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Gupta denies knowing about duplicate cargoes as testimony in Trafigura fraud case closes
Indian businessman Prateek gupta was accused of orchestrating a $600m metals fraud by commodity group Trafigura. He told a court in India on Friday that he didn't know who within his companies had allegedly made fake documents for selling the same cargo to multiple customers. The long-running trial concluded on Friday with the testimony. It will resume again on December 10, for closing arguments. Trafigura, a Geneva-based company, sued Gupta in more than two years. It claimed that he had orchestrated a ruse where he and his firms agreed to deliver pure nickel instead of steel or scrap. Trafigura's lawyers accuse Gupta on Thursday of stealing funds from an alleged fraud in order to support his business empire as his companies ran out of money early in 2021. Gupta said Trafigura employees designed the scheme at the heart of the case. This allegation has been repeatedly denied by the trader. Nathan Pillow, a Trafigura lawyer, showed Gupta two copies of shipping documents with the same number from 2022. One of them, he claimed, was a copy sold to Trafigura and stamped by TMT Metals AG - one of Gupta’s companies. "You...were driven by your financial problems to resort to this type of scam", Pillow told Gupta at a London High Court. This created millions of dollars in revenue for your companies that were on the verge of bankruptcy. Pillow asked Gupta on his third day to testify who had signed and stamped the document. He replied that he was unaware of any duplicates or who might have signed them. Gupta announced in 2015 that he was planning a major expansion of his UD Group. He aimed to expand the group into Europe, Russia, and Africa, and increase the headcount to 400 people within the next two years. (Reporting and editing by Eric Onstad)
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Serbia wants sanctions lifted after saying that the U.S. sanctioned NIS refinery will be idle until December 2.
Energy Minister Dubravka Handanovic announced on Friday that Serbia's U.S. sanctioned NIS oil refinery, which is owned by Russia and operated under U.S. sanctions, will continue operating in a so-called "idle mode" until December 2, as it expects to be exempted from the U.S. sanctions. After a series of waivers, the Office of Foreign Assets Control of the U.S. Treasury Department imposed sanctions on NIS as part of broader sanctions against Russia's oil and gas industry in October. NIS announced on Tuesday that, due to a shortage of crude oil coming from the Janaf pipeline in Croatia, its only refinery will be switched to the "hot standby" mode, which would allow a faster restart when imports become available. Djedovic handanovic stated that the refinery with a capacity of 4.8 millions tons per year would be restarted as soon as NIS received a waiver from the United States. It requested one on 19 November for the duration negotiations for the sale the Russian stake in NIS. She said that if the U.S. response is positive, the refinery will be able produce the first quantities of Diesel... on December 15, after meeting with representatives of fuel retailers in Belgrade. A complete shutdown of the refinery could hurt the economy. Experts in oil refining said that hot standby mode shouldn't be extended beyond a few days. The majority of Serbia's gasoline is imported by neighboring Hungary, via the Danube river as well as train and truck. The U.S. granted Budapest an exemption to sanctions so that it can continue importing fuel. Peter Szijjarto, the Hungarian Minister of Foreign Affairs, said that Hungarian oil company MOL doubled its deliveries to Serbia during November and will deliver 2.5 times more fuel and crude oil in December. Aleksandar Vucic, the Serbian president, said on Tuesday that Russian NIS owners, who collectively hold more than 50 percent, had 50 days to sell or else the government would buy out their shares and take over. A top Hungarian official told reporters on Thursday that Hungary might buy a stake. (Reporting and editing by PhilippaFletcher; AleksandarVasovic)
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Strikes against PM Meloni disrupt transport in Italy
The protests and strikes in Italy against Giorgia's Meloni government on Friday caused dozens of flight cancellations and disruptions to train services throughout the country. The USB hardline union and smaller worker organizations called for the one-day strike against the government’s plans to increase military spending and support for Israel. In recent years, the USB has emerged as a grass-roots movement that is challenging the dominance of three major confederations: the CGIL (left-wing), the CISL (centrist) and UIL (right-wing). Bologna has cancelled 17 flights while Malpensa in Milan has cancelled 27. Milan Linate Airport, Naples and Venice are also affected. ITA Airways, Italy's largest airline, said that it has cancelled 26 domestic flights because of the strikes. Protests stopped trains at the smaller Milan station Lambrate after train cancellations in Rome, Turin and Milan. In Rome and other cities, public transport was disrupted. In Turin, hundreds of protesters marched, some waving Palestinian flags. Yanis Varoufakis, former Greek Finance Minister, and Francesca Albanese, Special Reporter on Palestinian Rights for the U.N., also attended a pro-Gaza demonstration in Genoa. Police used water cannons to disperse activists who had blocked the entrance of Leonardo, an Italian defence group. USB organised a national protest day on Saturday to protest what they call Meloni's 'war budget. They claim that the financial bill for 2026 favors military expenditures over needed investments in health, education, and welfare. The budget of Prime Minister Meloni (in power since 2022) has been described as "serious and balanced" by the PM. She cited income tax reductions for middle-income earners, which she said could help Italy's slowing economy. The CGIL, Italy’s largest union and the more mainstream one, announced a nationwide walkout of its members on December 12 over budget issues. (Reporting and writing by Anna Uras; Editing by Keith Weir).
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Sri Lanka prepares for further flooding after Cyclone Ditwah kills 46 people
The cyclone Ditwah, which swept across Sri Lanka Friday, left 46 dead and 23 people missing, amid floods. Strong winds and torrential rainfall are expected to bring more flooding within the next 12 months. Officials say that the majority of deaths in eastern and central areas were due to landslides caused by rainfall exceeding 300mm (12 inches). According to the Disaster Management Centre, nearly 44,000 people in total were affected, many of whom sought refugee in public and school shelters. The Irrigation Department has said that it expects the floods, which have already affected many areas in southern and eastern Sri Lanka including parts of Colombo's capital, to continue. Colombo Stock Exchange has halted early trading, while schools and train services remain suspended. The air force reported that the military and police coordinated the evacuations. This included the airlifting 13 people trapped on a Polonnaruwa bridge, 220 kilometers northeast of Colombo. Air force footage shown to the media revealed that many families stuck on roofs, and a man trapped on top of a tree with dozens of coconuts were airlifted safely. Sri Lanka Airport and Aviation Services reported that heavy rains caused the cancellation of 15 flights at Colombo’s Bandaranaike International Airport. These flights were diverted to other airports in India including Trivandrum and Cochin. The Indian High Commission at Colombo announced that India had delivered 6.5 tons of food aid in order to help in the relief efforts as Cyclone Ditwah swept across Sri Lanka and towards southern India. After warnings about rising floodwaters, over 20,000 police officers and soldiers stepped up their evacuations across multiple towns in Sri Lanka including the suburbs of Colombo. Strong winds make the flooding worse. "We moved furniture from two houses nearby to a safe area and now I am going to the shelter with my family to stay," said Mohammed Rumy a 70-year old resident of Colombo’s Wellampitiya suburban.
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Russia loses its seat in the UN Shipping Agency's governing Council
Russia did not win enough votes on Friday to rejoin the U.N. Shipping Agency's governing Council despite its appeal to countries to support its nomination to reclaim a seat that it lost in 2023. This is yet another setback for Russia, which failed to gain enough support to be elected to the United Nations Aviation Agency's governing board in September. It was seen as a criticism of Moscow regarding its invasion of Ukraine 2022. The International Maritime Organization, based in London, is responsible for regulating safety and security and preventing pollution. It has 176 members. Moscow is an IMO member and has been re-elected in the IMO Council every year since 1958. The Russian transport ministry failed to respond immediately Friday to a comment request. The Russian Federation was one of 48 countries that applied for 40 seats on the Council, which oversees the activities of the organization. The only country to be rejected from the 10 countries with the greatest interest in international shipping, which also included the United States of America and China. In a letter sent to IMO member countries before the elections, Russia stated that it "participates openly and actively in all IMO body's work". In a submission to the IMO, Russia stated that "the IMO has started to deviate from... its impartial role in international matters by giving greater attention to politics largely outside of its clearly defined mandat." Ukraine, which was vocal about its opposition to Russian efforts in various U.N. organizations and did not stand for election to the IMO Council urged IMO members states to not support the candidate, saying Moscow "undermines the global shipping safety" and "cannot claim a leadership role in global maritime government". (Reporting and Editing by Peter Graff.)
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CORRECTED - Asia spot prices at a 8-week low due to high inventories and weak demand
Asian spot prices for liquefied gas have dropped to their lowest levels in eight weeks due to a continued low demand and large inventories. This follows a decline in European gas prices in anticipation of a peace agreement in Ukraine. Average LNG price for delivery to North-east Asia in January Industry sources estimate that the price per million British Thermal Units was $10.90, down from $11.66/mmBtu in the previous week. Toby Copson is the managing partner of Davenport Energy. He said, "Rates continue to soften and buying remains muted mainly due to muted physical demand, weak fundamentals, and muted rates." He said that the weather would dictate movement, as temperatures fluctuated but weren't consistently low enough to bring provincial buyers to the spot market. Ronald Pinto is the principal gas and LNG analyst for data analytics firm Kpler. He said that prices in Asia will remain low next week due to high inventories, low Korean gas-for power demand, and a muted South and Southeast Asian activity. He said that the robust Pacific supply, and Japan's approval for the Kashiwazaki - Kariwa restart, further capped upside. He was referring to the news that Japan's Kashiwazaki - Kariwa nuclear plant, which is the largest in the world, could restart as early as January, subject to regional authorities' consent. Gas prices in Europe are at their lowest levels for 18 months, and have fallen below 30 euros per megawatt-hour. The news of renewed efforts to broker a peace deal between Russia, Ukraine and the United States has sparked this decline as a result of an expectation of a relaxation in sanctions against Russia," said Florence Schmit. She added, "While this market movement may be premature but it sets the trend for prices in 2026." Kpler’s Pinto says that the bearish trend in EU gas prices is likely to continue into next week, as warmer temperatures, increased wind output, and abundant LNG and pipeline supplies ease regional imbalances. Meanwhile, market participants await Russia's reaction to the US-Ukraine agreement. Martin Senior, Argus' head of LNG prices, believes that a peace agreement between Russia and Ukraine may lead to the suspension of supplies from Russia's 19,8 million metric tonnes per annum Arctic LNG 2. Botas, which had already purchased four cargoes earlier this week for delivery in the first quarter next year, has made a demand from Turkey. Senior revealed that Egypt has also expressed an interest in the product, and had purchased four cargos for delivery in December. S&P Global Energy's daily North West Europe LNG Marker price benchmark (NWM) for cargoes to be delivered in January, on a ex-ship basis (DES), was $9.467/mmBtu as of November 27. This represents a $0.46/mmBtu reduction from the price at TTF hub. Spark Commodities rated the December price as $9.416/mmBtu. Seb Kennedy, an independent gas analyst, reported that hedge funds took a net-short position in TTF Futures last week for the first since March 2024. Kennedy stated that this is an important development for the heating season and shows that funds are confident there will be sufficient LNG in the water to reduce even the harshest winters. According to Spark Commodities analyst Qasim Afghan, the U.S. arbitrage for the front-month to North-East Asia via Cape of Good Hope strongly points to Europe while the arbitrage through the Panama Canal marginally points to Asia. The global LNG freight rate in the Atlantic has risen to $146.750/day - its highest level for the year. Pacific rates reached their highest level since December 20,23 at $89 250/day.
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Kenya seeks $1.5 billion in highway funding from China
Kenya and two Chinese firms began construction on a $1.5billion highway expansion in East Africa Friday. This marked Beijing's return after years of absence to major infrastructure developments. The partners will finance the project in two phases using a combination of debt and equity, a model which is becoming more popular after China's traditional loan model raised concerns about borrowers' debt loads. Kenya chose to use the public-private model for funding the highway because it would have taken "a lifetime" to secure normal budgetary allocations, said President William Ruto. The next option, borrowing, was also unaffordable, given the debt load and fiscal space we have," he said to a cheering audience at a construction site before directing graders and excavators. The project will upgrade a vital transport corridor connecting Kenya's port city of Mombasa to its western region, as well as neighbouring states such Uganda and other landlocked countries. As China repositions in Africa, Kenya strikes a deal China, which had pumped billions into infrastructure projects in Africa, cut lending around 2019 due to growing concerns about debt sustainability in Kenya and other countries. Beijing, in an effort to reposition its position on the continent, pledged $50 billion over three years of credit and investment at a summit last year with African leaders. Kenya cancelled a deal earlier this year with a French consortium, Vinci SA, for the highway extension project. The new deal was announced by Ruto during his April state visit to Beijing. Kenya is one of Washington's closest African ally. The rapprochement of Nairobi and Beijing enraged U.S. president Donald Trump. Ruto defended the strategy publicly, saying Kenya had to increase exports to markets such as China. DEBT, EQUITY MULTIPLY AND A 28-YEAR TOLL CONCESSION The Kenya National Highways Authority announced that the first phase of the project, which will cost $863m, will see China Road and Bridge Corporation partnering with Kenya's State Pension Fund NSSF in order to convert two existing stretches from a single lane highway of 139 kilometres (86 miles) into dual carriage roads of four and six lanes. The second phase will see Shandong Hi-Speed Road and Bridge International (a subsidiary of China’s Shandong Hi-Speed Group) convert a 94-kilometre single-lane stretch of highway to a six-lane road at a cost $678.56 millions. KENHA stated that both total cost estimates include finance costs. The two parts of the project are divided into debt deals and equity deals. NSSF will provide 45% of equity funding for the phase in which it is involved. Kefa Sedia, a senior official in the Finance Ministry, stated that borrowings could be made by Chinese commercial lenders or state-owned entities such as Export-Import Bank of China. The construction must be completed by the end of 2027. After that, the firms will have a 28-year concession period to collect tolls and recoup investment.
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Airbus restricts cold-weather takeoffs using Pratt & Whitney engines
Airbus has restricted the operation of some aircraft with Pratt & Whitney engine, an Airbus representative said on Friday. This confirms an earlier report from industry publication aeroTELEGRAPH. The French planemaker has said that it has modified its existing procedures for engine operation on the ground when icing conditions are present. Pratt & Whitney engines are restricted in extreme weather conditions, such as freezing fog or visibility less than 150 metres. Airbus has said that it is in constant contact with its airline customers, and Pratt & Whitney works on a possible solution. Pratt & Whitney didn't immediately respond to a comment request. Airbus' top commercial executive told reporters earlier this month that the engine manufacturer was in talks with Airbus over engine supply for the next three-years as Airbus looks to increase production of the A320neo, its best-selling model. (Reporting by Yazhini M V in Bengaluru and Tim Hepher)
US LNG plants produce record amounts of gas, LSEG figures show
According to preliminary data by financial firm LSEG, the U.S. demand of natural gas that will be converted into LNG surpassed 19.3 billion cubic feet Friday. This is a record high for the third consecutive day.
The U.S. exports the most liquefied gas in the world.
LSEG data shows that the record usage was led by two of the largest U.S. oil exporters: Cheniere's Sabine Pass facility in Texas pulled 5.1 bcf and Venture Global Plaquemines in Louisiana continued its ramp-up pulling 4.2 bcf, respectively.
The U.S. natural gas demand for LNG was less than 12 bcf/day in 2024. This year's growth has been primarily driven by Plaquemines which began production in the final week of 2024. It is now processing more than 4 bcfd.
Most shutdowns of U.S. LNG plants are scheduled during the summer, when plants can operate more efficiently. Reporting by Curtis Williams, Houston. Editing by Rod Nickel
(source: Reuters)