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Sources say that exports of Russian Arctic oil sanctioned to China are expected to increase in April.
The export of Russian Arctic oil to China is expected to increase sharply in April, after sellers offered large discounts and shipped on non-sanctioned tanks to counter an embargo by the United States. This was according to two Russian oil traders and analytics firm Vortexa. The Arctic oil trade accounts for a tenth (or 10%) of Russia's seaborne crude oil exports. This business was disrupted when Washington imposed sweeping sanctions in January against nearly all tankers that carried supplies of grades like ARCO, Novy port, Varandey and Gazprom Neft. The traders and Vortexa Senior Analyst Emma Li said that to avoid the curbs such cargoes are transferred via international waters near Singapore and Malaysia, to Very Large Crude Carriers without sanction, a transfer process known as Ship-to-Ship (STS), before they head to China. Li estimates that at least 4,000,000 barrels of Arctic Oil completed STS last Monday and 16,000,000 more are arriving, or will arrive in the South China Sea during this month. The abundant supply of Arctic oil will likely lead to a rebound in China's imports. However, the final volume discharged may vary depending on logistical challenges and the buying interest of Chinese refiners. Lukoil and Gazprom Neft didn't immediately respond to requests for comment. In March, China imported 250.000 barrels of Arctic oil per day. A trader said that such transfers were used by many Chinese buyers who require their oil to be transported on vessels not sanctioned to avoid secondary sanctions. They are also willing to pay a higher price for these cargoes. Kpler data show that, for example, non-sanctioned VLCC Atila discharged 2.07 million barrels ARCO from two sanctioned tanks in Greater Singapore waters in March and then loaded the cargo in Dongying Port in eastern Shandong Province in April. Atila was previously involved in STS transfer for Iranian oil. The harsh climate in the northern regions of Russia affects production and logistics. Therefore, setting up a project to produce oil requires huge investments. Lukoil produces light Varandey, while Gazprom is the producer of heavy ARCO and Novy Port. The traders stated that the STS adds to the shipping costs and delays the shipments to China by two months. One trader stated that the route was very expensive and long. "The only solution is to evacuate the barrels." The traders stated that light Arctic oil was offered at a discount to Brent prices, compared to the premiums charged previously. Traders said that India, the former top buyer of Arctic Oil, has reduced purchases due to sanctions. Traders said that Litasco supplies most of the Varandey oil to India. The Indian authorities have prohibited a tanker from moving its Russian oil cargo on to another vessel in the sea. Myanmar and Syria are also potential buyers of Arctic oil. The first shipments took place in the early part of this year.
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Maguire: US power system to reach new clean milestone by April
The U.S. energy system is on course to reach a new milestone in the energy transition by April, as clean electricity supply reaches its annual peak and overall electricity demand decreases during so-called spring shoulders season. According to Ember, an energy think tank, for the first month in history, clean power sources accounted for more than half of U.S. electricity supply. This month, clean power may be able to take a larger share in the U.S. power mix if power consumption falls as per normal seasonal patterns. That would allow utilities to reduce output from fossil fuels plants at the same time that renewable energy output increases. Clean power could reach new heights in April as a result of the combined annual peak of wind and solar energy. This will ensure that momentum in the energy transition is maintained by 2025. DEMAND DIP The U.S. has traditionally seen its electricity consumption drop in April, as it is between the winter and summer months when heating and cooling systems are at their peak. According to Ember, for the last seven years, the month of April has been the lowest in monthly electricity consumption. This trend is expected to continue in 2025, as mild temperatures this month have reduced heating demand. The month of April is also the peak for electricity produced by U.S. wind and solar farms. This is because wind output peaks just when annual demand begins to drop. Clean power sources made up 49% of the total electricity supply in April 2024. This was a record high that only last month was surpassed. The combined output of solar and wind farms was 23.5% in April last year, and reached a new record with 24.4% in March this year. In April of last year, the share of electricity generated by wind farms was 15%. This percentage will reach a record 15.2% in 2025 when wind speeds increase at turbine levels. Slow Start According to LSEG, the total U.S. production of wind power was down around 7% compared to the same period in the year 2024. Wind speeds below normal in certain locations have slowed down wind generation in this month. In the Electric Reliability Council of Texas, the U.S.'s largest wind production hub, output is down around 3% compared to a year earlier. The latest forecasts of wind output for the remainder of the month indicate that wind output will be at or below the long-term averages, including ERCOT. Even average wind power outputs should be enough to increase the share of clean energy sources in U.S. power generation. The output of U.S. Solar Farms is also set to reach new heights in every major market thanks to increased installed capacity and more sunlight in key solar markets like Texas, California and Arizona. The combination of increased solar production and average wind output will help to push the clean power share of U.S. electricity generation above 51% in April. This will ensure that U.S. energy system continues to achieve new milestones by 2025. These are the opinions of a market analyst at.
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India's BluSmart, a rival to Uber, suspends its operations after a co-founder is investigated
The Indian electric taxi service BluSmart, a competitor to Uber, has suspended its services after an investigation by a market regulator found that a cofounder had misused funds in an affiliated company and purchased a luxury apartment using money meant for electric vehicles. BluSmart was a pioneer in India's clean-energy boom, but its abrupt suspension threatens the livelihoods of thousands of taxi drivers. It set up charging stations in cities such as New Delhi, Mumbai, and Bengaluru, where it had more than 8,000 taxis to compete with Uber and Ola. Both ride-hailing companies rely heavily on gasoline-powered fleets. BluSmart sent an email to its customers on Thursday saying: "We have decided to temporarily shut down bookings for the BluSmart App", but without providing any reason. The email came in response to social media concerns about funds being blocked in BluSmart wallets. It stated that the company would only initiate a refund "if services are not resumed before then." BluSmart didn't respond to any questions. The company was backed by bp Ventures, a British oil giant BP arm, and told 2023 that it had a 9% share of the market in New Delhi. India's stock market regulator banned brothers Anmol Jaggi and Puneet Jagadi from the market this week and ordered a forensic examination of their listed solar company in Mumbai, Gensol. Gensol used to purchase electric vehicles and lease them out for ride-hailing services. Anmol Jaggi, one of the co-founders and managing director of Gensol, is also a co-founder of BluSmart. The market regulator stated in an order issued this week that there was "a complete breakdown in internal controls and corporate Governance norms at Gensol"...the fund diversion occurred primarily in the context electric vehicle (EV), purchases intended to be leased to a related third party. Through layered transactions the funds Gensol received as loans to purchase EVs was partly used to buy a luxury apartment at The Camellias DLF, one of India's priciest apartment complexes. Gensol says it will follow the directives of the market regulator.
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Malaysia Aviation Group to report $12 Million Net Profit in 2024
Malaysia Aviation Group (Malaysia Airlines' parent company) reported on Thursday a net income of 54 million Ringgit ($12.24million) for the 2024 financial period. Malaysia Airlines is still struggling to recover two deadly disasters In 2014, the airline temporarily reduced its capacity by 18% last year after it was You can find out more about it here The Malaysian civil aviation authority found several safety and maintenance problems. Izham Ismail, MAG's managing director, told a press briefing that despite the capacity cuts the passenger traffic remained strong in the premium segment. Both the passengers and the cargo segments had higher load factors. MAG stated that the capacity reductions in the fourth quarter 2024 are due to supply chain disruptions which have extended maintenance times and delayed new aircraft deliveries. Malaysia Airlines was delisted from the stock exchange in 2014. Khazanah Nasional, a sovereign wealth fund, then acquired ownership of MAG. In 2023, MAG reported its net profit after tax and interest since the 2015 restructuring. MAG is constantly growing and upgrading its fleet. Last month, it was said that Would buy Boeing will sell 18 737 MAX 8, 12 737 MAX 10, and an additional 30 jets with the option of purchasing more. Izham stated that MAG is committed to replacing its aging fleet but operational disruptions remain a challenge. He said that "global supply chain disruptions, and delivery delays, have affected the pace." The MAG Group includes Malaysia Airlines, Firefly and Amal, a pilgrimage airline. ($1 = 4.410 ringgit) Reporting by Danial Zahar, Writing by Lisa Barrington, Editing by Kim Coghill & Gerry Doyle
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Vietnam boosts power capacity with $136 billion plan
The government announced late Wednesday that Vietnam plans to increase its installed power generation capacity from 80 GW to between 183 and 236 Gigawatts (GW) by 2030. This is an increase of more than 80 GB at the end 2023. In a press release, the government announced that the plan would focus on the development of renewable energy and include nuclear power for the first. The Southeast Asian nation, an industrial hub in the region, wants to increase its capacity for electricity production to support its rapidly growing economy and achieve its carbon neutrality pledge by 2050. According to the PDP8 plan, solar power will make up 25,3%-31,1% of total installed capacity in 2030. Onshore and nearshore winds will represent 14,2%-16,1%. The report said that coal-fired plants would account for between 13.1%-16.9%, hydropower will be 14.7%-18.2%, and plants using natural gas liquefied will make up 9.5%-12.3%. The government stated that the country aims to have its first nuclear plants in operation between 2030-2035 with a combined capacity of 4.0 GW - 6.4 GW. The goal is to reach 6 GW-17 GW offshore wind power between 2030 and 2035. Investors have been concerned by the authorities' announcement of a retroactive adjustment to preferential pricing for solar and onshore-wind energy producers. According to the statement, Vietnam will need $136.3 billion in total investments for 2026-2030, which includes $118.2 for new power plants, and $18.1 for its grid. (Reporting and editing by John Mair, Alan Barona and Francesco Guarascio)
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Railroad operator CSX misses quarterly estimates as coal revenue falls
CSX, the railroad operator, reported revenue and profit for its first quarter below Wall Street expectations on Wednesday. Gains in intermodal revenue were offset by a drop in coal revenue as well as a fuel surcharge. The demand for coal has been hindered by the switch to natural gas, which is cheaper. However, this trend will change now that President Donald Trump signed an executive order earlier this month to increase coal production. In a press release, CEO Joe Hinrichs stated that "CSX experienced operational challenges at the beginning of the year which contributed to results in the first quarter not meeting our expectations". The volume of intermodal shipping (which involves more than one means of transporting goods) increased by 2.1% during the third quarter. However, coal dropped 8.5%. LSEG data shows that the company's revenue for the quarter ending March 31 was $3.42 billion, below the $3.47 billion analysts had predicted. It reported a loss of 34 cents, which was also below the 37 cents expected. CSX’s operating margin was down to 30.4% for the third quarter, from 36.3% a year earlier. After-hours trading showed that shares of the Jacksonville-based company had a slight decline. (Reporting and editing by Maju Sam in Bengaluru, Anshuman Shetti and Utkarsh shetti from Bengaluru)
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Cosan's Edge imports Argentinean gas to Brazil via Bolivia
Edge, a Brazilian conglomerate owned by Cosan, announced on Wednesday that it had imported Argentinean natural gas to Brazil via Bolivia for the very first time. The operation was carried out in partnership with Tecpetrol Argentina, which produces 25 millions cubic meters of gas daily in the country. The volumes were not disclosed by either firm. This operation is a follow-up to the first import by Brazil using Bolivian infrastructure. TotalEnergies export gas from Argentina's Vaca Muerta shale to Brazil's Matrix Energia earlier this month. The two operations made use of the existing infrastructure for gas pipelines between the three countries. This has raised hopes that Brazil will start receiving more volumes from Argentina, as it develops Vaca Muerta. Ricardo Markous, CEO of Tecpetrol, said that Vaca Muerta has a lot of potential. "There's a big opportunity. And transport capacity expansions have been planned and are in progress," Markous stated. Edge, which is involved in gas trading as well as infrastructure and logistics projects within the segment, will be supplying gas from Argentina. (Reporting and writing by Leticia fucuchima, Editing by Margueritachoy)
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Pipeline operator Kinder Morgan misses first-quarter profit estimates
Kinder Morgan, the U.S. operator of pipelines and terminals, narrowly missed Wall Street's expectations for its first-quarter profits on Wednesday. This was due to a decline in its pipeline products segment and increased costs. The energy industry is bracing for the impact of U.S. president Donald Trump's tariffs against most Canadian and Mexican imports. These include levies on imports of steel, "reciprocal tariffs" on other nations as well as falling oil prices. Kinder Morgan, however, left its profit forecasts unchanged because it continues to bet on a rise in the demand for natural gas. The terminal operator said that tariffs will not have a major impact on the project's economics. Kim Dang, CEO, said: "We started efforts to mitigate potential impacts early in the third quarter by preordering key project components, negotiating cost caps, and securing local steel and mill capacities for our larger project backlog, which represents two-thirds our project backlog." The first-quarter adjusted earnings at its Products Pipelines segment fell by 5.8%, to $274M, due to the planned 10-year turnaround of a petroleum condensate treatment facility on the Houston Ship Channel, as well as the lower oil price. Kinder Morgan's operating costs increased to $3.1 billion from $2.62 in the first quarter of last year. According to data compiled and analyzed by LSEG, the Houston-based company posted an adjusted profit per share of 34 cents for the three-month period ended March 31. This was lower than analysts' estimates of 35 cents. Reporting by Vallari Shrivastava, Bengaluru. Editing by Alan Barona.
Snam, the Italian company, is considering increasing its stake in Open Grid Europe (Germany).
Luca Passa said that Snam is considering increasing its stake in Germany's largest independent Gas Transmission Operator Open Grid Europe (OGE), which it recently acquired.
Why it Matters
Snam purchased a 24.99% share in Vier Gas Holding on Monday, which is the owner of OGE. The equity value was 920 million euro ($1.0 billion).
Snam will enter the German gas market - the largest in Europe by volume - with this deal, which is expected to close during the third quarter of the year.
The Investment Authority of Abu Dhabi, which is the sole owner of Infinity Investments Investment Vehicle Company, acquired its stake.
KEY QUOTES
"(The purchase) is just a beginning." Passa, a Passa analyst on Tuesday, said that they would also be watching the attitudes of other shareholders.
He added, "We'll consider it but also want to see the evolution of the regulatory framework in Germany," in response to a query about a potential stake increase.
By the Numbers
Snam announced on Tuesday that the 24.99% stake will increase Snam’s net income between 2026-2029 by approximately 40 million euros or 2-3% per year.
The company said that its adjusted earnings per share would increase by around 1 percent over the same time period.
WHAT'S NEXT?
The Italian company stated that OGE will assist Snam in expanding its presence along current and future energy corridors.
Stefano Venier, the Chief Executive Officer of Snam, said that the company was planning to expand in Europe. He stated the group would target "the southernmost area of the Mediterranean region and not expand into other parts of world." The dollar is worth 0.9155 euro (Additional reporting and editing by Emelia Sithole Matarise).
(source: Reuters)