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Gas supply in Nigeria is at 43%, reducing Nigeria's grid capability.
Grid manager revealed on Friday that Nigeria's gas-fired plants receive less than half of the fuel needed, resulting in a worsening of electricity supply across Africa's largest country. Operators claim that the shortage is due to a rising debt in the sector, resulting from government subsidies. This debt has reached 6 trillion naira (US$4.4 billion) for this month. Gas deliveries to power stations have fallen to less than half the required volume. The national generation is now down to 4,300 megawatts. This has forced the grid operator to reduce electricity supply, also known as load-shedding. They have also cut the allocations for power distributors in order to maintain the stability of the system. The Nigerian Independent System Operator, or NISO, said that thermal stations require around 1,630 millions standard cubic feet of?gas each day. However, actual supply on February 23 was just 692 mmscf, which is only 43% of the?required volume. The NISO stated that the shortfall had reduced the 'national output' and 'amount of electricity allocated to distribution companies. The company said that when the total system generation drops sharply, they must implement load-shedding and distribute available energy according to the regulated allocation percentages in order to maintain grid stability. The government approved last year a plan to refinance the 4 trillion naira electricity sector debt in order to stabilize the industry. The debt, owed to 27 power companies for unpaid invoices between 2015 and 2023, has discouraged investment and worsened the already severe outages. The government issued a first tranche of a bond worth 501 billion Nairas in January to?restore liquidity. Operators claim that the measure is insufficient, as total debt has risen to 6 trillion Naira. Tarife?reforms have also been affected by the deteriorating supply. Even those 15% of consumers with higher incomes who were recently charged higher tariffs for their increased consumption and ability to pay, are now experiencing erratic power supply. Many have even considered abandoning the grid.
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Maersk reroutes certain sailings around Africa because of 'unforeseen restrictions'?in the Red Sea
Maersk, a Danish shipping company, announced on Friday that it will temporarily reroute some of its sailings around Cape of Good Hope and away from the Suez Canal after encountering unexpected constraints in the Red Sea region. Last month, the container shipping group announced that some services would be gradually returned to the Suez route. This was seen as an important step in ending two years worth of global trade disruptions caused by Yemeni Houthi rebel attacks on ships in 'the Red Sea. Maersk said on Friday that it faced unforeseen challenges due to the operating environment in the Red Sea region. Maersk released a statement saying that after talking to its security partners it was clear these constraints were making it difficult to avoid delays in the passage of goods through this area. The company didn't elaborate on the reasons for the constraints. Maersk didn't immediately respond to a request for comment, when contacted via email and phone. Louise Rasmussen reported, Terje Solsvik edited and Louise Heavens wrote the article.
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CME approves the first aluminum warehousing facility in Taiwan
After receiving a number of applications for new storage in Asia, which is the largest regional market for aluminium, U.S. commodities trade operator CME Group has approved the?first?storage facilities in Taiwan. CME announced in two separate notices that it had approved applications by warehousing company C. Steinweg, and Pacorini Global Services for the storage of aluminium delivered against Comex aluminium contracts at a port city located south of Taiwan called Kaohsiung. Reports stated that 'this month, the CME approved facilities in Taiwan, and another base metals warehouse location, Hong Kong. This was part of CME's efforts to gain more traction for its aluminium contract?in Asia. The London Metal Exchange already has warehouses in Hong Kong and Taiwan. CME Taiwan's total outdoor storage capacity for aluminum is 95,000 tons. This includes 50,000 tons, 20,000 tons and 25,000 tonnes for the two Steinweg sites and Pacorini facility. Tom Daly is reporting and David Goodman is editing.
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The record soybean harvest is slowed by the backlog of trucks at Brazil River port
The logistics of one of the main export hubs in the world for soybeans are being overwhelmed by a record harvest. Backlogs for soybeans being moved from the world's biggest producer and exporter highlight ongoing logistical challenges in Brazil's agriculture supply chain. A large portion of Brazil's soybean harvest is headed for China. It's a shame here in Miritituba," said trucker Jeferson Borges da Silva who, after driving 1,200km from Mato Grosso waited for a?30 km (20 mile) queue. "We have been waiting in line for 2 days, this was the worst year yet." Miritituba is a crucial transshipment point that handles 12 million metric tonnes of grains per year, including corn and soy. Cargill, Bunge and Brazil's Amaggi operate river terminals, where crops are loaded on barges to be transported downstream to larger facilities that can fill ocean-going ships. This time of year, traffic is usually heavy. PROTESTS COMPOUND EXPORT CHAOS Indigenous activists invaded a Cargill Transshipment Facility in?Santarem in protest this month against the government's policy to dredge the Amazon basin and expand the shipping capacity. The government rescinded a decree that allowed for such expansions of waterways on Monday, causing further uncertainty to agricultural exporters. Wellington Bressan, a trucker from Miritituba, said that the Indigenous protests could have contributed to the traffic jam in Miritituba because drivers were rushing to get unloading spaces. "Truckers are paid on commission. If they work, then they earn money. They didn't want to wait to come to Miritituba. Cargill temporarily halted its Santarem Terminal during the protests. On Thursday, it said that they are working to resume their activities. The company issued a statement thanking employees for their "resilience." It also reiterated that it was committed to transporting food in a "safe and reliable" manner. CONCERNS ABOUT INFRASTRUCTURE MOUNT Thiago Pera is a logistics expert from the University of Sao Paulo. He said that the revocation of the?government decree could slow down efforts to improve the logistical infrastructure along the northern export corridor. He warned of the medium- and long term impacts on Brazil's capacity to handle agricultural exports efficiently. Pera stated that the situation is getting more difficult. He added that dredging could be done to allow larger vessels to move year-round. This would ease pressure on trucks and lower freight costs. About 60% of Brazilian agricultural exports are transported by truck. Truckers such as Sonia?da? Silva expressed frustration at the outdated infrastructure of Miritituba terminals. "How will you fit 1,000 trucks into a yard with only 500 or 200 spaces?" She asked.
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South Korea's MFG purchases about 135,000 tonnes of corn, traders claim
European traders reported that the 'Major Feedmill Group' (MFG) of South Korea purchased approximately 135,000 metric tonnes of 'animal feed corn on Friday in an international tender that sought up to?to?210,000 tons. Two consignments were purchased at the end of the tender. A third consignment, also requested in the tender, was not believed to be purchased after negotiations. It was possible to source corn from South America, the United States or Africa. A 67,000-ton consignment was purchased for an estimated cost and freight of $251.23 per ton plus a $1.50 surcharge per ton to cover additional port unloading. It was thought that the seller, trading house Mitsui had corn arriving in South Korea on or around July 1. A second 68,000-ton?consignment? was purchased for?an estimated $25.55 per ton C&F plus a $1.50 surcharge per ton to cover additional port unloading. Cargill is believed to have been the seller, and corn arrived in South Korea on or around July 10. The reports reflect the assessments of traders, and it is possible to estimate prices and volumes later. First consignment to arrive around July 1 is sought to be shipped between May 23 to June 11?if it comes from the U.S. Pacific Northwest Coast, May 3 to May 22?from the U.S. Gulf or April 28 to may 17?from South America, or from May 13 to?June 1, if it comes from South Africa. The second shipment for arrival around July 10 is to be shipped between June 1 and 20 if it comes from the U.S. Pacific Northwest Coast, or from May 12 to May 31, if coming from the U.S. Gulf. It can also come from South America, from May 7 to 26 if from South America, or from May 22 to 10 if coming from South Africa. Reporting by Michael Hogan, Hamburg Editing David Goodman
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Sources say that Druzhba Pipeline carried Ukrainian and Russian oil prior to the attack.
Three industry sources said that the Druzhba Pipeline exported some Ukrainian crude oil as well as much higher volumes of Russian crude before it was damaged by a Russian strike a month earlier. This has caused a halt in supply. Since?January 27, oil shipments from Russia to Hungary and Slovakia have been suspended. This follows what Kyiv claims was a Russian attack on pumping stations in western Ukraine. This sparked a dispute with the European Union, and led to a rift between Hungary and the EU. It was not previously known that the Druzhba Pipeline is used to export Ukrainian Oil to EU member Hungary and Slovakia. Ukraine is denied the export revenue and funds it needs to control its budget deficit. If the suspension is maintained, it could force Kyiv's oil production to cease. The Ukrainian energy ministry didn't immediately respond to an inquiry for comment. Ukraine has been encrypting all information about oil exports and processing since the Russian invasion of four years ago. RUSSIA TARGETS UKRAINE’S OIL PRODUCTION Ukraine will produce about 1.7 millions tons of oil by 2021. The country imported large volumes of oil that were refined at the Kremenchuk Refinery, which has a 19 million ton capacity per year. In February 2022, Russia started attacking Ukraine's petrochemical refineries. One source said that the destruction of Ukraine's last refinery capacity by mid-2025 forced traders and fuel importers to increase their fuel imports. It also created a dilemma about what to do with Ukraine’s oil production. Source: Druzhba is the only option available because Ukraine has no refining capability. State Property Fund owns the section of the Ukrainian pipeline network. It was not possible to determine the current level of production in Ukraine. Ukrainian media reported in 2024 that Ukraine's largest oil firm Ukrnafta would produce 1.4 million tons of oil. This is roughly the same amount as it produced in 2023. According to a second source in the industry, Ukraine injected 40,000 metric tonnes of oil per month into the Druzhba Pipeline before Russia's strike. Other sources confirmed that there was exporting but didn't provide an estimate of the volume. The three sources requested anonymity due to the sensitive nature of the subject. According to a second source, Ukraine injected crude oil in the pipeline at Brody in the west of Ukraine for Europe several months before the Russian attack on January. MOL, a multinational oil company based in Hungary, processes the oil delivered through pipelines. MOL didn't immediately respond to our request for comment about whether or not it received Ukrainian oil through pipelines and what volume. On Friday, the Hungarian and Slovakian governments did not immediately reply to comments. Hungary and Slovakia, while other EU countries stopped using Russian oil have continued to rely on it. They have also accused Ukraine of purposefully prolonging the?pipeline outage. Hungary has also accused Ukraine of meddling with its elections in April, it has stalled the 90 billion euro EU loan Kyiv depends on, and it has blocked new European sanctions against Russia. A PIPELINE THAT WAS ONCE ONE OF THE LONGEST IN THE WORLD HAS LOST IMPORTANCE The southern branch of Druzhba was constructed in the 1960s, during the Soviet period. It is where the majority of oil from Russia has been transported to Central Europe. The name of the pipeline means friendship in English. Moscow accused Kyiv that it was threatening "Europe's energy safety" by preventing Russian oil from flowing through the pipeline. Druzhba, one of the world's largest pipelines, has lost its importance since the Russian invasion of Ukraine. Expro, a Kyiv-based oil consulting firm, said that transit through the southern branch reached a low of 9.7 million tonnes in 2025. ExPro reported that Slovakia received 4.9 millions tons of oil while Hungary received 4.35 million tonnes. The Czech Republic stopped using Russian oil by April 2025. The northern leg, which was the main supply route for Poland, is only using a fraction of its capacity in order to transport Kazakh oil to Germany. Ukraine has been planning to use the Druzhba pipeline to pump Caspian Oil to Europe for years. It completed the construction of the Odesa-Brody Pipeline in 2002 to connect Black Sea Oil Terminals with Druzhba. However, since then, this pipeline has?carried very little oil. On Wednesday, Ukraine's president Volodymyr Zelenskiy stated that this section was also attacked by the war. Brussels has not taken sides in the Druzhba dispute, but has asked the Hungarian prime minister Viktor Orban respect the EU loan agreement for Ukraine. It also plans to submit on April 15 a legal proposal that would permanently ban Russian oil imports. Slovakia announced that the Druzhba Pipeline was out of service on February 13th, long after Russian oil shipments were stopped last month. Reporting by Daniel Flynn; Editing by Barbara Lewis and Daniel Flynn
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Hungary and Slovakia are interested in forming a joint team to examine damage caused by the Druzhba Pipeline in Ukraine
Hungary and Slovakia have agreed to establish a joint committee on Friday, to investigate damage to the Druzhba Pipeline in Ukraine. They also called on Kyiv for access to allow them to restart Russian oil flow. Hungary and Slovakia, the only European Union nations still importing Russian crude oil, were forced to stop receiving supplies via Druzhba on January 27. Both countries had to find alternative sources of supply and use state reserves. Ukraine wants Europe to stop purchasing Russian fuel. It says that a Russian drone struck the pipeline and they are making repairs as quickly as possible. Hungary and Slovakia have blamed Kyiv?and its President Volodymyr?Zelenskiy for this prolonged outage. This is one of the largest disputes between neighbours since Russia invaded?Ukraine on a full-scale four years ago. Viktor Orban, the Hungarian prime minister, said in a video posted on Facebook Friday that Kyiv has stopped oil flow for political reasons. He added that he and his Slovak counterpart Robert Fico have agreed to form an "investigative panel to determine?the condition" of this pipeline. Orban stated that he "calls on President Zelenskiy" to allow the committee access and provide the conditions for their work. The Ukrainian Foreign Ministry did not comment immediately. FICO SPEAKS WITH ZELENSKIY Although the interruption has not affected domestic supplies, Hungary and Slovakia had to find alternative sources of crude and release it from strategic reserves. The Hungarian oil company MOL which operates Slovakia's Slovnaft Refinery has ordered tankers to carry Saudi, Norwegian and Kazakh oil, as well as Russian oil. Fico said at a separate press conference in Slovakia that the countries will propose the committee to European Commission. He added that he was concerned Brussels would prioritize the interests of Ukraine over those EU members Slovakia and Hungary. Fico stated that "we have a right to?this?oil". Hungary and Slovakia have been at odds with Kyiv for years over Russian energy transiting Ukrainian territory. They also oppose EU military aid to?Ukraine. Earlier this week, the Commission stated that Ukraine is ready to speed up repairs?to Druzhba. Zelenskiy, however, said that repairs would not be completed in a short time. Fico, who warned of additional countermeasures following Slovakia's decision to stop emergency electricity supplies to Ukraine, was scheduled to meet Zelenskiy on Friday. Orban who is facing an April election and has made the war the central theme of his campaign, asked on Thursday for the European Council to send a "fact finding mission" to assess damage. He suggested that this could help unlock new EU funding for Ukraine. Anita Komuves reported from Budapest, and Jason Hovet from Prague. Mark Potter is the editor.
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JPMorgan makes money on the Chinese Yuan rally
JPMorgan analysts announced that they would be closing their long-term offshore Chinese yuan positions after the central bank of the country lowered the cost to buy dollar forwards in an effort to curb the recent yuan rally. From March 2, the 'People's Bank of China' will reduce from 20% to zero the amount that banks and financial institutions must reserve for risk when they purchase foreign currency via currency forwards. After the announcement the offshore yuan, which has increased 7.5% in value against the dollar from the start of 2025, fell more than 100 pip and slipped?past $6.85 per dollar. JPMorgan analysts stated in a research note that they had been holding CNH longs for a while. They then decided to take 'profits on their CNH/SGD longs (offshore dollar versus Singapore yuan) positions. The new rule (risk reserves) should encourage an increase in dollar purchases from onshore investors through?FX futures, which has been falling significantly since 2022. They added the "earlier-than-expected move" reinforced the view that the yuan's rise had "probably gone a bit further than what the PBOC is comfortable with". This has also led to concerns that the bullish momentum of the yuan may be running out of steam in the short term. Since early November, the offshore yuan is up around 4.2%. China's currency is available in two different forms: onshore CNY (the restricted mainland Chinese version) and offshore CNH (the freely traded version). JPMorgan analysts said that despite the shift in strategy, they still had a "bullish bias for the medium-term CNY FX", predicting international investors would continue to buy Chinese stocks and Chinese corporations to continue'selling dollars. They said that if this scenario played out, it could have a negative impact on their medium-term USD/CNY target. We would therefore be inclined to take outright CNY long positions, if/when the levels are more favorable. Marc Jones is the reporter. Mark Potter (Editing)
Ukraine could form joint ventures to enhance its defenses against ballistic weapons with allies
Ukraine's defence minister has said that it is looking at forming consortia with its allies in order to "build air defences capable of" downing ballistic missiles, and address a critical shortage of munitions needed for Patriot systems made by the United States.
Ukraine has been able to protect its skies from Russian missiles that fly faster than sound and can't be intercepted by Ukraine's air defence systems thanks to Patriot systems.
Mykhailo Federorov, the Minister of Defence, said that stocks of Patriot System's PAC-3 PAC-3 missiles were "critically low".
Fedorov told reporters this week that Ukraine has the potential to produce its own counter-ballistic missiles and systems. He added that air defences have been his primary focus since he assumed office in mid January. President Volodymyr Zelenskiy repeatedly criticised the delays made by Ukraine's allies to provide Patriot missiles and other air defences after?Russian invasion in 2022. He also said that several systems ran out of ammunition at one point during January.
Fedorov claimed that he and Zelenskiy had discussed the possibility of creating joint air defense ventures. Could not tell if discussions had already been held with any allies, or which allies Kyiv was thinking of.
"This is a complex project that requires time and dedication. The mathematics are complicated." Fedorov said that Ukraine had to develop its own capabilities.
STARLINK CUT OFF
Fedorov hailed a first success of his tenure in the last month, after 'Elon Musk’s?SpaceX' agreed to cut Russian forces off from thousands Starlink satellite internet terminals that were not approved by Kyiv.
Since the cutoff, he said the number of Russian livestream connections has dropped by an elevenfold.
He said, "We have effectively cut Russia off from connectivity."
Terminals are resistant to electronic jamming and can be used to communicate on the battlefield or to pilot drones.
Fedorov stated that intercepts of radio frequency, which are more susceptible to disruption, have increased after the cutoff.
(source: Reuters)