspace of his country have increased dramatically, according to Prime Minister Vasile Tofan. Tofan wrote in a blog post on X that "17 drones have fallen since August, which is more than 2025." "Russia's war on Ukraine is putting the lives of our citizens in danger." Volodymyr Zelenskiy, the president of Ukraine, said that Ukrainian forces had 'hit a naval base in Russia, an oil terminal and military port facilities, as well as warships with missiles,' and reiterated his call for more international pressure to be applied on Moscow. Zelenskiy, a Telegram user, said that "a response is required - Moscow cannot?go into winter believing it can get by with missile terror and drone terror" without any consequences. "The aggression must be stopped now before it spreads further." After a short pause during the visit of U.S. Peace Negotiators to Moscow and Kyiv, Russia resumed their?near constant air attacks on Kyiv.
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Peninsula reports that a seafarer from an oil tanker was killed in an incident near Dubai.
Peninsula, the charterer of the vessel Hercules Star, reported on Wednesday that a seafarer was killed during an incident with the Gibraltar flagged oil products tanker Hercules Star while it was anchored?off Dubai. Peninsula announced in a statement that it confirmed one death, but did not provide any details as to what the cause of death was. "In addition, one crew member is missing and a team of specialists is working to find them." The?other members of the crew are all present." Initial assessments from maritime security sources suggest that the ship may have been struck by a drone. UKMTO, an agency affiliated with the British Navy, said it received a separate report that a vessel was?listing while at anchor 24 nautical miles from Port Rashid in the United Arab Emirates. This "could indicate water intrusion following an attack?from a projectile unknown". According to their assessment, maritime security sources stated that the location was near the Hercules Star. Port officials reported that a tanker containing about 2,000,000 barrels of Iraqi fuel oil, was struck by a drone in Iraqi territorial water on Wednesday.
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Ukraine will survey farmers about winter sowing plans for 2027
The Ukrainian agriculture ministry announced on Wednesday that it would conduct a survey among?farmers to determine their plans for winter?crops sowing for the harvest of 2027 and their capacity for storing?crops?for 2026. The Russian attack on Ukrainian Black Sea port has effectively stopped maritime exports. This leaves farmers unable sell their grain or prepare for and carry out a sowing campaign, primarily for winter Wheat. The?ministry announced that the survey was designed to collect up-to date information about the areas that farmers plan to sow in the fall, the progress made on the final stages of the harvest campaign for 2026, and the crop storage capacity available at agricultural enterprises. Last month, Agriculture Minister Taras Vysotskyi said that farmers would reduce the area they sowed for the winter wheat harvest of 2027 because they could not export the wheat harvested. According to the ministry, the risk is that the area that will be sown in 2027 could decrease between 5 and 7 million acres. Ukraine has sown around 20 million hectares (mostly wheat,?corn, and sunflower) of grains and oilseeds in preparation for harvest 2026. The?ministry said that the disruption of grain exports via Black Sea ports could result in a shortage of storage capacity for up to 11 millions tons. The'shortfall' was about?15 millions tons in 2022.
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Haldia Petrochemicals plans to use more LPG in the face of the Iran war threatening feedstock supplies
Haldia Petrochemicals, a company in India, is planning to increase the use of liquefied petroleum gases at its naphtha fueled?cracker by up to 30%. This will help to mitigate supply risks from the Middle East due to the U.S. - Iran 'war. Navanit Narayan said on the sidelines the APPEC Industry Conference that "we are working with Lummus" to retrofit the cracker to allow for LPG flexibility up to 30%. Naphtha & LPG are key feedstocks for petrochemicals that are used in the production of plastics & automotive parts. Narayan stated that "the (naphtha supply) shock from Gulf War was a wake-up call for us. We will have a plan ready at the end of this year." Haldia had term contracts for the supply of naphtha with QatarEnergy and?Kuwait Petroleum Corp. Narayan stated, "We are still working to remove the Qatari volumes." A medium-range tanker can transport up to 35,000 tons of oil products. Narayan stated that the company will source LPG from Indian Oil Petronas Limited, which operates next to a plant at the same site as?HPL. He added, "We also look to import LPG at every possible source." Haldia's ethylene plant in West Bengal, a state in eastern India, has a capacity to process ethylene at a rate of?700,000. It also processes polymers at a rate of?1 million tons per year. It plans to inaugurate a phenol and acetone plant in October. The Chatterjee Group, a private equity firm based in the United States, owns the majority of this company.
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Kremlin: cheaper Russian gas can ease Europe's pain amid rising costs
On Wednesday, the Kremlin said that European countries were paying a high price for avoiding Russian gas due to rising energy prices and could instead be purchasing cheaper supplies from Moscow. The war in Iran has caused European gas prices to soar. They reached their highest level since the end of 2022 when the Ukraine conflict forced Europe to cut imports?of Russian pipe gas. Last week, the benchmark European gas price climbed to EUR75 a megawatt-hour. This is more than double what it was a year earlier. Dmitry Peskov, Kremlin spokesperson, said that Europe hurt itself by purchasing expensive?gas at the spot market rather than opting for cheaper Russian alternatives. "Europeans are well advised to look for cheaper energy sources. "Russian gas, whether it is piped or liquefied, would have been a more affordable option for them long ago, even though LNG is always priced at the spot market," he said to reporters in a daily call. Gas Infrastructure Europe has reported that Europe's gas storage is 67% full compared to nearly 80% last year. HSBC predicts European inventories to reach 73% on November 1, the lowest level since data collection began. According to calculations, the Russian pipeline gas exports into Europe dropped by 44% to 18 billion cubic meters last year, the lowest level since the mid-1970s, after the closure the Ukrainian transit route. calculations. In 2018 and 2019, Russian pipeline gas exports into Europe reached a peak of around 180 bcm annually. The explosions that occurred in 2022 on the 'Nord Stream' undersea pipelines also reduced Russian gas shipments to Europe. Unharmed is one leg of Nord Stream 2's pipeline in the Baltic Sea. Nord Stream is a natural product that Europeans could have used long ago, if they had used common sense. Peskov stated that one of the strings is still intact and functional, and could be put back into service very quickly.
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Dutch public transport stopped by strike over welfare cuts
A nationwide strike on Wednesday against the government's proposal to cut welfare spending halted public transport in The Netherlands. A 24-hour strike affected train services in the entire country, including international trains to Belgium, Germany France and Britain. The strike was organised by the unions against plans to reduce welfare spending up to EUR6.5billion ($7.6billion) annually, mainly through limiting unemployment benefits. The strike is a further obstacle to the centre-right minorities government that was installed in this year's parliament. The coalition is in need of outside support, as it lacks a majority. The opposition's leading left-wing Pro Party has joined the unions to demand that any proposals for welfare cuts be removed from the table. To gain support, the government has already backed down from a plan that would have raised retirement age. Last week it also agreed to soften some other proposals. The Pro party, however, has stated that this is likely not enough and will be requiring 'further negotiation after the official presentation of government budget on 15 September.
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Merz: Drone attack on airport by Russia prepared for by Merz narrowly avoided disaster
German Chancellor Friedrich Merz stated on Wednesday that an attempted drone attack at Leipzig/Halle airport?had been 'prepared in Russia for a long time and a disaster had only just been avoided. Merz, a member of the lower house of parliament, said that this attack had been 'planned in Russia over months' and was targeted specifically at Germany. It was only by chance that major material damage was prevented and harm to people was avoided. Merz made his remarks after the far right Alternative for Germany won a major state election 'in Saxony Anhalt' on Sunday. The platform of the party included?calls for a closer relationship with?Moscow. Russia has denied any involvement in the drone incident at Leipzig Airport, and its foreign minister said that these accusations are "the start of a real war".
The trade war with China casts a shadow over US LNG projects
Analysts, industry sources and company filings say that President Donald Trump's emerging war of trade with Beijing is a threat to the billions of dollars of planned U.S. LNG export projects. Many of these rely on China to be a major buyer.
This threat is a reflection of the dual-edged nature Trump's policies. They are meant to boost U.S. businesses and force action against illegal immigration and drug trafficking, but they could also unintentionally undermine his hopes to vastly expand U.S. Energy output.
The tariffs could impact long-term contracts and offtake agreements...and may make it harder for new US LNG project to progress towards Final Investment Decisions," analysts from energy consulting firm EBW Analytics said in a customer note published on Tuesday. They were referring to Beijing’s decision to impose retaliatory duties on U.S. imports of energy.
Trump announced over the weekend a 10% tax on Chinese imports, as part of an overall plan to improve U.S. Trade Balance. This triggered retaliation by Beijing, which imposed a 15% duty on U.S. coal and LNG, and a ten percent tariff on U.S. Oil.
According to LSEG, the U.S. was the largest LNG exporter in the world last year. China imported nearly 6% of U.S. LNG total exports, or approximately 4.3 million metric tons.
According to calculations, Chinese state-owned firms have signed LNG supply contracts for more than 20 million metric tons per annum (MTPA), from existing and future U.S. Export Terminals.
According to public announcements, the two largest U.S. LNG companies, Venture Global LNG (formerly Cheniere) and Cheniere, both have long-term agreements with Chinese companies for 14 million MTPA.
Venture Global did not respond to comment requests, while Cheniere, and Energy Transfer (which has a long term sales and purchase agreement in China) were also unavailable for immediate comment.
Freeport LNG, which is the third largest U.S. exporter of LNG, declined to comment as well.
Eight LNG export terminals are currently operating in the U.S. Three more are under construction, and there are nearly 20 others at different stages of development.
After the Trump administration lifted the moratorium imposed in January by the former president Joe Biden on new LNG permits due to concerns over the projects' economic and environmental impacts, companies are moving forward with plans for new or increased LNG export capacity.
Charlie Riedl is the Executive Director of Center for LNG. This trade group represents many U.S. LNG developers and exporters. He said that China's decision imposes tariffs creates uncertainty in the industry, and erodes America's position on the global energy market.
Riedl stated that "These tariffs directly undermine the Trump Administration's efforts to increase American energy exports, and strengthen our influence in the geopolitical arena."
White House officials told that Chinese tariffs against U.S. LNG may have a limited economic impact but the risk is worth it.
The official stated that "there is no dollar value to saving American lives by preventing fentanyl-related deaths", reflecting U.S. concern over China as a major supplier of the drug and the chemicals used to manufacture it.
Officials said that Trump wanted to expand LNG export markets to other countries as well to reduce the risk of Chinese action.
BIG CONTRACTS
LNG developers use sales and purchase agreements or long-term contracts to secure funding from banks for their projects. These agreements are essential for moving projects through the development phase to a final decision on investment.
According to filings by the company, Venture Global, which is the largest U.S. exporter of LNG, with two plants in Louisiana operating and three others under construction, has so far signed supply agreements with Chinese companies totaling 9.5 MTPA. According to Cheniere Energy's announcements, it has 4.5 MTPA of long-term Chinese contracts. This is the second most valuable U.S. gas company, and the current largest exporter.
Venture Global warned its investors in the prospectus of its massive initial public offering (IPO) of January that it was exposed to a potential trade war between two of the largest economies of the world.
Venture Global informed investors that "These factors may adversely affect our capacity to market the remaining output of our project, which could have an adverse material effect on the viability and profitability of our project."
Its stock fell almost 5% during Tuesday's afternoon trading, while Cheniere dropped less than 1%. Curtis Williams reported from Houston; Scott DeSavino, Jarrett Renshaw and Nia Williams contributed additional reporting. Richard Valdmanis edited the story.
(source: Reuters)