Latest News
-
Uganda misses 2025 deadline for oil production
A government spokesperson announced on Tuesday that Uganda would not start oil production in this year. This is a failure to meet a longstanding goal of beginning crude extraction from the western fields. Patricia Litho said, "Due unforeseen challenges we are not able to meet the target above," a spokesperson from the Ministry of Energy and Mineral Development. She didn't give any reason why the country failed to reach the 2025 goal and stated that a new start date for production has yet to be announced. Uganda discovered commercial petroleum reserves in the Albertine Rift basin near its border to the Democratic Republic of Congo almost two decades ago. The start of production has been repeatedly delayed by obstacles, including disagreements over taxes and strategy with international oil companies and slow progress on the construction of the necessary infrastructure. According to the government geologists, TotalEnergies in France and CNOOC in China are developing these fields. They contain an estimated 6 billion barrels worth of crude oil reserves. Together with the Ugandan government and the Tanzanian government, the two companies are developing a $5 Billion pipeline that will help export crude oil via a port located on the coast of Tanzania's Indian Ocean. (Reporting and editing by George Obulutsa, Sharon Singleton, and Elias Biryabarema)
-
Bangladesh mills feed on fast fashion, but slow down on green energy
Energy costs continue to rise despite the closure of factories Solar energy could help the industry go green As mills struggle to transition to energy, jobs are lost Tahmid Zami Tahmid Zami Textile manufacturers are looking for new ways to produce cloth that is more affordable and has a stronger environmental credential. They risk bankruptcy. Bangladesh, the second-largest fashion exporter in the world, exported clothing worth $38.5 billion dollars last year. It supplied high-street giants like H&M and Zara. The company aims to increase its exports to $40 billion by the end of this year. Other apparel hubs have caught up and are overtaking. Vietnam, Bangladesh's closest competitor, is expected to surpass Bangladesh this year with exports projected at $44 billion, free from the energy crisis and political instability which have ravaged Bangladesh in recent months. According to the NGWF (which represents textile workers in the country), the crisis has led to a series of plant closures, leaving more than 50,000 people without a job. What is a green transition? The slow adoption of green and cheap energy alternatives has led to a growing dependence on fossil fuel imports. This strains the 1,800 energy-guzzling mills. Petrobangla, a state-owned energy company, proposed in January to more than double the price of industrial gases. This prospect set alarms off on factory floors. Bangladesh is seeking to reduce the cost of energy and power subsides it offers to promote economic stability as per the International Monetary Fund. The proposed increase would be on top of the 150% hike in gasoline prices for large industry and the 56% rise in minimum wages for workers between 2022 and 2024. Textile factories rely heavily on fossil fuels to generate energy. This is especially true during the most intensive production stages, such as dyeing or finishing, which account for 80% of all emissions. A report commissioned by H&M Foundation, Laudes Foundation and the consulting firm FSG found that saving energy could reduce costs and the carbon footprint of the sector. More costs, more competition Bangladesh's textiles are characterized by cheap labour and energy, but these advantages are being steadily eroded. Abdullah al Mamun is the director of Abed Textile, a local mill. He said that further increases in energy prices would lock us into a deathtrap. The competition for local mills is also increasing from outside the country. Cotton yarn imports, mainly from India, have increased by 40% over the past year. Monower Hossain is the head of sustainability at Team Group in Bangladesh, a supplier of garments and textiles. Bangladesh is increasingly reliant on fossil fuel imports to produce electricity due to its diminishing domestic gas reserves. According to an environmental campaign group report, if the country doesn't use more renewables the cost of fuel imports is going to put the economy even further in jeopardy. Ways forward Sun power is a great solution to factories and mills. Team Group has installed rooftop solar panels at a factory that could potentially provide half of its electricity requirements. Hossain, from Team Group, explained that solar panels are only effective when the sun is dim or rainy. Even if 100% of the electricity needed was generated by solar energy, mills would still use massive amounts of fossil-fuels to power boilers which heat water and create steam for dyeing fabric and finishing it. To ensure that power is always available, many mills use generators (also known as captive power plant). These generators are only 36% efficient, and so consume a lot of gas. Shafiqul alam, the lead energy analyst for Bangladesh, at the Institute for Energy Economics and Financial Analysis, (IEEFA), said that industry must be smarter to reduce costs. According to the report, installing more efficient generators that burn gas and recovering waste heat can reduce gas consumption by 25-31%. You can also reduce water consumption by replacing gas boilers with electric ones or by using more efficient dyeing methods. Hossain, from Team Group, says that these measures require large investments up front. Apparel impact Institute (AII), an organization that promotes sustainable investments, has revealed that more than $1 trillion in investment will be required to reach net zero for the global fashion sector by 2050. Most suppliers cannot afford to make such investments and instead are urging fashion brands and financial institutions, who are able to finance them, to do so.
-
Al Khaleej Sugar: Regional overcapacity limits output
Jamal al-Ghurair said that Al Khaleej Sugar in Dubai is currently operating at 70% of its capacity, as Middle East sugar refineries struggle with overcapacity. This was revealed by the managing director of the company, Jamal al-Ghurair on Tuesday, during the Dubai Sugar Conference. "In the Middle East, there is 60-70% more capacity than the Middle East needs, so the refineries in the region are not operating at full capacity." He told reporters at the conference that some refineries were operating at 30%-40% capacity. Al Khaleej Sugar is the largest refinery in the world of sweeteners based at a port. Al Ghurair stated that India's return as an exporter to the global sugar market was impacting the Middle East sugar prices. India has permitted exports of 1 million metric tonnes of sugar for the current season until September 2025 in order to assist mills and the second largest producer of sugar in the world to export surplus stocks while also helping to prop up local prices. "India's dump had stopped, but has returned again. He said that the UAE was not the only place where dumping took place. Al Ghurair stated that there are no plans to export sugar to Syria after the new administration has taken over the war-ravaged nation following the ouster Bashar al Assad on December 8th. "I'm not sure if we'll export to Syria. This is all new. "We must first have stability in the country before we export," he said. Production is currently 1.6 million tonnes per year, with 80% of the production going to exports and 20% to the local market. He said that there was no increase in demand, and that the UAE's ability to expand manufacturing of sugar-related products would determine whether or not consumption increases locally. The refinery gets most of its raw sugar from Brazil, which is the top exporter in the world. Al Ghurair stated that the factory, which processes sugarbeet in Egypt, has been operating for two years, but it was not running at full capacity because of a price cap linked to Egypt's subsidy program. Reporting by Mohamed Ezz, Maha El Dahan; Writing by Nigel Hunt. Editing by Louise Heavens & Christina Fincher.
-
Turkmenistan and Turkey agree on gas supply for March
Turkey and Turkmenistan signed an agreement on Tuesday to facilitate the flow Turkmen natural gas into Turkey. This is a major step forward in the energy cooperation between both nations, said Turkish Energy Minister Alparslan Bayraktar. Turkmengaz and Turkey's BOTAS, the state-owned pipeline operator, have agreed to a deal that will see gas flowing on March 1. Turkey consumes over 50 billion cubic meters of gas each year. The country relies on a mixture of gas imported from Russia, Azerbaijan and Iran as well as LNG from different suppliers. Bayraktar stated in a press release that "this agreement, on which we've been working for many years, will advance the strategic co-operation between the two nations while strengthening the security of natural gas supply to our country and the region." Minister had said previously that Turkey could purchase up to 2 billion cubic metres Turkmenistan to Iran via its existing natural gas pipeline. The exact details of the gas transit through Iran and the volume to be supplied as part of the new agreement were not revealed. Reporting by Ece toksabay, Huseyin Haatsever and Jonathan Spicer.
-
South Korea's CJ purchases 30,000 tonnes of wheat from the US, traders claim
European traders reported that the South Korean mill CJ CheilJedang bought about 30,000 tons of milling wheat from the United States on Tuesday. In April, traders were looking for wheat to ship. Traders said that a variety of wheat types were purchased. The seller was thought to be CHS Trading. The purchase consisted of 6,200 tons soft white wheat with a protein content ranging from 9.5% to 11 %, bought for $238.6 per ton FOB. The traders reported that another 6,650 tons hard red winter grain with a minimum protein content of 11.5% was purchased for around $251 per tonne, while 17,150 tons northern spring wheat with a minimum protein content of 14% was purchased for $274.1 per tonne. Separate purchases were made by Korean mills in the last week. 85,000 Tonnes Wheat from the U.S. 30,000 Tons From the U.S.A. and Canada The reports reflect the assessments of traders. Further estimates on prices and volume are possible in the future. (Reporting and editing by Vijay Kishore, Michael Hogan)
-
The FLC of South Korea has announced a tender to purchase up to 65,000 T of wheat
European traders reported on Tuesday that the Feed Leaders' Committee of South Korea (FLC) had issued an international tender for 50,000-65,001 metric tons animal feed wheat. The deadline for submitting price offers is February 12 and the arrival of one shipment in South Korea should be around June 30. The wheat may be imported from anywhere in the world, except for Russia, Argentina China Pakistan and Denmark. The Black Sea ports of Russia and Ukraine are not allowed to be used by wheat from any origin. Shipping is required between May 20 and June 10 if the source of the product is from Australia, U.S. Pacific Northwest Coast, or Canadian West Coast. If you are sourcing from the U.S. Gulf Coast, Europe, or Canadian East coast, shipment will be between May 4 and 25. Shipments of European wheat via Cape of Good Hope (often undertaken to avoid attacks against shipping in the Red Sea) should be made between April 15 and May 6. Between April 25 and May 16, wheat from South America or South Africa should be shipped. Michael Hogan (reporting; Varun H K, editing)
-
DP World CEO Trump: Trump expects that other markets will be open if US
Sultan Ahmed Bin Sulayem, CEO of Dubai-based ports and logistics firm DP World, said that President Donald Trump expected other markets to open if America did. Trump wants fair trade and not free trade. He said this at the World Government Summit held in Dubai. The U.S. president substantially increased tariffs on imports of steel and aluminum on Monday, to a flat rate of 25%. He hopes this will help the struggling industries within the United States. However, it also risks igniting a multifront trade war. Tariffs on steel and aluminum imports from Canada and Brazil will be applied to millions of tonnes of these products. Trump told reporters that the move would simplify tariffs for metals, "so everyone could understand what it meant". Yousef SABA, Louise Heavens, and Jan Harvey edited the report.
-
Ukraine restricts electricity after Russia attacks on gas infrastructure
German Galushchenko, Ukraine's Energy Minister, stated that Ukraine has imposed emergency electricity restrictions after attacks on the gas infrastructure by Russia overnight and in the morning. In a social media post, Galushchenko stated that the enemy had launched an overnight attack on gas infrastructure. As of this morning, energy is still under attack. Galushchenko did not provide any further details. However, the regional military administration of Poltava said that nine settlements within Myrhorod District were left gasless as a consequence of missile attacks. In recent months, Russia has intensified its drone and missile attacks against the Ukrainian gas production and storage fields. The underground storage facilities of Ukraine are located on the western side of the nation, whereas the major Ukrainian gas production capacity is located to the east in the Kharkiv frontline region and in the Poltava area. The state-run operator for the Ukrainian gas transmission system announced on Tuesday that the country will likely increase its natural gas imports on Tuesday to over 16,7 million cubic meters (mcm), up from 16.3 mcm the day before. In winter, Ukraine uses 110-140 mcm per day. Kyiv may be forced to increase imports due to the decline in gas production as well as the difficulty of extracting fuel from underground storage facilities that have been emptied. Operator data indicated that Ukraine would import 7,6 mcm gas from Hungary, 7.3 from Slovakia and 1.8 from Poland. Last week, Ukraine increased its gas imports after a series Russian missile attacks that targeted Ukrainian gas facilities in recent months. Reporting by Lidia Kelley in Melbourne and Pavel Polityuk, Kyiv. Editing by Tom Hogue & Michadel Perry.
Maguire: Vietnam's industrial boom is driving global coal imports at new heights.
Vietnam is now a major driver for global growth of thermal coal imports, and its use. In 2024, the country increased imports by more than 30% to reach record levels.
According to Kpler, a ship tracking firm, Vietnam's thermal coal imports will rise 31% by 2024 to 44 million tons. This is compared to a mere 1% increase in global thermal coal exports in the past year, to 1,01 billion tons.
The surge in coal imports, the largest power source in Vietnam, is largely due to the booming export-oriented manufacturing sector.
Vietnam's coal purchase growth in 2024 will be higher than the 11% increase in China's imports, which is the world's biggest coal consumer. This means that Southeast Asia saw the highest rise in coal imports last year.
Vietnam's coal demand is expected to continue growing as the country's capacity for coal burning will increase by another 15% when projects currently under construction are complete.
The increased coal capacity is likely to ensure that coal-fired electricity emissions continue to rise in the coming years even though coal burning continues its steady decline outside of Asia.
COAL DEPENDENCE
According to Ember, coal-fired power plants generated half of Vietnam’s electricity between January and October 2024. This is the largest coal share in Vietnam since 2020.
The total coal-fired production increased by 17% between January and October 2023. This helped to drive the annual increase in electricity by 10%.
According to Global Energy Monitor, coal accounts for 39% of the current installed capacity, which is around 70,000 GW. This equates to 27,239 gigawatts.
The next highest generation share is 21% (14.750 GW), followed by solar farms with a share of around 19% (13.100 GW).
Wind farms account for 9% of the total (8,150 GW) and natural gas and fuel oil plants make up 12%.
Around 11,600 GW is under construction, with coal-fired and gas-fired power plants both expected to increase by around 4,000GW.
GEM data show that there are also 3,500 GW worth of new solar, hydro and wind capacity being built.
Vietnam's fossil-fuel-fired energy footprint will grow from 51% to 53.3% when the current construction capacity is completed.
RÉGIONAL NORMS
Although Vietnam's growing fossil fuel production contrasts with the planned capacity changes in Europe, the United States and other parts of the world, Southeast Asia still relies heavily on fossil fuels.
In Southeast Asia, fossil fuels account for 71% of the current capacity of power generation, and 60% of that capacity is under construction.
The strong growth rates in several countries across the region and the large, rapidly expanding workforces of most Southeast Asian nations are key factors behind this dependence on fossil fuels.
According to the International Monetary Fund, Indonesia, the Philippines, and Vietnam have populations exceeding 100 million and are expected to grow at a rate nearly twice that of the global average growth rate of 3.2% by 2025.
Leading Role
Vietnam's economy grew by 5.6% per year on average since 2018. This is the fastest rate of growth among Southeast Asian countries during this period.
The key to Vietnam's growth has been the rerouting manufacturing supply chains away from China and towards other low-cost production centers since U.S. president Donald Trump launched a trade conflict with China during his term.
Vietnam's strong connections to global trade routes and its experience in a variety of manufacturing processes, which is rapidly developing, made it the ideal destination for companies that wanted to reduce their production bases in China quickly but still maintain a presence throughout Asia.
The rapid expansion of Vietnam's manufacturing industry led to a dramatic increase in energy consumption. Local power companies were forced to use whatever means they could in order boost their power supply.
According to Ember, the total demand for electricity in Vietnam has risen by 27% between 2018 and 2023.
This growth rate is higher than the 23% increase in Indonesia, the 12% rise globally and the 12% in the Philippines over the same time period. It has put pressure on Vietnam's suppliers of energy.
In recent years, the relentless increase in power consumption has led to frequent power outages. This is especially true during heatwaves where cooling systems are in high demand.
In order to avoid further power problems, Vietnam's energy providers have prioritized stability and cost-efficiency as they expanded their generation. This has led to a continued dependence on coal, the country's main power source.
Between 2030 and 2050, the energy companies of the country plan to increase their generation capacity using renewable and other clean sources.
In the short term, however, coal will remain the preferred power fuel in Vietnam. Its use is expected to continue growing along with the overall economy of the country for the foreseeable. These are the opinions of the author who is a market analyst at.
(source: Reuters)