Latest News
-
Fuel oil from Malaysia PRefChem Refinery is headed to the US for the first time since 2023
Shipping data shows that a fuel oil cargo is heading to the United States from Malaysian company PRefChem for the first time since?2023. This is due to the?disruptions caused by the Iran War?, which are limiting the global supply of refinery feedstocks. The low-sulphur straight-run cargo (LSSR) can be fed to a refinery unit for production of higher-margin products such as gasoline or diesel. According to LSEG and?Kpler data, the last fuel oil shipment from PRefChem was shipped to the U.S. in May 2023. Kpler data shows that the Solomon Sea departed the Vopak Dialog 'Pengerang terminal in August loaded with more than 540,000 barrels LSSR fuel. It is scheduled to arrive in the United States early in September. A source familiar with the matter said that the cargo was headed?to an refinery on the U.S. West Coast. Petronas (owned by the state) did not reply to a comment request. The refinery, PRefChem, in Pengerang produces 300,000 barrels per day. The U.S./Iran conflict has caused a shortage of feedstocks, but margins for refining are strong. U.S. refiners typically import fuel oil from closer regions, such as Mexico or Venezuela. Trade sources say that PRefChem sold fuel oil via recent 'tenders' for the August loading of three cargoes each of 540,000 'barrels? of LSSR atmospheric residual. Ship-tracking data revealed that one cargo was loaded between August 12-13, and the other two were offered for loading on August 21-22 and August 30 and 31, respectively. According to IIR's data, the refinery's atmospheric distillation unit was down from June 21 to July 10. PRefChem produces fuel oil and gasoline sporadically. (Reporting and editing by Tony Munroe, Subhranshu Sahu and Jeslyn Lerh)
-
Four people are killed in record-breaking rain at Japan's Narita Airport
Record?rainfall? left thousands of travellers at Tokyo's Narita Airport on Friday, as flooding in the area disrupted transportation and knocked out electricity to homes. At least four people died. In Chiba Prefecture, which is adjacent to?the capital Tokyo and flooded roads and trains during the busiest week of the year, more than 360 millimetres fell in just 24 hours. Four?deaths? have been confirmed by authorities, one of whom is trapped in a submerged car, and another is missing. Soldiers were dispatched in the area to assist with relief efforts. Toshihito kumagai, Chiba governor, told reporters Friday morning that the case presented was "extremely unusual." "I've responded to many disasters in the past, but i've never seen a situation like this." Tokyo Electric Power reported that more than 22,000 homes were still without electricity at 11:00 am (0200 GMT) on Friday. In Chiba, one of Japan's worst-hit areas, hundreds of residents slept under foil blankets in government buildings that served as temporary evacuation centers. A spokesperson for the airport said that the disruption in transport left approximately 7,000 people stranded. All flights are expected to operate normally Friday. Japan Airlines has said that some flights could experience delays, but there are no cancellations expected at this time. According to highway operator NEXCO East, some?major roads in?Chiba are closed, forcing drivers on alternate routes and causing heavy congestion. On Friday morning, several rail services were also suspended, although some trains linking Narita to Tokyo resumed service, helping ease congestion at the international transportation hub. NHK footage showed that hundreds of passengers waited overnight to receive blankets, snacks, and water bottles from airport staff before sleeping in the terminal. NHK reported that an American passenger stranded at the airport with his family said, "We will never forget this trip." (Reporting and editing by Stephen Coates, Hina Suzuki, Mariko Katsumura)
-
Brazilian airline Azul cuts capacity in the third quarter, but expects growth thereafter
John Rodgerson, the Chief Executive Officer of Azul Airlines, said that the airline expects to reduce capacity again in the third quarter following recent major cuts. Then it will return to growth for the final three months of the year. Azul reduced its capacity in the second quarter by an unprecedented 10.6% compared to the same period last year, with a reduction of 24.9% in international operations. This was due to the disruptions caused by the U.S. and Israeli war against Iran, which pushed up jet fuel prices. Rodgerson said, "The fuel crisis peaked in the second quarter and it is also the weakest quarter for the year." "We cut capacity because we believed it was the right thing to do." The Brazilian carrier is the largest in terms of number cities served. It expects to reduce its capacity by around 4% during the third quarter, before returning to growth by 'the fourth quarter, as it completes its transition to a widebody aircraft. Rodgerson said that he remains optimistic about Brazil's airline market. He cited the resilient demand. He said, "The fundamentals are good in Brazil at the moment and we think we're well-positioned." "Wars and crisis don't last forever." Azul reported a record operating revenue for the second quarter of 4,98 billion reais (960 million dollars), up 0.7% on a year ago. However, core earnings fell 55.4% to 5010.1 million reais as fuel costs per liter soared by 61.8%. The company said that higher fares offset a part of the cost increase. Was it the final result that we desired? "Of course not. Fuel costs rose?by almost 700 million reais?during the third quarter, and we reduced?capacity. This was always going be a quarter of transition," Rodgerson stated, highlighting higher unit revenues and operational improvements.
-
Four people are killed in record-breaking rain at Japan's Narita Airport
On Thursday morning, thousands of passengers were stranded in Tokyo's Narita Airport due to record rainfall. Flooding in the area had disrupted travel and knocked out electricity for homes. At least four people died. In Chiba Prefecture, near the capital Tokyo, more than 360 millimetres rained in just 24 hours, flooding roads and railways, and knocking out electricity to nearly 25,000 homes during one of Japan's most busy holiday weeks. The authorities have confirmed four deaths so far, including one trapped in a submerged vehicle. Soldiers were 'dispatched to assist with relief efforts. Toshihito Kumagai, Chiba governor, told reporters Thursday morning that the situation was "extremely unusual" even compared to Japan's weather history. "I've responded to many disasters, but this is the first time I've seen a situation like this." A spokesperson for the airport said that approximately 7,000 passengers were stranded in Narita due to the transport disruption. All flights are expected to operate "normally" on Thursday. Japan Airlines has said that some flights could experience delays, but there are no cancellations expected at this time. According to NEXCO - East, major highways in Chiba remain closed. This includes routes connecting Narita Airport, one of Japan's most important international transport hubs. On Thursday morning, several rail services were still suspended. However, some trains between Narita and Tokyo resumed service. (Reporting and editing by Mariko Katsumura and Hina Suzuki)
-
PJM offers plan to purchase more power for data centres
PJM Interconnection is the largest?U.S. grid operator. Grid operator proposed on Thursday to federal regulators a backstop plan to purchase more?power?generation in order to avoid outages due to the surge of electricity needs for data centers. PJM, the company that manages electricity for 67,000,000 people across a region stretching from Washington, D.C., to Chicago, has filed the proposal at the U.S. Federal Energy Regulatory Commission, who would need to approve any move by the grid operator. The proposal highlights the growing tension between data center expansion and the ability of the power grid to keep pace. If PJM is unable to close the supply gap, residents and businesses will face a greater number of blackouts. The cost of the new generation may be passed onto consumers with no connection to data?centers. PJM recently held a capacity auction where power prices were capped at $325 per megawatt day. PJM's reliability requirement for meeting projected demand was 6.8 gigawatts short despite the high prices meant to encourage the construction of 'new power plants. This'shortfall raises the risks of grid -blackouts. PJM would like to close this gap with its proposed procurement plan. The results of the plan will be revealed in December. Critics of PJM’s proposal claim that the grid operator has failed to attract billions of dollars for new generating sources to meet the increasing energy demand of data centers. Don Mosier is the chief executive officer of East Kentucky Power Cooperative which provides energy to 1.2 million people and businesses. Mosier's comments appear in a letter sent to the U.S. Energy Department on August 6. PJM's proposals, according to the company, are designed to prevent residential customers from being charged higher energy costs due to the expansion of data centres. PJM also proposed creating a "registry" for data centers, and other large energy consumers that would track their location and electricity usage. PJM suggests that for data centers which do not'supply' their own electricity, it should temporarily cut off the electricity at the?sites during periods of extreme grid stress to prevent rolling blackouts. PJM stated that it does not have the power to cut off the electricity to these sites and would need the cooperation of each state government. The rapid growth of data centers has become a political headache for PJM, which includes Virginia, the home of the largest data center collection in the world. Residents are becoming increasingly concerned about the costs of powering data centers they consider noisy and intrusive. (Reporting By Tim McLaughlin; Editing by Sanjeev Miglani)
-
Derailment of UK passenger train in southeast England causes 11 injuries
The British Transport Police said that the derailment?of a passenger train near Lewes station in southeast England?on?Thursday?left?two people with serious injuries and nine other persons with less severe injuries. British Transport Police reported that three carriages of the train rolled onto their side after the incident was reported at 3:44 pm local time. The police reported that a number of passengers were trapped at first but they have now been safely evacuated. At the scene, emergency services including Sussex Police, local fire, ambulance and rescue?teams and Sussex Police responded. Some of the injured were treated on site while others were transported to local hospitals. No immediate reports have been made of any injuries. In a press release, Assistant Chief Constable Ian Drummond-Smith said: "We have declared a major accident and an emergency response is ongoing at the scene. All passengers on the train are now safely evacuated from the service." He said that authorities are supporting the Rail Accident Investigation Branch's efforts to determine the cause of the derailment. In a recent post on 'X, Heidi Alexander, the Transport Minister said that the Government was 'working quickly with the rail industry to help passengers. (Reporting and editing by Andrew Heavens and David Goodman, and Aurora Ellis.)
-
US revises Jones Act compliance rules and extends waiver of 90-day Jones Act.
U.S. Customs and Border Protection announced on Thursday that the Department of Homeland Security approved a second 90-day extension to a Jones Act waiver originally issued on March 17, 2026. This will allow certain cargoes covered by the Jones Act to continue moving between U.S. port on foreign flagged vessels under specified conditions. The waiver will begin on August 17, 2026 at 12 a.m. The CBP guidance stated that the waiver will begin on August 17, 2026, at 12:00 a.m. ET. CBP stated that any product covered must be loaded onto a vessel by 11:59 pm ET on November 15, 2026. ET, November 15, 2026. The agency also released a list of updated potentially covered products on August 17. CBP stated that "this?guidance serves as a notice of significant changes to the waiver requests process." Before a voyage starts, parties wishing to use a vessel flying a foreign flag under the waiver must submit a "vessel availabilty request" to the Department of War(DOW), Maritime Administration(MARAD) and CBP. CBP stated that the request must include information such as the vessel owner, the date of the voyage, the ports of loading and discharging, the cargo description, the frequency of shipment, the identity of the vessel, etc. MARAD will conduct a survey to determine if a U.S. vessel with coastwise qualifications is available for the transport. DOW will then decide if the waiver is applicable to the proposed trip based on the survey results. CBP said that the trade?community member initiating the request would contact the appropriate carriers to arrange transport. Carriers who operate foreign-flagged ships under the waiver must submit voyage information to CBP, and MARAD post-voyage report within 10 days after the completion of the voyage. This includes cargo details and the justification for waiver.
-
UAE claims Iran attacked two ADNOC ships in Strait of Hormuz, but there were no injuries
The Abu Dhabi National Oil Company reported that two of its vessels were attacked Thursday evening while they transited the Strait of Hormuz. No injuries were reported. This was the second incident in which ADNOC vessels were involved in less than one week. The UAE condemned an alleged Iranian attack against a vessel associated with the state oil company on Saturday as it crossed the strait. According to WAM, the state news agency of the UAE, ADNOC has confirmed that the situation is under control. The UAE Foreign Ministry condemned a "hostile Iranian assault" on the two ADNOC ships. The UAE Foreign Ministry said that Iran's Revolutionary Guards committed "acts piracy" in targeting commercial shipping, and using the Strait of Hormuz as a means of economic pressure or extortion. This posed a threat to regional stability and global energy safety. WAM and the Foreign Ministry did not provide any details on the ships, their cargo or any possible damage. There were no reported injuries. The IRGC or Iran's Foreign Ministry did not immediately comment. Before the conflict, a fifth (or more) of the world's oil & liquefied gas was transported through the narrow waterway that connects Oman to Iran. Shipping has been disrupted repeatedly since the U.S. and Israel war against Iran began on February '28. This has increased freight rates, and raised security concerns. Iran's Revolutionary?Guards had previously threatened to take action against vessels that transited the strait if their crews were linked with Tehran's enemies or failed to?obey Iranian directives. ADNOC stated on Friday that it had been'significantly affected' by unprovoked attacks against its personnel and assets. It continued to meet customer demands in an "exceptionally difficult environment." ADNOC is Abu Dhabi's state oil company. It is the largest energy producer in the world and exports crude, natural gas, and refined products to countries around. Reporting by Enas Alashray and Eman Aboushassira, Editing by Chris Reese and Rod Nickel
Maguire: Why natural gas won't disappear from the US power grid
Since years, the narrative of the energy transition has pointed towards a future that is dominated by batteries and renewables, with natural gases eventually falling into the background. The evolution of the U.S. power system, however, suggests a much more complex reality.
The solar and wind power outputs are growing quickly and taking a greater share of the electricity production every year. As power demand increases, due to data centers, electrification, and new manufacturing investments, natural gas is still deeply embedded in the U.S. Grid.
There are many reasons, both economic and practical: abundant domestic resources and infrastructure, unparalleled operational flexibility, and the growing demand for reliable electricity around-the-clock.
They suggest that natural gases will not be able to give up their central role in the energy sector any time soon.
FUEL TO BURN
The first reason is that the United States has a surplus of natural gas.
The shale boom transformed the United States from a major gas importer to the world's largest natural gas producer. The U.S. has massive reserves of gas in the Permian basin, Appalachia’s Marcellus and Utica Formations, the Haynesville Shale and other producing areas. These reserves provide hundreds of trillions cubic feet (technically recoverable) of gas resources, and almost 584 trillion cubic foot of proven reserves.
The country's resources are so rich that production continues to be near records.
This abundance is important. The United States, unlike many other countries who must import fuel supplies to generate electricity, can do so with an abundant and relatively cheap domestically-produced resource.
This is a huge advantage for utilities and policymakers who are concerned with energy security.
PIPELINE PRIMACY
Infrastructure is another benefit of natural gas.
The U.S. built an extensive system of pipelines, storage facilities, processing plants, and power stations based on gas production and consumption.
Gas-fired generators are already available in the country, and there is a nationwide pipeline system that can transport fuel from regions of production to markets across the nation.
The infrastructure represented trillions in investment.
Although renewable energy can be built relatively quickly, replacing reliability services that the existing gas system provides would require huge additional expenditure on transmission lines and storage capacity, as well as alternative dispatchable generation technologies.
Existing assets are important in energy markets. Few energy systems have assets as vast as the American natural gas network.
RELIABILITY IS KEY!
Gas is a good option, but it's not because of underground reserves or pipeline infrastructure. Flexibility is the key.
Electric grids must maintain a balance between demand and supply. Generation must be matched with consumption every second of the day.
Even though solar and wind energy are becoming more abundant and cheaper, they only generate electricity when the weather cooperates. The solar production decreases each evening. Wind production can vary dramatically over hours, days and weeks.
Gas-fired plants can fill this gap.
Modern gas turbines are able to ramp up output quickly when required. Gas plants are often used to cushion the grid during periods of extreme heat or cold weather, as well as unexpected supply disruptions.
It is difficult to duplicate this operational flexibility at scale.
Battery storage is expanding quickly and is valuable in managing fluctuations of short duration. Batteries are expensive and cannot be used for backups that last more than a day. Also, technologies to provide reliable power during extended periods with low renewable outputs are limited.
Grids need electricity at all times, not just during favorable weather conditions.
Demand for flexible gas is increased by the use of renewables
It may seem counter-intuitive but the success of renewable energies could be one of the biggest drivers of gas demand.
Grid operators are increasingly in need of resources to balance intermittent supply as solar and wind power enters the system.
Evening demand can spike sharply after a daytime surplus. Long periods of cloudiness or low wind can cause large generation deficits.
The greater the amount of renewable energy that is available in the system, then the more valuable it will be to have resources ready to respond quickly if the renewable output drops.
Gas and renewables, from this perspective, are complementary technologies rather than direct competitors. When available, solar and wind can provide electricity at a low cost. Gas is a reliable alternative to solar and wind when they are unavailable.
This partnership helps to explain why many areas continue to add renewable generation while simultaneously relying upon gas-fired capability to maintain system stability.
DEMAND GROWTH CHANGES ALLTHING
Gas is also likely to stay in place because the U.S. power grid is facing a challenge that it hasn't faced for years: a rapidly increasing electricity demand.
After a decade or so of relatively flat consumption rates, utilities now have to scramble to accommodate data centres, artificial intelligence infrastructures, semiconductor manufacturing, industrial relocation efforts, and transportation electrification. The industry is increasingly predicting sustained growth in load through the 2030s.
To meet the demand, you need a generator that can be quickly deployed and that operates at high rates of utilization.
Construction timelines for nuclear projects are often long. Permitting and completing transmission projects can take many years. While large-scale storage is expensive, most U.S. power plants are several decades old and face supply chain bottlenecks.
Gas plants are a familiar technology, with mature supply chains, and a long history of operation.
These advantages are of great importance to utilities that face immediate reliability issues.
ECONOMICS STILL MATTERS
Economic arguments are also compelling.
U.S. Natural Gas Prices have been relatively low for most of the last decade, thanks to shale gas production.
Gas-fired plants are relatively cheap to build when compared with other alternatives, such as nuclear power generation.
It is also important to note that a large part of the fleet already exists. Utilities don't need to spend money on new systems in order to continue using assets already built and connected to grid.
The economic inertia suggests that natural gas will continue to be a major component for the electricity sector.
This does not mean that the energy transition has stalled. In the coming decades, wind, solar and batteries will account for an increasing share of U.S. electric supply.
There is a difference between a fuel that loses market share and one that becomes irrelevant.
The growth of natural gas in the US power sector is no longer undisputed. Its combination of?abundant domestic supply, existing pipeline, affordability, and unmatched operational versatility gives it a claim to being indispensible that no other resource has currently.
The grid of the future may be cleaner and renewable than that of today. If reliability is a non-negotiable requirement, then natural gas will remain a key component of the grid.
These are the opinions of the columnist, who is also an author. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
(source: Reuters)