Latest News
-
After attacks, Greece urges its fleet to increase security in the Black Sea
Greece has advised Greek flagged commercial ships to upgrade their security measures while'sailing in the Black Sea' following a series of.attacks on tankers over the past few days. Greek-operated tankers are among the largest in the world and play a pivotal role for trade along the Black Sea, where Bulgaria, 'Georgia', Romania, and Turkey share the waters with Russia, Ukraine and other warring nations. Ukraine and Russia have intensified their attacks in recent weeks on ships and other facilities located near the Black Sea or the Sea of Azov to try and undermine each other's military efforts. A Russian missile struck a ship with corn near the southern Ukrainian port of Odesa on?Sunday and killed 10 people. On Sunday, two Greek-operated oil tankers were also targeted with sea drones at the Caspian Pipeline Consortium – a 1,510 km (1,440 mile) oil pipeline connecting Kazakhstan's Caspian Sea to Russia's Black Sea Port of Novorossiysk. CPC is responsible for 80% of Kazakhstan's oil. During loading operations, the crude oil tankers ASIA (which is'managed' by Dynacom) and NISSOS IO, which belongs to Kyklades Maritime Corp., were both attacked. The advisory for July 21 stated that a third Greek-operated ship was also?attacked. The advisory stated that "Greek ships operating in the region should increase their security measures due to the increased tensions observed following attacks on 'commercial ships. (Reporting and writing by Yannis Soulieotis, Editing by Joe Bavier).
-
Shipping data shows that more ships are changing course in the Red Sea following Houthi threats
Ship tracking data revealed that four tankers changed their navigational course on Wednesday in the Red Sea, with two of them indicating the Suez Canal as their new destination. Yemen's Houthi milita warned ships not to sail to Saudi Arabian port after warnings from the Houthi militia. According to LSEG and MarineTraffic'ship tracking data and analyses from British maritime -risk management group Vanguard, the?vessels changed their direction. The?other two indicated their destination as a?open?waters?in the Red Sea. According to shipping data, it appears that a fifth ship, a vehicle-carrier, turned back in the Gulf of Aden Wednesday after signaling the Saudi port of Jeddah for its next destination. Following the warning by the Iran-aligned Houthis, three oil tankers carrying 'Saudi crude' for China and India turned around in the Red Sea on Tuesday. They headed towards the Suez Canal instead of tackling the Yemeni coast at the mouth of the sea. (Reporting and editing by Joe Bavier; Reporting by Jonathan Saul)
-
Sources say that the $30 billion Morocco-Germany power cable has been stalled due to governance differences.
Four sources claim that a $30 billion project, which would provide Germany with renewable energy from Morocco via the longest intercontinental undersea power link in the world, is currently being delayed by disagreements about structure and guarantees. Sila Atlantik is a project that aims to link Morocco and Germany through two subsea cables capable of delivering up to 5% the annual German electricity demand. According to project developers, the cables would be 4,800 km long (2,892 meters) and fed by solar and wind power installations up to 15 gigawatts in Morocco. The total infrastructure costs around $30 billion. European countries want to increase the number of such connections in order to reduce their dependence on fossil fuels and improve energy security. Sila 'Atlantik was created by a German firm for this project after a similar proposal to build a renewable electricity link between Morocco and the UK called Xlinks collapsed a year ago. Two Moroccan and two German sources with knowledge of the issue have said that the project has now hit a snag, as the Moroccan authorities are insisting on a formal intergovernmental agreement to be endorsed by Berlin in order to guarantee long-term support from the state. The sources, who requested anonymity because they weren't authorised to publicly speak on the issue, said that Morocco would also like the connection to be able to send electricity both ways. One German source stated that a two-way link would be technically feasible but more expensive economically. A senior official from the region said that Moroccan authorities have promised to dedicate around 150,000 hectares in southern Guelmim - Oued Noun to the Xlinks Project, but they haven't yet approved the same allocation to Sila Atlantik. Sila Atlantik didn't answer specific questions regarding the project, but stated that it was "progressing according to its technical, financial, commercial and regulatory roadmap." The company responded in an email that "the project continues to evaluate the technical and regulatory alternatives that will best support its long-term growth." The Moroccan Energy Ministry didn't reply to questions but stated 'by email' that "regional Integration is a key component of Morocco's Energy Transition Strategy" and emphasized plans to strengthen electricity links with European partners. A second Morocco-Spain connection with a capacity of 700 megawatts is being planned. Meanwhile, a Morocco-Portugal link currently under study could require investment up to 735 million euros ($838 million). According to a document from the electricity utility ONEE seen by, a second Morocco-Spain link with a capacity of 700 Megawatts is planned. A Morocco-Portugal connection currently under study may require an investment of as much as 735 Million Euros ($838 Million). According to a document from the electricity utility ONEE, a connection with France is also planned. Morocco and Portugal plan to submit their proposed electricity link to the European Union T-MED Programme, which aims at mobilising up to 25 billion euro in investment to support renewable energy cooperation and cross border electricity infrastructure. (Reporting and Editing by Ahmed El Jechtimi: Editing By Sharon Singleton).
-
Bousso: The electrification of Europe's ROI will be a decade-long struggle.
Europe is facing a "death Valley" of high energy prices over the next decade, which threatens to erode their industrial base even if they achieve their ambitious plan?to increase electricity consumption by 2040. The European Commission announced on Friday an Electrification Action Plan aiming to increase electricity's share in final energy consumption from 23% today to 48 % by 2040. An interim reference goal of 32 % by 2030 was set as an initial target. The strategy aims to accelerate electrification in transport, buildings, and industry. It also tackles one of Europe's largest energy paradoxes - electricity is often more expensive than fossil fuels that policymakers would like consumers and businesses abandon. The Commission claims that turning Europe into the first "electrocontinent" of the world would drastically reduce fossil fuel consumption, and the EU's energy import bills could be reduced by up to EUR260 billion ($297billion) per year by 2040. The appeal is clear at a time when the security of energy has become a priority in geopolitics. The challenge is also clear. Europe is still largely fueled by fossil fuels. Oil, coal and gas account for over 60% of EU's total energy mix. Renewables only make up about one fifth. Despite the rapid expansion of renewable energy generation on the continent at a cost that is enormous, the continent has made much less progress in electrifying sectors such as transport, industry, and heating. Even though Europe has been steadily decarbonising its electricity production, electricity still only represents a small percentage of the total energy consumption. The share of electricity consumption in total energy has been around 23% since over a decade. The disconnect underscores the magnitude of the task that lies ahead. It could very well determine whether the European industry is viable in the coming decade. MASSIVE VULNERABILITY The energy crisis that followed Russia’s invasion of Ukraine on a large scale in February 2022 underscored the urgency to accelerate this shift. Losing abundant Russian pipeline natural gas forced Europe to undergo a costly and painful energy realignment. It had to replace cheaper imports from the east with more expensive liquefied gas imported from global markets. The effects on industry were profound. The rise in energy prices led to a contraction of industrial activity, as companies from metals to glass to chemicals to fertilisers struggled to compete against rivals from regions that benefitted from cheaper energy. Europe is still acutely vulnerable to fluctuations in the fossil fuel markets. According to the European Commission's estimates, since the beginning of the Iran War in late February, oil and gas imports have increased by EUR50 billion. This has added fresh pressure on inflation. The Commission has proposed an extensive package of measures to reduce energy costs. These are aimed at reducing the gap in price between electricity and natural gas. These include reducing the network charges, introducing smart meters, increasing the affordability of electric vehicles, expanding the charging infrastructure and replacing gas boilers with heat pump systems. The EU's Emissions Trading System is the flagship policy of the EU on climate change. The reforms proposed would give industries more flexibility to reduce emissions, while also providing financial support for investments in clean technologies and domestic production. HUGE PRICE TAG The scale of the investment required is staggering. According to a recent estimate by the Commission, upgrading and expanding Europe’s ageing transmission networks and distribution systems will require approximately EUR1.2 trillion in investment between 2040 and 2040. Tens of millions more will be needed to fund programmes designed to promote electrification within the transport sector, in industry and in buildings. There are reasons to be optimistic, though. According to the International Energy Agency?, Europe spends about EUR60-EUR70 billion on electricity grids every year. This means that reaching the Commission's target for investment would not require an overhaul of current investment trends. The proposed relaxation of ETS requirements could also unlock additional funding, allowing companies to redirect their capital towards modernising production and infrastructure. The Commission wants the member states to also dedicate half of ETS revenue to decarbonising their domestic industry. Since 2013, carbon?market revenues have been around EUR260 billion. Even after all of this, however, the increase in investment still remains daunting. This is especially true when you consider that European governments are under pressure from both Washington and Russia to increase their defence spending. Existential Risk Timing is the biggest issue. The benefits of the plan will only be realized gradually, even if it survives the forthcoming political battles. This is unlikely given the divergent interests among the 27 members states. It takes years to build grids, charging systems, heat pumps and industrial infrastructure. The challenge to Europe's competitiveness in the industrial sector, on the other hand, is urgent. European electricity prices are still more than double those in the U.S., and about 50% higher than China. This leaves energy-intensive industries at a structural disadvantage, even after the decline from the extremes of the energy crisis in 2022. Europe's energy-intensive industries will need to be competitive with their rivals from Asia and North America for most of the decade. They must also expand electricity-hungry areas such as artificial intelligence and data centres. This is the unsettling reality that lies at the core of Europe's electrification policy. Electrifying Africa is not just a climate goal. It has become a necessity for a region that is limited in fossil fuel resources, exposed to geopolitical shocks and faces increasing costs of imported fuel. It is a question of whether Europe's industry can survive for long enough to reap its benefits. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. ($1 = 0.8753 euros)
-
Airbus shares rise on EUR5 billion buyback and new guidance
Airbus shares rose more than 5% on Wednesday after the European planemaker announced a EUR5billion ($5.7billion) share-buyback program and revealed new midterm targets, including a near-doubling of profits by 2020. Airbus announced late Tuesday that it was aiming for a core profit of EUR12 to EUR13 billion by 2029. This would be a significant increase from the EUR7.13 billion adjusted earnings before interest and taxes of last year, as well as a target far above EUR7.5 billion set in 2026. In a note for investors, Deutsche Bank analyst Christophe Menard stated that the EUR5 billion (or five billion euros) share buyback over a three-year period was 'the positive surprise. Airbus, the world's biggest civil?planemaker, also anticipates that its dominant commercial aircraft business will generate around EUR10billion in?operating profits in 2029. It has also struck a?positive note on aircraft deliveries. Airbus began the year with a slowdown due to supply-chain and engine bottlenecks, but has since accelerated its deliveries. First-half handovers have increased by 15%. J.P. Morgan wrote that Airbus "delivered all the things we felt were needed for shares to rise".
-
China's flood season is in full swing, and extreme rainfall has already begun to threaten the north
Weather experts say that China is now in its peak flood-control period. Extreme rainfall will increase from late July until early August, and much of northern China may experience up to 50% more rain than normal. The rising temperatures in the country are moving the rain belt to the west and north, increasing the humid and semi-humid zones. This increases the risk of secondary catastrophes. Climate change is not a problem for China in the future - it has already begun, said Xuebin Zhang. He's a professor from the University of Victoria (Canada) and the director of the Pacific Climate Impacts Consortium. Zhang stated that adaptation needs to be a bigger part of the response. In recent weeks, downpours have been experienced in large swaths of China. Part of a mountainside in Pengshui County, a scenic area located 270 km (167 miles), southwest of Chongqing City, collapsed after torrential rain. Rescue teams are still searching for up to 34 people. The National Climate Centre has stated that the majority of parts of Northern China, Eastern Inner Mongolia, and North-Eastern China are likely to experience higher than average rainfall during Qixia Bashang. "Many areas in the Beijing-Tianjin-Hebei region will see 20% to 50% more ?rainfall than usual," the climate centre said. It said that floods caused?by heavy rain' need to be guarded against. In the northeast, parts of Liaoning Province have already received?more than twice their normal rainfall this year. The climate centre warned that extreme rains could cause flash floods and urban waterlogging, as well as landslides in some areas. (Reporting and editing by Farah master and the Beijing Newsroom)
-
Enagas, a Spanish company, buys Saggas' stake and says that it is on target to reach its 2026 goals
Enagas, the Spanish gas grid operator, announced on Wednesday that it had agreed to purchase a 20% stake from 'Osaka Gas in eastern Spain's 'Saggas' regasification plant. It also reported first-half earnings, which it claimed kept it on track to meet its 2026 forecasts. The company announced that it would pay EUR31,000,000 ($35,000,000) for a stake in the Sagunto plant, located in the Valencia region. This plant has a storage capacity of 600,000.000 cubic meters and a regasification capability of 1.1 million normal cubic metres an hour. This is equal to 18% of Spain's total and 15% of its total. Enagas would increase its stake in Saggas from 7.5% to 92.5%. Oman Oil Holdings Spain would retain the remaining 7.5%. Closing should be before the end of 2026. ON TRACK FOR FULL-YEAR EARNINGS TARGET Enagas reported a first-half net profit of EUR118.6m on Wednesday, down by?8.6% on the previous year, but still on track to reach its full-year goal of EUR235m, it stated. The company reported that the net profit, including asset rotation, like the sale of 40 percent of Enagas Renovable in the first half of the year, dropped by 28 per cent to EUR126,9 million. The previous figure included EUR46.3 millions of positive exceptional impacts. Earnings were EUR314m, down?4.6% from the same time last year. At the end of June 2018, the company's net debt was EUR2.31 billion, down EUR170 millions from end-2025. Enagas announced that public participation plans had been completed for BarMar, a planned subsea?hydrogen pipeline linking Barcelona and Marseille. The project has been cleared for front-end engineering design. It added that detailed engineering on the Spanish segment of the route, known as CelZa, has begun. Environmental impact studies in both countries have also been initiated.
-
The new British PM has promised to cap the cost of bus tickets
Andy Burnham, the new British Prime Minister, promised a price cut of up to a third on single bus tickets as part of a push to reduce a cost-of living crisis. After his government announced that it would reduce taxes on electricity bills, the decision to cap tickets at PS2 ($2.68) in January was made. Downing Street announced that the extra funding for the bus ticket cap would come from reprioritising the Department of Energy, Security and Net Zero budget. "As I said on my first day as president, I will build a nation for everyone everywhere. Burnham said in a statement that this would mean more connected communities, greater access to opportunities and a lighter burden on people's daily lives. On Tuesday, the government announced that it would eliminate value-added taxes from domestic electricity bills as of October 1. This will save households around PS45 on their average annual bill. Burnham said that he would unveil early policies. He told reporters on Monday that he wants his new government to "do some things" - and feel them - quickly, especially for those with the lowest incomes.
Energy minister: Low Danube levels are causing a drop in fuel imports to Serbia
Low water levels on the Danube River slowed barge deliveries and lowered Serbia's fuel imports to 25% of its monthly target for July, said Energy Minister Dubravka Djedovic Handanovic on Wednesday.
She said that after a meeting with representatives of oil companies in Serbia she realized the country's dependency on the single refinery operated by NIS, a Russian oil company sanctioned by the U.S.
This week, the Danube reached record lows in Hungary, Serbia, and Romania, forcing barges to operate at 30 to 40 percent of their cargo capacity.
Djedovic handanovic claimed that fuel was transported via road or rail, but this has pushed up the prices which are already "exceptionally expensive".
Serbia has 269,000 metric tonnes of diesel in its strategic state reserves. However, the NIS refinery, located in Pancevo with a 4.8 million ton annual capacity, is vital for 80% of Balkan demand.
In October, the U.S. Office of Foreign Assets Control (OFAC) imposed sanctions against NIS as part of broader measures targeting Russia's oil and gas sector due to the conflict in Ukraine. They also demanded that its Russian majority owners Gazprom and Gazprom sell their shares.
OFAC granted NIS a number of sanctions waivers, allowing it to import crude through Croatia's Janaf Pipeline while Hungary's MOL completed?its acquisition?of the Russian-owned stake. The current NIS exemption expires on the 31st of July.
Djedovic?Handanovic stated that "if the NIS licence is not extended, (market) supplies will be entirely dependent on state reserves."
MOL entered into a provisional contract in January for the purchase of a combined Gazprom-Neft-Gazprom 56% stake in NIS. After several extensions, OFAC gave the companies until July 31, 2012 to complete the deal.
The Serbian Government owns 29,9% of NIS. Small shareholders and employees hold the rest. (Reporting and editing by Jan Harvey; Aleksandar Vasovic is the reporter)
(source: Reuters)