Latest News
-
Italy picks former Terna CFO Scornajenchi to run gas grid group Snam
State lender Cassa Depositi e Prestiti announced on Thursday that the Italian government had chosen Agostino Scornajenchi to replace Stefano Venier, as CEO of Snam's gas grid group. Snam is controlled by the right-wing government of Prime Minister Giorgia Melons through CDP. Venier was appointed while the previous government, led by Mario Draghi as Prime Minister, was still in office. Scornajenchi is currently the head of CDP's venture capital division. He was Terna’s chief financial officer from November 2012 to November 2023. Snam shareholders will likely approve CDP’s proposal during a May 14 meeting. Snam, under Venier's three-year mandate as CEO, helped reduce Italy’s dependency on Russian gas. This was achieved by establishing two new LNG terminals, and increasing supplies from North Africa, and Azerbaijan. Venier has also signed a contract with Edison for the purchase of three gas storage facilities and begun work on boosting the transport capacity of the network from the south to the north to increase the flexibility in the national gas infrastructure. Snam, a partner in the first Italian carbon capture and storage (CCS) project, has received the support of European Commission to build a grid for transporting green hydrogen into northern Europe. The group, which earns the majority of its profits from regulated activities such as gas, LNG transportation and storage management, posted a 14 percent increase in its core adjusted profit to 2,75 billion euros last year ($3 billion). ($1 = 0.8880 euros) (Reporting and editing by Alvise Armillini and Keith Weir, with Francesca Landini & Giuseppe Fonte)
-
After an island-wide blackout, power has been restored to 41.5% customers in Puerto Rico
After a blackout that affected the entire island on Wednesday, Luma Energy reported that it had restored power to approximately 41.5% customers by Thursday. Luma stated on its website that approximately 609,711 customers of its 1.5 million had service by 6:25 am local time. Luma Energy released a statement saying that its crews would continue to work throughout the day in order to restore service for 90% of their customers within 48 hours. The blackout is the latest of a string of major blackouts in the U.S. territory, since the grid was destroyed by Hurricane Maria last year, and had to be rebuilt. The company stated that as part of its response efforts, it is investigating the cause of the incident. This includes what role the well-known fragility of the power system played in this island-wide blackout. Luma Energy was formed by units of Canadian energy company ATCO, and U.S. construction firm Quanta Services. (Reporting from Scott DiSavino, New York; Anmol Choubey, Bengaluru. Editing by Ros Russel)
-
Russia increases oil product supplies to Indonesia
Market sources and LSEG data on Thursday showed that Russia has increased its shipments of oil to Indonesia in response to Western sanctions imposed due to its invasion of Ukraine. Since the full European Union embargo against imports of Russian oil-based products went into effect in February 20, Russia has diverted fuel exports towards Asia, Africa, and South America. In the past, Indonesia imported oil products mainly from Saudi Arabia and other countries like Malaysia, Singapore, United Arab Emirates, and Qatar. Shipping data shows that between January and the end of March, approximately 500,000 metric tonnes of fuel oil was exported from Ust-Luga in Russia to Indonesia. Sources and LSEG data revealed that two cargoes containing about 50,000 tonnes of naphtha also were shipped to Indonesia this year from the Russian Arctic Port of Arkhangelsk. Indonesia imported around 58.200 tons of naphtha from Russia and 100,000 tons fuel oil for the entire year 2024. In March, a vessel named the Savitri transported 33,000 tons diesel from the Russian Black Sea Port of Tuapse in Indonesia to the Karimun port. Shipping data indicates that another tanker called the Lunar Tide could transport nearly 60,000 tonnes of diesel this month from Tuapse port to Karimun. Unknown buyers are the cargoes. Karimun has traditionally been used as a hub of storage for Southeast Asia. Some traders store their diesel cargoes here and blend them to be delivered later into other destinations in the region, according to trade sources. One source said that due to regulatory requirements most of these cargoes could not be resold into Indonesia. Kpler ship tracking data showed that so far this year, 105,000 tons have been exported out of Karimun. These volumes are headed for countries such as East Timor and Myanmar, along with Singapore. (Reporting in Moscow by Trixie Yap, Singapore by Joe Bavier; Editing by Joe Bavier).
-
Maguire: US power system to reach new clean milestone by April
The U.S. energy system is on course to reach a new milestone in the energy transition by April, as clean electricity supply reaches its annual peak and overall electricity demand decreases during so-called spring shoulders season. According to Ember, an energy think tank, for the first month in history, clean power sources accounted for more than half of U.S. electricity supply. This month, clean power may be able to take a larger share in the U.S. power mix if power consumption falls as per normal seasonal patterns. That would allow utilities to reduce output from fossil fuels plants at the same time that renewable energy output increases. Clean power could reach new heights in April as a result of the combined annual peak in wind and solar production, along with lower fossil fuel supply. This will ensure that energy transition momentum continues in 2025. DEMAND DIP The U.S. has traditionally seen its electricity consumption drop in April, as it is between the winter and summer months when heating and cooling systems are at their peak. According to Ember, for the last seven years, the month of April has been the lowest in monthly electricity consumption. This trend is expected to continue in 2025, as mild temperatures this month have reduced heating demand. The month of April is also the peak for electricity produced by U.S. wind and solar farms. This is because wind output peaks just when annual demand drops. Clean power sources made up 49% of the total electricity supply in April 2024. This was a record high that only last month was surpassed. The combined output of solar and wind farms was 23.5% in April last year, and reached a new record with 24.4% in March this year. In April of last year, the share of electricity generated by wind farms was 15%. This percentage will reach a record 15.2% in 2025 when wind speeds increase at turbine levels. Slow Start According to LSEG, the total U.S. production of wind power was down around 7% compared to the same period in the year 2024. Wind speeds below normal in certain locations have slowed down wind production in this month. In the Electric Reliability Council of Texas, the U.S.'s largest wind production hub, output is down about 3% compared to a year earlier. The latest forecasts of wind output for the remainder of the month indicate that wind output will be at or below the long-term averages, including ERCOT. Even average wind power outputs should be enough to increase the share of clean energy sources in U.S. power generation. The output of U.S. Solar Farms is also set to reach new heights in every major market thanks to increased installed capacity and more sunlight in key solar markets like Texas, California and Arizona. The combination of increased solar production and average wind output will help to push the clean power share of U.S. electricity generation above 51% in April. This will ensure that U.S. energy system continues to achieve new milestones by 2025. These are the opinions of a market analyst at.
-
Shippers around the world are waiting to hear if the US will be imposing port fees on vessels linked to China
The U.S. Trade Representative will announce on Thursday its plan to levy port fees on China linked ships, as part of President Donald Trump’s efforts to revitalize domestic shipbuilding and combat China's dominance in the high seas. The USTR has a statutory deadline of April 17 to complete its remedies. After concluding that China is using unfair policies and practices in order to dominate global shipping, the agency concluded its investigation one year ago. U.S. trade representative Jamieson Greer said last week that the agency will not implement all aspects of its initial fee proposal. The original proposal outlined a variety of options for penalizing China, including million dollar port fees for vessels with ties to China. USTR did not comment immediately on its plans. This apparent revision was a result of a wave of public and privately expressed opposition by the global maritime sector, including domestic ports and vessel operators and U.S. importers and exporters of all kinds of commodities from bananas to coal. Greer stated that the fees could not be cumulative, and were designed to prevent economic harm. Separately, it was reported that the administration had been considering different options to soften its proposed port fee after receiving feedback in private meetings with industry representatives or through hundreds of online comments. Three sources who are tracking the issue and declined to identify themselves said that implementation could come as late November. The industry executives warned that the U.S. taxpayers and workers, as well as the U.S. shipbuilders, owners and operators the government wants to support, could be hurt if the plan is adopted without any adjustments. This is because the vast majority of the global shipping fleet will be subject to these huge fees. Ports of all sizes, including small-to-medium-sized ports, have expressed concern that ships would stop calling at their port if the USTR assessed a fee for each U.S. visit. Port executives warn that concentrating calls on larger ports will overwhelm these facilities and starve secondary ports, which have invested billions in infrastructure improvements. In a press release, Scott Chadwick said that the rule, as it is currently written, could have a significant impact on supply chains, which may cause unintended effects that hurt U.S. port and those who depend on global supply chains. The Southern California port houses General Dynamics' National Steel and Shipbuilding Co., which builds and repairs vessels. It also hosts cargo carrier Pasha with its U.S. built and flagged Jones Act vessel named Jean Anne, which makes two-weekly trips to Hawaii. Chadwick didn't elaborate on the impact of fees, but fewer ports calls in San Diego could translate into less ship repair activities for NASSCO as well as financial stress for terminal operators who serve Pasha and others customers. General Dynamics, as well as other U.S. military shipbuilders including Huntington Ingalls Industries, have standalone or in-port facilities. They didn't immediately respond. The Shipbuilders Council of America (which represents the industry) said that it supported Trump's efforts to restore and strengthen shipbuilding and ship repairs in the United States. In a letter addressed to USTR, Cary Davis, CEO of the American Association of Port Authorities, said that the proposed fees would undermine federal investments made in ports over many years, including dredging, new cargo handling equipment and expanded cargo terminals. He stated that some of these investments were made in Trump's first year. Davis wrote: "This proposal could turn many of these valuable investment that have created thousands of jobs, into assets that are stranded." AAPA declined to comment further. The Northwest Seaport Alliance, the Ports of Los Angeles Long Beach and Seattle and representatives from USTR met with officials in advance of the public hearings on cargo diversion that took place late March. The International Longshore and Warehouse Union, which represents the longshore workers of Union Pacific and Berkshire Hathaway's BNSF on the West Coast, joined them. Matt Leech is the CEO of Ports America in New Jersey, one of the biggest U.S. ports operators. You can't increase capacity by building new railroad lines or relocating an entire trucking fleet overnight. Reporting by Lisa Baertlein, Andrea Shalal and Jonathan Saul from Los Angeles; editing by Matthew Lewis
-
Asian spot prices remain at a 1-year low amid supply disruptions
The Asian spot LNG prices remain at an all-time low, following supply disruptions in three export facilities. Some buying interest has also been seen to help offset the overall lackluster demand. Average LNG price for delivery to North-East Asia in June Industry sources estimate that the price of a million British thermal unit (mmBtu) was $11,50, down from $11,80/mmBtu a week ago but still its lowest level since mid-May. "Lower Asian gas prices this week encouraged opportunistic purchases by some East Asian importers while supply disruptions in Australia and Brunei supported otherwise falling regional fundamentals," stated Rystad senior analysts Masanori Odaka. He added that Korea Gas Corporation of Taiwan, CPC Corporation of China and a Chinese buyer had made recent spot purchases. While some Asian importers took the opportunity to buy at a discount, others waited and watched as they assessed turbulent market conditions while maintaining sufficient storage levels. Inpex Corp., the company that operates Australia's Ichthys LNG plant, has said the rate at which production is being carried out temporarily decreased, but did not specify why or when it would be restored to full production. Sources in Southeast Asia said that the Bintulu LNG plant and the Brunei LNG facility were both experiencing production problems. Brunei LNG cancelled a tender it issued for a cargo delivered in June. Martin Senior, director of LNG pricing for commodities pricing agency Argus, said that despite production outages in Pacific, the interbasin arbitrage remained closed to ensure prompt deliveries. Only one carrier diverted in mid-Atlantic toward Asia on 16 April. Since the production interruptions, he stated that "Asian buyers" have not made any significant moves to compete for Atlantic Basin cargoes. S&P Global Commodity Insights, a commodity research firm in Europe, assessed the daily North West Europe (NWM) LNG Marker price benchmark on April 16 at $11.124/mmBtu. This is a $0.735/mmBtu reduction from the June gas prices at the Dutch TTF Hub. Spark Commodities set the price of the June delivery at $10.94/mmBtu. Argus, on the other hand, put the price for May at $10.945/mmBtu. Senior said that "discounts for the TTF in May remain $0.20/mmBtu higher than in June, due to maintenance on regasification terminals in Northwest Europe in May, which has forced buyers to look for regasification slots at more expensive terminals or terminals delivering fuel to hubs with lower prices than the TTF." According to Spark Commodities analyst Qasim Afghanistan, the U.S. forward month arbitrage for north-east Asia through the Cape of Good Hope now points only marginally to Europe. He added that in LNG freight, Atlantic rates have dropped for the fourth consecutive week, to $21,750/day, on Thursday. Pacific rates, meanwhile, are now at $23,250/day. Emily Chow reported on this story.
-
Sources say that STS transfers have helped to boost Russian Arctic oil exports from China.
According to traders and Vortexa data, Russia's Arctic Oil exports to China will rise dramatically this month. This is due to a surge in ship-to -ship transfers on the seas to ensure that tankers arriving at ports are not listed as U.S. sanctioned ships. In January, the U.S. imposed broader sanctions on all crude oil tankers such as ARCO, Novy Port, and Russian producer Gazprom. According to traders and Vortexa Senior Analyst Emma Li, to avoid the curbs, STS transfers of cargoes take place in international waters near Singapore and Malaysia, where cargoes will be loaded onto Very Large Crude Carriers that aren't subject to sanctions, before heading to Chinese ports. Li estimated that at least 4 million barrels Arctic oil finished STS last month and 16 millions more are arriving, or will arrive in the South China Sea, this month. She added that China's Arctic Oil imports have risen due to the abundance of oil. However, the final volume will depend on logistical hurdles and whether Chinese refiners show interest in buying it. Gazprom, the Russian oil exporter, did not respond immediately to a request for a comment. Vortexa reports that China imported Arctic oil from Russia at an average of 25,000 barrels a day (bpd) in March. China has stated that it is opposed to unilateral sanctions imposed by the United States and other countries in order to curb Russian, Iranian and Venezuelan energy revenues. According to one trader STS transfers have been used because Chinese buyers are wary about secondary sanctions, and willing to pay more for STS cargoes. Kpler data show that the VLCC Atila, for example, loaded 2,07 million barrels ARCO in March from two tankers sanctioned in Singapore waters and delivered the cargo in April to China's Dongying port in eastern Shandong Province. Atila has previously been involved in STS transfers of Iranian oil. Arctic grades, ARCO, Novy Port and Varandey, are produced in Russia’s northern regions where harsh winter weather impacts production and oil project investments require huge investment. It is difficult to track the exports of these grades because they are usually shipped from oilfields into floating storage in Murmansk, and then sent to end users. The STS adds to the shipping costs. The North Sea Route to China (NSR), the shorter route, is closed until July. One trader stated that the route was very expensive and long. "The only solution is to evacuate the barrels." The traders stated that light Arctic oil was offered at a discount to Brent benchmark prices. Previously, it had been sold at a premium. Some of the Arctic oil cargoes will not be able to find a new home anytime soon, as they are currently being stored on vessels. LSEG data shows that the tanker Fast Kathy, for example, loaded Arctic oil at Murmansk in March and has been cruising off Port Said (Egypt) since April 9. Traders said that India, which was previously the largest buyer of Arctic oil due to sanctions has reduced purchases. Traders said that the majority of Arctic oil sold to India by Litasco is Varandey, supplied by Russia's Lukoil. Lukoil didn't immediately respond to our request for comment. The Indian authorities have banned a tanker, carrying a cargo of Russian crude oil, from conducting an STS operation near the port of Mumbai. Myanmar and Syria are also Arctic oil buyers. Myanmar received its first shipment of Arctic oil earlier this year.
-
Traders estimate that Algerian wheat purchase in the tender will be between 600,000 and 630,000 tonnes
European traders reported on Thursday that Algeria's state grain agency OAIC purchased between 600,000 and 630,000 metric tonnes of milling wheat during an international auction which closed on Wednesday. The trader's estimates on Wednesday evening ranged from 570,000 to 600,000. The same traders reported the same prices on Thursday evening. They paid around $267.50 per metric ton, including freight and cost. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. Algeria usually buys much more than the nominal volume. Wheat can be supplied from any approved origin. The traders initially thought that the wheat purchased would be sourced mainly from the Black Sea area, particularly Ukraine, Romania, and Bulgaria. The purchase of French wheat was not reported. Traders claim that a diplomatic rift in Algeria and France led the Algerian grains agency OAIC, to exclude French wheat from its tenders. The traders said that Ukrainian wheat was the cheapest in Europe, but French wheat cost about the same price as Romanian or Bulgarian supplies. Wheat was requested for shipment from two main regions, including Europe: June 16-30 and June 1-15. The shipment date is one month earlier if the wheat comes from South America or Australia. Michael Hogan, Hamburg and Sybille De La Hamaide, Paris.
United States extends remark due date on Biden-era LNG research study to protect approvals
The U.S. has extended the remark period on a federal study of the economic and environmental effects of the thriving natural gas export business as the administration of President Donald Trump seeks to protect approvals from any legal actions.
The U.S. Department of Energy said late on Tuesday that it is extending the remark period from Feb. 18 to March 20 in order to get proper stakeholder input.
In his campaign, Trump had guaranteed swift action on reversing previous President Joe Biden's pause on the LNG export approvals to huge markets in Asia and Europe.
Reuters reported on Jan. 7 that Trump advisers had actually advised him to take a patient method to restarting approvals for LNG exports, fearing quick approvals would just get overturned in court.
Trump's advisors had actually considered an extension to enable time to challenge the study and prevent any potential suits when they approve the pending export authorizations.
While the U.S. ended up being the world's biggest LNG exporter in 2023, Biden's moratorium delayed jobs including Venture Global's CP2 job, the Commonwealth LNG plant, and Energy Transfer's, Lake Charles complex, all in Louisiana.
Biden had purchased the time out about a year ago in order to perform the research study, which his administration stated revealed that government ought to beware about the climate impacts of unconfined LNG exports.
The DOE also stated it directed the office of fossil energy carbon management to resume consideration of pending LNG export applications.
(source: Reuters)