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YPF, a subsidiary of Argentina's YPF, invests $400 million in a sustainable jet fuel venture
YPF, the state-owned oil company in Argentina, will invest $400 million to create a joint venture that will produce and sell sustainable aircraft fuel (SAF), according to a statement released on Friday. Santa Fe Bio will operate from YPF’s San Lorenzo Refinery in conjunction with Essential Energy. The project will be funded by Argentina's Large Investment Incentive Program and is divided into two phases. YPF stated that the location of the plant in San Lorenzo was ideal for exporting SAF. Demand from airlines is growing SAF is a key component to achieving the commitments made by airlines, who are major polluters, of reducing their carbon emissions. The fuel is made of waste products like used cooking oil and crop residues. But it's still in short supply in Latin America. Walter Bianchi, Kylie Madry and Brendan O'Boyle edited the article.
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Officials say that Iraq has detained an oil tanker in a crackdown on smuggling.
Iraqi navy detained an oil tanker with Liberian flag in its territorial water as part of crackdown against fuel smuggling on sea, according to sources from the oil and transport ministry and navy. The sale of fuel on the black-market by some countries, heavily subventioned, to buyers in the Gulf region is a common practice. However, it was relatively rare for Iraqi authorities until recently to seize vessels. The tanker, which was identified as Liliana by the authorities and shipping companies, was carrying 93,000 tons of fuel oil at the time it was intercepted this week. It was located 26 nautical miles off the coast of Iraq near Basra’s oil terminal. The footage shows an armed Iraqi team searching and questioning the crew on the vessel. Passports were also checked. The footage also showed that another ship was stopped and searched. Farhan Al-Fartousi said that the General Company for Iraqi Ports had conducted a thorough inspection after receiving information on illegal oil and smuggling operations in the region. "Any vessel... engaging suspicious activities within Iraqi territory waters will be detained. Anyone proven guilty, and anyone involved, will be arrested," said he during an inspection of a tanker. Sources from the ministry and the navy said that the oil aboard was likely to be smuggled outside of Iraq. The vessel will remain at the site where it was impounded until the papers are referred to the court. The vessel would be towed into a port where a judge could rule on the case. The ship manager of Liliana, listed as Babylon Navigation based in Dubai, did not respond immediately to a comment request. LSEG's ship tracking data on Friday showed that the vessel was at anchor just off the Iraqi coastline, and its previous destination was listed as the Iraqi Port of Khor Al Zubair. Iraqi forces captured an unidentified vessel in March in Iraqi waters of the Gulf, which was suspected to be smuggling gasoline. Reporting by Mohammed Ati in Basra and Aref Mohammed in Baghdad; Writing by Jonathan Saul, Editing by Joe Bavier
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South African tax authorities provide jet fuel to airports
South Africa's fuels sector body FIASA welcomed a one-year extension by tax authorities of special licences to import and store jet fuel. This helped to avoid a possible supply crisis at major international airports. Fuels Industry Association of South Africa said that the arrangement would allow its members to operate Special Storage Warehouse (SOS), licences, until October 31, next year. The extension allows continued imports. Aviation kerosene will be stored in tanks licensed by the government and then pumped into a multi-product pipeline to supply O.R.Tambo International Airport. This is one of Africa's most busy passenger hubs. The South African Revenue Service has extended the licence to cover the importation and storage separately of kerosene used primarily for household cooking. In a press release, FIASA stated that the extension was a crucial intervention to safeguard South Africa's supply security. This is especially true for the aviation industry and communities who rely on illuminating kerosene. SARS had previously stated that the South African Customs and Excise Act governs both the importation and transportation of aviation kerosene and illumination kerosene. Its provisions must be adhered to strictly, it said when issuing SOS licenses last year. South Africa, a net importer refined petroleum products has lost half its refinery capacity in the last five year, resulting in shortages of jet fuel at airports. The national transport department in January of this year took extraordinary measures to secure just under 121 million litres jet fuel for O.R. Tambo Airport after an fire at the Natref Refinery forced it to close operations. Natref crude refinery, South Africa's largest inland refinery and majority owned by Sasol, is one of the major suppliers of jet fuel for domestic airports. Reporting by Wendell Roelf, Editing by Mark Potter
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White House: Azerbaijan, Armenia to sign peace accord
Azerbaijan will sign a first peace agreement with Armenia on Friday, the White House announced. President Donald Trump is expected to host the leaders of the two nations at a signing ceremony in the White House. Anna Kelly, White House spokesperson, told reporters Trump would sign separate agreements with Armenia and Azerbaijan in the areas of energy, technology and economic cooperation as well as border security, infrastructure, and trade. No additional details were given. One official said that the Azerbaijani president Ilham Aliyev, and the Armenian prime minister Nikol Pashinyan would arrive at the White House around 2:30 pm for the signing ceremony and to hold talks. The agreement grants the U.S. exclusive development rights over a strategic transit route through the South Caucasus. It is called the "Trump Route for International Peace and Prosperity." What's going on here with the Trump Route is that this is not charity. One senior official said, "This is a highly investmentable entity." He added that nine companies have been in contact in the last few days to discuss potential investments. Senior administration officials said reporters that the agreement would be the first in ending one of many frozen conflicts along Russia's border since the Cold War ended. They also stated it would send a strong signal to the region. This is not just about Armenia. This is not about Azerbaijan. It's not just about Azerbaijan. Since the late 1980s, Armenia and Azerbaijan are at odds. This is because Nagorno Karabakh - a region of Azerbaijan that was populated primarily by ethnic Armenians - separated from Azerbaijan. Both Armenia and Azerbaijan gained independence from the Soviet Union by 1991. Peace could be achieved in the South Caucasus region, a neighboring energy producing region. Russia Europe, Turkey, and Oil is crisscrossed across the surface of the earth. Pipelines but divided by closed borders and ethnic conflicts. Armenia intends to award the prize under a carefully negotiated part of the documents that the leaders will be signing on Friday. United States The officials said this week that the Trump Route for International Peace and Prosperity (TRIPP) will have exclusive development rights for a long period of time. (Reporting and writing by Andrea Shalal, editing by Alex Richardson & Mark Porter).
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Asian spot LNG prices fall on weak demand, but sanctions are on the horizon
The Asian spot prices of liquefied gas (LNG), which are based on the current market price, declined due to a weaker demand. Markets also waited for further clarifications regarding U.S. Russian Energy Sanctions or secondary tariffs. Average LNG price for September deliveries into North-east Asia Industry sources estimate that the price per million British Thermal Units (mmBtu) is now $11.90, down from $12.10/mmBtu a week ago. Alex Froley is a senior LNG analyst with ICIS. He said that spot global gas prices had been fairly rangebound since April when the summer gas season began. There was a brief spike in June during the Iran strike. The market will pay close attention to any new developments regarding tariffs, peace talks and Russia between the U.S.A. and Ukraine. Tariffs that are raised on countries such as India may slow down global trade and reduce energy demand. He said that there is also the possibility of more targeted energy sanctions which could directly affect oil and gas consumption. Florence Schmit, energy strategist at Rabobank, says that President Trump's 25 percent tariff on India was imposed after a delay of 21 days. This led to a steep drop in the energy market, which included gas. While gas and LNG supply is not in danger under the current tariff and sanctions threats, the uncertainty over whether gas will be included at some point in the future keeps markets on edge. Gas markets will experience some downtime until then due to the ample supply," added she. Martin Senior, Argus' head of LNG pricing, says that in South Korea, the spot demand is weak. Many gas-fired plants are unable to compete with coal-fired generators on price. In southern China, however, strong hydro production following heavy rainfall and temperatures similar to seasonal averages has weighed down on gas-fired electricity generation. Prices in Europe remained stable, as Friday is the deadline for Russia's response to the U.S. ceasefire demand, and secondary oil tariffs are on the table. In the next few days, Donald Trump and Vladimir Putin will meet. Aly Blakeway is the manager of Atlantic LNG for S&P Global Commodity Insights. She said that the anticipated maintenance in Norway later this month and the need to inject more LNG into Europe's underground stores could support the price upwards during the second half August. S&P Global Commodity Insights estimated its daily North West Europe LNG Marker price benchmark (NWM) for cargoes to be delivered in September ex-ship on August 7 at $10.793/mmBtu, a $0.475/mmBtu reduction from the September futures prices at the TTF Hub. Spark Commodities placed the price at $10.764/mmBtu while Argus put it at $10.825/mmBtu. According to Spark Commodities analyst Qasim Afghanistan, the U.S. Arbitrage to North-East Asia via Cape of Good Hope only marginally encourages U.S. cargos for delivery to Europe while the arbitrage via Panama points to Asia. Afghan said that the global LNG freight rates were relatively stable. The Atlantic rates were assessed at $35750/day while Pacific rates were at $33,000/day. (Reporting and editing by Nina Chestney; Marwa Rashad)
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Baidu robotaxi crashes into construction pit in China raising safety concerns
Local media reported that an autonomous vehicle operated by Baidu’s Apollo Go robotaxi fell into a deep excavation pit in southwest China while it was carrying a passenger. According to Southern Metropolis Daily, and Huashang Newspaper, the incident took place on Wednesday in Chongqing. Local residents used a ladder to rescue the female passenger, who was not injured. On Chinese social media, videos showed a vehicle with a Baidu Apollo badge at the bottom what looked like a trench. Huashang Newspaper reported that a local shopkeeper said the construction site was equipped with warning signs and barriers, but it was unclear how the vehicle managed to bypass these safety measures. The location of the videos on social media has been verified, but there is no information about how the car arrived at that place. Baidu has not responded to the request for comment made on Friday. The incident has sparked a wide-spread discussion in Chinese social media about the safety of robotaxis. Baidu has one of China’s largest fleets of autonomous vehicles and is conducting robotaxi commercial operations in many cities, including Wuhan Beijing and Chongqing. Recently, the company signed partnerships with U.S. ride hailing platforms Uber Technologies and Lyft to expand their robotaxi service globally. Social media videos showing one of Pony.ai's cars on fire in Beijing were widely circulated. In May, the Chinese rival Pony.ai was under scrutiny. Later, the company said that a malfunction in a car's system caused it to catch fire as service staff were handling it. No passengers were aboard. A controversy erupted last year after an incident in San Francisco, where a crowd set fire to a Waymo robotaxi that had driven through streets packed with revellers. Reporting by Liam Mo Tiffany Le and Brenda Goh. Mark Potter edited the article.
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Who will build the infrastructure that Argentina's copper dream needs?
Argentina has rich copper deposits along the border with Chile in the mountains of the north. But, unlike its mining giant neighbor, it hasn't built the power lines and road needed for new projects supported by BHP and Rio Tinto. The South American nation faces greater challenges to build infrastructure than other countries due to President Javier Milei’s austerity program to curb inflation and debt. The solution will probably include unconventional ideas such as paying royalties or sharing infrastructure among miners. The government has said that it will not provide funding but this does not mean it's not responsible for the completion of infrastructure, said Roberto Cacciola. He is calling on authorities to increase efforts to build infrastructure. Argentina has produced no copper since 2018, but exports silver, gold, and lithium. Milei's government, as well governors who are in charge of local development, are relying on copper to stabilize the volatile economy. This is at a time when mining companies around the world seek to increase output to fill a growing supply gap. An official from the federal government said that the government is evaluating infrastructure needs across the country and identifying the ways in which the private sector can play a part. According to a government estimate, eight copper projects could increase the value of mining exports in Argentina to $15.4 billion dollars by 2030. This would be a more than threefold increase over last year and make this sector the largest earner of foreign currency for the country. If copper projects reach government projections of 521,000 metric tonnes per year, they could bring in $5 billion by 2030. Copper projects are concentrated in San Juan province, which is sometimes called the "Vaca muerta" of copper. This refers to Argentina's shale gas and oil field that is the size of Belgium. San Juan implemented a compensation program for 2022, which could assist in the construction of infrastructure. The program allows for mining companies to receive mining royalties in return for developing road or energy infrastructure if the provincial legislatures consider it a "public service." Normally, miners pay royalties to government. Jose Morea, director of Vicuna Argentina, stated that the project, which is a joint venture between BHP, a global mining company, and Lundin from Canada, hopes to make use of this provision. He said that "this speeds up the investments the private sector can make right now... and the provincial government will have to delay otherwise," in an interview. Vicuna is made up of two mines: Filo del Sol, and Josemaria. Josemaria could be the first project to begin production in the region. The $5 billion mine will require a 220 kilometer road, which is about two to three hours of driving by car. It's located at 4,200 meters in the Andes Mountains. A high-voltage transmission line of the size that would support a large town will be required. Share Infrastructure Some miners look for other ways to cut costs. McEwen Mining Los Azules has asked the Inter-American Development Bank for infrastructure loans and is considering sharing infrastructure with other nearby projects. Some business leaders are calling for the government to hand over more projects to the private sector, including railways and road maintenance. This could be done through public bids or public-private partnership, according to Nicolas Munoz. He is a copper analyst at the consultancy CRU. Munoz stated that it is possible to believe that private companies would assume these costs, and see this as a business opportunity. Already, there are signs that the mining industry is interested. Rio Tinto recently acquired the lithium mines of Arcadium, a U.S. company, in Argentina, and is currently developing its own mine in Argentina. According to the public register of meetings with lobbyists, Rio met with Argentina's mining minister in June, after expressing an interest in bidding on the state's Belgrano Cargas railroad, which the Government announced in February that it would privatize. Rio Tinto has not yet responded to the request for comment. Rio Tinto also supports McEwen’s Los Azules copper project and Aldebaran’s Altar copper project through Nuton, its leaching technology division. Some governors still look to the federal government for help. First Quantum Minerals Canada wants to build the Taca Taca Copper Mine in Salta. Governor Gustavo Saenz, of Salta said that aqueducts and roads will be profitable. He said, "We need them to provide us with... everything needed so that those who wish to come and make investments can do so," this week during the Argentina Copper Conference in San Juan. Reporting by Lucila SIGAL, Writing by Daina BETH SOLOMON, Editing By Rod Nickel
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Kazakhstan's oil exports from January to July to Germany have risen 38%
Kaztransoil, a pipeline company, said that Kazakhstan's oil exports from Germany to Russia via the Druzhba pipe for January to July jumped 38% on an annual basis to 1.086 metric tons (37.550 bpd). The barrels-per-ton ratio was 7.33. The company reported that the total amount of supplies through the Druzhba pipe in July was 160,000 tonnes, which is the same as June but up 11,000 tons compared to the same month last. Kaztransoil reported that the oil exports through the Baku, Tbilisi and Ceyhan (BTC), pipeline rose 10% compared to the same period in last year. The total was 923,000 tonnes. The volume in July was 138,000 tonnes, down from June's 148,000 tons. The BTC crosses Azerbaijan and Georgia, as well as Turkey, to allow Kazakhstan to export crude oil via the Caspian. This route allows Kazakhstan to bypass Russia in its commodity exports. It is the largest landlocked nation on earth. Over 80% of Kazakhstani oil is exported via another pipeline, operated by the Caspian Pipeline Consortium. This pipeline connects Tengiz in western Kazakhstan, as well as a few other fields with a marine port near Russia's Black Sea Port of Novorossiisk. David Goodman is responsible for reporting and editing.
Chinese workers in BYD Brazil factory signed contracts with violent clauses, private investigators say
The employees who taken a trip from China to northeast Brazil to build a brand-new factory for electric car maker BYD made approximately $70 per 10hour shift, over two times the Chinese per hour base pay in many areas. For numerous, that made signing up a simple decision but going out would be much harder.
The Chinese employees worked with by BYD specialist Jinjiang in Brazil needed to hand over their passports to their new company, let most of their incomes be sent out directly to China, and shell out an almost $900 deposit that they might only get back after 6 months' work, according to a labor contract seen .
The three-page file, signed by among 163 workers who labor inspectors said were freed from slavery-like. conditions last month, consists of clauses that violate labor laws. in both Brazil and China, according to Brazilian investigators. and 3 Chinese labor law professionals.
Other formerly unreported clauses gave the firm the power. to unilaterally extend the labor agreement for six months and. problem 200 yuan fines for conduct such as swearing, quarreling or. walking shirtless at the site or in their living. quarters.
Many of the stipulations are book 'warnings' of required. labor, said Aaron Halegua, an attorney and fellow at New York. University Law School, who won settlement for Chinese employees. who sued their companies for forced labor in the Northern. Mariana Islands, a U.S. territory.
He included that keeping workers' passports or needing. any type of efficiency bond or security payment would not be. allowed under Chinese laws and policies.
Jinjiang, which deals with BYD factory construction throughout. China in cities such as Changzhou, Yangzhou and Hefei, has. contested the claims, saying the findings by Brazilian labor. inspectors are irregular with the realities and the outcome of. baffled translations.
The claim that Jinjiang's workers were 'shackled' and. ' saved' is totally off base, said Jinjiang in a declaration. last month.
Alexandre Baldy, senior vice president for BYD Brasil, informed. Reuters the carmaker had no understanding of any violations until. the very first reports by Brazilian media in late November, when BYD. called Jinjiang about the claims.
Baldy and BYD Brasil President Tyler Li then met on Dec. 2. with Brazilian President Luiz Inacio Lula da Silva. They informed. Lula at the time that BYD was dealing with the problem, according to. 2 people knowledgeable about the conversation.
Lula's workplace did not instantly respond to a request for. remark.
Two weeks later, a raid by labor inspectors found the. workers living packed in accommodations without bed mattress. Thirty-one employees were packed in a single house with only one. restroom and food piled up on the ground along with personal. valuables, in what inspectors said were degrading. conditions.
Baldy rejected discussing the matter with Lula in their. meeting and stated the business had no understanding of the Jinjiang. labor agreement. BYD is taking action to make sure this. scenario never ever takes place again, he informed Reuters.
Inspectors have supplied no evidence that BYD understood of the. infractions, but BYD is straight accountable, stated Matheus. Viana, acting chief of Brazil's Department of Examination for the. Elimination of Slave Labor, due to the fact that the carmaker is accountable. for the actions of a third-party specialist on its website.
REPLACING FORD
The formerly unreported contract uses fresh details of. how a plant held up as a beacon of closer Brazil-China relations. ended up being the website of scandal for BYD in its most significant market outside. of China.
BYD concurred in late 2023 to take control of and invest greatly in. electric automobile production in an industrial park in Camaçari,. near the capital of Bahia state, the website of a Ford Motor Co. plant for two decades.
Ford abandoned the plant in 2021, firing some 5,000 employees. as it ended manufacturing in the country.
For President Lula, former head of a metalworkers union in. Sao Paulo, the BYD offer promised to deliver 21st-century. making jobs in a fortress of his Employee Celebration.
News of the big investment stirred hopes the Chinese company. would revive two times as many tasks as Ford had removed, in a. state where practically 10% of people are jobless.
However when BYD generated the Chinese professional to develop the. factory, Antonio Ubirajara Santos Souza, planner of the. regional union of building and construction employees (Sindticcc), stated it was a. sign the business didn't play reasonable.
In a declaration to Reuters, BYD stated the firm is devoted to. creating local tasks which when the factory complex is fully. functional, it will have 20,000 employees, consisting of Brazilians.
During the December raid, inspectors found copies of 10. contracts with similar provisions to those seen , they. said. Some employees informed inspectors they did not have contracts,. and others stated they just signed theirs after months in Brazil.
BYD and Jinjiang will be charged with obstructing the probe. since they did not provide inspectors with the address for the. workers' accommodations when asked for, stated Daniel Santana, a labor. inspector investigating the case, exposing the two companies to. a potential fine.
PROBE STIRS REGIONAL RESIDENTS
Numerous Chinese employees are still working at the. building website along with Brazilians, union leaders told. Reuters. Union authorities say the Brazilian employees grumbled. this month of irregularities at the website, consisting of a lack of. drinking water.
BYD shared images with Reuters of new accommodations and. snack bars it provided to staff members. Still, the regional. building and construction employees union, Sindticcc, has decided to sue both. BYD and Jinjiang over past offenses.
Local political leaders likewise raised issues about other projects. in Bahia slated for construction by Chinese firms, such as a. bridge in the state capital Salvador budgeted at 7.6 billion. reais ($ 1.28 billion), which some regional residents fear might be. the most recent in a series of tasks leaning on imported labor.
We can never bring advancement to our state at the expense of. servant labor, said Alan Sanches, a state congressman.
Bahia Governor Jeronimo Rodrigues told Reuters BYD is still. anticipated to create 10,000 local tasks and that the state can not. lose that opportunity. Still, he said, BYD needs to offer work. in good conditions.
Julio Bonfim, head of the metalworkers union of Camaçari,. stated he currently alerted BYD officials that his office will not. accept Brazilians losing out on job opportunities to workers. brought from China.
If that happens, he said, the factory will face its very first. strike under BYD before production even begins..
(source: Reuters)