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Sources say BlackRock-led group is in negotiations to raise $10.3 billion for Aramco.
Two sources who have direct knowledge of this matter said that a group of investors, led by BlackRock’s Global Infrastructure Partners, is in discussions with lenders in order to secure financing of up to $10 billion for Aramco’s Jafurah deal. Two sources confirmed that JPMorgan, Japan's Sumitomo Mitsui Banking Corporation, and other banks are in discussions to take part in the transaction. This will allow Aramco the opportunity to receive cash up front in exchange for regular payments. They declined to name the individuals because it was not public information. Aramco BlackRock JPM and SMBC all declined to comment. Aramco will lease the development and usage rights of gas processing facilities located around the Jafurah Gas Development to a newly-formed subsidiary, Jafurah Midstream Gas Company. Aramco will hold a majority (51%) of JMGC. The remaining 49% will be held by an investor group. Sources said that the company could raise between $3 and $4 billion through a sale Islamic bonds. This follows a $5 billion bond issue in May. The company received more than $16.5billion in orders for the sukuk on Wednesday, which are expected to be priced later that day. This deal also reflects Saudi Arabia’s broader energy policy. The deal also reflects Saudi Arabia's broader energy strategy. Two sources confirmed that the GIP consortium will inject about $1.8 billion in their own funds to the transaction. One source said that roughly three quarters of debt financing would have a tenor of seven years - which could be refinanced through bonds - while the remainder will be due after 19 years. Source: Chinese banks are interested in financing the short-term, said the source. Goldman Sachs and Citi have shown interest in taking part in the financing. A third source confirmed this. Citi and MUFG refused to comment. The other two banks didn't respond immediately to emailed comments. This structure is similar to the deals made by Aramco for its oil and natural gas pipeline network in 2021 and 2020. The Jafurah gas field is estimated to contain a total of 229 trillion standard cubic feet of gas. It is the largest nonassociated gas development in Saudi Arabia. This project forms a key part of Aramco’s plan to increase gas production by 60% from its current levels by 2030. The investment in infrastructure is expected to help build more than 1,500 km pipelines and facilities. Reporting by Hadeel al Sayegh and Federico Maccioni; Editing and production by Jane Merriman, Jan Harvey
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EU aims to reduce prices and improve security by tackling 8 bottlenecks in the power grid
According to the Commission president, eight bottlenecks in the power grid will be addressed as a priority by the European Union, in order to reduce the uncompetitive prices of energy and improve energy security. "I present today a new project called Energy Highways. Eight critical bottlenecks have been identified in our energy infrastructure. "From the Oresund Strait and the Sicilian Canal", said European Commission President Ursula von der Leyen in her State of the Union Address in Strasbourg. We will work to eliminate these bottlenecks, one at a time. The 27-member states of the EU have a wide range of prices and connections, but the electrification ambitions are still largely unfulfilled. In the first half of this year, Spain, Portugal, and southeastern Europe (especially Greece) experienced blackouts across their entire countries. Dan Jorgensen, EU Energy Commissioner told reporters at a press conference in Strasbourg: "If we don't improve our energy system connectivity, we won't be able to reduce the prices (of energy) as much as we need." The project will focus on increasing electricity interconnections from the Iberian Peninsula to France. In May, Spain and Portugal requested the Commission's intervention. Jorgensen stated, "We can't say for sure why the blackout happened but experts agree that the more connected and better connected you are the lower the chance of blackouts." "It is our main priority to see that it happens." I am confident that France too will see its value. The following is a list of priority bottlenecks. 1. Improve the integration of Iberia by power interconnectors crossing the Pyrenees Mountains to France 2. Connect Cyprus to continental Europe and end its electrical isolation 3. Strengthening power links between the Baltic States 4. Energy supply in the Balkans and neighbouring eastern states 5. Make the North Sea an offshore interconnector hub 6. South hydrogen corridor linking the North Sea and the Mediterranean 7. Southwest hydrogen corridor between Portugal and Germany 8. Reporting by Julia Payne, Editing by Ros Russel.
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JetBlue adds nine new routes to Fort Lauderdale
JetBlue Airways announced on Wednesday that it will expand its service out of Fort Lauderdale, Florida. This comes as U.S. carriers rush to increase service in key markets for bankrupt discount airline Spirit Airlines. JetBlue, based in New York, is offering nine nonstop routes across the United States and Latin America as well as the Caribbean. Rivals, such United Airlines and Frontier Group are also rushing to capitalize on Spirit Airlines' second bankruptcy filing within a year. JetBlue announced that it would offer 113 flights per day during the winter peak season to maintain its status as the airline offering the most departures out of Fort Lauderdale-Hollywood International Airport. The airline will launch nine new routes in November that include Cali, Colombia for the first. In July, the company announced that it would expand its Mint premium service with flat-folding seats, as airlines seek to capture more premium spending by U.S. customers. JetBlue expects its operating revenue to decline less than previously anticipated in the third quarter, due to strong demand during summer and Labor Day Weekend. Allegiant Air, a regional carrier, announced on Tuesday three new routes that will launch in February. One of them is from Fort Lauderdale, Florida to Chattanooga Tennessee. United announced this month that it would expand its presence in Spirit's market, including Fort Lauderdale and Orlando. Meanwhile, ultra-low cost carrier Frontier has set its sights on new routes throughout the U.S. and Latin America. Reporting by Doyinsola Oladipo, Washington; editing by Mark Porter and Rod Nickel
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Sources say BlackRock-led group is in negotiations to raise $10.3 billion for Aramco.
Two sources who have direct knowledge of this matter said that a group of investors, led by BlackRock’s Global Infrastructure Partners, is in discussions with lenders in order to secure financing of up to $10 billion for Aramco’s Jafurah deal. Two sources claim that banks, including JPMorgan, and Japanese lender Sumitomo Mitsui Banking Corporation are in discussions to participate in this transaction. They declined to name the individuals because it was not public information. Aramco BlackRock JPM and SMBC all declined to comment. Aramco will lease the development and usage rights of gas processing facilities located around the Jafurah Gas Development to a newly-formed subsidiary, Jafurah Midstream Gas Company. Aramco retains a 51 percent stake in JMGC. The remaining 49 percent is held by an investor group.
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Avelo Airlines orders 50 E195E2 jets from Embraer
Embraer announced on Wednesday that it had reached an agreement with Avelo Airlines, a budget airline in the United States, for 50 firm orders of the Brazilian planemaker’s E195E2 jets and 50 purchase rights. This is the first U.S. contract for this plane. The announcement coincides with an important gathering of leaders in the aerospace industry. It also comes at a time when Brazil's planemaker, which is the third largest in the world, has been lobbying for the Trump administration to eliminate 10% tariffs while highlighting U.S. Airlines' reliance on regional jets. Embraer described last week the planned announcement of its U.S. business as a milestone. The order's list price is $4.4 billion excluding the purchase rights. Embraer sells 45% of its commercial planes to U.S. customers and 70% of their executive jets. All of these aircraft rely heavily on U.S.-made parts. Andrew Levy, CEO of Avelo Airlines, said that the E2 would complement the airline's Boeing 737-800 fleet which has significantly more seating and would help it grow its business. Levy stated, "This is the aircraft we need." It gives us a reliable pipeline of aircraft.
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Quotes-Western leaders denounce Russia for drones infiltrating Polish airspace
Poland shot down drones Wednesday that had entered its airspace, marking the first time an NATO member has fired shots in Russia's conflict in Ukraine. Some of the top politicians and officials have reacted to this situation. POLISH PREMIER MINISTER DONALD TUSK "We're dealing with a massive provocation...We are prepared to repel such provocations." No one doubts the seriousness of the situation, or that we need to prepare for different scenarios. The fact that these drones posed a threat to security were shot down has changed the political climate. This is the closest that we've been to an open war since World War Two. NATO SECRETARY GEN. MARK RUTTE It is dangerous, regardless of whether it was done intentionally or not. "But the full assessment continues." My message to (Russian president Vladimir) Putin is clear. Stop the war in Ukraine. Stop violating the airspace of allies. "Know that we are ready and vigilant to defend every inch NATO territory. RUSSIA'S RIA NEWS AGENCY CITES ANDREY ORDASH AS A RUSSIAN CHARGE d'AFFAIRES IN POLAND. We find the allegations to be unfounded. "No evidence has been provided that these drones were of Russian origin." KREMLIN SPOKESMAN, Dmitry Peskov "The EU and NATO leaders accuse Russia on a daily bases of provocation." "Most of the time without even attempting to present some sort of argument." UKRAINIAN PRESIDENT VOLODYMYR ZELENSKIY "It's clear that Russian aggression is a threat to every independent nation of our region. Only a coordinated and joint action can ensure reliable security." It is a precedent that several European countries have used combat aircraft simultaneously to destroy Russian weapons, and save human lives. "Europeans are stronger together." "Europeans are stronger together." KAJA KALLAS - EUROPEAN UNION HEAD OF REPRESENTATION FOR FOREIGN AFFAIRES AND SECURITY POLITICS "Russia's War is not ending, it is escalating." We must increase the price on Moscow, support Ukraine and invest in Europe’s defence. "The EU has a significant role to play and we will be supporting initiatives such as the Eastern Border Shield defense line." FRENCH PREMIER EMMANUEL MACON "The incursion by Russian drones in the Polish airspace, during an attack conducted by Russia against Ukraine, is simply unacceptable." It is a crime that I condemn in the strongest possible terms. "I call on Russia to stop this reckless escalation." "I reaffirm to the Polish people and government our complete solidarity. Mark Rutte, Secretary General of NATO, and I will be speaking soon. "We will not compromise the security of our Allies." BRITISH PREMIER MINISTER KEIR S STARMER The barbaric attack by Russian drones on Ukraine this morning and their egregious violation of NATO and Polish airspace is very concerning. This was a reckless act by Russia, which only served to remind us about President Putin's disregard for peace and the constant bombardment of innocent Ukrainians. JOHANN WADEPHUL, GERMAN FOREIGN MINISTER "Russia has accepted recklessly a dangerous escalate... Unfortunately, even three years later, Moscow has not shown any serious willingness to negotiate for peace. The Kremlin, on the other hand, wants to subjugate Ukraine through force. "We will and must respond with a clear response." U.S. AIR COMMANDER GENERAL ALEXUS GRYNKEWICH, NATO SUPREME Allied Commander Europe "The Supreme Headquarters Allied Powers Europe, and Allied Command Operations have been in contact and coordinated with Poland and the other Allies about the drones which entered Polish airspace. NATO responded swiftly and decisively, demonstrating its capability and resolve in defending Allied territory. (Reporting Alan Charlish and Mathias de Rozario; Andrew Gray, Kate Holton and Juliia Dysa, compiled by Timothy Heritage and edited by Peter Graff, Hugh Lawson and Hugh Lawson.
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Cuba's electricity grid collapses nationwide
Authorities said that the national grid of communist Cuba collapsed on Wednesday morning for the fourth consecutive time in less than one year, causing a blackout across the country. The Energy Ministry and National Electric Union stated that "there has been a complete disconnection of Electric System SEN which could be related to an unexpected outage at the (thermal plant) CTE Guiteras." Grid operator indicated that the collapse of the grid in the Caribbean island occurred at 9.14 am (1314 GMT). The ministry announced that it is investigating the causes and that restoration has already started. Before Wednesday's grid failure, many on the island were already experiencing daily blackouts of 16 hours or longer. The grid failure comes after a series of nationwide blackouts that occurred late last year, which plunged Cuba's fragile and antiquated electricity generation system into near total disarray. The country is also facing natural disasters, fuel shortages and economic crisis. Cuba's oil-fired plants, which were already outdated and struggled to keep the lights lit, entered a crisis last year when oil imports from Venezuela and Russia, as well as Mexico, decreased. (Reporting and writing by Marc Frank, Aida Pelaez Fernandez; editing by Lisa Shumaker & Nick Zieminski).
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Gas explosion in Lithuania prompts residents to evacuate near Vilnius Rail Station
Vilnius, the capital of Lithuania, issued an order to evacuate residents living within a radius of one kilometre (0.62 miles) from a railway station on Wednesday after a train transporting liquefied petroleum gas (LPG), exploded and ignited during reloading. The Lithuanian Fire and Rescue Service reported that 40 firefighters were on the scene at the time of the fire, but were unable to get close to it because of excessive heat. A company spokesperson confirmed that the LPG was sourced from a Lithuanian refining plant owned by Polish refiner Orlen. However, a third-party company was responsible for transporting it, and the LPG station at the railway station was not Orlen's property. The spokesperson confirmed that there was no suspicion of the fire being deliberately set, and that an investigation was in progress. Orlen's spokesperson in Poland said that there were no suspicions at this time of deliberate acts. The company is working with the terminal owner, as well as the relevant authorities, to investigate the cause. A spokesperson from Orlen Lithuania said that the incident happened as LPG was being loaded into the terminal. Lithuanian Railways said that a Russian passenger train stopped at 9:54 am, about 10 kilometers before the station. It was then redirected on another route. (Reporting by Andrius Sytas in Vilnius, Marek Strzelecki in Warsaw; Editing by Bernadette Baum)
Poland eliminates drones that violated its airspace
Poland shot down drones Wednesday that were in its airspace when Russia attacked Ukraine. This was the first time an NATO member fired in the war.
The following are details about the events that occurred overnight, the actions taken by Poland, and the reaction of its allies.
WHAT HAPPENED LAST NIGHT?
Donald Tusk, the Prime Minister of Poland, told the parliament that the country, which is both a member state of the European Union as well as NATO, had received its first alert regarding the Russian attack in Ukraine at 0600 GMT on the same day.
Volodymyr Zelenskiy, the Ukrainian president, said that Russia had launched over 40 missiles and 415 drones in 15 Ukrainian regions. Ukraine's air force has reported that it shot down 386 drones, and 27 out of 43 missiles.
According to Tusk, the first violation of Polish Airspace occurred around 2130 GMT Tuesday and the last violation took place around 0430 GMT Wednesday.
Western officials confirmed that F-16s from Poland, F-35s from the Netherlands, Italian AWACS surveillance aircraft, and mid-air refuelling planes took part in an overnight operation to respond to the violations of airspace.
Zelenskiy stated that at least eight Russian drones were aimed at Poland. At least two of them entered Polish territory through Belarus.
Poland reported that it had detected several airspace violations over the course of the night, many of which originated from Belarus. It confirmed that three drones were shot down and said that it was probable a fourth one had also been destroyed. It said that the last drone was destroyed at 0445 GMT.
What happened after the event?
Polish authorities started searching for drone debris. They urged the public to report any sightings and to stay away from unidentified objects.
Seven drones, as well as parts of a rocket, were discovered in the eastern part of the country. The interior ministry reported that a drone was discovered near Mniszkow, in the province of Lodz, 240 kilometers (149 miles), west of the border between Belarus.
Within 48 hours, President Karol Nwrocki will convene a National Security Council.
Poland requested NATO to begin consultations in accordance with Article 4 of their treaty. This article states that the members of the Western Military Alliance will consult each other whenever they believe the territorial integrity, political independence, or security of one of them are threatened.
Polish officials were unable immediately to confirm whether the drones targeted the capital Warsaw or a logistics hub for western Ukraine in southeast Poland, as well as any NATO infrastructure.
How have Poland's allies responded?
NATO's top military leader, U.S. Air Force Gen. Alexus Grynkewich said that NATO is in constant contact with Poland and its allies.
Officials in Europe described the drone invasion as deliberate and escalated. Kaja Kallas said that early indications suggest the drones intentionally entered European airspace.
Ursula von der Leyen, President of the European Commission, called for more sanctions against Russia. (Reporting and editing by Timothy Heritage; Pawel Florkiewicz, Marek Strzelecki, Anna Koper)
(source: Reuters)