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Bousso: Mideast conflict highlights Egypt's weak energy spot
Israel stopped gas exports to Egypt following the start of the war with Iran The exports resumed on the 23rd of June, but Egypt's gas challenges remain. Egypt's gas production has declined dramatically in recent years and is unlikely to recover anytime soon Ron Bousso LONDON 30 June - Egypt is one of the worst economic losers in the 12-day Middle East war, after Israel cut off vital natural gas supplies to Egypt. After Israel and Iran agreed on a ceasefire, President Donald Trump of the United States declared it on June 23. However, the incident highlights Egypt's vulnerability as well as the fading hope that the Eastern Mediterranean region could become a major exporter of gas. In the 2000s, the discovery and development offshore gas reserves near Egypt, Israel, and Cyprus has transformed the energy landscape of the region, making it a major hub for production and attracting international companies. Egypt was especially benefited by the surge in production. The rapid development of the Zohr gas field in 2017 and the discovery of the largest gas deposit in eastern Mediterranean in 2015 provided Egypt with vital energy for its internal market, as well as income from LNG exports, which will reach 7 million tons by 2022, or nearly 2% global supply according to Kpler's data. Egypt's production started to decline rapidly in the early 2000s, especially at its flagship Zohr oil field. According to JODI, Egypt's production dropped from 6 billion cubic feet per a day (bcf/d), at the beginning of 2021, to 3.5 bcf/d in April 2025. Martin Sherriff is an analyst with Welligence Energy Analytics. He predicts that production will average between 4.4 and 4.6 bcf/d in 2014. He added that it is unlikely to grow significantly in the future, given the limited success of the country's offshore gas exploration in recent years. Egypt's energy problems were compounded due to the rapid population growth from 100 million people in 2015 to over 115 million people by 2023. Egypt's domestic gas production was not enough to meet its population's demands, so in 2020 it began to import gas from Israel. Israel had seen a boom in gas production over the past decade after the discovery of offshore resources. Israel's gas production increased by 70% between 2010 and 2024, reaching 2.5 bcf/d. Around half of this volume was exported to Egypt and Jordan. Egypt will resume LNG imports for the first since 2018 due to the sharp decline in production. Egypt will import 160 LNG cargos in 2019 and 2020 at prices that are far higher than those it can produce or purchase from Israel where the export pipelines have already reached capacity. WAR CASUALTY Egypt's vulnerability to energy was brought into sharp focus by the recent conflict between Israel and Iran. Israel and Egypt signed a peace accord in 1979, after years of conflict. Their interdependence increased as their gas trade developed. Following the outbreak of violence on October 7, 2023, these gas flows were mostly uninterrupted. Israel's decision to stop operations at Leviathan and Karish offshore gas fields after launching a wave of airstrikes on Iran led to a suspension of natural gas sales. According to Jodi, Egypt imported more than 0.9 bcf/d of Israel's total observed consumption in the first four month of 2025. The drop in Israel's gas deliveries, just as the demand for electricity was approaching its peak during summer, threatened to be a serious blow to Egypt’s economy. As part of an emergency plan by the Egyptian government to cope with a drop in Israeli gas supply, Egyptian fertilizers producers had to close their operations. Power plants in Egypt increased their use of fuel oil while others switched over to diesel in order to maintain the grid stability in a nation that has suffered from massive blackouts. According to a calculation done on the back of a piece of paper, for every week that Israel's gas imports were disrupted, Egypt would need to purchase two additional LNG cargoes to compensate or find other fuel sources. RELIANCE IS RISING Israel has resumed its gas exports to Egypt, which is a relief for Cairo. This does not solve Egypt's fundamental problems. Energy majors such as BP, Exxon Mobil Shell and Chevron are still exploring for new gas reserves in Egypt. If found, these resources could offset the natural decline of its existing fields. The Israeli gas exports could increase to Egypt when the Leviathan field operated by Chevron expands its production from 12 bcm to 14 bcm by 2026. However, delays in expanding the pipeline capacity between Egypt and Israel could hinder that expansion. For now, however, the outlook for the country's gas production is bleak. The nation also struggles with sluggish economic growth, and significant revenue loss from Suez Canal Transit Fees, due to the attacks of Iran-backed Houthi Rebels in Yemen. The decline of Egypt's oil and gas industry has wiped out hopes that the Eastern Mediterranean would become a major LNG-exporting hub in coming years. You like this column? Open Interest (ROI) is your essential source for global commentary on financial markets. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
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Bangladesh orders tax officials to return to work after striking; port operations are hindered
The Bangladesh government has ordered all tax and customs workers back to work on Sunday, ending a two-day strike which had brought the tax operation to a halt. This included customs operations in Chittagong Port, a major trading hub. "All employees and officials must immediately return to their jobs and refrain from any activities that could harm the national interest. The government would be forced to take harsh measures to protect people and national economy if it did not. In a press release, the interim government of Muhammad Yunus stated that import-export operations should continue unabated to protect the economy. It also added that all jobs held by the National Board of Revenue were considered essential services. Protests started after the government ordered on 12 May to dissolve the NBR and create new revenue divisions. The government said that the changes were needed to modernise, streamline, reduce overlaps and improve efficiency. Many officials fear losing their institutional independence, and they demand reforms to the new structure. They also want the NBR Chairman resigned. On Saturday, they launched a nationwide shutdown to push their demands. Business leaders are concerned about the situation. They warn that a prolonged impasse could disrupt supply chains and squeeze revenue collections, as well as deal a further blow to investor confidence, already shaken due to macroeconomic pressures. In recent weeks, Yunus’ administration has been facing growing discontent. This is after the student-led protests that forced Sheikh Hasina, then Prime Minister, to flee India. Ruma Paul Reporting and Frances Kerry Editing
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Air traffic controllers say that a radar glitch has caused a flight to be halted in northern Italy.
The air traffic controller in Italy, Enav, said that flights in northwestern Italy were delayed by two hours on Saturday because of a malfunctioning radar transmission system in Milan. In a Sunday statement, the company announced that new departures and entry into the airspace covered under the system would be halted between 8:20 pm and 10:20 pm (1820-2020 GMT). The capacity was gradually restored, returning to normal at midnight. Enav activated a satellite emergency system to ensure safe management of existing flights in the air during the incident. Then, new air traffic was halted in accordance with international safety standards. The problem was with the connectivity which allows the radar data to be sent to the Operations Room, provided by a telecommunications provider external to Enav, namely Telecom Italia. TIM didn't immediately respond to an email request for comment. Ansa, the Italian news agency, reported that 320 flights had been affected by the radar malfunction. It also said that 200 camp beds were set up in Milan's airports for those affected. (Reporting and editing by Helen Popper; Angelo Amante)
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Aviation sector is targeted by 'Scattered Spider" hacking, warns tech firms
Google and Palo Alto Networks have raised the alarm about the hacking group "Scattered spider"'s interest in aviation. In a statement posted on LinkedIn on Friday, Sam Rubin, an executive at Palo Alto's cybersecurity-focused Unit 42, said his company had "observed Muddled Libra (also known as Scattered Spider) targeting the aviation industry." In a similar statement, Charles Carmakal, an executive with Alphabet-owned Google's cybersecurity-focused Mandiant unit, said his company was "aware of multiple incidents in the airline and transportation sector which resemble the operations of UNC3944 or Scattered Spider." Both executives have not identified the specific companies that were targeted. However, Hawaiian Airlines owned by Alaska Air Group and WestJet of Canada both reported recent cyber incidents. The companies have not commented on the possible links between these incidents and Scattered Spider. It is believed that the loose-knit, but aggressive hacking team, which allegedly includes at least some young people operating in Western countries has been responsible for some of most disruptive hacks in recent history to have hit the United States or Europe. Hackers linked to this group infiltrated gaming companies MGM Resorts & Caesars Entertainment in 2023. They partially paralyzed casinos and took out slot machines. The group caused havoc among British retailers earlier this year. The insurance industry in the United States has been a recent target. (Reporting and editing by Franklin Paul, Sam Holmes, and Raphael Satter)
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Petroperu accelerates the talks with Amazon Oil Block Partner
A company executive revealed late Thursday that Petroperu, Peru's state oil company, is in discussions with five companies, including Canada’s PetroTal and U.S. based Upland Oil and Gas. The company is looking for a partner to help reactivate an important Amazon oil block. Tomas Diaz is the manager of Petroperu’s exploration and exploitation division. He said that Petroperu expects to sign an agreement on Lot 192 between mid-late July. Reactivating Lot 192 near the Ecuadorian border is vital for Petroperu to supply its newly modernized Talara refining plant. After a $6.5 billion revamp of the plant, the company is in a financial crisis with significant debt. Diaz stated that "we are in direct negotiations" and added that a PetroTal meeting is scheduled for the next week. "We will select our operating partners in two weeks. Then, it will be submitted to Petroperu board for approval." PetroTal and Upland Oil and Gas have not responded to our requests for comment. Petroperu has been looking for a partner to take over its 39% stake in Lot 191 since April, after Altamesa Energy Canada withdrew the 61% remaining stake from the project due to debts owed by suppliers and local communities. Diaz said that any new operator will be required to honor the existing service agreements made with local companies. Oil companies in the Peruvian Amazon are often at odds with local communities who demand jobs and social investment. Petroperu anticipates that the block will produce up to 12 000 barrels of oil per day (bpd), within six months after restarting. After the new operator has completed a drilling programme, this output could reach around 21,000 barrels per day. PIPELINE TALKS Diaz confirmed that Petroperu and PetroTal are in separate discussions to renew a crude transport contract through the Northern Peruvian Pipeline. The 1,100-kilometer (684 mile) pipeline is operational, but it sits idle with no active contracts. PetroTal, the operator of the nearby Lot 95, had previously stopped using this pipeline because of repeated shut-downs caused by attacks against the infrastructure. Instead, it chose to ship its crude to Brazil by barge. Diaz stated that a new crude transport contract would be beneficial and profitable for Petroperu. Petroperu reported a loss of $111m in the first quarter, compared to $183m a year ago. (Reporting and editing by Marco Aquino)
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Tesla does not end Florida lawsuit regarding fatal Model S crash
Tesla has failed to convince a federal court to dismiss a lawsuit filed by a woman who died after a Model S equipped with Autopilot ran off the road at Key Largo in Florida. This could lead to a trial next month. U.S. District Court Judge Beth Bloom said that the estate of Naibel and Dillon Angulo may bring design defect and failure-to-warn claims against Elon Musk's billionaire automaker and seek punitive damage. The trial for July 14 has been scheduled. Tesla's lawyers and plaintiffs have not responded to comments made by the media. Tesla, located in Austin, Texas has faced many questions regarding the safety of their self-driving technologies. The company has stated that its features are intended for "fully-attentive" drivers who hold the steering wheel and do not make the vehicles autonomous. The lawsuit relates to an incident that occurred on April 25, 2019, when George McGee drove a 2019 Model S, at 62 mph through an intersection and into the victims' Chevrolet Tahoe parked in a side-by-side position. McGee reached down to grab a phone he had dropped on the floorboard of his car, but allegedly did not receive any alerts while he was running a stop sign, stop light, and hitting the SUV that struck the victims. Angulo was said to have suffered serious injuries while Benavides Leon reportedly died after being thrown 75 feet. Bloom stated that the plaintiffs had provided sufficient evidence to show that Autopilot defects played a "substantial role" in their injuries. McGee is not a defendant but he admitted that he did not drive safely. However, this does not make him the solely responsible party, especially given McGee’s testimony that Autopilot would have prevented the accident, the judge wrote. Bloom explained that the claim of failure to warn survived partly because Autopilot's potential risks may be difficult to extract from an owner's guide on the Model S touchscreens. The judge dismissed claims of manufacturing defects and negligent misrepresentation. Benavides v Tesla Inc. is a case before the U.S. District Court for the Southern District of Florida. 21-21940. Reporting by Jonathan Stempel, New York; Editing by William Maclean
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Sources say that Russia's daily oil exports to its western ports will drop by 3% in July.
Calculations based on two sources indicate that Russia's daily oil output from its western ports is expected to be 1.93 million barrels a day in July. This is a slight decrease from the plan for June, due to an anticipated increase in refinery runs. Daily oil loadings in Russia from Primorsk and Novorossiisk, as well as from Kazakhstan's KEBCO, and Siberian Light grades of oil, will decrease by 3% from this month. According to calculations based upon data from industry sources, the offline primary oil refinery capacity of Russia is expected to fall by 3.7% from June to 3,21 million metric ton (about 23.4 million barrels) in July. The data are provisional, and will be updated at the end of each month. The Russian oil companies are able to export more crude oil because of the higher refinery run in July. While oil exports to the Far East from Russia's Kozmino Port are expected rise in July, they will likely be a smaller percentage. (Reporting and Editing by Louise Heavens).
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Middle East flights suspended by airlines
There are still many airline services that have been disrupted across the Middle East as a result of the 12-day air conflict between Iran and Israel, which ended on Tuesday with a ceasefire brokered by the United States. Safety concerns and airspace closures continue to impact airline traffic in the area. Here are some airlines that have canceled flights from and to the region. AEGEAN AIRLINES The Greek airline has cancelled flights to Tel Aviv and Beirut as well as to Amman and Erbil until the early flight on September 8th. AIRBALTIC AirBaltic, a Latvian airline, announced that it had cancelled all flights from and to Tel Aviv up until September 30. AIR CANADA The Canadian carrier suspends its flights between Toronto and Dubai until the 4th of August. The Canadian carrier had already delayed the resumption to service between Canada & Israel until September 8. AIR EUROPA Spanish airline cancels flights from and to Tel Aviv through July 31. AIR FRANCE-KLM Starting July 7, the French flag carrier will resume its flights between Paris-Charles de Gaulle to Tel Aviv. The French flag carrier plans to resume flights between Paris-Charles de Gaulle, and Beirut on June 28. KLM has cancelled all flights from and to Tel Aviv, until at least the 31st of July. AIR INDIA It said that the Indian airline would "gradually" resume flights from and to the Middle East beginning June 24, and it will also resume flights between the East Coast of the U.S.A. and Canada at the "earliest possible opportunity." The Indian airline will resume flights to and from Europe from June 24. All flights from and to Israel, except for New York, are being cancelled by the Israeli airline until June 30. Flights to Eilat have been cancelled until June 28. DELTA AIR LINES Travel to, from or through Tel Aviv could be affected between June 12 and July 31. EL AL ISRAEL AIRLINES The Israeli airline increased flight frequencies and added more flights from major destinations as of June 24. It added that flights will continue to operate according to schedule, with the exception of a few cancelled ones, starting next week. ETIHAD AERWAYS Etihad has announced that it will no longer be operating flights between Abu Dhabi, Tel Aviv and Tel Aviv after July 15. EMIRATES Emirates has temporarily suspended its flights to and out of Iran and Iraq, until June 30. FINNAIR Finnair has cancelled all flights from and to Doha until June 30 as well as flight AY1982 for July 1. Finnair also added that they would not be flying over the airspaces of Iraq, Iran or Syria. FLYDUBAI The UAE airline announced that it plans to resume its full network schedule on July 1, 2019. On June 26, it will resume flights to Tel Aviv and Damascus. British Airways, a subsidiary of IAG, has announced that flights to Tel Aviv will be suspended until July 31, and flights to Amman or Bahrain will be suspended up to June 30. British Airways also suspended flights from and to Doha until June 25. Iberia Express' low-cost airline IAG had announced that it would cancel its flights to Tel Aviv up until June 30. Iberia resumes its Doha flights on the 27th of June. ITA AIRWAYS Italian Airlines announced that it will extend the suspension of Tel Aviv flight until July 31. This includes two flights scheduled for August 1. JAPAN AIRLINES The Japanese airline has cancelled all flights to Doha from July 2 until July 2. LUFTHANSA GROUP Lufthansa has suspended flights from and to Tel Aviv, Tehran and Beirut until July 31. Amman and Erbil flights are cancelled through July 11. German Airlines added that they would not use the airspace of these countries until further notice. PEGASUS Turkish Airlines has announced that they have cancelled all flights to Iran, Iraq, Lebanon, and Jordan until the 7th of July. QATAR AIRWAYS Qatar Airways has temporarily canceled flights from and to Iraq, Iran and Syria. RYANAIR Ryanair has cancelled all flights from and to Tel Aviv, and Amman up until October 25. Romania's flag airline said that flights from Tel Aviv to Beirut would resume on the evening of June 27 and 28. TUS AIRWAYS Cypriot Airlines has announced that it will resume flights to and from Israel. UNITED AIRLINES According to the U.S. airline, travel from and to Tel Aviv could be affected between June 13, and August 1, 2013. There may be problems with flights to and from Dubai between June 18th and July 3th. WIZZ AIR Wizz Air announced that it would suspend its flights to Tel Aviv, Amman and the United Arab Emirates from June 30 to September 15, and cancel all other flights until then. Hungarian Airlines will not overfly Israeli, Iraqi and Iranian airspaces until further notice. (Reporting and compilation by Bureaus, Elviira Louma, Tiago Brandao; Editing by Matt Scuffham and Alison Williams.
Star Entertainment receives notice that it will no longer be selling Queen's Wharf Project stakes
Star Entertainment in Australia said that it received a termination notice from Hong Kong's Far East Consortium International & Chow Tai Fook Enterprises regarding the sale of its 50% stake in Queen's Wharf in Brisbane.
The parties entered into an agreement with the casino operator in March, and the termination will take place five business days after June 30 unless it is withdrawn sooner.
Star stated in a Monday morning statement that the parties had not reached an agreement as of yet on the remaining commercial issues in the deal. The March agreement outlined the basis on which the casino operator could exit its equity stake in Destination Brisbane Consortium.
Far East Consortium said in a separate press release that Star must repay A$10,000,000 ($6.53million) within 30 days from the termination date. The property developer said that if the amount was not repaid in the specified time frame, Star would be required to transfer its 33.3% stake in Tower 1 Dorsett to the Hong Kong parties.
Star Entertainment did respond immediately to an email seeking confirmation on the repayment details. ($1 = 1.5305 Australian dollars) (Reporting by Shivangi Lahiri in Bengaluru; Editing by Rashmi Aich)
(source: Reuters)