Latest News
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Sources say that Riyadh Air is looking at ordering 25-30 Boeing 787s as well as more Airbus.
Industry sources say that Riyadh Air is looking at acquiring between 25 and 30 additional Boeing 787 Dreamliners, by utilizing its contractual rights with the U.S. aircraft manufacturer. It may also increase its Airbus order list. The airline, which last week conducted 'its first commercial revenue flight', has ordered up to 72 Boeing Dreamliners by 2023. This includes 39 definitive orders and options for another 33. Sources said that Riyadh Air could announce its intention to convert the majority of these options into outright purchase as soon as next week at the Farnborough Airshow. However, they warned that details are still being discussed. Riyadh Air and Boeing declined to comment. Riyadh Air has also placed an order for?25 Airbus A350 - 1000 long-haul 'jets, with options to purchase another 25. Industry sources claim that some of those?orders may also be turned into firm orders. Airbus declined comment. (Reporting and editing by Louise Heavens, Tim Hepher)
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Hapag-Lloyd's outlook for the year is raised on the back of strong demand and freight rates
Hapag-Lloyd, the German'shipping company', raised its financial -year outlook on Monday. It cited strong market -demand and positive freight rate developments. Hapag-Lloyd now expects its earnings before interest tax, depreciation, and amortisation for the full fiscal year to range from $2.7 billion to $3.7 billion. This is up from the previous forecast of between $1.1 billion to $3.1 billion. The company has also increased its group's?earnings prior to interest and taxes (EBIT), for the year, to a range of $100 million to $1 billion. The forecast was subject to high uncertainty due to the volatility of freight rates, as well as major geopolitical issues. Hapag-Lloyd & Maersk will resume some sailings through the Suez Canal. This Asia-Europe trade route was abandoned by most shippers after Yemeni Houthi rebels destroyed vessels in 'the Red Sea. Shippers were forced to use the much longer route around Africa's Cape of Good Hope. However, firms are considering returning to the Red Sea Route. Shipping rates increased as a result of the longer trips?around Africa.
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US lawmakers debate whether to end twice-yearly clock switching
The U.S. House of Representatives will vote this week on a measure to extend daylight saving time year-round. Another group of legislators wants standard 'time to be permanent. The House Rules Committee will meet at 4:00 p.m. Monday, the House Rules Committee will meet to determine if any amendments are needed before the House takes up the measure this week. The House Energy and Commerce Committee approved the Sunshine Protection Act 48-1 on May 1. In March 2022, the U.S. Senate voted to permanently extend?daylight savings time but the House did not take up the issue due to opposition. Hawaii and Arizona don't observe daylight saving time. The supporters of the measure claim that the time change causes sleep disruptions, increased workplace injuries and car crashes. They believe that brighter evenings will also spur more economic activity in winter. Since the 1960s, daylight saving time has been implemented in the United States. This involves moving the clocks one hour forward during the summer months. Two lawmakers introduced the Sunshine for Our Kids Act last week. The act makes standard time the default time for all states, but allows them to opt in for daylight saving time if that is what they prefer. Reps Pat Harrigan, Mary Gay Scanlon and others argue that standard time is better for mornings to be in sync with the natural light?and circadian rhythms. Donald Trump has been aggressive in his push to end the?bi-annual clock-?switching. The U.S. Senate will need to decide again if it wants to consider the measure, which is opposed by U.S. Senator Tom Cotton of Arkansas, a Republican, and others. Cotton said that it would lead to absurdly late winter dawns and force many children to attend school in darkness. In World War II, the United States implemented a year-round daylight savings time. They did it again in 1975 to reduce energy consumption. It was unpopular, and Congress repealed the law later that same year. (Reporting and editing by Nick Zieminski.)
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Canada's Oil Sands Alliance signs agreement to advance Pathways Carbon Capture and Storage Project
The Oil Sands Alliance, the Alberta government and the federal government of Canada announced on Monday that they had reached an agreement for the 'Pathways carbon capture and storage 'Project. This was a condition set by the government to'move forward with the new West Coast oil pipe. The Oil Sands Alliance said that the Pathways Project, when operational, will be able to transport and safely store approximately 6 million metric tonnes of CO2 per year by the mid-2030s. Early July, Canada announced plans to build a pipeline from Alberta to the Pacific Coast. This would allow the fourth largest oil producer in the world to have greater export capacity to Asia. It would also reduce its dependence on the United States. Mark Carney has tried to strike a balance between Alberta's goal of increasing oil production and?environmental concerns. He has said repeatedly that federal support for the new crude pipeline in Canada depends on oil sands producers in Canada implementing a large-scale project to capture and store carbon emissions. This would reduce emissions from Canada's most polluting sector. The biggest Canadian oil sands companies -- Suncor Energy and Canadian Natural Resources, Cenovus Energy Imperial Oil, ConocoPhillips Canada, ConocoPhillips Canada, Cenovus Energy -- proposed the Pathways Project in 2022 but refused to assume?the cost of its construction. The initial estimate was C$16.5 billion. However, the companies and the government have agreed to scale down the project and build it in phases. The government-owned Trans Mountain ?Corp will build a new 1-million-barrel-per-day pipeline in coordination with Pembina Pipeline Corp PPL.TO. Pembina will have a 10% stake during construction and the opportunity to increase that up to 10% after the project is operational. The government of Premier Danielle Smith has stated that construction could begin as soon as September 2027.
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First time in Brazil, container ship is refueled with ethanol
The container carrier, operated by CMA CGM, refuelled?with the ethanol during a port stop in Santos, Brazil. This is the first time this type of fuel has been used to move the engines of deep-sea vessels in Brazil. CMA CGM IRON received 650,000 liters anhydrous alcohol from Brazilian ethanol and Sugar merchant Copersucar in a refueling service provided by Danish marine services group Bunker One. The CMA vessel, one of the 12 vessels operated by the group, is equipped with a trifuel engine. This engine can run on any combination of bunker fuels or methanol. The CMA vessel is a tiny part of the 700-vessel fleet, but it's used to test lower-carbon fuels. "We view bioethanol as an additional solution to reduce greenhouse gas emissions. The Santos test facility shows that bioethanol can be used in a safe and efficient manner under real commercial conditions, said Christine Cabau Woehrel. "We want to demonstrate with this operation that the ethanol is already available as a solution to decarbonize maritime industry", said Copersucar?Chief executive Tomas Manzano. Copersucar manages the Evolua Etanol distributor, which is owned by dozens of sugar and ethanol producers in Brazil. The company estimates that ethanol reduces carbon emissions from a vessel by 70% compared to bunker fuel derived from oil. However, they said that the price was higher. The companies believe this could be offset by creating and selling carbon credits. Marine?transportation is one of those sectors that are harder to reduce carbon emissions. The International Maritime Organization has a?net-zero carbon goal for 2050. The IMO has not yet reached an agreement with companies on legally binding measures. This makes any initiative like CMA's a voluntary one. Reporting by Marcelo Téixeira, Editing by Chizu Nômiyama
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UN shipping agency opposes any fees in the straits after Trump plans Hormuz fee
The?U.N. The 'U.N. Trump stated in a post on Truth Social that the process would start immediately. He did not elaborate. A spokesperson for the United Nations said, "We're aware of this post and are awaiting more details." International Maritime Organization. "We've always maintained a consistent stance against fees - IMO is opposed to charging fees for the passage through straits that are used for international navigation." There is "no legal basis" to introduce tolls for transiting through a strait. Officials from the shipping industry expressed their concern at?the newest development. They added that, in their opinion, such a move would violate international law. "How will this make it safer for people to travel through the water and what guarantees will this provide?" One official who declined to be named said about Trump's position. (Reporting and editing by Sharon Singleton, Susan Fenton, and Jonathan Saul)
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Residents say that gunmen have killed at least 18 people, in the state of Benue, Nigeria.
Residents and local officials reported that gunmen had killed at least 18 people in Nigeria's northern state of?Benue in a weekend assault. This prompted a protest march by angry locals, who blocked the roads to protest against the violence. Benue is a frequent site of conflict between farming communities, cattle?herders and armed groups. These conflicts are often fueled by competition for land and resources. Udeme Edet, Benue Police spokesperson, gave a lower toll of deaths for the attack that took place in the early hours of Sunday morning. He said: "Eight people were killed and five others wounded." Residents in Otukpo Nobi, a community within the Otukpo Local Government Area said that armed men who were suspected by the?locals as Fulani herders opened fire between 3:30 and 4:30 a.m. Maxwell Ogiri, the local government chair, 'linked the violence to the murder of the head of the herders association two weeks ago. The attack was not immediately claimed by any group. Women and youths protested in 'the town of Otukpo. Reporting by Ahmed Kingimi and Hamza Ibrahim; Writing by Chijioke Ahuocha; Editing Helen Popper
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Italian judge rejects INWIT's bid to stop Telecom Italia from exiting tower contract
The company confirmed that an Italian judge rejected INWIT's urgent request to suspend Telecom Italia from withdrawing from a lease agreement. INWIT is Italy's largest tower operator and it has been embroiled in a dispute with two of its main customers, TIM &?Fastweb. Both have begun legal proceedings to terminate the contracts of their respective clients as part of an effort?to renegotiate these on more favourable conditions. INWIT's two main anchor tenants, TIM and Fastweb, account for almost 85% of the EUR1 billion in revenue. INWIT is not happy with the judge's decision, according to a spokesperson. The company also reserved the right?to challenge the ruling?and would fight to defend its stance when the case was finally heard in full. The suspension request was made as part of an expedited procedure. TIM declined comment. INWIT shares reversed gains made earlier and went negative following the news. At 1305 GMT, they were down by 1.63%. According to two sources who are familiar with the case, the court denied the request to halt the withdrawal process because it found that there was no imminent danger of irreparable damage to the company. Sources familiar with the matter said that a court decision on INWIT's separate request to stop Fastweb from terminating?its tower contract? is still pending. INWIT had previously stated that the?contract, following a change in control due to a shareholder reshuffle, was extended up until 2038 without a break option. Fastweb has disputed this interpretation. Fastweb believes that the current contracts could expire in 2028. This would give the company the option to?issue a withdrawal notification two years earlier. TIM stated that the termination would 'take effect' in 2030 when the contract expires, or 2028 if a judge upholds Fastweb’s interpretation.
UK's last coal plant shutdown bodes well for US LNG exports: Maguire
United States exporters of melted natural gas (LNG) are likely cheering the shutdown of the last coalfired power plant in the United Kingdom, as the relocation locks in longterm gas need by the world's 6th largest economy.
By closing the 2,000 megawatt (MW) coal plant in Nottinghamshire, Britain has ended up being the very first G7 country to end coal-fired power production and make significant progress versus energy shift and contamination decrease targets.
However the move likewise elevates natural gas to the UK's the majority of vital power fuel, and indicates the country will likely require to boost gas imports moving forward even as power firms continue to roll out renewables and other types of tidy power output.
That's excellent news for LNG exporters in the U.S., which are the world's largest providers of the super-chilled fuel and are targeting growth into European markets which are quicker and less expensive to service than more remote buyers in Asia.
GAS DEFICIT
UK gas intake has surpassed domestic gas production for the past 20 years, according to the 2024 Energy Institute Analytical Review of World Energy.
In 2023, the UK's gas shortfall was just over 29 billion cubic meters, which is comparable to the yearly gas output of Kazakhstan, which was the 24th largest gas manufacturer internationally last year.
Historically, the UK has actually depended on Norway to offer a bulk of the UK's gas imports by pipeline, and around 41% of total UK gas imports came from Norway in 2023, according to UK government information.
Nevertheless, pipeline capacity constraints combined with a. drive to improve UK energy security has spurred a constant rise in. UK LNG imports over the past years.
LNG imports enable power companies to increase the quantity of gas. that is stored within the UK, and can function as a hedge against the. rate and supply volatility stemming from heavy dependence on only. a couple of pipeline suppliers.
In between 2018 and 2023, UK LNG imports leapt by 171% from. 7.2 billion cubic meters (BCM) to 19.4 BCM, according to the. Energy Institute.
That growth surpassed that of Europe as a whole over that. duration, and in volume terms positioned the United Kingdom second. only to France amongst LNG importers in Europe from 2018 through. 2023.
US BOOM
This climb in UK LNG demand came at a best time for U.S. LNG exporters, who have actually been on a drive to diversify LNG sales. beyond Asia.
Between 2008 and 2018, around 64% of U.S. LNG exports was. shipped to Asian markets such as Japan, China and South Korea.
Those nations are thought about long-term growth markets for. gas, therefore are natural targets for all LNG exporters.
However, U.S.-based sellers are at a serious competitive. drawback compared to Australia and Qatar in serving Asian. markets, due to longer journey times.
The trip from the U.S. East Coast to Southern China, for. instance, can take 35 days, according to LSEG.
That is almost 4 times longer than from Australia and two times. the period from Qatar, and implies U.S. vessels are tied up for. far longer on those routes compared to their competitors.
The freight economics turned, nevertheless, on European routes.
The journey time from Cove Point on the U.S. East Coast to the. U.K.'s Grain LNG import terminal is approximately 11 days.
That compares to nearly 20 days from Qatar and 30 days from. Australia, therefore suggests that U.S. LNG shippers can provide faster. shipment schedules and lower freight expenses than their peers.
And during 2022 and 2023 - when Europe's power markets were. rising following Russia's invasion of Ukraine - lots of buyers. were happy to pay leading dollar for rapid and regular LNG materials. in order to avoid power failures.
CAPTIVE
U.S. exporters took full advantage of the boom in European. LNG import demand in 2022 and 2023, more than doubling shipments. to the continent in 2022 to a record 52.5 million metric loads,. and after that raising sales volumes by an additional 8% in 2023.
Up until now in 2024, however, the speed of sales to Europe has. contracted by 22%, dealing a blow to the short-haul service. paths from the U.S., Kpler data shows.
Sales to the UK so far this year are down. roughly 60%, and the lowest since 2021.
Fortunately for U.S. LNG sellers, an approximately 43% increase in LNG. imports from Asia has balanced out the volume loss to Europe, and has. pushed total LNG exports to a new high so far this year.
Nevertheless, the greater deliveries to Asia have come at the cost. of lengthier journeys and longer turn-around times before vessels. can get refilled.
Moving forward, nevertheless, U.S. LNG exporters will be hoping. for a rebound in UK LNG demand, which might help prevent any power. supply problems following the coal plant closed down, and fuel fresh. growth in one of the most profitable U.S. LNG trade paths.
<< The viewpoints expressed here are those of the author, a. columnist .>
(source: Reuters)