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The building of a data center in the US has raised concerns about overburdening the largest US grid.
Energy executives and regulators at CERAWeek, a conference held in Houston last week, expressed concern about the ability of an aging U.S. electric grid to meet this demand. Electricity consumption in the United States is reaching record levels due to the construction of giant computer warehouses by Big Tech. A single site can use as much energy as a medium-sized U.S. town. The government agencies predict that data center demand is expected to triple in the next three-years, and consume 12% of all U.S. electricity. In an interview, Samir Vora said that the challenges facing the grid are becoming more pronounced. As electricity demand grows, fossil fuel-powered generators are being retired. Interconnection queues for new generation and power lines can last years, affecting the delicate balance between supply and demand needed to prevent blackouts. Mark Christie, the head of the Federal Energy Regulatory Commission, said this at a conference held on Thursday. Christie stated that the reality of the situation has been made most apparent in the largest electrical grid of the United States, PJM Interconnection. This grid covers 13 states plus the District of Columbia. PJM has the largest concentration of data centres in the world. Virginia, a member state of PJM, routes about 70% of the global internet traffic. PJM's latest capacity auction saw prices more than 800% above the previous year. The grid operator cited rising demand and shrinking supplies as the reason for the increase. Manu Asthana said in a panel discussion that he was optimistic about the solution to this problem, but it wasn't a trivial one. Asthana, PJM's CEO, said that he expects the peak demand of 184 gigawatts in 2030. Asthana added that nearly all of these additions will come from data centers. FERC's Christie warned that if new power is not added quickly, the supply and demand squeeze will spread to other areas of the country. He warned that the problem would be magnified in other regions with multiple states. (Reporting and editing by Laila KEARNEY; Liz Hampton)
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Trump brings South Africa closer to the EU with 4.7 billion Euros pledged by the EU
On Thursday, European Union leaders visited South Africa and announced a 5.10 billion euro (5.10 billion euros) investment package. This comes at a moment when the United States is on a worse relationship with both countries than it has been in decades. The European leaders claimed that the visit would be an opportunity to deepen ties with Africa’s most developed economy. This coincided with the presidency of the G-20 nations by the African nation, which U.S. officials had so far largely ignored. Donald Trump, the U.S. president, has shocked European leaders by his shift towards Russia during the Ukraine conflict. This is a major change in U.S. foreign policy following Moscow's invasion of 2022. His pro-Israel stance brought him into conflict over South Africa's genocide case at the World Court against Israel. The U.S. Administration has also intervened in Europe's and South Africa’s domestic politics. It criticised Europe for trying to isolate the extreme right and ignoring voter concerns about immigrants while cutting aid to South Africa due to its efforts to correct historic racial injustice. The EU visit was an opportunity for South Africa to improve relations, which had soured after it refused to condemn Vladimir Putin of Russia for his invasion of Ukraine. Ursula von der Leyen, President of the European Commission, said that South Africa played a crucial role in the global stage as the leading voice for the Global South. She said, "In an era of increasing confrontation and competition we must further strengthen our partnership." She told President Cyril Ramaphosa at a meeting in Cape Town that Europe wants to grow the South African economy. She said this while sitting next to the President of the European Council, Antonio Costa. She mentioned clean hydrogen as an example of how South Africa can make use its abundant raw materials and vast renewable energies potential. Ramaphosa stated that South Africa valued European support of multilateralism in a time when nationalism is on the rise. He said that African relations with the European Union must be built upon a partnership of mutual benefit. $1 = 0.9223 Euros (Additional reporting and writing by Alexander Winning, Tim Cocks, and Sfundo parakozov. Editing and proofreading by Tim Cocks, Alison Williams and Tim Cocks)
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US sanctions Iranian oil minister and shadow fleet
Treasury Department: The United States sanctioned Iran's Oil Minister Mohsen Pakhnejad on Thursday, as well as some Hong Kong flagged vessels that form part of an "shadow fleet" that is used to disguise Iranian oil shipments. Treasury released a statement saying that Paknejad oversees the export of Iranian oil worth tens and tens billions dollars, and has given billions worth of oil to Iran’s armed forces. Treasury said it also identified owners or operators for vessels that delivered Iranian oil into China or removed it from its storage. It said that these vessels were located in multiple jurisdictions including India and China. Iran's military uses a large fleet of shadow ships to conceal shipments worth billions of dollars to China. Thursday's designated vessels include the Hong Kong-flagged Peace Hill and its owner Hong Kong Heshun Transportation Trading Limited, the Iran-flagged Polaris 1, the Seychelles-registered Fallon Shipping Company Ltd, and the Liberia-registered Itaugua Services Inc, Treasury said. It said that the U.S. Department of State has designated three entities and three ships as blocked property. Reporting by Doina chiacu, Editing by Brendan O'Brien & Toina Chopra
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Starmer: UK tanker crash after-effects'reasonably controlled'
Keir starmer, British Prime Minister said that the aftermath of the tanker crash near the English coast this week was "reasonably contained". Fears of an environmental catastrophe had eased as the focus shifted to the investigation of how the incident occurred. The Solong, a container ship flying the Portuguese flag, collided with the Stena Immaculate on Monday, an anchored tanker carrying U.S. Military jet fuel. The collision resulted in huge explosions and fires. Jet fuel was also spilled into the ocean. The tanker is still at anchor, with a huge hole in its side. Meanwhile, the container ship that was badly burned has been stabilized after initial fears of it sinking. Starmer stated that the situation was reasonably contained at the moment. Starmer said that the cause has yet to be determined. We have a process, but we need to dig deeper. The initial concerns about an environmental catastrophe have diminished. According to preliminary assessments, the jet fuel has mostly been burned off. After his arrest on February 2, the captain of Solong, a Russian, was placed in custody under suspicion of gross negligence. This offence is for situations in which a death occurs as a result of a grossly negligent action or omission. Local police released a statement saying that a judge had granted detectives extra time to interview the captain. The 36 crew members of the vessel who survived the incident were brought to land. In a separate press release, the Marine Accident Investigation Branch of Britain (MAIB), said that it would be leading the safety investigation. It was seeking to determine the cause of the accident and prevent similar accidents from happening again. The MAIB stated that it would inspect the two vessels and retrieve the Voyage Data Recorders as soon as it was safe. The MAIB's investigations would look at "fatigue management", navigation practices, and weather conditions. (Reporting and additional reporting by Muvija; editing by Michael Holden, Bernadettebaum and Michael Holden)
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Farm lobby: Increase in Ukraine rail tariffs will add $3 to $6 per ton to logistic costs
The proposed increase in tariffs of Ukraine's railways monopoly Ukrzaliznytsia could increase the cost of agrarian transportation logistics by $3 to 6 per metric ton, and lead to bankruptcy for some farmers. Ukrzaliznytsia raised freight rates by 37% last year to cover significant increases in fuel, electricity, and equipment repair costs as it tried to deal with the effects from Russian attacks. Farmers and steelmakers have already expressed their opposition to price increases. The railways are essential for the export of grain, metallurgical and other products. Oleg Khomenko, the head of UCAB on Facebook, said: "If this decision is not revised then some farmers may be forced to reduce their production." He claimed that the past two years had been unprofitable for Ukrainian agricultural producers, and that a possible increase in tariffs could mean higher production costs as the majority of Ukrainian grain is shipped through the Odesa port region. (Reporting and editing by Tomaszjanowski, with Pavel Polityuk)
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Starmer: UK tanker crash after-effects'reasonably controlled'
Keir starmer, British Prime Minister said that the aftermath of the tanker crash near the English coast this week was "reasonably contained". Fears of an environmental catastrophe had eased as the focus shifted to the investigation of how the incident occurred. The Solong, a container ship flying the Portuguese flag, collided with the Stena Immaculate on Monday, a tanker anchored that was carrying U.S. Military jet fuel. The collision resulted in huge explosions and fires. Jet fuel was also spilled into the ocean. The tanker is still at anchor, with a huge hole in its side. Meanwhile, the container ship that was badly burned has been stabilized after initial fears of it sinking. Starmer stated that the situation was reasonably contained at the moment. Starmer said that the exact cause has yet to be determined. We have a process, but we need to dig deeper. The initial concerns about an environmental catastrophe have diminished, as preliminary assessments show that the jet fuel has mostly been burned off. There are no other signs of leakage from either ship. After his arrest on February 2, the captain of Solong, a Russian, is still in custody under suspicion of gross negligence. This offence is for situations in which a death occurs as a result of a grossly negligent action or omission. The 36 crew members were also brought to land. In a separate press release, the Marine Accident Investigation Branch of Britain (MAIB), said that it would be leading the safety investigation. It will seek to determine the cause of the accident and prevent similar accidents from happening again. The MAIB stated that it would inspect the two vessels and retrieve the Voyage Data Recorders as soon as it was safe. The MAIB's investigations would also look at "fatigue management", navigational practices, and weather conditions. (Reporting and additional reporting by MuvijaM; editing by Michael Holden.)
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Tunisia receives offers for 100,000 T of soft wheat tender, traders report
Initial assessments by European traders suggest that the lowest price offered at Thursday's international tender for about 100,000 metric tonnes of soft wheat from Tunisia was $268.67 per ton, including freight and cost. No purchase has been made yet, but offers are still being evaluated. If the conditions are not attractive, then it is unlikely that the lowest offer will be accepted. They said that Casillo, a trading house, was thought to have made the lowest offer of 25,000 tons. Viterra, a trading house, offered $268.79 per ton C&F for two consignments of 25,000 tons. The reports reflect the assessments of traders, and it is still possible to estimate prices and volume later. The wheat will be shipped between April 10 and 25 depending on the origin. Michael Hogan reports.
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Singapore's Sembcorp Industries cancels Indonesia gas contract due to regulatory issues
Sembcorp Industries, the Singaporean utilities company, announced on Thursday that it had terminated a gas sales agreement its unit signed for the import of piped natural gas from the Mako fields in Indonesia. The firm cited regulatory hurdles as the reason. The Temasek Holdings firm claimed that it did not receive the regulatory approvals required from Indonesia for the agreement to proceed. Sembcorp said that the move would not impact its energy costs, or its ability meet Singapore's gas needs. It also stated that it will have no material impact on the earnings per share in 2025. Sembcorp will instead use its own natural sources, including liquid natural gas, to meet its needs. Sembcorp Gas Pte, a unit of Sembcorp, signed a contract with three companies in September last year to import PNG up to 111 BTUs per day. West Natuna Exploration, a subsidiary from Indonesia's Conrad Asia and London-listed oil-and-gas explorer Empyrean Energy PLC, as well as energy firm Coro Energy Duyung Pte were the firms. Sembcorp's largest earner, the gas and related services division, reported a 10% decline in its annual profits in early February.
Why the Canadian freight rail halt will roil North American supply chains
Canada's two main freight rail business locked out around 10,000 of their Canadian unionized employees early on Thursday, starting an extraordinary simultaneous work stoppage that will grind practically all railway freight motion in the country to a halt.
HOW INTEGRATED ARE THE RAIL NETWORKS ACROSS THE United States AND CANADA?
Canadian National Railway Co and Canadian Pacific Kansas City have said their rail networks south of the border will continue to operate, however industry groups fear that a. work stoppage would have far-reaching results on the movement of. items and commodities throughout North America.
CN and CPKC's coast-to-coast rail networks in Canada link. south of the border and act as important supply chain links to. trade corridors and ports throughout The United States and Canada.
The networks intersect with those of U.S. rail operators. such as BNSF Railway, Union Pacific, Norfolk. Southern and CSX, assisting in the motion of. billions of dollars' worth of products and products through. ports and storage facilities across the continent.
CN's network stretches south to New Orleans. CPKC's network. links to the U.S. ports of Corpus Christi, New Orleans and. Gulfport, and it extends more south to the ports of Tampico. and Lázaro Cárdenas on the east and west coasts of Mexico.
HOW WOULD A CANADIAN RAIL INTERRUPTION AFFECT THE UNITED STATES?
Around a third of the traffic moved by the 2 Canadian rail. companies crosses the border with the United States.
Lots of U.S. business and producers, specifically those in the. Midwest, use Canadian ports for imports and exports, as Montreal. can be faster for shipments to and from Europe, while Vancouver. can be faster for ocean service to and from Asia.
Union Pacific, the No. 2 U.S. railroad operator, has warned. that a synchronised interruption would have devastating consequences. for the U.S. and Canadian economies.
Scores company Moody's stated the interruption could cost over. C$ 341 million ($ 251.14 million) per day.
Lots of groups representing miners, farmers, exporters,. and fertilizer producers, to name a few, have warned that their. sectors deal with debilitating supply-chain hold-ups, increased costs,. cash-flow restrictions and prospective shutdowns in a protracted. stoppage.
HOW WOULD THE U.S. AND CANADIAN FARM SECTORS BE IMPACTED?
An interruption would hit the movement of whatever from wheat. to ethanol, potash fertilizer and meat.
In particular, it would crimp deliveries of U.S. spring wheat. from Minnesota, North Dakota and South Dakota to the Pacific. Northwest for export. An interruption would also hit Canadian potash. and grain exports.
The U.S. exported $28.3 billion of farming products to. Canada in 2023, making it the third-largest location for U.S. farming exports behind China and Mexico. The U.S. imported. $ 40.1 billion of Canadian farming products last year,. making Canada the second-largest source of U.S. agricultural. imports.
Ethanol, potash, corn, cereals, food grains, cooking oils,. and meat are among the farming products traded in between the. 2 countries.
WILL TRADE WITH MEXICO BE AFFECTED TOO?
Mexico is Canada's third-largest single-country product. trading partner behind the U.S. and China, while Canada was. Mexico's fourth-largest merchandise trading partner in 2023.
Mexico exports trucks, automobiles and vehicle parts to Canada,. together with mangoes and avocados. Canada exports wheat, meat,. aluminum, vehicles and parts to Mexico.
Two-way trade between the two countries, much of which moves. through the rails, was almost C$ 55 billion in 2023.
CAN THE TRUCKING INDUSTRY ENTER THE BREACH?
Truckers state they are facing a rise in demand which roadway. freight rates are increasing for shippers in Canada. Nevertheless,. industry insiders say that while the trucking sector can manage. a few of the need, it can not replace rail distribution. In some. cases, the industry does not have the equipment, nor the. capacity, to manage bulk commodity cargoes such as potash, food. grains, or coal.
(source: Reuters)