Latest News
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Cheniere Energy announces maintenance work has begun at Sabine Pass LNG Plant
Cheniere Energy announced on Friday that it had begun the annual maintenance on its largest U.S. LNG facility, Sabine Pass in Texas. Sabine Pass's annual capacity is 30 million metric tons per annum. It has been a key factor in the United States becoming the largest LNG exporter in the world. A Cheniere spokesperson informed by email that "planned maintenance activities are underway at Sabine Pass." Prices tend to rise when U.S. LNG production declines. It is anticipated that the annual maintenance work will reduce U.S. LNG output for a few weeks. Cheniere's Sabine Pass plant, which produces 4.5 bcfd of gas per day, is on course to fall from 3.9 bcfd last Thursday to a 11-month-low of 3.7 bcfd this Friday. Meanwhile, feedgas for the 3.9 bcfd Corpus Christi plant in Texas will drop from 2 bcfd Thursday to a 2-week-low of 1.6bcfd Friday. Energy traders expect the total LNG feedgas in June to be below April's record-high, with Cheniere planning maintenance for about three weeks on Sabine's liquefaction train around June 223rd. Reporting by Curtis Williams, Scott DiSavino and David Gregorio from Houston; editing by Chris Reese & David Gregorio).
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Brazil wind energy company receives approval for data center with TikTok's interest
Casa dos Ventos, a wind farm developer in Brazil's northeast, has received regulatory approval for a 300 megawatt project. The company had been in discussions with TikTok owner about a large data center investment. Casa dos Ventos reported on Friday that Brazil's national grid operator has given the green light for the project to be connected at the Pecem Port complex in Ceara. The company said that the total investment for infrastructure and equipment in the data centers will be 50 billion reais (8.7 billion dollars). A person with knowledge of the negotiations said that the regulatory approval would speed up the talks with major technology firms, including ByteDance the Chinese parent company for TikTok. First reported last month, the Chinese company is eyeing a major Brazilian investment in data centers with Casa dos Ventos. Casa dos Ventos has partnered with TotalEnergies for its wind energy portfolio by 2022. After an initial rejection, a technical reassessment was conducted by the Brazilian Ministry of Mines and Energy and the national grid operator. This cleared the way for the project to be approved. Casa dos Ventos has announced that it will now start construction during the second half of the year, and begin operation in the second semester 2027. The company stated that its project would use closed-loop cooling systems to reduce water consumption, addressing concerns raised by some data center projects. Casa dos Ventos estimated that the water consumption for the first phase will be about 0.045% the demand of residential housing in the nearby city of Caucaia.
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Brazilian airline Azul plans to exit Chapter 11 by early 2026
Fabio Campos said in a Friday press conference that the Brazilian airline Azul hopes to end Chapter 11 proceedings by early next year. Campos responded that Azul would now concentrate on its financial restructuring. Azul filed for Chapter 11 in the United States this week. Abra, Gol's majority shareholder, and Colombian Avianca announced to Azul in January that they had signed an non-binding Memorandum of Understanding with the intention of merging their businesses in Brazil. Campos noted also that the MoU between Azul and Gol remains valid, even though it is not Azul's priority at this time. Azul finished this week its first Chapter 11 hearing. The court approved the carrier's access to $250 million from its $1.6 billion in debtor-in possession financing. The company stated that the amount combined with other judicial approbations and revenue generated by ongoing operations will provide sufficient liquidity to sustain uninterrupted operations. Campos said that Azul does not plan to lay off massive numbers of employees in light of its financial restructuring. Sales and operations will remain unaffected. Before filing for Chapter 11 protection Azul had agreements with key stakeholders including existing bondholders and aircraft lessor AerCap. It also entered into agreements United Airlines and American Airlines. The executive also noted that other lessors are in talks, besides AerCap. Azul is the latest Latin American airline to declare bankruptcy. It joins a long list of airlines that have been affected by the COVID-19 epidemic.
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Brazil Power Co gets approval for data center with TikTok interested
Casa dos Ventos, a wind farm developer in Brazil's northeast, has received regulatory approval for a 300 megawatt project. The company had been discussing an investment of a large data center with TikTok owner. Casa dos Ventos reported on Friday that the Brazilian national grid operator (ONS), has given the green light for the project to be connected at the Pecem Port Complex in Ceara. Casa dos Ventos said that the total investment for infrastructure and equipment in the data centers will be 50 billion reais (8.7 billion dollars). A person with knowledge of the negotiations stated that the ONS approval would speed up the talks with major tech companies, including ByteDance - the Chinese parent company for TikTok. First reported last month, the Chinese company is eyeing a major Brazilian investment with Casa dos Ventos. Casa dos Ventos has partnered with TotalEnergies in 2022 on its wind energy portfolio.
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Cuba warns top U.S. diplomats in Havana over 'disrespectful behavior'
Cuba's Foreign Ministry said that it issued a verbal caution to the top U.S. Diplomat in Havana on Friday, complaining about behavior it called "intervenionist." This is the latest escalation of tensions between the long-time enemies. Cuba claimed that U.S. Chief Mission Mike Hammer incited "Cubans to commit serious crimes, attack the constitution order, or encourage" them to act against authorities. His actions were a violation to the Vienna Convention on diplomatic relations. The statement stated that "the immunity he enjoys in his capacity as a representative for his country, Cuba, cannot be used to cover acts which are contrary to the sovereignty and internal order of the nation to which he has been accredited." The U.S. State Department didn't immediately respond to an inquiry for comment. Hammer, a career diplomat from the United States who arrived in Cuba about six months ago, traveled widely around the island to meet political dissidents. This has raised the ire of Cuban authorities, who accuse him of trying to foment unrest. Cuba's decision to officially chastise Hammer is just days after a U.S. diplomatic said at a Miami press conference that the Trump Administration was preparing additional sanctions against the communist nation. Cubans are facing the worst economic crisis in decades. The Cuban government attributes this to the Cold War U.S. embargo and a complex web of restrictions which impedes financial transactions, tourism, trade and fuel imports. Cuba has repeatedly criticised Hammer for months, but it hasn't obstructed his travels around the island. (Reporting and editing by Alistair Bell; Dave Sherwood)
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Sources say that Saudi companies will place orders for Airbus jets in the dozens, according to sources
Industry sources have said that Saudi Arabia will place orders worth billions of dollars for Airbus jets in order to balance its suppliers and match the growth of Gulf neighbours' aviation. They said that the leasing company AviLease could place a similar order for Airbus A320neo aircraft at next month's Paris Airshow. The company placed an order of 30 Boeing 737 MAX during a recent visit by U.S. president Donald Trump to the region. They added that the fast-growing firm, which wants to become one of the top lessors in the world, could also be interested in Airbus A350 Freighters. They said that if there is no problem with the negotiations, Riyadh Air, a startup airline, will likely choose Airbus A350 instead of Boeing's delayed Boeing 777X. Bloomberg reported earlier that the possible Riyadh A350 deal could also involve 50 jets. It would be announced at a trade show this year. Airbus declined comment. AviLease wasn't immediately available. Riyadh Air confirmed that it is studying an order for wide-body large planes. A spokesperson said that a decision would be made within the next few months. (Reporting by Tim Hepher, Allison Lampert and Elaine Hardcastle; Editing by Elaine Hardcastle).
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IndiGo will terminate Turkish Airlines' lease after India grants final extension
IndiGo said it will end its leasing agreement, which was extended by the state-owned Turkish Airlines, within three months of the final extension. This will force the airline to look for alternatives. India has criticized the agreement after Turkey supported Pakistan in the recent conflict between two South Asian neighbors. IndiGo's competitor Air India has also opposed the pact, having lobbied India to terminate the deal citing security and business concerns. Directorate General of Civil Aviation stated that IndiGo has given an undertaking to terminate the lease agreement with Turkish Airlines on August 31. It will not be seeking a further extension. IndiGo requested a six-month extension, which is permitted under the rules, but was denied. Instead, a shorter period of time was approved, citing convenience for passengers, and confirmed an earlier report. The lease was set to expire Saturday. IndiGo did not respond to a request for comment immediately on Friday. The airline has previously defended its Turkish partnership by saying that it benefits Indians and creates jobs and aviation growth. Reporting by Abhijith Gaapavaram from New Delhi, and Nandan Mandayam from Bengaluru. Editing by David Holmes & David Evans
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Airbus factories are plagued by raccoons that are rampaging.
Airbus has been plagued by supply chain problems and parts shortages. A family of raccoons broke into the factory. Sources said that five of the baby animals were discovered inside the Montreal plant, which manufactures A220 aircraft, after their mother had been spotted climbing up the landing gear on a jet produced for an European airline. A factory worker reported that "a guy was face-to-face with the raccoon after entering the plane." According to a second source, damage includes urine and chewed-wires. The first jet had to be quarantined and inspected for any damage caused by the furry invaders. These creatures are notorious for scavenging in trash bins to find food. Airbus confirmed that a family raccoons was discovered on one of its planes, but refused to comment whether the raccoons had caused further delays in production or any damage. A spokesperson stated that the aircraft was undergoing its assembly process, and added that safety and quality measures were in place. Airbus has warned that the company faces three more years of delays in delivering aircraft as it attempts to resolve supply-chain issues. Airbus said that recent snags included missing engines, delayed arrivals of parts and delays in interiors. Airbus' contingency plans have rarely had to deal stray omnivores in the rural plant. The second source explained that "we had to open up everything again to inspect". Airbus confirmed that the animals were removed and placed in a safe place. (Reporting and writing by Allison Lampert, Tim Hepher, Editing by Joe Bavier).
Boeing CEO wants to increase 737 MAX production throughout the rest of the year
Boeing aims at increasing production of its most popular 737 MAX aircraft to 42 aircraft a month within the next few weeks and then to 47 a monthly in early 2026. This was announced by Chief Executive Kelly Ortberg on Thursday.
After Ortberg stated at the Bernstein Strategic Decisions Conference that he wanted to reach 47 aircraft per month production by 2025, the share price of the U.S. airplanemaker jumped 5%. He corrected himself a few minutes later by saying that the company should be preparing to reach this level of production before the end the year.
Boeing aims to maintain production at 38/month. This was the level set by the U.S. Federal Aviation Administration (FAA) in 2024, after a mid-air accident brought the safety and quality of the planemaker's production program into question.
He said that production defects in the 737 program have decreased by 30%. "Virtually all of our customers are reporting an improved quality of aircraft at delivery."
Boeing must increase production to become cash-positive again, something Ortberg said previously he expected to happen in the second half. It spent $2.3 billion on cash in the first quarter.
Ortberg stated, "I believe the financial performance of the company will follow its production performance. I think that we should think about it in this way."
He said that the company was making progress in certifying both the smallest MAX and the largest MAX with the U.S. Federal Aviation Administration. Partly due to concerns about the engine deicing system, MAX 7 and MAX 10 were delayed. He said that the company would finish testing its fix in July and be able to certify aircraft before the end of the calendar year.
Boeing's backlog of orders includes almost 1,200 orders for 737 MAX 10 and nearly 332 orders MAX 7.
Ortberg said that Chinese Airlines will resume Boeing deliveries in June. China halted deliveries to Boeing in April as a retaliation for tariffs imposed on President Donald Trump. Boeing estimates that the tariffs will have an impact of less than $500,000,000, according to him.
(source: Reuters)