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Data shows that more cargoes coming from the Arctic LNG 2 project are heading east.
According to Kpler's and LSEG's ship tracking data, two liquefied gas tankers are heading eastwards towards Asia with cargoes from Russia’s Arctic LNG 2 Project. They picked up fuel for the project sanctioned in the last week. The LNG tankers Voskhod and Christophe De Margerie are traveling north from Russia to Asia via the Northern Sea Route. According to data, they had previously berthed respectively at Arctic LNG 2 between September 23 and 26, according to the data. According to Kpler, both tankers were empty when they arrived. Christophe De Margerie left loaded on 25 September while Voskhod also left loaded on 27 September. Arctic LNG 2 has already loaded at least seven cargoes in the past year. Six LNG cargoes have already been delivered from the project to China's Beihai Terminal. According to the shipping database Equasis, the commercial manager or ship for Christophe De Margerie has an address in Dubai. Zelitiko Shipping is its registered owner, and shares the same address with Gas Carriers SCF Management. Voskhod is registered as LNG Beta Shipping, with the same address, as Igarka OOO, which is listed as its owner or ship manager. Gas Carriers SCF Management Zelitiko Shipping Igarka and LNG Beta Shipping could not be reached. The Arctic LNG 2 is 60 percent owned by Russia's Novatek, and it is subject to Western Sanctions over Moscow's War in Ukraine. The plant was to be one of the largest in the country, with a projected output of 19,8 million metric tonnes per year. Reporting by Emily Chow Editing and Mark Potter
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Ares Management acquires Meade Pipeline at $1.1 billion
Ares Management announced on Monday that its infrastructure funds had purchased Meade Pipeline, a natural gas pipeline in the U.S. for approximately $1.1 billion. This acquisition adds a major asset to Ares Management's U.S. Energy business at a time when demand for gas and power is surging. The investment company buys it from affiliates XPLR Infrastructure - a leading independent energy producer founded by NextEra Energy. Ares has a greater stake in energy infrastructure, as investors and utilities look for reliable fuel supplies to support intermittent renewables. Steve Porto, partner of Ares Infrastructure Opportunities, said: "Driven largely by industrial activity, electrification and increased LNG exports, the demand for power and natural gases is growing rapidly." Meade has a 40% stake on the Central Penn Line. This 180-mile pipeline transports gas from Pennsylvania's Marcellus and Utica Shale Basins to demand centers located in the U.S. Northeast and Southeast. Williams' Transcontinental Gas Pipe Line (Transco) is a joint-owner and operator of the system. Central Penn Line began operating in 2018 and can transport 2.3 billion cubic foot per day. This includes the capacity of its Leidy-South expansion, completed in 2022. (Reporting and editing by Anil D’Silva in Bengaluru, Sumit Saha from Bengaluru)
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Oil prices fall 1% due to expected global supply growth
The oil price fell more than 1% Monday, as OPEC+ announced plans to increase oil production in November. Also, the Kurdistan region of Iraq resumed oil exports via Turkey. This increased the outlook for global oil supply. Brent crude futures fell $1.01 or 1.4% to $69.12 per barrel at 1019 GMT, after reaching their highest level since Friday, July 31. U.S. West Texas Intermediate Crude was down $1.11 or 1.7% at $64.61. OPEC+ (the Organization of Petroleum Exporting Countries, its allies and the group known as OPEC+) is expected to approve a further increase in crude oil production during its Sunday meeting. Three sources said that the group will confirm an increase in November of at least 137,000 barrels a day as higher oil prices encourage efforts for regaining market share. OPEC+ is pumping less than their targets by almost 500,000 bpd, which defies market expectations that there will be a glut of supply. Iraq's oil minister said that crude oil from the semi-autonomous Kurdistan Region in northern Iraq flowed into Turkey on Saturday for the first time since 2-1/2 years. Iraqi Oil Minister told Kurdish radio Rudaw that after years of deadlock an interim agreement will allow up to 190,000. bpd crude oil to flow into Turkey's Ceyhan Port. It is estimated that the resumption will eventually bring 230,000 bpd worth of crude oil back onto international markets. The price drop on Monday followed a weekly gain of over 4% in both benchmarks for the last week, after Ukrainian drones attacked Russian energy infrastructure. "Ukraine smells blood naturally here" SEB analysts say that Ukraine is likely to intensify its attacks on Russian refineries. Russia launched a sustained attack on Kyiv, Ukraine and other parts early Sunday morning. This is the longest-lasting assault on the capital city since the Russian invasion of 2022. The United Nations has re-imposed an arms embargo on Iran and other sanctions over its nuclear program. Tehran has warned the measures would be met with a harsh reaction.
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French court reopens trial 16 years after AF447 disaster
The French Court of Appeal will start a new trial Monday against Air France and Airbus, 16 years after the crash of a jetliner into the Atlantic that killed all 228 passengers. In 2023, a lower French court cleared the two companies of corporate murder following a landmark public trial on the June 1, 2009 disappearance of Flight AF447 en route between Rio de Janeiro and Paris. French investigators discovered that after a two-year hunt for the A330 black boxes, pilots mishandled temporary data loss from iced up speed sensors, and sent the jet into a free fall or aerodynamic stall without responding to warnings. The trial, which took place more than a century later, also revealed discussions between Air France (now Airbus) and the sensor manufacturers about the growing problems of the "pitot probes" that are used to generate speed readings. A Paris judge, after nine weeks of evidence, listed four acts by Airbus, and one by Air France. However, the judge found that these acts were not sufficient under French criminal law in order to establish an irrefutable link between the loss of this jet during the midnight storm. The second trial will likely last two months, with lawyers from the families of the victims trying to convince the appeal judges that the accident was directly linked to the negligence previously identified. Sebastien BUSY, an attorney for one of the largest associations of relatives of victims, said that it was painful for families to revisit everything 16 years after the incident. But, it's important to continue and prove criminal responsibility. He said that if you removed one of these acts of negligence, the accident wouldn't have happened. Both companies have denied all criminal charges. The maximum fine for corporate murder is only 225,000 euros. However, prosecutors are hopeful that a second trial will provide families with a cathartic experience, as they protested the previous verdict. The AF447 tragedy has been one of the most discussed in aviation, and it led to a variety of changes both technical and training. The prosecution has argued that Airbus failed to adequately train pilots and reacted too slow to the increasing number of speeding incidents. The previous trial revealed bitter divisions among two of France's leading companies about the relative roles played by pilots and sensors in France's worst air accident. During the first hearing on Monday, which begins at 11:30 GMT, Airbus and Air France's chief executives are expected to give statements. (Reporting and editing by Alistair Bell, Alex Richardson and Tim Hepher)
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As demand for non-US assets increases, foreign issuers are tapping the Canadian bond market.
According to LSEG, analysts, and investors, global companies such as Citigroup and McDonald's flocked to Canada's Bond Market this year due to strong investor demand and lower borrowing costs. This trend reflects an increasing willingness of investors and issuers to move away from the US dollar, as uncertainty caused by President Trump's policies on trade continues. According to LSEG, the amount of "Maple Bonds" issued by foreign borrowers on the Canadian market reached 16.32 billion dollars as of September 25. This is more than the $13 billion that was raised for the entire year 2024. It also surpasses the $16.28 million raised in 2023. This jump is partially due to lower borrowing costs, according to Andrew Parker, cohead of McCarthy Tetrault's National Capital Markets Practice. This summer, there was only one deal after another. "Rates in Canada were more attractive", said Parker, who was involved with NextEra Energy Capital Holdings C$2 billion (1,44 billion dollars) Maple bond. It is one of the biggest bonds this year. The Federal Reserve began cutting U.S. rates again only this month. However, the Bank of Canada's policy has been more aggressive. Rob Brown, RBC Capital Markets' managing director and cohead of Canadian Debt Capital Markets said that the inclusion of Maple Bonds in the FTSE Russell Index, which was announced on January 1, has also contributed to investor demand. This month, it was reported that U.S. firms are also eager to borrow in euro, with bond sales reaching a record of $100 billion this year. Mike Goosay is the chief investment officer at Principal Asset Management and the global head of fixed-income. He said that companies are likely responding to the growing demand from investors for non-dollar assets, as the impact of Trump’s sweeping tariffs remains uncertain. Goosay stated that this could cause investors to want products from other markets. Citi, New York Life, and Pacific Life are also among Canada's largest bond issuers this year. Requests for comments from the companies were not answered. RISK OF US SPREADS WIDENING Demand from investors for U.S. corporate bonds has been strong in recent weeks, driving spreads on high grade bonds - the premium that companies pay over U.S. Treasuries - to near-all-time-tight levels. The market is expected to be boosted by the Fed's rate cut this month. Investors said that the market could be underestimating long-term risks. Investors said that the market may be underestimating potential long-term risks, including an expected increase in the U.S. trade deficit, which would boost long-term rates, as well as volatility caused by Trump’s whipsawing policies and the politicization of such institutions as the Fed and Bureau of Labor Statistics. Corporate The debt issue dried up Spreads have widened dramatically in the wake of Trump's announcement of April 2, 2019 Tariffs were high on imports from the United States, but have since fallen. Zachary Griffiths is the head of investment-grade credit strategy at CreditSights. He said that the wide-based tariffs as well as the politicization of the core U.S. economic and financial institutions, such the Fed and BLS, are causing anxiety among foreign investors who consider how much exposure they should have to USD assets.
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Sweden sends radars and anti-drone systems to Denmark in support of summit security
Sweden will provide military capabilities to counter drones for Denmark in conjunction with the Copenhagen summit this week. Drone sightings forced Denmark last week to close several airports. Denmark will host EU leaders in Copenhagen on Wednesday. Then, on Thursday, the 47-member European Political Community will meet. It has already increased security following the drone incursions. Kristersson stated in a social media post that Sweden would send Counter UAS Systems and that, separately, his country had shipped "a handful of" radar systems to Denmark on Sunday. On Sunday, Denmark ordered A ban on drone flights by civilians After drones were seen at several military installations overnight. Reporting by Louise Breusch Rasmussen and editing by Terje Solsvik
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KLM loses Delta Air France and Air France ground service customers
Air France KLM, the Dutch branch of Air France KLM, announced on Monday that Air France and Delta will no longer use its ground services in Amsterdam Schiphol Airport following the weeks-long strikes of its ground crew. KLM said that the airlines told them they were looking for a new ground handling partner in Schiphol - one of Europe's most busy airports. KLM issued a statement saying that the decision had immediate operational implications, especially for its ground services division. The financial and employment implications of this decision is currently being assessed. Delta and Air France have not responded to comments. KLM Amsterdam's ground crew has been striking for several weeks, demanding higher wages and improved working conditions. This led to hundreds of cancellations. Anoesjka Aspeslagh, KLM's spokesperson said: "This played a major role in Delta and Air France's decision." They have suffered damages of millions of Euros and were forced to disappoint many of their clients. The CNV, a labour union, said that the decision of KLM's partners had nothing to do with the strike. It would not affect the resolve of the ground crew. Souleiman Amallah, the union's spokesman for CNV, said that the negotiations between the airlines concerned had just begun. KLM struck a deal earlier this month with a number of unions. However, not with two major ones who have continued to strike and announced a larger and newer strike on Wednesday. The court ruled on Monday that the strike could only take place if the unions guarantee the flights of KLM’s international partners will not be affected. KLM Ground Services handles 17 Delta daily incoming flights and 12 Air France flights, for a total 380 flights per day.
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Japan protests China’s ocean research in exclusive Economic Zone
Yoshimasa Hayashi, the chief cabinet secretary of Japan, said that after spotting a Chinese ship in the southwest region of the country, Japan had lodged a complaint with China asking it to cease ocean research in Japan's Exclusive Economic Zones (EEZ). Hayashi reported that the Japanese Coast Guard discovered the Chinese vessel "Xiang Yang Hong 22," extending a metal-like object in the ocean within the Japanese EEZ, about 379 km (235 miles), west of Amami Oshima island early Sunday morning. Hayashi, the Japanese government's top spokesperson, said that the Chinese government was not allowed to conduct marine scientific research without Japan consent. He said that the Chinese vessel left the water and headed west about three hours after he spoke. Tokyo and Beijing face a territorial dispute over a group of Japanese-administered islands in the East China Sea, called the Senkaku in Japan and Diaoyu in China. (Reporting and editing by Jacqueline Wong; Kantaro Kommiya)
Japan offshore wind companies want to be included in the government's fixed revenue scheme
Developers of Japanese offshore wind projects are looking to join a program that would guarantee a fixed income for 20 years. This comes after Mitsubishi-led group abandoned three projects because costs were so high.
The long-term decarbonised auction (LTDA), Japan's scheme for bidding on nuclear, gas, and hydropower projects as well as battery storage and solar projects is currently open to operators, but offshore wind projects are not.
Yuichi Furukawa is the director of wind energy policy at Japan's Industry Ministry. He said that offshore wind farm operators had made similar requests, but that he could not confirm whether these requests would be considered.
A source in the offshore wind industry who declined to identify themselves said that participation in LTDA would be "a life vest" for the industry.
There has been much concern about the fates of other projects since the Mitsubishi-led consortium in August pulled out of projects won at the first large-scale auctions held by the government in 2021.
The projects will be launched between 2028 to 2030, with a combined power of almost 3 gigawatts. These groups include Japanese firms JERA and Mitsui, as well as foreign companies such as Germany's RWE and Spain's Iberdrola.
In the coming months, the four groups who won the second state auction for offshore wind projects will have to pay the final bond to the Government, which confirms that they are moving forward with the project.
The government has pledged to examine the reasons behind Mitsubishi's decisions and to adjust regulations in order to ensure that the sector develops.
Before Mitsubishi left, the government sought to relax rules for the industry. These changes include allowing suppliers to change, including those for turbines. They also allow offshore wind farms the ability to operate past the original 30 year time frame.
Furukawa stated that the ministry of industry aims to create a framework for companies to make future operational decisions by the end this year.
By 2040, the government wants to install 45 GW offshore wind power, as this will reduce its dependence on coal and gas imports for electricity generation, and also help to lower carbon emissions.
Hui Min Foong is a senior analyst with Westwood Global Energy Group. She said that if the government reassesses what went wrong and learns from other countries, the pipeline of long-term projects can remain strong.
This is particularly true looking 10 to 15 year ahead, when Japan is well-positioned to leverage its enormous floating wind potential. Recent policy momentum has reinforced this. (Reporting and editing by Edwina G Gibbs; Additional reporting by Yuka obayashi)
(source: Reuters)