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Lithuania closes Vilnius Airport again due to balloons in the airspace
The National Crisis Management Centre of Lithuania reported that the Vilnius airport in Lithuania was closed Saturday as a result of weather balloons that entered its airspace from Belarus. This is the fourth disruption to the airport this month. The NCMC reported that traffic at the airport had been suspended until 2 am (2330 GMT). In recent weeks, drone sightings have caused chaos at European airports including Copenhagen, Munich, and the Baltic Region. Lithuania said that smugglers who transport contraband cigarettes send balloons, but also blamed Belarus President Alexander Lukashenko - a close friend of Russian President Vladimir Putin - for not stopping this practice. Inga Ruginiene, the Lithuanian prime minister, said on Friday that the National Security Commission would meet next week to evaluate the situation. (Reporting and editing by Terje Solsvik, Andrius Sytas)
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Aeromexico asks US Court to block Trump Order forcing Delta joint venture to end
Aeromexico requested the 11th Circuit Court of Appeals to stop a Trump Administration order that forced it to dissolve a joint venture between Delta Air Lines and Aeromexico by January 1, 2018. The joint venture allows the carriers to coordinate scheduling, pricing, and capacity decisions on U.S. to Mexico flights. Aeromexico claimed that even if the court upheld this arrangement, it would still be faced with substantial costs it couldn't recover. The U.S. Department of Transportation, in September, ordered the termination of the joint venture, which had been operating for nearly nine years, as part of a series of actions targeting Mexican aviation. USDOT didn't immediately respond to a request for comment. Aeromexico stated that the order required it to "divert Existing and hire new employees, establish a brand presence in the U.S. and separate its pricing and sales platforms for U.S. from Delta's." The Mexican airline added that the airlines would suffer "concrete and calculable damage" from an overhaul of their brand and operation. USDOT announced in August that the joint venture must end due to "ongoing anticompetitive impacts on U.S. Mexico City markets which provide unfair advantages to Delta and Aeromexico." About 60% of passengers flying from Mexico City Airport into the U.S. are carried by these carriers. The airport is the 4th largest international gateway into and out of the United States. Aeromexico has a 20% share of the U.S. - Mexico market with Delta, while American Airlines holds 21%. USDOT has stated that the likely issues from this venture are higher fares on some markets, reduced capacities and difficulties for U.S. carriers because of government intervention. Delta claims that up to $850 million in consumer benefits per year could disappear, and two dozen routes may be cancelled. Smaller aircraft will replace the existing planes. (Reporting and editing by Richard Chang; Reporting by David Shepardson)
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Sources say that Sable will need to raise $1.7 billion to advance the Santa Ynez Project.
Two sources with knowledge of the matter said that Sable Offshore will need $1.7 billion to implement a floating-storage strategy as an alternative for marketing crude oil from the Santa Ynez Field off California via pipeline. Sable Offshore told investors last month that it would pursue an offshore storage strategy and treat vessels to market oil from the Santa Ynez Project, but it continued to fight California regulators who challenged its plan to restart an onshore pipeline to move crude from the Santa Ynez Project to regional refineries. It was not previously known what the estimated cost would be to pursue this strategy. Sable's estimate includes the refinancing a $900m loan from Exxon Mobil, which was used to purchase the project after the oil giant shut it down in 2015 due to an oil spill. Sources said that approximately $450 million would be needed to purchase or convert the offshore storage vessel, as well as any modifications. Another $300 million would cover operational costs including general and administrative expenses. Sources said that the company was in discussions with the U.S. Government for funding for the project. This could include a federal guarantee of loan, they added. Sources requested anonymity because the details of the negotiations and estimated funding requirements with the U.S. Government are not public. Sable refused to comment on financing estimates or discussions with the federal government. The White House didn't immediately respond to our request for comment. A MONTH-LONG PIPELINE DISSENSION Sable is locked in a dispute with California that has lasted for months over the restarting of the Santa Ynez Project, which was shut down nearly a decade ago after the spillage in 2015. Sable resumed production on one of the platforms back in May. A California judge tentatively ruled last week against Sable Offshore’s request to lift a California Coastal Commission cease and desist on repairs made to its onshore pipeline system called Las Flores. Sable said at the time that the decision did not impact its plans to resume transportation of petroleum through Las Flores, or production. However, it added that it would appeal the decision. Sable's plans for reopening the pipeline have been dealt a further blow this week after the California Office of State Fire Marshal stated that Sable had not met all the requirements to restart the pipe. In a letter dated Oct. 22, the OSFM informed Sable that it had not completed the repairs to the pipeline as required by the waivers it received last year. Sable's response to OSFM Thursday said that the conclusions of the agency are incorrect and in conflict with the numerous discussions between the two parties. "Sable strongly opposes the allegations. They are inconsistent with both the plain language in the waivers as well as numerous previous discussions with OSFM expert that confirm Sable's full compliance with waivers. Sable will supplement this initial reply and is looking forward to quickly resolving the misunderstanding with OSFM", it stated on Thursday. (Reporting and editing by Anna Driver in New York, Shariq Khan from New York)
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Reclining seats are another airline convenience that comes with a price.
The latest airline perk is reclining seats, but it comes at a price. Both passengers and staff are annoyed by this. WestJet, based in Calgary, began flying its first newly configured 43 planes on Wednesday. Standard economy seats are now fixed. The option to recline seats is still available but at a higher price. This has sparked a backlash among some passengers and pilots who claim that the change may affect their health and safety. Bernie Lewall is the chair of a WestJet local union. He wants to ensure that pilots are not forced to fly in seats with non-reclining backrests to their work locations, also known as deadheading. Lewall, the chair of WestJet ALPA Master Executive Council said: "If they believe that there is a market in this area I am fine with it." What I am not okay with is being forced into a deadheading seat where it may lead to fatigue or health issues. He said that pilots were considering a grievance. WestJet has said that any deadhead travel by pilots will be managed according to their collective agreement. Although European low-cost airlines don't usually offer reclining chairs, this is a new development for North Americans who view it as an additional charge to previously free benefits like carry-on luggage and seat selection. Gurneet, a 28-year-old student from Greater Toronto said: "I believe there must be an alternative that makes flights more affordable without sacrificing comfort." Melissa Fisher, of Portland, Oregon said that travelers have limited power to fight back, as low-cost airlines increasingly charge for extras in order to boost their finances. What are you going do? What if you don't want to fly? "Pay more?" She said. The reclining economy seats are not for everyone. They often cause disputes in the air. WestJet reported that half of the passengers who tried the new seats preferred a fixed recline in order to prevent others from encroaching upon their personal space. The airline will complete the remaining 42 aircraft early next year. They will represent less than one-third of its narrowbody fleet. "Unfortunately there is no legal right to reclined seats," said Dr. Gabor Lukacs of Air Passenger Rights, a nonprofit organization. (Reporting by Allison Lampert, Montreal; Doyinsola Oladipo, New York; Editing and production by Joe Brock and Rosalba Brien).
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Transport ministry: Lithuania closes airports because of balloons from Belarus
The Lithuanian Transport Ministry said that the Vilnius and Kaunas Airports in Lithuania were closed Friday night because of meteorological weather balloons coming from Belarus. This is the third disruption to the airports this month. In recent weeks, drone sightings have caused chaos at European airports including Copenhagen, Munich, and the Baltic region. In a press release, the Lithuanian transport ministry stated that all traffic was suspended at both airports until 2200 local (or 1900 GMT). National Crisis Management Centre said that "tens" of balloons were noted on radar. Authorities have confirmed that the Vilnius Airport was closed on Tuesday, October 5 and 5, after smugglers balloons carrying contraband cigarettes from Belarus entered the airspace of the capital city. Inga Ruginiene, the Lithuanian prime minister, said that Wednesday The Baltic country will close its border to Belarus if balloon smugglers enter again from Belarus. (Reporting and writing by Andrius Sytas; editing by Terje Solsvik).
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US to expect more flight delays, as controllers will soon miss their paychecks
Sean Duffy, the U.S. Transportation secretary, said on Friday that he expected more flights to get delayed. Air traffic controllers will miss their first pay as a government shutdown enters its second week. The government shutdown will force 13,000 air traffic control officers and 50,000 Transportation Security Administration agents to work without pay. The first full pay for controllers is not due until Tuesday. Duffy told Fox News' America Reports that "you'll see more disruption as we approach Tuesday" and "after." Duffy told a press conference in Philadelphia Airport that Federal Aviation Administration’s air traffic control academy would run out of funds within weeks and that some students have already decided to drop out. Airlines prepare for more disruptions. Nick Daniel, President of the National Air Traffic Controllers Association, said during a press conference that controllers face immense stress. Some are even taking on second jobs to pay for their bills. Daniels stated that the shutdown is "an unnecessary distraction" and makes it impossible for employees to focus on their jobs. This, in turn, makes the system less safe. "We didn't start a shutdown. Our elected officials end the shutdown, not us. "Our message is clear: End the shutdown now." The Transportation Department reported that about 6.6% of the flights were delayed on Thursday due to the absence of air traffic controllers. This is slightly higher than the 5% normal but still lower than the 53% experienced in the days prior during the shutdown. The FAA reported that staffing problems at the air traffic control caused delays in travel to New York, Washington DC, Newark, and Houston airports on Thursday. This is slightly higher than the normal 5%, but much lower than 53% of flights delayed during previous days. During a 35-day government shutdown in 2019, the number of controllers and TSA agents absent increased as they missed their paychecks. This led to longer wait times at airport checkpoints. New York and Washington authorities were forced to slow down air traffic. Even before the shutdown, many air traffic controllers were working six-day weekends and mandatory overtime. (Reporting and editing by Leslie Adler, David Gregorio, and David Shepardson)
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US increases facial recognition at border to track non-citizens
According to a document released by the government on Friday, the U.S. plans to expand its use of facial recognition to track noncitizens who enter and leave the country to combat visa fraud and overstaying. New regulations will expand on a pilot program that allowed border officials to take photos of non-citizens at airports or other points of departure. The regulation is set to come into effect on December 26 and could require that other biometrics such as DNA or fingerprints be submitted. The law also allows border officials to use facial recognition on children under 14 years of age and older people over 79 years, two groups currently exempted. The new border rules are part of a larger effort by U.S. president Donald Trump to crackdown on illegal immigration. The Republican president has increased resources to secure border between the U.S. and Mexico, but he's also taken steps in order to reduce the number people who overstay their visas. Watchdog groups are concerned about privacy issues raised by the growing use of facial identification in U.S. Airports. In a report from 2024, the U.S. Commission on Civil Rights stated that tests showed facial recognition had a higher likelihood of misidentifying Black people and other minorities. In 2023, the Congressional Research Service estimated that 42% of 11 million illegal immigrants living in the U.S. at the time overstayed a Visa. In 1996, the U.S. Congress passed a law mandating an automated entry/exit system. However, it was never fully implemented. The regulation stated that U.S. Customs and Border Protection uses facial recognition to verify all commercial air entry but only for exits in certain locations. CBP estimates a biometric system for entry-exit can be implemented in all commercial seaports and airports within three to five year. (Reporting Ted Hesson, Additional reporting David Shepardson, Editing Chris Sanders and Margueritachoy)
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Sources say that Russia's fourth largest oil refinery has halted a processing unit following a drone attack.
Two industry sources said on Friday that the fourth largest oil refinery in Russia, located in Ryazan, south-east of Moscow, had halted its primary crude distillation unit following an attack by a Ukrainian drone on Wednesday. Ukraine has intensified its attacks on Russia’s energy infrastructure, as the peace talks that were mediated by U.S. president Donald Trump failed to progress. Local authorities in Russia have reported that such attacks are the cause of fuel shortages in several regions. The Ukrainian General Staff said that Kyiv forces struck the Ryazan Oil Refinery on Thursday. Industry sources in Russia said that the CDU-4 unit was shut down on Thursday, after it caught fire due to a drone attack. The unit has a capacity of 4 million metric tonnes per year or 80,000 barrels a day. This is about a quarter the total plant capacity. The oil company Rosneft that owns the refinery did not reply to a comment request. Sources said that the refinery is still processing oil but in a smaller volume. According to one source, some units adjacent were also shut down, including a vacuum gasoil hydrotreater, catalytic cracker and reformer. In 2024 the refinery will process 13.1 million tonnes of crude oil, resulting in 2.3 millions tons of gasoline, 3.4million tons of diesel, and 4.2million tons of fuel. Reporting by Elaine Hardcastle; Editing by Elaine Hardcastle
Asian spot prices drop on weak demand and ample supply
The Asian spot price of liquefied gas (LNG), due to a weak demand and abundant supply, fell this week. It was the lowest it has been in more than a year.
Average LNG price for delivery to North-East Asia in November
Kesher Sumeet is an analyst with Energy Aspects. He said that the demand signals in Northeast Asia are muted because countries are well-stocked. This, along with the strengthening of global LNG exports, are reducing supply competition between Europe and Asia.
Martin Senior, Argus' head of LNG pricing, says that while extended holidays are causing a slowdown in demand in China and South Korea, the low prices this week have stimulated some demand from India and Thailand.
The tenders that close on October 3 are for spot cargoes to be delivered through mid-November by Indian Oil Corp, PetroVietnam Gas and Thailand's Gulf Energy.
In Europe, S&P Global Commodity Insights set its daily Northwest Europe LNG Marker benchmark price for cargoes to be delivered in November ex-ship at $10.999/mmBtu. This was a $0.63/mmBtu reduction from the November price at TTF's Dutch hub.
Spark Commodities rated the price at $10.183/mmBtu while Argus rated it at $10.14/mmBtu.
The JKM-TTF spread has been pushed to a TTF Premium in recent days due to the continued weakness of Asian LNG demand. This is being amplified further by the expectation of an increased LNG volume in the New Year, said Florence Schmit.
Schmit said that the increased supply of LNG on the market is due to the flow from the sanctioned Arctic LNG 2 U.S.-Russia project.
Ronald Pinto, analyst at Kpler, is bearish on the TTF front month contract for the coming week. He believes that the pipelines in Norway and Algeria will be able to supply more gas as the maintenance is completed, and the strong wind output, coupled with rising temperatures, should limit the demand of gas, thereby supporting storage injections.
Gassco, the Norwegian gas operator, said that it anticipates high gas supplies to Europe in winter despite a temporary reduction of capacity at its Kollsnes plant.
Seb Kennedy, an independent gas and LNG analyst, noted that hedge funds reduced their bets for higher TTF gas price, by reducing their position net, which is reflected in the fact that market fundamentals are weakening in Europe.
He added that commercial players, including utilities and producers, increased their net-long position to its highest level since February 2024 in order to reduce risks and because of discretionary trading.
Max Glen-Doepel, Spark Commodities analyst, says that the U.S. front-month arbitrage to Northeast Asia via Cape of Good Hope still only marginally encourages U.S. cargoes delivered to Europe.
He said that the Atlantic LNG rates increased to $22,750/day last Friday while Pacific LNG rates dropped to $24,500/day.
(source: Reuters)