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Wizz Air and Ryanair demand NATS overhaul following UK flight disruption
Budget airlines Wizz Air and Ryanair called on Tuesday for a restructure of Britain's air-traffic control provider NATS after a new technical issue disrupted hundreds of flights at major airports across the country. "A national infrastructure provider that is critical to the aviation industry should not bring it to a standstill repeatedly." NATS in its current form is not suitable for the purpose it was intended for," said a Wizz Air spokesperson in a statement. 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 from the collapse of 2023. "Resilience will improve" was the message. We were told that the systems had been repaired. "Yet here we are once again," Ryanair Chief Operating Officer Neal McMahon stated. NATS didn't immediately respond to an inquiry for comment. The British aviation regulator stated that in 2024 NATS would need to review its contingency plan for outages, after automatic processing of flight schedules had failed a year before, causing chaos at Britain's airports. The UK's civil aviation body said on Tuesday that it had been in contact with NATS regarding the?incident. It expects NATS to provide a complete report about the incident. Civil Aviation Authority spokesperson: "We will consider if any additional?steps are needed?to ensure the?safereliability of the UK's Air Traffic Control System."
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Treasury website shows that the US has issued new sanctions against Iran.
The United States issued 36 new'sanctions' on Tuesday, targeting Iran’s aviation sector and other companies. This is part of an effort to increase economic pressure on Tehran at a time when the Middle East war has entered its seventh month. The U.S. Treasury Department stated that the action was taken to 'ground Iran's Mahan Air, and other Iranian airlines, as well as covert?front companies, foreign intermédiaires, and deceptive?trans-shipment routes?, which Iran relies upon?to acquire U.S. origin aircraft and sensitive technology? The Treasury issued an alert to financial institutions asking them to report networks of procurement supporting Iran's aerospace industry. It also targeted companies based in Turkey, the United Arab Emirates and other countries that they claimed helped Tehran purchase U.S. aircraft and sensitive technology. "This is a warning to anyone doing business with Iran's airlines that we have sanctioned today: you are at risk of being cut off from global financial system," said?U.S. Treasury Secretary Scott Bessent made a statement.
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Germany warns that Russian winter attacks will intensify after it sends more Patriot missiles into Ukraine
Boris Pistorius, Minister of Defence, said on Tuesday that Germany will be sending Patriot air defence missiles from its own national stock to Ukraine. He warned that Russia would likely 'intensify' their air campaign against Ukrainian infrastructure in the coming winter. Pistorius, speaking at a videoconference with nations that support Ukraine, said he decided to "deliver immediately" more PAC-2 missiles. Officials say that Patriot missiles are the only effective defense against Russian ballistic missile attacks in Ukraine. Pistorius stated that "since Russia is only making a very slow advance at the frontline, it is trying to destroy Ukraine's critical infrastructure and economic base by air raids on port installations, power stations, and other civilians targets." He said that the damage would be "even worse" if the temperatures dropped. Pistorius has not stated how many missiles Germany will provide. He also said that Germany would continue to supply drones, long-range ammunition and air-to-air weapons. Yevhenii Khmara, Ukrainian Minister of Defence, said that Kyiv has signed a contract to purchase around?1,000 Patriots. However, the majority will only be delivered in the next few years. He called on allies to use their stockpiles 'for Ukraine now', on the assumption that Kyiv will replace those missiles in future deliveries. NATO Secretary General Mark Rutte urged allies to increase their support, saying that civilian casualties in the war had reached their highest level since may 2022. "Nations ?must dig deeper. He said, "We do not have any choice." Before the meeting, Rutte and European Commission President Ursula von der Leyen announced that EU member states had agreed to utilize part of an EUR90 billion ($105 billion), EU loan in order to allow Ukraine purchase crucial supplies for Patriot system.
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French energy unions are threatening strikes in the next week due to a proposal to reduce benefits and pay
Three union members have told?that French energy sector unions will strike on Tuesday, August 14, 'over a recommendation made by the French Court of Auditors in July to limit wage increases and curtail employee benefits like?access?to cheaper gas?and power?. The Belgian Gas Terminal Operator Fluxys, the French Gas Terminal Operator Elengy and state-owned EDF have all filed strike notices. The French energy sector offers discounted gas and electric rates to workers and retirees. Their unions consider this a key part of their compensation package. This was estimated to cost EDF more than EUR700 million by 2024. The strike may disrupt gas supplies in Europe, as Europe works to "refill" storage before winter. It could also cause power outages at a time when wholesale electricity prices are high. France is Europe's largest LNG importer. The cargoes are transported throughout the continent. Around 70% of its electricity is generated by nuclear power. A union source said that further strikes could be possible following Tuesday's 24 hour action. An official from the government said that discussions are being held and some changes will be considered. For example, moving away from a flat-rate for cheaper energy towards an allowance based upon consumption. However, the official added that the government must abide by the Court of Auditors’ guidance. The court recommended that?EDF limit annual wage increases and phase out energy benefits as the company faces significant investment costs in upgrading its nuclear fleet?and planning?new reactors. A spokesperson from EDF confirmed a strike on Tuesday. A CGT member said that a large turnout is expected in the gas sector due to the?opposition of the auditors' recommendation. Fluxys stated that it was too soon to determine the impact of the strike on its operations, but terminals located outside France would not be affected. Elengy confirmed that all the unions in the energy sector had called for strike action, but they could not predict any potential impact.
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Major UK airports are affected by an air traffic control issue that disrupts departures
Heathrow Gatwick Manchester Stansted were among the major British airports that experienced delays and restrictions on Tuesday due to a technical problem with NATS, which is responsible for air traffic control. We are currently investigating a technical problem that is causing some delays in flight departures. NATS posted on X that "Our engineers are on the ground and we will give you an update as soon as possible." Heathrow Airport, Britain's largest hub, has said that it is working with NATS in order to solve the problem as quickly as possible. Edinburgh Airport posted a message?on X stating that this issue could impact their operations. Dublin Airport in Ireland said that flights were also affected. Flightradar24, a flight tracking website, said in social media that the London Flight Information Region was heavily regulating arrivals and departing flights because of this issue. The latest issue to affect the air traffic control system in the country is this one. The British aviation regulator stated that NATS would need to review their 'contingency plans' for outages in 2024 after automatic flight plan processing had failed a year before, causing chaos at Britain's airports. The airline bosses claimed that it cost them more than PS100 million ($135,49 million) as refunds and compensation. A technical problem with Britain's air traffic control system, which is related to radar, disrupted flights at Heathrow and other major airports for more than four hours in July of last year.
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Norway returns 69 Russians who were stranded on an Arctic ship after arrest
Norway announced on Tuesday that it had helped 69 Russians return to their home country after the seizure of a'small cruise ship' they arrived on. Last week, a Norwegian court ordered the seizure of the Professor Molchanov ship in Svalbard on behalf of an Ukrainian company involved in legal disputes. This left its passengers and crew stranded and led Moscow to accuse Norway "piracy". In a press release, the governor of Svalbard said that the Russian citizens returned to Russia via Kirkenes in Norway on Tuesday. The case has increased diplomatic tensions between Russia and NATO member Norway. Last week, the Russian Foreign Ministry summoned the Norwegian ambassador to Moscow to express a strong protest. Svalbard is a Norwegian territory that has been around since 1925. It lies halfway between the North Pole, and the European mainland. The area is governed by a 1920 agreement which allows residents of signatory countries, such as Russia, to live there without visas. Statistics Norway reports that the town of Barentsburg is where the'ship' is located. It is one of two Russian settlements on a?archipelago of 2,914 people. The Ukrainian energy company Naftogaz was the one who requested that the court order vessel seizure be made. Naftogaz is attempting to enforce a $4.22 bn?compensation for assets that Moscow took in 2014 when it annexed Crimea. Russia plans to appeal the ruling.
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Indonesia reopens airports after Anak Krakatau's ash has cleared
Indonesia has reopened the airports that were closed due to volcanic ash, including the main airport in Jakarta, but eight people are still missing, including five journalists who had reported on the volcano. Officials said that further?eruptions Tuesday could also cause additional disruption. Since its first eruption on Friday night, ash from Anak Krakatau has covered Jakarta and certain surrounding areas. Eight airports were closed for safety, which affected more than 340,000 passengers. In a press release, Dudy Purwagandhi, the Transport Minister, said that Soekarno-Hatta Airport in Jakarta resumed its operations on Tuesday, after the wind cleared away all of the ash. He said that the authorities will check the airworthiness of 178 planes which were grounded during the closure. Dudy replied, "Perhaps we'll need to spend a little more time preparing the planes." Alvin Pratama Putra (31), who arrived at Soekarno Hatta on Sunday to catch a flight for South Korea, for work purposes, reported that his flight was rescheduled for Thursday. What can you do?" It's nature. He said that forcing the plane to fly would be dangerous. Six other airports - including one smaller in Jakarta and one in the nearby city of Bandung - reopened Tuesday. One airport had already been reopened Monday. Costs for airlines are increasing Bayu Sutanto Secretary General of the Indonesia National Air Carriers Association said that delays are putting financial strain on airlines, which lose revenue due to cancelled flights, and have higher operating costs. Bayu stated that airlines could lose as much as $1 million a day due to such disruptions. This included fuel costs, extra aircraft parking, and crew expenses. He added that the delay of a plane at Soekarno Haatta could impact the three or four subsequent flights using the aircraft. FUTURE ERUPTIONS TUESDAY The volcano monitoring agency reported that Anak Krakatau erupted on Tuesday morning three times. Although the eruptions were smaller than previously, they could still disrupt flights depending on the ash height and wind directions. Lana Saria is the head of the Geological Agency. She sent a message saying that the impact was not as large as previous eruptions. This volcano is just one of the 130 volcanoes that are active in Indonesia. It lies on the Pacific Ring of Fire, an area of seismic activity where the Earth's crust meets different plates, leading to a number of volcanic eruptions and earthquakes. Mount Ibu, Ili Lewotolok and other volcanoes on islands east Java erupted as well on Tuesday. Speedboat with FIVE JOURNALISTS and THREE CREW Missing The local rescue agency reported late Tuesday that a speedboat with five journalists who were reporting on the eruptions and three crew members was missing since Monday in the Sunda Strait off Pandeglang Banten. Al Amrad, chief of the agency, said that they have deployed a rescue boat of a class?40 meter (130 feet) and six people to locate them. Anak Krakatau (which means child of Krakatau) began to emerge from the area occupied by Krakatau - then known as Krakatoa - a century before. The older volcano erupted in a series tsunamis and mass eruptions that killed over 36,000 people in 1883.
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JPMorgan hires CPPIB senior executive to expand in Canadian equities
The bank announced that it has hired Chris Finora, Canada Pension Plan Investment Board’s head of equities, to run its Canadian Cash Equities Trading division. This is part of its expansion to its equities platforms to take advantage growing investment opportunities. Finora will join JPMorgan this month in Toronto after spending two years with CPPIB, and 27 years with TD Securities. JPMorgan has hired 18 managing directors and executives in Canada over the last year. This represents a 20% increase in director headcount. JPMorgan’s expansion in Canada represents a vote of confidence in Prime Minster Mark Carney’s government, which is looking to attract $1 trillion of investment over the next five-year period. It also shows the interest of U.S. businesses in?the?country despite the deteriorating political relations with the United States. In an interview, Canada CEO David Rawlings stated that he believes inbound Canadian investments?will increase over the next decade? and we want to better position ourselves to capture these flows on both private as well as public markets. He said, "We will continue to focus on our outbound activities but we plan to spend more of our time working with global capital pools to support inbound activity." Rawlings stated that JPMorgan has invested in its business by hiring senior executives, adding capital, and expanding the research team. JPMorgan Canada has been involved in major deals, such as Rockpoint Gas Storage TSX IPO and Alimentation Couche-Tard acquiring Poland's Zabka. JPMorgan Canada said that it has increased its headcount in Canada by 50% over the last five years. Revenue in 'the country has almost doubled due to market share gains and client expansion. Carney will host a unique investment summit next week in Toronto. The event is expected to bring together global investors and companies who collectively oversee assets worth more than C$100 trillion. The summit will be a great opportunity to attract new investment into Canada, as the federal government will present Canada's potential, including in the areas of defence, energy and critical minerals. Recently, the Toronto Stock Exchange outperformed S&P 500.
Power sector drives development in US natural gas demand: Maguire
The power sector is the only significant consumer of natural gas that has revealed consistent demand development over the last few years, and has actually become the driving force behind gas demand in the United States as consumption from other sectors declines.
Gas usage by power generators has broadened by around 3.5% a year over the previous 3 years, and is by far the largest single source of gas usage in the U.S., data from LSEG programs.
However by volume, growth in natural gas use by the power sector was exceeded by declines in others. Typical gas usage by power companies grew by 70 billion cubic feet daily in 2023, while typical combined intake by market, homes and commercial users fell by 114 billion cf/day.
Power firms represented around 44.4% of overall domestic gas use in 2023, compared to around 29% by market, 15.5% by families and 11% by commercial users.
Industrial gas demand has declined by around 0.3% a year over the past 3 years, while residential and business gas need has diminished by around 0.5% and 0.7% annually respectively, according to LSEG's gas demand designs.
The growing concentration of gas usage within the power sector poses a potential threat to the U.S. gas production sector, as further fast decarbonization of power systems could trigger a. swift decline in gas need for power while other major. intake sources are already in decline.
ELECTRIC PUSH
A broad push to amaze certain heating and power systems. across homes and services has represented much of the cuts. to gas use outside power generation.
Electricity-powered heatpump and boilers have actually replaced. gas-fired heating systems in scores of homes and businesses in current. years, although the rate of heat pump sales has actually slowed due to. high electricity rates and rate of interest.
A record 4.3 million heat pumps were offered in the United. States in 2022, which was the very first year that heatpump sales. gone beyond sales of gas-powered furnaces in the nation,. according to the Air-Conditioning, Heating, and Refrigeration. Institute (AHRI).
Heat pump sales slowed to 3.6 million in 2023, and through. May of 2024 totalled 1.564 million units compared to 1.643. million systems during the same months of 2023, AHRI information shows.
Regardless of the slowing sales speed, the cumulative effect of the. installed pumps on gas demand has expanded, as each unit has. displaced some quantity of direct gas consumption.
POWER SWITCH
Price quotes on the precise volumes of gas displacement. by heat pumps are scant, as a lot of evaluations made by industry. tend to be in terms of cost savings instead of in terms of the. volume of nonrenewable fuel source consumption that is cut.
More complicating the gas-impact calculus is the reality. that lots of heatpump setups frequently replace one type of. energy consumption for another - from the direct burning of gas. in on-site boilers to electrical power provided by power companies.
And as that additional quantity of electrical energy should in turn. be produced primarily by power firms, the net result on total. gas usage in the United States remains difficult to discern.
That said, high-level need information reveal clear patterns.
Overall U.S. natural gas consumption throughout the very first half of. 2024 was up 2.3% from the same months in 2023.
Gas demand from power producers was up 5.2% from the very first. half of in 2015, while need from all other major gas users. was up just 0.5%, LSEG information programs.
Amongst non-power uses, gas need was 3.1% higher amongst. industrial users throughout the first half of 2024 from the exact same. period last year, but down 2.5% among residences and 1.2% lower. amongst industrial users.
That large divergence in use trends recommends that gas. intake may be close to peaking among non-power users, while. continuing to expand in the power generation sector.
GAS GROWTH
A constant increase over the previous 5 years in the proportion. of electrical power produced from gas further shows. the significance of the power sector to the natural gas industry.
Gas created 42.41% of utility-scale electrical power. production in 2023, according to energy think tank Cinder.
That share compares to 35% in 2018 and 24% in 2010, and. reveals how power companies have actually beefed up their reliance on natural. gas for electrical power generation while progressively lowering. generation from coal.
Coal's share of U.S. electrical energy generation was 16% in 2023,
below 27% in 2018 and 45% in 2010, Ember data programs.
Electricity generation from solar and wind farms was 15.6%. in 2023, compared to 9% in 2018 and 2.3% in 2010.
A further steady expansion in eco-friendly electrical power. generation is expected over the coming years, which might help. power companies make further cuts to output from coal-fired plants. as part of emissions reduction objectives.
But power manufacturers look set to stay heavy users of. gas for electricity generation, as gas plants can be. quickly throttled up and down to match the ups and downs of. power demand needs and to plug any generation shortages during. periods of low output from sustainable sources.
DEMAND PATTERN
Overall U.S. electrical power demand looks set to broaden as more. energy end-uses become amazed and as total power. usage climbs up from data centres and due to artificial. intelligence calculations.
Over the close to medium term, that greater power demand. outlook bodes well for the gas production sector, even. if direct gas usage in homes and commercial buildings. continues to agreement.
However over the longer run, the continuing concentration of gas. demand among the power sector poses a potential threat for the gas. market.
Numerous energy systems have plans to phase out gas-fired. generation and replace that power with a combination of. renewable energy generation together with battery storage systems. that can save surplus renewable power for later use.
Over the coming years, battery systems look set to stay. far too small to pose any considerable risk to gas demand.
However if utility-scale battery systems continue their current. quick growth while dropping in expense, goals for wholesale. renewables + battery systems might come true and start to. capture out gas from power systems in a years or so.
And if that occurs while other sources of gas need also. shrink, a major gas supply surplus might emerge. << The viewpoints expressed here are those of the author, a. columnist .>
(source: Reuters)