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Jetstar Asia, a low-cost airline operated by Qantas Australia, will be closed.
Qantas, Australia's flag carrier, announced on Wednesday that it would close Jetstar Asia in Singapore, its low-cost subsidiary, to recycle as much as A$500,000,000 ($326.40million) for fleet renewal. Qantas announced that Jetstar Asia Airbus A320s will be redeployed in Australia and New Zealand. Jetstar Asia is still negatively affected by the rising costs of suppliers, airport fees and competition. Qantas stated that the low-cost carrier's ability "to deliver returns comparable with the stronger performing core market in the group" was fundamentally challenged. Jetstar Asia expects to report a underlying EBIT of A$35million in the current financial period. The airline will cease operations on July 31, but will continue to operate flights for seven weeks. Reporting and editing by Pooja Deai, Alan Barona, and Rishav chatterjee from Bengaluru.
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US EIA cuts ethane forecasts for 2025 and 2026 due to curbs on China exports
The U.S. Energy Information Administration announced on Tuesday that U.S. ethane imports would fall by 24 percent in 2025 while production of shale gases will drop by 4 percent. This was after Washington asked U.S. exporters to obtain licenses for shipping ethane into China, its top buyer. The license requirement already has an impact on exports, as half of U.S. exports go to China. It also raises questions about whether ethane should be extracted from natural gas or left in the stream. The EIA forecast that U.S. exports of ethane will drop to 410,000 barrels a day by 2025, from an earlier forecast of 540,000 barrels a day. It also said that the output would decrease to 2.8 millions bpd compared to 2.9 million estimated previously. The government's statistics arm predicted that exports would drop by 51%, to 310,000 barrels per day (bpd), while production would decline by 12%, to 2.7million barrels per day. EIA's monthly Short-Term Energy Outlook stated that "we reduced our forecast of U.S. ethane for 2025 and 2026, because we expect ethane to not be separated from natural gas without an export outlet." Ethane can be separated from natural gases by a process known as ethane recover, if the prices of ethane are higher than those for natural gas. Analysts have stated that if export problems continue, almost all of the ethane exported to China could be kept in the natural gas stream, increasing the volume of gas and reducing the output of ethane. Energy Transfer and Enterprise Products Partners are two of the largest U.S. producers and exporters of ethane. They have said they received letters from U.S. Commerce Department asking them to apply for a permit to ship ethane into China. Enterprise also said that it received notice from the U.S. Government of its intention to deny urgent requests for three proposed ethane export cargoes totaling approximately 2.2 million barrels towards China. According to data from ship tracking, at least nine vessels that were originally scheduled to load ethane before sailing to China are either stalled or drifting on the U.S. Gulf Coast.
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The first crude oil from Guyana’s fourth platform will be exported between August and September
The government announced on Tuesday that the first crude oil cargo from Guyana’s fourth oil production plant, which arrived in April and has been installed, will be exported between the end of August and the beginning of September. Exxon Mobil, Hess and CNOOC from the United States and China control all of Guyana's crude and natural gas production. Each party exports their share, but the government is also entitled to profit oil. Why it's important According to the companies, the floating facility built by SBM Offshore, called One Guyana is expected to start producing in the next few months. This will increase the consortium's production capacity to over 900,000.00 barrels per daily (bpd). Two sources familiar with the transaction have confirmed that the first shipment of Guyana's new crude, "Golden Arrowhead", will consist of 1,000,000 barrels. The seller or the destination of the cargo was not immediately known. The facility will produce crude oil and associated gas from the Exxon Group's Yellowtail, Redtail offshore field. REACTION Exxon did not respond immediately to a comment request. The Guyana government has not provided any further information. CONTEXT Since its start in early 2020 of exporting crude oil, the growing oil nation has become the fifth largest Latin American crude producer after Brazil, Mexico and Venezuela. Shipping data shows that Guyana's oil output rose by 54% to 582,000 barrels per day last year, driven by the demand of European refiners for sweet crudes which are easy to process. The country's output capacity is expected to reach around 1.7 million barrels per day by 2030.
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China's Vice President visits Spain as mutual love blossoms
Han Zheng, Vice President of China, arrived in Spain Tuesday on a four-day visit. He will meet King Felipe and Premier Pedro Sanchez. This is a sign that economic and political relations are becoming more and more close. Han Zheng's trip comes two months after Sanchez made his third visit to Beijing in the last five years. He was there to woo China President Xi Jinping, as the global economy is reeling from President Donald Trump’s tariffs. The socialist premier is trying to position Madrid as a mediator between China and Europe, and to attract more Chinese investments in advanced technologies such as electric vehicles, batteries and hydrogen. Last year, Stellantis and Chinese manufacturer CATL announced their plans to build in Spain one of Europe's biggest EV batteries factories. Spain's relationship with China is not perfect. Spain was hit hard by Beijing's antidumping investigation into EU pork, launched last year as retaliation to Brussels' tariffs against Chinese EVs. Sanchez's final visit to China secured expanded access for Spanish pork stomach exports - a popular product in China that was not previously authorized. Han will meet Sanchez on Wednesday in Madrid, Sanchez’s office announced, while King Felipe is scheduled to receive the Chinese official Thursday, as per the agenda of the royal household. The Spanish monarch will also visit China in the latter part of this year, to celebrate 20 years since the strategic partnership was signed. Han will travel to Seville after his meetings with Sanchez, the Spanish king and Andalusia regional leader Juan Manuel Moreno. Last year, Moreno secured 2,86 billion dollars ($2,86 billion) in Chinese investments for Andalusia. Turespana, a tourism lobby, has projected that the number of Chinese tourists to Spain will increase by 36% this year compared to the previous year. This makes Spain the European destination where the most growth is occurring from Asian nations.
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Sources say that JERA is close to signing a deal with Commonwealth for 1 MTPA LNG
Two sources have confirmed that U.S. LNG developer Commonwealth LNG, which is planning to build an export facility in Louisiana to provide 1 million metric tonnes per year (mtpa), of LNG, will soon sign a contract with Japan's largest power generator JERA. Commonwealth LNG would be able to commit 8 mtpa under the long-term contract. The company stated publicly that they want to secure contracts for 8 mtpa or more of their 9.5 mtpa capacity LNG export terminal to ensure the project's financial viability. The U.S. exports more LNG than any other country in the world. Based on the projects that are currently under construction or those that will be funded this year, it is possible to triple the export capacity of the U.S. by 2030. One source familiar with the negotiations said that the parties had agreed on terms and would sign the agreement soon. Commonwealth LNG has not responded to a comment request. JERA declined comment. Commonwealth was among the projects affected by the pause in new LNG export licences, imposed by the former president Joe Biden. This was pending the completion of a study of the economic and ecological impact of further U.S. LNG growth. The Trump administration lifted the freeze and has promised to unleash American power. Commonwealth received an export authorization conditional to a non-free-trade agreement (non FTA) from the Department of Energy in February. Commonwealth expects to make a final decision on the project in September 2025, and the first LNG production is expected in the first three months of 2029. JERA announced in May that it had entered into an agreement with NextDecade for the purchase of 2 mtpa LNG from its Rio Grande Project's fifth liquefaction plant. Reporting by Curtis Williams, Houston; Editing and production by David Gregorio
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Cheniere wants to expand Sabine Pass plant in US with regulators
According to a FERC report, Cheniere Energy, which is the U.S.'s largest exporter of liquefied gas, has asked the Federal Energy Regulatory Commission to grant permission for the expansion of its Sabine Pass facility. Cheniere submitted a joint request, dated 6 June, to FERC, for authorization to build and operate the Sabine Pass Stage 5 Expansion Project. This project would expand the existing Sabine Pass LNG Facility in Louisiana. With a capacity of 30,000,000 metric tons per year (mtpa), the Sabine Pass terminal is the largest LNG facility in the United States. Six liquefaction train are in operation. According to the FERC document, this expansion includes an addition of 3 natural gas liquefaction train, with a combined maximum LNG production of around 300 billion cubic feet annually. In February, Jack Fusco, the Chief Executive Officer of Cheniere, said that his company would aggressively pursue regulatory permits for expanding capacity now that U.S. president Donald Trump has taken office. Bill Berkrot edited the report by Noel John, who reported from Bengaluru.
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The number of ships passing through the Panama Canal decreased in May due to maintenance.
In a Tuesday bulletin, the Panama Canal Authority reported that the number of ships passing through the canal fell from 34 to 31.4 on average per day. This was due to planned maintenance being performed at one of the locks. Despite an increase in traffic on the world's second-busiest interoceanic route since it lifted restrictions due to severe drought last year, it has not yet allocated all 36 slots available per day. The canal temporarily closed the west lane between May 27 and 31. Panama Canal Authority reported that the east lane was still operational. According to data from the Canal Authority, 973 vessels transited the waterway during May. This is less than the 1 021 ships that passed through in the preceding month, but more than the 805 vessels which were in transit in the same period last year. The drought caused a 5% drop in the toll revenue of the canal in the fiscal year ending September 2024. According to the annual reports, between the fiscal years of 2020 and 2023 the toll revenue for the canal increased by almost 26%, to $3.35billion.
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Spanish Minister says private power companies slow to share information about blackouts
Sara Aagesen, Spain's Minister of Energy, urged private electric companies to share information faster to determine the cause of the worst blackout ever to strike Spain and Portugal. The cause of the power outage that left 60 million people without electricity in two European countries has not been determined, and the blame-game has increased. Aagesen, who was in Nice, France for a U.N. Conference, told reporters that information arrived quickly at first. "Now, information is arriving in bits and pieces much slower." She admitted that the information needed was more detailed, and at times more complex. She said, "But I insist. I continue to ask for this information as soon as possible to identify the causes and to implement the necessary steps." The Spanish energy ministry leads one of the investigations into the events that took place on April 28, which sent investigators, from Spain's cybersecurity and Intelligence services, to the premises of private energy companies to gather information. A spokesperson for the energy ministry declined to comment on what Aagesen meant. Aelec, the lobby group for Spain's major electricity companies, including Iberdrola, Endesa, and other utilities, has not responded to our request for comment. Last week it was reported that private companies were cooperating in the investigations. It said that "it is absolutely false" that the government was withholding or delaying information in response to inquiries about the recent blackout. PROBES and Finger-Pointing A Spanish court is also investigating the possibility that a cyber-attack was responsible for the blackout. Separate investigations are being conducted by Spanish legislators. Red Electrica, the Spanish grid operator, insists that the transmission grid they manage was operating without any problems before the blackout. Beatriz Corredor (chairwoman of Redeia's parent company) blamed last week some conventional power plants (including nuclear, combined cycle and hydroelectric plants) for failing to maintain an appropriate voltage in the power system on that day. Corredor did not say that this was the cause of the blackout. Investigators examine excessive voltage in the grid as a possible cause of the loss of production. Aelec claimed that Corredor's remarks caused confusion and prevented an objective technical assessment. Reporting by Pietro Lombardi. Edited by Aislinn laing and Emelia sithole-Matarise.
Aerospace giants go back to Farnborough hobbled by factory problems
A humbled aerospace market holds its yearly celebration next week struggling to meet demand because of a crisis inside its plants.
For years a venue for planemakers led by Airplane and Boeing to boast about billions of dollars of orders, the July 22-26 Farnborough Airshow is likely to be overshadowed by growing airline company aggravation over plane lacks and delays.
Carriers like Japan Airlines are said to be close to firming up recent tentative orders, and Qatar Airways, Korean Air and Turkish Airline companies have all said they are buying jets.
However, regardless of some offers, issues about supply chains and factory efficiency are set to eclipse the typical triumphalism.
The whole market has suffered supply chain problems, Saleh Eid, vice-president of fleet management at Saudia Airlines, informed inside a factory in Germany that is due to help develop 105 newly purchased Airplane jets for the Gulf carrier.
Boeing in particular is anticipated to embrace a muted tone as it battles with a corporate crisis following the mid-air blowout in January of a door plug blamed on missing out on bolts.
Outgoing CEO Dave Calhoun will not attend for a 2nd year and industry bible Air travel Week bemoaned what it called a. management vacuum, though divisional leaders will all be. present. Nor is the company displaying its own aircrafts this time.
A Boeing spokesperson referred to an earlier statement that. it had actually customized its presence to concentrate on safety and quality.
Airplane will thin its presence to cut expenses, delegates stated.
After widespread quality snags such as improperly tightened. bolts, some state the hunger is for more torque and less talk.
It's not the very best time to present great deals of orders; it is. about enhancing things in the factory, one delegate stated.
Air travel was hit hard by the pandemic which saw air travel. collapse only to get better sharply. That has actually left many firms. scrambling to deal with labour and parts lacks. By the time. they recuperate, the juiciest part of business cycle might be. running out, said Firm Partners analyst Nick Cunningham.
In the previous the problem has always been one of demand, about. the length of time is the cycle going to last. Now the concern is about. getting packages out of the door.
Critics state the industry has itself to blame after squeezing. suppliers.
They are understanding that securing a big chunk of the supply. chain and providing it the resources it requires is a precursor to. doing the ramp-up, Aerodynamic Advisory Handling Director. Richard Aboulafia said.
Planemakers do have something to commemorate, with Boeing's. delayed 777X starting accreditation test flights and Jet. winning approval for its A321XLR.
However competitors like China's Comac, Brazil's Embraer and the. futuristic curved Jet No are alert for chances.
FIGHTER PREPARES
The biennial event in southern England, which rotates. with the Paris Airshow, is also expected to provide contrasting. photos of worldwide affairs.
Air travel is growing as societies and individuals connect and do. company, with a record five billion journeys anticipate this year.
However rising geopolitical stress are stoking demand for. weapons and fuelling trade tensions that can harm air travel.
There is still some ecstasy post-COVID, however it is somewhat. detached from the geopolitical situation, stated market. advisor Bertrand Grabowski.
The vulnerability of airline companies to problems was underscored on. Friday when a worldwide cyber interruption triggered airport chaos and. numerous flight cancellations, on top of scarce jet capacity.
The defence side of the program will focus on Ukraine, possible. hold-ups to America's future F-22 fighter replacement, code-named. NGAD, and a defence review by Britain's brand-new Labour federal government.
The new (UK) ministerial group will be lobbied by all the. defence business to make sure their equipment is leading of the. concepts pile, stated Alex Walmsley, associate fellow of UK. think-tank RUSI.
That may not cut much ice with the head of the Royal Air. Force.
It ought to be a focus on speed, efficiency and imagination. that we prioritise, not those who lobby loudest, Air Chief. Marshal Richard Knighton told a conference on Thursday.
The value of cheap and effective drones has been proven in. Ukraine, and they will stay part of future planning, he stated.
But the re-emergence of big-power competitions has focused. attention on the most sophisticated systems including NGAD's. principle for fighters partnered with swarms of drones.
That will likewise be on the minds of top brass at the world's. largest military air show: the July 19-21 Royal International. Air Tattoo, where fighter aces come once a year to display air. power and shatter the rural calm of England's Cotswolds.
Amongst the VIPs will be U.S. Air Force Secretary Frank. Kendall. In an interview with Air travel Week in June, he appeared. to cast doubt on the future of NGAD over costs.
Weeks later, he informed Defense News that NGAD's. family-of-systems concept was alive and well though could be. less expensive.
Britain remains in one of 2 groups checking out comparable. crewed-uncrewed systems, designed to toss lethal mass at. adversaries.
BAE Systems is co-operating with partners in Italy. and Japan to develop a system called GCAP, while France, Germany. and Spain are pushing a similar Future Battle Air System, also. known by the French initials SCAF.
I think (the UK review) is favorable for GCAP since the. new federal government has actually explained that global co-operation on. security is among its essential concerns, Walmsley stated.
Others speculated any NGAD delays would offer Europeans an. reason to re-examine their options and test political assistance.
Europe is following the tail lights of NGAD and the brakes. are beginning, stated a European defence industry source.
(source: Reuters)