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Two ports in Western Australia’s Pilbara Region reopen following Tropical Cyclone Zelia
The operator of the Western Australia ports Dampier and Varanus Island has announced that the ports have reopened after Tropical Cyclone Zelia struck the state's Pilbara Iron Ore Region on Friday. On its website, Pilbara Ports announced late Friday that the ports, which are a hub for gathering and processing oil and gas, had reopened. They were closed on Thursday night as Zelia approached, the worst storm to strike the Pilbara Coast since Cyclone Ilsa, in April 2023. The alert stated that "Pilbara Ports have undertaken inspections on navigation aids, channels and docks and confirmed safe operations can be resumed." Zelia caused heavy rains and wind gusts of up to 180 mph (290 kph) as it hit land. Its approach led to the closure of Port Hedland, the largest iron ore hub in the world. Cape Lambert, the region's port, was also closed. Pilbara Ports has not responded to an inquiry about whether Port Hedland will remain closed on Saturday after Zelia, a category five hurricane, crossed the coast of the port shortly after 12 pm (0400 GMT) Friday. The storm moved to the south, where it weakened into a category 4, sparing the population centre of the town from its strongest winds. The weather forecaster for the nation said that Zelia was now downgraded to tropical low and "dissipating" over the Pilbara inland. The forecaster stated on its website that "Ex-Tropical cyclone Zelia" is still below cyclone strength and continues to weaken, as it slowly moves south and further into the Pilbara region. Angus Hines told Australian Broadcasting Corp, however, that the flood levels in some Pilbara cities could rise due to the heavy rains brought by the former cyclone. The Department of Fire and Emergency Services in Western Australia said that an emergency warning had been issued for Saturday to residents living between Warralong and Marble Bar, two remote towns located about 157 kilometers (97 miles), southeast of Port Hedland. Port Hedland, used by BHP, Fortescue, and Gina Rinehart’s Hancock Prospecting is where Rio Tinto ships iron ore. BHP and Fortescue both announced separately that they had halted their Port Hedland mining operations for safety reasons and had instructed teams to take shelter at home or in camp. Fortescue also announced that it had closed its Iron Bridge mine and cancelled all non-essential Pilbara site travel. BHP, Fortescue, and Rio Tinto didn't immediately respond to an inquiry for comment made on Saturday.
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Asian spot LNG prices rise amid colder weather and Europe stock concerns
The Asian spot price of liquefied gas rose this week to a record high, despite forecasts for colder weather and concerns about Europe's storage levels. The average LNG price in March for delivery to northeast Asia Industry sources estimate that the price per million British Thermal Units (mmBtu) was $16.10, which is the highest it has been since November 2023. Sources estimate that the average price of April delivery is $15.50/mmBtu. The trading will switch to the April contract on Monday, February 17. The main concern for the market is the rapid withdrawal of gas from Europe's inventories... "The region is on track to import approximately 11 million tons (tonnes) of LNG by February," stated Siamak Adibi at FGE, the director for gas and LNG supplies analytics. "Europe will need to import more LNG this year in order to meet the higher gas consumption, and reduce gas inventories. If Asian demand increases, tightening of the market could have an even greater impact on spot price. Martin Senior, Argus' head of LNG Pricing, stated that Asian prices are also supported because the market must remain competitive, and maintain a certain level of LNG spot volume, in order for a base level of LNG to be shipped into Asia. RISE OF FURTHER STOCK DEPLETION IN EUROPE A number of LNG cargoes have been diverted to Europe due to higher European prices, and weaker Asian demand. Argus Senior also forecasted that Tokyo and Seoul would both experience cold snaps at the end the month. However, this will be followed by a return to the seasonal average temperatures. Gas prices in Europe have fallen from their two-year highs due to forecasts for warmer temperatures, the ongoing U.S. effort to end the conflict in Ukraine, and talk of less rigid storage targets. Hans Van Cleef is the chief energy economist of PZ-Energy. He said that market uncertainty remains, despite Europe's inventory dropping to 47%. Winter months are still to come. The negative mood on the markets will only intensify the risk of an even more rapid depletion of stocks. S&P Global Commodity Insights set its daily North West Europe Gas Marker benchmark price for cargoes to be delivered in March, on an ex-ship based basis, at $15.137/mmBtu. This was a $0.55/mmBtu reduction from the gas price in March at the Dutch TTF Hub. Spark Commodities valued the price at $15.097/mmBtu while Argus set it at $15.11/mmBtu. Qasim Afghanistan, an analyst at Spark Commodities, stated that the U.S. arbitrage for north-east Asia via Cape of Good Hope in February has narrowed for the third consecutive week. However, it still signals that U.S. cargoes will be delivered to Europe rather than Asia. Afghan added that the rates for LNG in the Atlantic region rose marginally to $5,000/day, a slight recovery from their record lows of two weeks ago. Pacific rates were unchanged at $10,000/day. (Reporting from Emily Chow in Singapore, with additional reporting by Marwa Rashed in London. Editing by Vijay Kishore & Emelia Sithole Matarise).
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Russian Urals oil price drops below price cap due to cheaper Brent and freight costs
Calculations on Friday showed that the price of Urals crude oil in Primorsk, Russia and Ust-Luga, Russia fell below the Western price ceiling level of $60 a barrel on Thursday as global oil prices dropped and freight rates rose for Russian oil shipments. According to the cap, which was imposed by the Group of Seven and Australia in 2022 to reduce Russia's oil export revenue, buyers are only allowed access to Western services, such as insurance and shipping, when the price of Russian crude falls below $60 per barrel. LSEG data indicates that the Urals price in Russian ports has remained above $60 per barrel for the majority of 2024. Calculations show that the recent drop in Brent oil, the global benchmark price, and the increase in freight costs due to the new U.S. Sanctions have led to estimates for Urals oil to be loaded from Baltic ports on Thursday for $59.33 per barrel on a free-on-board basis. The calculation of the Urals crude oil price is based on the grade’s market price in Indian ports delivered ex-ship, the transport costs, and Brent benchmark. It's assessed for the day before.
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Enbridge reports higher fourth-quarter adjusted profit
Enbridge, the pipeline operator, reported on Friday a higher adjusted profit for its fourth quarter. This was due to higher Mainline tolls as well as lower power costs. The company reported a profit adjusted of C$5.13 (US$3.62 billion) in the quarter ending December 31. This is up from C$4.1billion a year ago. The U.S. Energy Information Administration reported in January that crude oil production in the United States fell marginally from its monthly record of 13,436 million barrels a day in October. This resulted in a boost in crude flow through pipelines. Mainline is the largest crude oil pipeline in North America. It transports crude oil, natural gases liquids and refined products between Edmonton, Alberta and various markets in Canada, the U.S. Midwest and Canada. Enbridge transports about 40% of the crude oil produced in North America. The adjusted core profit for its Mainline system increased 3% to C$1.34 Billion. Enbridge has also raised its quarterly dividend for 2025 by 3%. Greg Ebel, CEO of Enbridge, said that the impact from tariffs proposed on U.S. imports of energy is not expected to have a material effect on Enbridge's financial forecast. According to LSEG data, the company reported a profit adjusted of 75 Canadian cents. This is in line with analyst estimates.
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Asian spot LNG prices rise amid colder weather and Europe stock concerns
The Asian spot price of liquefied gas (LNG), which is a product of liquefied natural gases, rose this week to a record high. This was due to the forecast of cooler temperatures and concerns about Europe's storage levels. The average LNG price in March for delivery to northeast Asia Industry sources estimate that the price per million British Thermal Units (mmBtu) was $16.10, which is the highest it has been since November 2023. The main concern for the market is the rapid withdrawal of gas from Europe's inventories. "The region is on track to import approximately 11 million tons (tonnes) of LNG by February," stated Siamak Adibi at FGE, the director for gas and LNG supplies analytics. "Europe will need to import more LNG this year in order to meet the higher gas consumption, and reduce gas inventories. If Asian demand increases, tightening of the market could have an even greater impact on spot price. Martin Senior, head LNG pricing at Argus, stated that Asian prices are also supported because the market must remain competitive, and maintain its own price into certain spot volumes in order for a baseline amount of LNG to flow to Asia. A number of LNG cargos have been diverted to Europe due to higher European prices, and weaker Asian demand. Senior, Argus, also predicted that Tokyo and Seoul would both experience cold snaps at the end the month. However, this will be followed by a return to the seasonal average temperatures. Gas prices in Europe have fallen from their two-year highs due to forecasts for warmer temperatures, the ongoing U.S. effort to end the conflict in Ukraine, and talk of less rigid storage targets. Hans Van Cleef is the chief energy economist of PZ-Energy. He said that market uncertainty remains, despite Europe's inventory dropping to 47%. Winter months are still to come. The negative mood on the markets will only intensify the risk of an even more rapid depletion of stocks. S&P Global Commodity Insights estimated its daily North West Europe (NWM) LNG Marker price benchmark on February 13 at $15.137/mmBtu, a $0.55/mmBtu reduction from the March gas prices at the Dutch TTF Hub. Spark Commodities valued the price at $15.097/mmBtu while Argus set it at $15.11/mmBtu. Qasim Afghanistan, an analyst at Spark Commodities, stated that the U.S. arbitrage for north-east Asia via Cape of Good Hope in February has narrowed for the third consecutive week. However, it still signals that U.S. cargoes will be delivered to Europe rather than Asia. Afghan added that the rates for LNG in the Atlantic region rose marginally to $5,000/day, a slight recovery from their record lows of two weeks ago. Pacific rates were unchanged at $10,000/day. (Reporting and editing by Emily Chow)
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South Korea's MFG purchases about 60,000 tonnes of soymeal.
Major Feedmill Group of South Korea (MFG) bought an estimated 60,000 tons of soymeal in an international auction on Friday. The soymeal was expected to come from the United States or South America, traders reported. The cost of the ton was estimated at $364.66, including freight and a surcharge for port unloading. Olam is believed to have been the seller. The reports reflect the assessments of traders, and future estimates of price and volume are possible. The bidder requested one shipment for arrival in South Korea on or around July 25, Shipping was requested between May 28 and 16 if soymeal comes from South America; July 6-25 from China; and between June 22 to July 11 from the U.S. Pacific Northwest Coast. If the product is purchased from the United States of America or China, then only 59,000 tonnes are required. MFG was active on international markets last week. It bought 132,000 metric tonnes of animal feed corn at an international auction on Thursday, and 115,000 tons of feed wheat privately on Wednesday. Michael Hogan, reporting; David Goodman, editing
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Greek investigation into 2023 migrant vessel wreck finds coastguard violated maritime rules
Sources told Friday that Greece's Ombudsman found that the Coast Guard failed to adhere to maritime rules during one of the Mediterranean’s worst shipwrecks, in 2023. The coast guard raised the alarm after the overcrowded boat sank. The findings of the investigation by Greek Ombudsman Andreas Pottakis have not yet been published but confirm the testimonies of survivors. They have also been sent to the naval court that is investigating possible criminal acts by the authority. Pottakis, last week, recommended disciplinary actions against eight Coast Guard officers. He cited "clear indicators" of alleged negligence of duty that resulted in the endangerment of the lives of the people aboard the trawler called Adriana. The Shipping Ministry stated that the judicial authorities will evaluate the report, and that they trust the coast guard to "effectively protect" the Greek and EU border. When asked to comment, the Coast Guard authorities on Friday referred back to a statement from the Shipping Ministry. The Coast Guard monitored Adriana for fifteen hours before it capsized in international waters near Pylos, a town located southwest of Pylos. About 750 passengers were on board when it left Libya bound for Italy. Only 104 people are known to be alive. One source said that an investigation found the coastguard did not follow protocol, and he delayed the SAR operation while it waited for a boat to leave Greece and sail into Italy. The source said that "at no stage prior to the boat sinking was the risk escalated beyond monitoring into a distress or alert phase," citing a 148-page document which discredits the coast guard's statements that the vessel was seaworthy and the people on board didn't seek rescue. The sources also said that the Coast Guard did not respond to the calls of the European Union border agency Frontex and had never requested assistance. They also noted the lack of a response from the Coast Guard in responding to Frontex's requests for assistance and the deployment of just one vessel, which could carry up 36 people and was equipped with special forces and limited rescue equipment. Sources claim that the Coast Guard told two merchant vessels approaching Adriana to leave before it capsized. Rescue operations were delayed when people fell into the sea. According to sources, the coast guard failed to alert Adriana about its final approach and did not record coastguard communications during pivotal hours. This made it impossible to draw any conclusions regarding its capsize.
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India will remain a bright spot in petchem demand by 2025
Industry executives told the India Energy Week conference that India's petrochemical market will grow in 2025, despite the fact that global demand is still behind supply. This is due to a growing demand for household appliances, solar panels, and electric vehicle components. Sanjay Khanna, director of refineries at Bharat Oil, said that the company is seeing a good demand locally in sectors such as propylene. A S Sahney, chairman of Indian Oil, said that demand for oil is expected to be resilient in 2019. Petrochemicals can be used as building blocks in a wide range of products, including plastics, pharmaceuticals, and paints. Ganesh G. Gopalakrishnan is the global head of TotalEnergies petrochemicals trading. He said that there was a good demand in the automotive sector, while white goods are recovering. The global petrochemical market margins will remain low for several more years due to the weak demand of China, which is the world's largest petrochemical consumer. There is also an excess supply coming from new plants in China and Middle East. TotalEnergies Gopalakrishnan said that the industry was waiting for China to unveil its incentive plan in march. This could boost China's demand, and improve global margins on petrochemicals. Pankaj Srivastava is an analyst with Rystad Energy. He said that while Indian refineries have avoided losses by producing their own petrochemical naphtha feedstock, margins for standalone plants that rely on imported feed have been negative over the past 3-4 years. India continues to receive investments. Hardeep Singh Puri, India's oil minister, said that the country would receive $87 billion in investments over the next decade. This will be to meet the rising demand for petrochemicals. He said India consumes between 25 and 30 million metric tonnes of petrochemicals annually and that the chemical and petrochemicals industry, valued at currently $220 billion, will grow to $300 billion in 2025. Nayara Energy, Haldia Petrochemicals and other companies have already announced their plans to increase production. Petronet LNG has built a complex of petrochemicals in Gujarat, which includes a 750,000-metric-ton-per-year propane dehydrogenation and 500,000-metric-ton-per-year polypropylene unit. Akshay Kumar Sing, Chief Executive of Petronet LNG, said: "The downturn has always been cyclical. We hope margins recover in the next three years." (Reporting and editing by Florence Tan, Michael Perry, and Mohi Nrayan)
South Korea jet crash puts fast-growing Jeju Air's safety under analysis
Before it suffered the most dangerous crash in South Korea's history, spending plan airline Jeju Air was moving quickly: racking up record passenger numbers and flying its aircraft more than domestic competitors and a lot of its worldwide peers, data reveal.
The high utilisation rate of Jeju Air's aircrafts - the number of hours they fly in a day - is not problematic in itself, professionals state, however suggests scheduling sufficient time for required upkeep is vital.
Authorities have suggested a bird strike contributed to the mishap, but as part of their probe into the occurrence aboard Boeing 737-800, police have raided the airline companies' Seoul office to seize files associated with the operation and maintenance of the plane.
You're literally looking at everything, said aviation security and crash examination professional Anthony Brickhouse. You're going to start off with their mishap history and security history. What sort of occasions have they had in the past, what happened, what was done to correct the issues?
Jeju Air informed Reuters that it did not neglect upkeep procedures which it would step up its safety efforts. The Dec. 29 crash, which killed 179 people, was the airline's very first deadly accident given that its 2005 founding and the first for any Korean airline in more than a years.
The business's CEO, Kim E-bae - who has actually been barred from travelling overseas during the investigation - informed a news conference last week that Jeju's upkeep remains in line with regulatory requirements and that there were no upkeep concerns with the doomed jet during pre-flight inspection.
He acknowledged the airline's safety measures had actually not been sufficient in the past, however said enhancements had been made.
The authorities have not said bad maintenance contributed to the crash and the precise scenarios behind the disaster remain unclear.
Besides the reported bird strike, authorities are looking into why the pilot might have hurried a second landing attempt after declaring an emergency, and why the landing equipment was not released.
Investigators have recuperated the cockpit and flight information recorders but have not released any information.
The country's transportation regulator is checking all 101 737-800s in South Korea - more than a 3rd of which are run by Jeju Air - focusing on how frequently and how well the planes were kept, to name a few factors to consider.
Although it had actually taped no violations in the last 2 years, it was struck with more fines and suspensions for aviation law breaches than any of its domestic competitors in 2020-2022, simply throughout and after the COVID-19 pandemic, records reveal.
According to transport ministry information on major airlines from 2020 to August 2024, Jeju Air was struck by about 2.3 billion won ($ 1.57 million) in fines and the impacted airplane were stayed out of operation for a total of 41 days, according to Reuters calculations based on the information.
The next-most penalized airline company, T'way Air, had 2.1 billion won in fines and four days of suspended operation during that period.
Jeju Air flies its aircrafts more than any other significant airline company in the country, information show, and also exceeds most worldwide peers such as Ireland's Ryanair and Malaysia's AirAsia.
Jeju Air 7C2216 was flying from the Thai capital of Bangkok to Muan in southwestern South Korea at night when it belly-landed, overshot the runway and burst into flames after hitting an embankment. The airplane flew every day in 2024, according to flight data reviewed .
UTILISATION RATES
High utilisation rates are treasured in the market as an indication of financial efficiency, especially at low-cost carriers, specialists state.
Jeju Air, which ranks behind only Korean Air and Asiana Air in regards to traveler volumes in the nation, saw record numbers from January to December 2024, according to transport ministry information.
Its regular monthly utilisation hours for traveler jets almost doubled to 412 in 2023 from 2022, greater than Korean Air at 332 hours and Asiana Airlines at 304 hours, according to stock exchange filings.
T'way balanced 366 hours monthly in traveler and freight jets combined, Jin Air balanced 349 hours, and Air Busan 319 hours, according to their filings.
In 2024, Jeju Air flew its airplanes more every day - 11.6 hours - than almost any other airline offering inexpensive tickets and flying just narrowbody airplane, according to information from air travel analytics company Cirium, which determines utilisation rates differently from the profits filings.
Only Saudi Arabia's Air Arabia flew its planes more - 12.5 hours a day. Vietnam's VietJet flew its airplanes 10 hours a day. Ryanair's typical use was 9.3 hours, while Malaysia's AirAsia was 9 hours. China's Spring Airlines flew 8 hours a day.
The utilisation itself is not an issue, said Sim Jai-dong, a professor of airplane maintenance at Sehan University in South Korea. But there could be higher tiredness for pilots, crew members and mechanics given the greater utilisation rates.
(source: Reuters)