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QatarEnergy is seeking US LNG deals until 2031, according to sources
QatarEnergy has been in talks with several producers about securing multi-year contracts for?U.S. Three trading and industry sources said that QatarEnergy is negotiating with several producers to secure multi-year?U.S. Two of the sources cited said that discussions were held with Venture 'Global, Cheniere, and Woodside. Sources said that the contract talks were part of QatarEnergy's effort to replace volumes lost from its Ras-Laffan facility, after Iranian strikes damaged two of its 14 gas-to liquids (GTL), and two LNG trains. QatarEnergy has also changed its approach from purchasing dozens of U.S. LNG spot cargoes in order to meet commitments with some of their Asian clients. The company is now looking for longer-term solutions. QatarEnergy CEO Saad al-Kaabi stated in March that repairs will sideline 12.8 millions tons of LNG capacity per year for three to five more years. QatarEnergy, which halted production back in March, has issued force majeure notifications every month. The most recent extension was to November. Further?extensions are possible, as the Strait of Hormuz is still closed, according to the sources. QatarEnergy Trading is the trading arm of QatarEnergy, which managed 10 million tons of LNG for the company. One source said that the company was looking to achieve 2-3 millions metric tons annually through 2031. A fourth source stated that "They'll have to buy anything they can." QatarEnergy has not responded to an immediate request for comment. Venture Global, Cheniere and Woodside LNG declined to comment. Saul Kavonic is the head of energy research and advisory at MST Marquee. He said that Qatar sees a risk in their ability to export LNG over several years. He added that "it signals that Qatar believes the disruption of Strait of Hormuz could be longer lasting and the damage to Qatari's LNG infrastructure has been more extensive than originally hoped and repair may take longer." Around 80% of Qatar LNG exports are usually exported to Asian buyers. Many clients in Asia began to look for alternatives to Qatari gas due to the uncertainty surrounding when flows will resume through 'the major waterway. According to a fifth party, some market participants are testing scenarios where no Qatari gas will be available.
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Oil tanker prices reach record highs after US and Iranian shipping attacks
This week, the cost of'shipping' oil in the largest tankers reached record levels following the most intense wave of attacks against shipping since the U.S. - Iran war began late in February. According to Baltic Exchange, the shipping rate for supertankers, also known as very large crude carriers (VLCCs), loading oil in the Gulf of Oman to be shipped to China, reached around 450 on Worldscale, which is?roughly?$11.50 per barrel. The rate is at its highest level since it was introduced earlier this year after the U.S. and Israel war against Iran. The increase in rates is a sign of 'how the Middle East conflict feeds into the wider economy. The rise in shipping costs could add to inflationary pressures, and increase costs for consumers and businesses already feeling the effects of a growing conflict. Iran announced on Wednesday that it had launched 10 attacks near the Strait of Hormuz, after the U.S. destroyed five Iranian oil tanks. Four Yemeni government officials said that the Houthis, who are aligned with Iran, reached Perim, a strategic island in the Bab El-Mandeb Strait on Friday, possibly tightening their hold on one of the world's most important shipping routes. Ioannis Pandimitriou, analyst at Vortexa, said that "repeated attacks between the U.S. Navy and Iran continue to push freight rates in the Gulf up to new heights." Papadimitrou said that the higher risk of operating in the Middle East Gulf and the surrounding area is driving up the Gulf of Oman's freight rates, out of fear of Iranian reprisals. This naturally reduces the number of available tankers in the region. The recent military escalation is having a wider impact, with VLCC rates also reaching record highs on the West Africa-Asia route.
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Travel chaos caused by the protest of Polish train drivers who slow down during safety demonstrations
On Friday, Poland's railways were impacted by widespread disruption as train drivers protested safety concerns and slowed down their trains. Around two thirds of services experienced delays on what is one of the busiest weeks of the year. A train that hit a truck and derailed at a level-crossing in central Poland Wednesday killed one person and sent 10 to the hospital. This is just the latest of a series of accidents caused when road users ignore warning signs. "We do not view this as protest but as an act of desperation," said Sebastian Piernik. He added that the union's demands for safety were?ignored in the past. "The fundamental problem is to ensure that drivers are held accountable for crossing the tracks at a time when there's a red signal." Train drivers at all level crossings slowed to 20 kilometres an hour (12 mph), as part of the protest that lasted until Friday noon local time. As a consequence, train operator PKP intercity reported that as of 12 p.m. (1100 GMT), 203 of 290 services?faced delays averaging 38 minutes. Alicja Kiman, a resident of Gdansk, said that she wasn't surprised by the protest because?motorists are?often reckless. She said, "I've seen garbage trucks break the barrier twice - forcing themselves in when it was closing." The government announced that it would introduce harsher 'penalties for drivers disregarding warning signals at crossings, and it spent hundreds of millions?zlotys to improve safety. Dariusz Klimczak, Infrastructure Minister, told reporters that "these changes will result in the risk of losing a driver's licence" for drivers who enter a road/rail crossing with RED light on.
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Gains in UAE shares as oil supply concerns fuel regional conflict
The UAE stock market closed higher on Friday. Dubai was the best performer in its region, aided by a sharp rise in oil prices. Attacks on Middle East shipping routes have fueled concerns about supply disruptions. Crude oil was on track to gain over 7% this week while U.S. Diesel prices reached a record. The Strait of Hormuz remains closed to oil as Iran and the U.S. trade attacks. Meanwhile, the Houthis, who are aligned with Iran, have taken control of Yemen's Mocha port, which threatens Saudi oil exports into the Red Sea. Preliminary ship tracking data on Friday showed that the number of vessel transits in the Strait of Hormuz dropped to seven on Thursday, from eleven the day before. This is well below the 10-day average of 15 Brent crude, the main driver for Gulf economies, fell 3.6% to $103.75 per barrel by 1056 GMT. Dubai's main stock market gained 0.6% following two sessions of losses, thanks to a 4.2% surge in the top lender Emirates NBD Bank. Utility firm Emirates Central Cooling Systems Corporation also rose by 1.9%. National Central Cooling's shares fell by 2.1%, however, after the announcement of Yousif al Hammadi becoming its new CEO. Abu Dhabi's benchmark Index edged up for the fourth consecutive session by 0.03%, supported?by a rise of 3.6% in investment firm Two Point Zero Group owned by IHC. Adnoc Logistics & Services, a state-owned energy shipping company, grew by 2.9%. Meanwhile, energy infrastructure developer NMDC Group grew by 3.5%. The index's gains were capped by a 5% decline in Fertiglobe, a chemical manufacturer, and a 1.5% drop in First Abu Dhabi Bank, the largest lender. Six people with knowledge of the matter said that the United Arab Emirates is quietly revising its plans for a 5-gigawatt AI Data Center?project, one of the largest outside the U.S., after the Iran War prompted a reconsideration of where and how critical infrastructure should be built. According to LSEG, the Abu Dhabi Index and Dubai Index both recorded weekly gains of 1,4% and 1%, respectively.
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Turkish Minister says Turkey and Azerbaijan are aiming to sign a deal on a power transmission line in Europe by November.
Alparslan Bayraktar, the Turkish Energy Minister, said that Turkey, Azerbaijan, and other participating 'countries' aim to sign an agreement for a power transmission link to europe during COP31 - the climate summit, in November. The electricity corridor would allow surplus electricity from Azerbaijan, Georgia, and Turkey to be exported to Southeast Europe. Bayraktar said at the Azerbaijan and Turkey Energy Forum in Baku that "this is a TANAP on a regional scale" referring to the?pipeline that carries Caspian gas through Turkey to Europe. Bayraktar stated that the participating governments aimed at finalising an intergovernmental agreement regarding the overland electric corridor during the United Nations COP31 Climate Conference in Antalya, in November. Turkey and Azerbaijan want to use their geographical positions and existing energy ties to become major exporters of green electricity as European countries diversify and pursue decarbonisation goals. Azerbaijan is 'further planning to build a regional power bridge connecting Central Asia with Turkey via the 'Zangezur Transport Corridor, said?country energy minister, Parviz Shahbazov.
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AirBaltic has postponed a key bondholders meeting
In an email, Latvia's airBaltic> announced that it had rescheduled the meeting of its?bondholders, which was scheduled to take place on Friday. The airline stated that the bondholders meeting had been postponed in order to give bondholders more time to review and submit their voting instructions. The virtual meeting will now take place on September 15th. The Latvian government, which owns the majority of the carrier, has said it will seek financing from bondholders in a bid to avoid default. AirBaltic asked bondholders on Friday for approval of a plan to raise EUR257,000,000 ($298,000,000) via new super-senior bonds due in 2027. The airline is a 'test case' for the wider market, where weaker operators who struggle to re-pass on increased costs are most affected by the soaring jet fuel price caused by the Iran War. Analysts said that the rise in yields could be due to a 'priority' given to new bonds over notes due in 2029.
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Myanmar's Mandalay Airport shuts down after drone attack
According to a major domestic carrier, flight operations at the airport international serving Myanmar's 2nd largest?city were shut down following a drone strike on 'Thursday' by rebels fighting the country's military in a long-running civil war. Myanmar Airways International announced on its official page on Facebook late Thursday night that all international flights into and out of Mandalay's Tada-U International Airport had been temporarily suspended. Domestic flights will be?transferred until further notice to another airport for "operational" reasons. An official from Myanmar Airways International's Bangkok office, who declined to give their name, said that flights to Mandalay on September 11 and 12, are cancelled. The airport is closed, so the flights have been cancelled. Global New Light of Myanmar, the state-run news outlet, reported that security forces thwarted a terrorist attack by the People's Defence Force (PDF), a prodemocracy militant organization, who fired six suicide drones from 'first-person' view at an airport. The attack caused a temporary disruption of some domestic flights. The newspaper reported that no injuries or damage was caused to airport runways or vehicles. Local media reported that the resistance was targeting military jet fighters on the airport. Could not independently verify the situation. Since the February 20, 2021 coup that ousted Aung San Suu Kyi's elected government, Myanmar has been engulfed in conflict. This has triggered a national resistance movement which has developed into a civil war involving the military with a variety of ethnic groups armed and pro-democracy militas. Min Aung Hlaing was the former head of Myanmar's junta and was elected president in April by a parliament backed by the military. This formalised his hold on power following five years under army rule.
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AirBaltic has postponed a key bondholders' meeting
AirBaltic, a Latvian carrier, has rescheduled the'meeting with bondholders scheduled for?Friday. The majority-owned airline by the Latvian government has stated that it is seeking funding from bondholders in order to avert default. AirBaltic asked its bondholders on Friday for their approval of a plan to raise EUR257m ($298m) via a new super-senior loan due in 2027. The virtual meeting will now take place on the 15th of September, without further explanation. The airline is a good test case for the broader airline market, where weaker operators who struggle to pass higher costs on face the greatest pressure due to the rising jet fuel prices caused by the Iran War. The new bonds will be given priority in repaid from collateral, which includes eight aircraft and seven engines. Notes due in 2029 are ranked third. Analysts believe this could have been the cause of a spike in yields this week.
QatarEnergy is seeking US LNG deals until 2031, according to sources
QatarEnergy has been in talks with several producers about securing multi-year U.S. contracts for liquefied natural gas through 2031. This is to replace the capacity that was destroyed by Iranian attacks, which will take years to fix.
Two sources confirmed that discussions are underway with Venture?Global and Woodside.
Sources said that the contract talks were part of QatarEnergy's effort to replace volumes lost from its Ras-Laffan facility, after Iranian strikes damaged two of its 14 gas-to liquids (GTL), and two LNG trains. QatarEnergy has also changed its approach from purchasing dozens of U.S. LNG spot cargoes in order to meet commitments made to some of their Asian clients.
QatarEnergy CEO Saad al-Kaabi stated in March that the repairs will sideline 12.8 millions tons of LNG capacity per year for three to fiveyears.
QatarEnergy, which halted its production in March, has renewed force majeure notifications monthly. Most recently, they were extended to November. Further extensions are possible if the Strait of Hormuz is closed, according to the sources.
QatarEnergy Trading - the trading arm of QatarEnergy - which managed 10 million tonnes of the company's portfolio of LNG - is looking to achieve 2-3 million metric tonnes per annum until 2031.
A fourth source stated that "They'll have to buy anything they can."
QatarEnergy has not responded to an immediate request for comment. Venture Global and Cheniere declined comment while Woodside LNG stated that it would not comment on speculations about the market.
According to research firm Rapidan Energy, 25 million metric tonnes of LNG are available for sale in U.S. construction projects.
Rapidan data shows that Venture Global has 10 mtpa of LNG uncontracted. Cheniere, Woodside Energy, and Sempra have 6 mtpa each available.
Qatar's pursuit of LNG volumes to deliver to its?customers indicates that Qatar now sees a risk in their ability to export LNG over several years, said Saul Kavonic. He is the head of energy advisory and research at MST Marquee.
He added that "it signals that Qatar?considers the Strait of Hormuz disruption may prove to be longer lasting and the damage to Qatari?LNG infrastructure is more extensive than originally hoped, and it may take longer to fix."
Around 80% of Qatar LNG exports are usually exported to buyers in Asia.
Many clients in Asia began to look for alternatives to Qatari Gas due to the uncertainty of when flows would resume through this major waterway.
According to a fifth party, some market participants are testing scenarios where no Qatari gas will be available.
(source: Reuters)