Latest News
-
The PM has announced that Poland will be adding a second LNG vessel to the Gdansk floating terminal.
The Prime Minister Donald Tusk announced on Tuesday that Poland will build a floating LNG terminal in Gdansk with a second regasification vessel. This is due to the overwhelming interest of shippers. "The commercial interest is large enough for the project to not require budget involvement," Tusk told reporters before a cabinet meeting in Warsaw. The two terminals in the Baltic, along with a portfolio of LNG contracts, will allow Poland to become a hub of fuel deliveries from the U.S. Gaz-System, the Polish gas pipeline operator, will be able to move forward with the project due to the interest from the market. According to 'the company plans', the second floating storage and regasification?unit (FSRU) will have a technical capability to regasify a?additional 4.5 bcm (bcm ) of gaseous?fuel per year. Gaz-System has begun construction of an LNG terminal in Gdansk, with a capacity of 6.1 billion cubic meters of gas a year. (Reporting by Marek Strzelecki, Anna Wlodarczak-Semczuk and Pawel Florkiewicz)
-
Lobby says that the increase in rail tariffs may raise farm costs and cause cargo to be transported by road.
According to the UCAB 'farmer lobby', the planned increase in freight rates by Ukraine's'state railway Ukrzaliznytsia' could increase farmers' logistic 'costs' by $5 to $7 a metric ton. This would accelerate a'shift' of cargo from rail to road transport. Ukraine's Economy Ministry said that it proposed to increase freight tariffs by 30 percent from August 1, in order to stabilize Ukrzaliznytsia’s financial situation. Ukrzaliznytsia said that the higher tariffs will only increase transport costs by a small amount, $3.2 per metric tonne of ore, and $3.6 per tonne of grain when shipped over the entire route of up to 466 miles (750 km). Ukrzaliznytsia's CEO Oleksandr Ptsovskyi said this month that his firm would need to raise its tariffs by at least 45% to restore its finances. The rail remains an important part of Ukraine’s logistics network. It carries both passengers and freight. The government is under pressure to reduce its debt because of increased spending on infrastructure and security. Ukraine traditionally transported its main export cargoes - grain, ore, and metals - to ports via rail. However, higher tariffs may prompt companies to switch to trucks. UCAB stated that "higher rail logistics costs" could make 'road transport' economically?viable in many more areas. The report noted that "trucks are used in areas closer to ports now, but a tariff hike could extend the zone where they are competitive up to 300-400 km away from the 'ports. The metallurgical industry has?opposed the proposed?tariff hike, warning that it could result in the closure of key companies and the loss of 300,000 jobs. (Reporting and editing by Alexander Smith; Pavel Polityuk)
-
RTE, the French grid operator, plans a pilot project to accelerate grid connections
Forrest Crellin & America Hernandez PARIS, 23 JUNE - Emilie Piette said at a Tuesday power conference that France would begin a pilot program later this year to shorten the "queue" for sites seeking an electrical grid connection. She added that the programme would move projects which are already built and operational up to the front of a queue. France hopes to attract data centres, and other industrial projects that require high power demands with its abundance of?nuclear energy. But the long wait times for a connection to grid has proven to be a stumbling-block. Today, the first-come, first-served rule applies. It will be first-come, first-served tomorrow, thanks to a pilot program for Ile-de-France that aims at de-saturating zones most in demand in the second half this year. She added that there are currently 33 gigawatts of projects awaiting a 'grid connection.' The demand is growing by 10% per year. RTE must invest EUR8 billion (USD9.1 'billion) by 2030 to build these lines. France has tried to overcome the gap by offering to repurpose industrial sites that are already connected to the grid.
-
Sources say that the premiums for Russian ESPO blends are now near parity with ICE Brent in China due to weak demand.
Three?trading'sources' said that the Russian Far East ESPO blend crude differentials to be delivered to?China between July and August have fallen to parity with ICE Brent. This is due to weak Chinese demand, as well as expectations of a higher global supply after a??U.S.Iran peace agreement. India, the second largest buyer of Russian crude, is also seeing a softer price trend. This further reduces Moscow's revenue, which was already being squeezed by lower oil prices. The U.S. waiver of Iranian oil could push ESPO blend differentials to a discount compared to the ICE benchmark in China. According to one source, Russian oil suppliers stopped offering on Tuesday after the announcement. Sources said that cargoes for delivery in July-August are trading at parity with?ICE Brent or at a slight premium of less than $1 a barrel delivered into Chinese 'ports. Some June-July cargoes sold at discounts to benchmark Brent. However, traders said that this was a small percentage of all transactions. After refining losses caused by high oil prices and low demand, several teapots located in China's main oil-refining hub of Shandong Province, scheduled maintenance for June or July. Shandong Yulong Petrochemical - a major Russian oil purchaser - shut down one of its crude?units for maintenance about two weeks back. The shutdown of the 200,000-barrels-per-day crude unit is expected to last around ?a month. Two traders said that the average operation rate for Shandong teapots has dropped below 50% in recent weeks, to its lowest level this year. Teapots' profit margins have also increased, largely due to the sharp fall in Brent prices. Local consultancy Oilchem estimated Shandong independent refining companies' average profits at 126 Yuan ($18.58). The company had been losing money for the last two months. Despite lower prices, ESPO blend?export volume remains robust. It has been above 1 million bpd most of this year according to traders and shipping data.
-
India's Akasa Airlines targets a 30% capacity increase this fiscal year
The airline announced on Tuesday that it plans to increase passenger capacity by 30 percent in the current fiscal year, following a revenue rise of 37% and a smaller loss. The unlisted airline didn't disclose revenue or income figures but added that they were considering?using the Indian government’s loan guarantee and pricing stabilisation schemes? for the industry. This month, the government approved a $1billion fuel stabilisation fund to keep the price of jet?fuel in check after it soared following the Iran War. Jet fuel is the most expensive expense for airlines. Akasa reported that it had reduced its cost per available seat kilometer by 4% over the past year, and that margins were up?by 60 percent as a result of restructuring. It added ten Boeing 737 MAX aircraft in the year ending March. Akasa Air has a 5.4% market share in India's domestic aviation industry, which is dominated primarily by Air India and?IndiGo, owned by the Tata Group. (Reporting and writing by Abhijith?Ganaparavam, Kashish Tandon, Editing by Christian Schmollinger & Edwina Gibbs).
-
More vessels transit Hormuz, Qatar-linked LNG tankers return, data show
Ship-tracking data shows that two stranded supertankers crossed the Strait of Hormuz Tuesday. Seven empty Qatari-linked liquefied gas tankers entered the Strait in recent weeks, a sign that Gulf gas shipping may be returning. Data showed that Iranian-linked tanks continued to pass through 'the 'vital waterway. Traffic increased on Monday, as U.S.Iran talks advanced. The flow of traffic had decreased ahead of the U.S.-Iran talks, amid Trump's threats to restart the conflict and Tehran's announcement that it had once again closed the Strait. A day after the first round of negotiations, which started on Sunday, both parties agreed on a roadmap to a permanent agreement within 60 days. The U.S. announced that sanctions would be waived until August 21, easing fears about global oil and gas supplies, and pushing prices down. Analysts say that more crude oil cargoes, which have been stranded since the beginning of the Gulf War, are expected to be exported now. A growing number of tankers sanctioned by the U.S., has also begun to ply the Strait in order to export Iranian oil. The Very Large Crude Carrier Dubai Energy chartered by Taiwanese State Energy Firm?CPC, and carrying 2,000,000 barrels of Abu Dhabi crude and Saudi crude has left the strait over night and is sailing to Kaohsiung in Taiwan, LSEG data and Kpler showed. CPC declined to comment on a request for comment. Data showed that another VLCC, Universal Glory chartered by South Korean refiner GS Caltex and carrying 2 million barrels Saudi crude, left the strait Tuesday. GS Caltex has declined to comment. The data revealed that two?Suezmax approved tankers -- Sobar & Sarak -- were heading to the Strait of Gibraltar on Tuesday. They can each carry one million barrels. QATAR-LINKED LNG TANKERS Seven ballast QatarEnergy-controlled tankers moved west into the Gulf to reload between June 11 and June 22, ship-tracking data from Vortexa and Kpler show, the first such voyages since the U.S. and Israel launched airstrikes on Iran on February 28. Vortexa's report shows that the automatic tracking systems of the first three tankers making inbound transits - Al Hamla Al Areesh Al Khuwair - were turned off. According to Kpler, the three tankers last appeared outside the Strait of Gibraltar in mid-June. They reappeared between June 19 and 23 on ship-tracking information. The four others -- Wadi Al Sail (Mekaines), Al Sadd (Al Sadd) and Mesaimeer (Mekaines) -- entered the Strait of Hormuz on Monday by the Iranian route. QatarEnergy didn't?respond immediately to a comment request outside of their normal business hours. Vivek Dhar, an analyst at Commonwealth Bank of Australia, said that this is also the biggest number of LNG ships to transit the strait since World War II began. Other empty LNG tankers will also be heading to Qatar. "The ship-tracking data confirms that QatarEnergy is on track to meet its LNG ramp-up deadline," he said. The explosion occurred at a gas-processing facility in the Ras Laffan Industrial Complex on Monday. However, the Energy Minister said that Qatar's LNG plants?were unaffected. In terms of QatarEnergy-controlled tankers exiting the strait, Al Ghashamiya was last seen inside on June 9, carrying a cargo from Ras Laffan which was loaded on March 1, Kpler data showed. It then reappeared on the other side of the strait, on June 22, carrying a cargo from Ras Laffan that was loaded in March 1. Ayush Agarwal, S&P Global Energy analyst, said that it is still too early to see if there will be a widespread movement of ballast Qatari or ADNOC vessels towards the Gulf, reflecting a cautious, phased restart. S&P Global Energy stated that the key risk is whether a sustained increase in Gulf LNG exports can be supported by a safe passage, insurer confidence and implementation of an agreement signed between Iran and the U.S. (Reporting from Emily Chow and Florence Tan, in Singapore; Additional reporting by Heejin KIM in Seoul; Editing done by Himani Sarkkar)
-
NatPower and Tesla agree to first phase of $5 Billion battery storage plan
The independent energy company NatPower and Tesla announced on Tuesday that they had signed a deal for the construction of 25?gigawatt-hours of battery storage capacity in Italy and Britain. This is just the first phase of a $5 billion project. Battery storage is being implemented in a number of countries across Europe to balance the deployment of intermittent renewable energy capacity. The agreement will last for a period of five years and will see?NatPower using Tesla's Megapack batteries. NatPower will use Tesla's technology for trading, which controls when to purchase and sell electricity. The companies announced that five initial projects would be built as the first phase of the programme, which aims to?exceed 100 GWh in storage capacity at a cost of construction of $4 billion or $5?billion. The companies added that revenues could 'potentially surpass $15 billion over the next 20 years. The sector has the technology and capital, but it struggles to deliver infrastructure in a timely manner. Fabrizio Zaga, CEO of NatPower, said that what we built with Tesla was a?ecosystem which enables alignment between capital and execution and can be replicated in multiple markets.
-
The morning bid for EUROPE-Yen is in trouble
Gregor Stuart Hunter gives us a look ahead at what the markets will be like in Europe and around the world. The yen is once again near its lowest levels?in the last 40 years, and the possibility of a joint intervention is looming after the?U.S. and Japan's finance minister met online. Treasury Secretary held an online "meeting" to discuss global financial markets. In the morning Asian trading on Tuesday, the yen traded at 161.60 to a dollar, its lowest level in two-years. It had moved within a few pip of levels that were not seen in decades during U.S. market hours. The Bank of Japan has increased interest rates and intervened in the market since April, but it was not enough to stop the decline of the yen. Koo Yun Cheol, the South Korean finance minister, told a Tuesday cabinet meeting that the current level of foreign exchange at mid-1,500 won to the U.S. Dollar was "excessive." The KOSPI index's losses, after it closed at a new record high on monday, caused a brief trading halt. This dragged MSCI’s broadest Asia-Pacific share index outside Japan by 1.5%. Japan's Nikkei index retreated by 1.2% after an eight day winning streak. Data on Tuesday revealed that the manufacturing sector in Japan had experienced robust growth during June. A gauge of new order surged to its fastest rate in over four years. Brent crude fell 0.4% to $77.56 per barrel on Monday, after the United States lifted sanctions against Iran for 60-days starting from Monday following the first talks in a new 'peace agreement. S&P 500 futures are down 0.5% after tech giants weighed heavily on Wall Street stocks on Monday. Early European trades saw pan-regional futures?down by 0.6%. German DAX Futures were down 0.7% and FTSE Futures were down 0.8%. The following are key developments that may influence the markets on Tuesday. Earnings of the company FedEx, Cerebras Systems, Carnival Corp Economic Events France: S&P Manufacturing Flash PMIs for the month of June S&P flash PMIs in June for the Euro zone. UK: CBI Trends and Flash PMIs. Debt auctions: Germany: 2-year Government Debt (Reporting and Editing by Jamie Freed; Gregor Stuart Hunter)
India's fuel consumption outlook is affected by price increases and slowing industrial activity
India is expected to have less growth this year in its gasoline and diesel consumption after a series?of price hikes last week that reflected?higher fuel costs caused by the Iran War,?"with 'early signs stress in the trucking industry already evident.
Indian Oil, Bharat Petroleum, and Hindustan Petroleum have implemented four rounds of increases in prices since mid-May. Earlier they had held off due to the elections. The price of gasoline is now 7.8% more expensive, while diesel prices are 8.6% higher.
Analysts believe that there may be further price increases, which will likely dampen the demand even more. Retailers are still selling fuels below market rates. They are losing an average of 5.5 billion rupees (57 million dollars) per day.
India's slowing fuel sales growth, as the world's largest importer and consumer of fuel, will dampen global demand, now that China has reached its peak in transportation fuel consumption.
Dylan Sim, analyst at FGE NexantECA, said: "We expect India's gas demand growth to fall to between 3.5-3.7% by 2026 due to reduced discretionary driving."
This compares to an earlier estimate that 4% growth. The consultancy also reduced its forecast growth in diesel demand from 2.5% to 2%.
Moody's Indian Rating Arm ICRA has revised its forecast of gasoline demand growth to 3%-4% for the current financial year, down from 5%-6% in the period before war. Diesel demand is expected to remain flat or even shrink, compared to an earlier forecast of 2%-3% growth.
Prashant Vashisth said that diesel and gasoline prices could increase inflation, which could harm end-user demand.
He said that the Middle East conflict could also lead to increased logistics and shipping costs. This would have a negative impact on diesel demand.
LESS INDUSTRIAL EXPLOITATION AFFECTS TRUCKERS
Since the war, oil prices in the world have risen by 40% and are now trading at around $100 a barrel. Before the conflict, a fifth of all oil supply passed through the Strait of Hormuz.
In the trucking industry, there are signs of a?lower demand for diesel due to?slower industrial activity.
SP Singh, senior Fellow at the Indian Foundation of Transport Research and Training, stated that freight prices had fallen between 13% and 15 % on three quarters of the key long-haul routes, despite an increase in fuel prices.
Singh noted that drivers have to wait longer before returning from trips.
"Truckers do not get return tonnages. He said there is a 3-5 day delay because the manufacturing process has slowed. This is impacting their revenue, as their "round trips per months have been reduced."
According to preliminary data, Indian gasoline retailers saw their sales rise 2.8% in May compared to a year ago. Gasoil sales also increased 0.9%. This compares to April's figures, which showed a 6.8% rise in gasoline sales and a 0.8% growth for gasoil.
(source: Reuters)