Latest News
-
Portugal will use all available tools to protect refining capacity during the Galp-Moeve merger
Luis Montenegro, Portugal's Prime Minister, said that the government was monitoring merger talks between the?Portuguese Oil Company Galp and Spain’s Moeve. The government will use every tool available to protect Portugal's strategic refining capability. Moeve and Galp began talks in January to create two joint ventures - one that would operate 3,500 fuel stations in the Iberian Peninsula and another that would combine Galp's refineries?in southern Sines with Moeve refineries in southwest Spain's Huelva & Algeciras. Moeve will hold the majority of?the refining company, one of Europe's largest, while Galp will retain just over 20%. Montenegro announced late on Tuesday that the government has been closely monitoring negotiations "from the first day to safeguard Portugal's refinery capacity". They described it as an issue of sovereignty, strategic security and energy. He told the parliament that "we will not refrain from?using?the full range of action available to government as a shareholder, and through its regulatory authority." Portugal, which has had a law in place since 2014, to protect strategic assets, including those in energy, and the state owns approximately 8.4% of Galp, is the only country that did not specify what tools it could use. Even though the government has no direct veto, it can use its leverage to seek assurances about the future of the refinery, which is the only one in the country.
-
Dangote's proposed Kenyan refinery faces challenges, including crude supply
Aliko Dangote, a billionaire, has set his sights on replicating the project that launched Africa's largest oil refinery, in Nigeria, less than three years ago. But the construction of his company's planned new 700,000-barrel-per-day Lamu refinery in Kenya promises to bring a whole new set ?of issues -- not least where to secure crude supply in ?a country that, unlike oil-rich Nigeria, currently has no commercial output. Plans are changing rapidly. Discussions about Dangote's East African Refinery centered on Tanzania until April. Dangote said to the Financial Times that he would prefer the refinery be located in Mombasa in Kenya. However, in July an executive stated it would be constructed in Lamu. This deep-water port is critical for the refinery’s success. The company hopes to finish the refinery before 2030. It will hold a groundbreaking at the end this month. Aliko Dangote said that he expected it to cost between $15 billion and $16 billion. The project will test whether the model which helped Nigeria become a fuel exporter and a country with less crude oil supplies can be replicated in a region that has a lesser energy infrastructure. Devakumar Edward, vice-president of Dangote Industries said that there are no challenges to be overcome in terms of regulatory, financial and feedstock issues. It has been previously stated that the company believes this project will improve regional fuel supply as well as energy security. Brendon Verster is a senior economist with Oxford Economics. RAISING CAPITAL In July, a company executive stated that Dangote Group intends to finance the Kenyan Refinery using internal cash flow and?bonds. Dangote plans to launch the largest ever IPO for Africa, a Lagos refinery. Dangote, if he follows the Lagos playbook, could add his own equity to a mix that includes commercial bank loans, and development finance institutions like Afreximbank. The company has already announced other major expansion plans. On Monday, it said that it would spend $14.3billion to double the capacity of its Lagos facility. Analysts say that Dangote is already pursuing multiple oil-related project and that securing funding could be a problem. Kaase GBakon, a former petroleum economist with the state-owned Nigerian Oil Company NNPC, said that raising capital for Lamu would be a challenge, given the group's goal of obtaining?40 billion dollars (including Lamu), between 2025 and 3030 for the announced energy projects. Dangote also suggested that East African nations like Rwanda, South Sudan and Tanzania could each take a 30% equity stake. This would create a new funding source and tie the governments to the project. However, no specific details were given about potential deals. CRUDE SOURCES According to Kenyan reports, the chief economist of Kenyan President William Ruto said that, in terms of feedstocks, the plant would be able to secure a daily crude oil supply of 600,000 barrels from East Africa. This includes South Sudan, Uganda and Kenya. None of these sources are simple. Kenya has oil reserves that have been proven but it has taken years to start production. The prospect of a crude pipeline connecting South Sudan's oil fields, whose exports have been disrupted due to insecurity in Sudan, with Kenya's Lokichar Basin and Lamu Port is still a long way off. Maximillian Ezeude is an oil and gas lawyer from Lagos who told us that South Sudan exports go through Sudan while Uganda barrels are sent to Tanzania via EACOP. Ezeude stated that "This leaves the coastal facility reliant on an unstable international seaborne market". The Middle East is the nearest major source of seaborne imports, and the Iran War is disrupting exports. The refinery is located in the Lamu Port - South Sudan - Ethiopia Transport (LAPSSET), a special economic zone near Lamu Port. Lamu Port currently does not have any operational oil storage terminals. The LAPSSET corridor project provides for oil storage facilities at Lamu that can store between 1 and 1.5 million barrels of oil, as well marine loading facilities that can handle vessels of the Suezmax class. This infrastructure is still largely unbuilt. PROJECTS WILL ENGENDER GROWTH, SAYS PRESIDENT The refinery could also have an impact on?Lamu Old Town, located on Lamu Island. This is a World Heritage Site 10 km (6 miles), from Lamu Port. Greenpeace Africa also called on the project to stop due to concerns over habitat destruction and marine degrading. Kenya's Ruto said that the country, whose one refinery was shut down by Essar Energy of India?in 2013, believes the new plant can eliminate costly fuel imports. According to official figures, it spent $4 billion (511,5 billion Kenyan Shillings) on petroleum last year. Ruto, speaking of the Lamu Project, said: "We must make decisions that will change and transform our country." Benjamin Oluwatobi Ajayi is an energy analyst in Lagos. He said that the challenge posed by the project was "substantial". He said that the execution risk was increased by the size of the required debt, the ESG-related constraints on financing, the competition for capital between multiple projects and the need to coordinate many lenders and stakeholders in a short time frame.
-
ENOC executive: Costs of oil vessel transit through Hormuz increased after the Iran war
An executive of Emirates National Oil Company (ENOC), said that the cost of oil vessel transit through the 'Strait of Hormuz has increased significantly since the Iran war. This is due to a sharp increase in the costs of cargo insurance and 'additional war risk premiums. According to ENOC?director Paul Bradshaw, cargo insurance now represents a significant percentage of the value being shipped. "I've seen up to 6%." Bradshaw said at the APPEC Conference that this could mean an additional $10 million in cargo insurance. There is a higher premium for transits. Bradshaw explained that the rates for attempting to escape used to be zero, but now they can reach up to 10% of the cargo. He said that transit costs have risen to $10 to $20 million and that some market participants have decided to not insure. In order to better control costs and voyages, more national oil companies have taken back control of their shipping operations. Bradshaw stated that some NOCs have taken on their own ships to have greater control in times of conflict. He said that only a small number of shipowners were willing to take on the risk for safety reasons. The 'Iran war' has caused disruptions around key chokepoints, causing cargoes to be moved onto more complex and longer routes. This has affected the freight economy and vessel availability.
-
NTSB: Pilots may have considered abandoning landing after touchdown during Miami cargo crash
The National Transportation Safety Board announced on Tuesday that evidence from a flight recorder indicated that the pilots of a cargo plane operated by Amazon Prime Air involved in a fatal crash may have considered abandoning the landing after the plane touched down. Five people were killed and five injured when a?32-year old Boeing 767 operated from Miami by 21 Air crashed into two cars after it overran the runway. Jennifer Homendy, Chair of the NTSB, told reporters that on Wednesday investigators would be interviewing both pilots and releasing details from "the cockpit voice recording". The NTSB stated that 30 seconds prior to the end flight data recording the nose landing gear, right main landing equipment, and left main landing were all landed on the runway with a speed of 158 knots. The brakes were then released, and the throttles increased to values that were consistent with go-around thrust. This was a late attempt at aborting the landing and getting back into the air. The throttle was reduced to idle power 11 seconds before recording ended. Brakes were then re-applied. The ground speed at the end was 65 knots. The NTSB stated that there was no indication in the recorded data of speed brakes or reverse thrusters being used to slow the plane. Homendy leads a team of 32?investigators at Miami International Airport. She stated that the NTSB had been able to open one of the?two closed runways?since the incident to allow departures in an easterly directions late on Tuesday. Amazon's cargo plane was flying its third flight of the day from San Juan in Puerto Rico. The plane had flown earlier from Cincinnati to Miami, and then from Miami to San Juan on Sunday. EDT (1753 GMT). NTSB reported that the captain, 55, has 7,145 flying hours and received his 767 type rating in May. The first officer, 37 has 2,655 flight hours and received his 767 type rating in April 2025.
-
Evidence suggests that pilots may have considered abandoning landing after Miami cargo plane crash
The National Transportation Safety Board (NTSB)?said Tuesday that evidence recovered from a?flight data /recorder indicated the 'pilots may have considered aborting the landing of an Amazon Prime Air cargo aircraft before it crashed and killed five people in Miami. The 32-year old Boeing '767 operated Miami-based 21 Air, overran the runway by about 1,300 feet (396 meters) and crashed on Sunday into two vehicles on the ground. Five people were killed and five injured. NTSB Chair Jennifer Homendy stated that investigators would be interviewing both pilots on Wednesday. The NTSB stated that the nose landing gear and the right main landing gear touched the ground 30 seconds before recording ended, while the left main landing gear landed 19 seconds?before recording finished. The brakes were released a few seconds later and the throttles increased to values that corresponded with the go-around thrust. The NTSB also stated that there was no indication in the recorded data that thrust reversers or speed brakes were used.
-
Why Air India's financing call has been scrutinized by Singapore politicians
Air India's request to its owners, Tata Sons and Singapore Airlines, for $1.5 billion has sparked debate in Singapore about the exposure of state investor Temasek to Indian carrier. A government minister stated that the news of the funding request had led to anti-Indian abuse on the internet, and asked the police to investigate the comments. Here are some key facts AIR INDIA REQUEST FOR FUNDING Air India approached India's Tata Group as well as Singapore Airlines to discuss equity funding. This comes after Air India and its budget airline posted a record-breaking annual loss of 2,33 billion dollars last month. Singapore Airlines, which is majority owned by Temasek (a state-owned investor), holds 25,1% of Air India. It has also taken a share of Air India's losses. Why has the request sparked political scrutiny? In a post on social media, opposition Workers' Party legislator Kenneth Tiong stated that Temasek's money should not be used for Air India via Singapore Airlines. Singaporeans are indirectly shareholders in the flag airline because Temasek manages and owns its assets, and its reserves are part of Singapore's national reserve, according to Tiong. Singapore Airlines was defended by the government in a strong manner in Tuesday's debate in Parliament. Transport Minister Jeffrey Siow stated that investment decisions belong to the board of Singapore Airlines and that Singaporeans are not paying for Air India's investment. Siow said that Singapore Airlines has not asked for additional capital from its shareholders. Air India and Tata did not publicly comment on the funding request. WHAT HAS TEMASEK AIRLINES AND SINGAPORE RAILWAYS DONE? Temasek said that it views the investment of Singapore Airlines in Air India as a long-term one and has supported it. Singapore Airlines said on Tuesday that it will continue to fund its investments in India 'through internal resources and subject to board approval, and within a disciplined framework for capital allocation. The?stake was described as a strategic long-term?commitment in line with the multi-hub strategy. Why has it been racist abuse? Senior Minister K. Shanmugam stated over the weekend, that the news of the funding request had prompted anti-Indian abuse on the internet. This included suggestions that Temasek Chief Executive Dilhan Pillay Sandrasegara preferred?Air India due to his Indian ethnicity. Shanmugam described such remarks as libellous, and said that the CEO is as Singaporean as any other. Temasek didn't respond to a comment request. Shanmugam said he asked the police to investigate those 'comments and separate comments about Singaporeans who were missing in flash flooding abroad. Prime Minister Lawrence Wong also condemned this abuse and said that seemingly valid arguments should not cover prejudice or hostility against foreigners.
-
US watchdog will review whistleblower warnings on voting rules
The?U.S. The?U.S. Postal Service Office of Inspector General?announced on Tuesday that it will conduct an independent review of allegations made by a whistleblower. This whistleblower warned that proposed?USPS mail in voting restrictions may result in thousands of legal votes being discarded. A federal judge in Boston, extended on Friday a ban that prevented President Donald Trump from implementing the new USPS rule which would have tightened mail-in voting requirements before the November congressional elections. Last week, the?administration of President Donald Trump asked the Supreme Court for permission to enforce the new USPS rule regarding the?use mail-in votes. They said that the new rules would 'threaten integrity of the November congressional election.' The lawmakers cited a whistleblower warning that the "verification" system planned by USPS "risks collapsing absentee voting and disenfranchising many millions of Americans." USPS regulations would require new standards for voter data and ballot envelopes, and could refuse delivery to ballots that did not meet these requirements. Critics say this could lead to thousands of 'legitimate' votes being thrown out as the November 3, 2016 election approaches. Republicans are in a fierce battle to keep control of the?Congress during elections. Critics claim that restricting mail in ballots would disproportionately benefit Republicans, given that Democratic voters are more likely to mail in ballots. The new USPS rule requires that?states provide lists of mail-ballot recipients to the postal service, and use envelopes with unique barcodes approved by the agency for outbound and returned ballot mail. Postal service officials could refuse to mail ballots that don't meet the new standards, or those associated with voters not listed on the list.
-
Wizz Air and Ryanair demand NATS overhaul following UK flight disruption
Budget airlines 'Wizz Air' and 'Ryanair, both European carriers, called for a restructure of Britain’s air traffic controller NATS on Tuesday after a?new technical issue that caused?hundreds? of flights to be disrupted at key airports across the country. "A vital national infrastructure provider shouldn't repeatedly stop the aviation system." NATS in its current state is not suitable for the purpose it was intended for," said a Wizz Air spokesperson. Rival airline Ryanair has also criticised this agency and demanded the resignation of its CEO, Martin Rolfe. We were told that lessons would be learned after the collapse of 2023. "Resilience will improve" was the message. We were told that the systems had been repaired. "Yet here we are again", said Ryanair Chief Operating Officer Neal McMahon. NATS said it had implemented "a fix" to the latest problem and was working closely with airlines and airports in order to restore normalcy. We continue to work closely together with our airport and airline customers on recovery. "We sincerely apologize for the disruption of people's travels today and encourage them to continue to contact their airline," said a spokesperson in a press release. The British aviation regulator said that in 2024 NATS would need to revise its contingency plan for 'outages' after the automatic processing of flight schedules malfunctioned one year prior, causing chaos at Britain's airports. The Civil Aviation Authority announced on Tuesday that it has been in touch with NATS regarding the incident, and is expecting the latter to provide a complete report. A CAA spokesperson stated that "we will then determine if?any additional steps are needed to ensure the safety and reliability of the UK air traffic control system."
Asian area LNG slips on tepid need, ample supply
Asian area melted natural gas (LNG) somewhat slipped this week as need stays tepid amid sufficient materials.
The average LNG rate for November shipment into north-east Asia << LNG-AS > was at $13.00 per million British thermal systems ( mmBtu), market sources approximated, below $13.10/ mmBtu last week.
The rate for December shipment was estimated at $ 13.30/ mmBtu.
Asia spot prices have held stable week-on-week (though). reducing somewhat, stated Go Katayama, LNG and natural gas. expert at Kpler.
The small decline was driven by receding geopolitical. stress and adequate LNG supply to Asia.
Oil rates had actually reduced on Tuesday on news of a possible. ceasefire between Israel and Iran-backed Hezbollah, though. Israeli strikes killed 22 individuals and injured over 100 in Beirut. on Thursday.
The dispute between Israel and Hezbollah appeared one year. ago when Hezbollah opened fire in assistance of Palestinian. militant group Hamas at the start of the Gaza war.
On LNG supply, train 2 at Australia's Ichthys LNG rebooted. operations this week. It was formerly taken offline in August. for inspection and repairs.
Nevertheless, 2 trade sources said two production trains at. Petronas' Bintulu LNG Complex in east Malaysia are offline, with. among them including that trains 7 and 8 at the MLNG Tiga. production center are the afflicted ones.
Petronas did not right away react to a request for. remark.
In Japan, Kansai Electric Power will shut the No. 3. reactor at its Mihama nuclear power station after discovering. two little holes in a pipeline, and Shikoku Electric Power. shut the Ikata No. 3 reactor due to a malfunction in. the devices used to monitor fuel combustion.
Atomic power plant shutdowns could cause an increase in LNG. demand to meet power requirements in Japan.
In Europe, S&P Global Commodity Insights assessed its daily. North West Europe LNG Marker (NWM) price criteria for freights. delivered in November on an ex-ship (DES) basis at $12.635/ mmBtu. on Oct. 10, a $0.21/ mmBtu discount rate to the November gas price at. the Dutch TTF center.
Argus assessed the price for November shipment at. $ 12.610/ mmBtu, while Glow Commodities examined it at. $ 12.649/ mmBtu.
Costs in both key need markets had been moving ... However a. sharp increase in European DES markets on Thursday cleaned losses on. the week, stated Samuel Good, head of LNG rates at product. pricing company Argus.
Europe's gains on Thursday came from multiple motorists, not. least additional extensions to Norwegian gas maintenance on the day. which is set to slow the increase of pipeline gas deliveries. to the area as it steps further into winter and towards the. peak heating demand period.
In LNG freight, Atlantic rates fell for a third straight. week to $45,000/ day on Friday, while Pacific rates also declined. to $52,250/ day, stated Glow Commodities analyst Qasim Afghan.
(source: Reuters)