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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.
Boeing door blowout crisis striking suppliers, airlines and guests
After a door panel on an Alaska Airlinesoperated Boeing 737 MAX 9 jet blew off midair in January, Anneke Palmerton learned the carrier had canceled her flight to Orlando as well.
It did not amaze her as Alaska had actually chosen to ground its fleet of MAX 9 airplane after the Jan. 5 mishap. Little did she know the occurrence would snowball, affecting air service in her city of Bellingham, Washington and upending her winter strategies to fly Southwest Airlines. The door blowout took place aboard only one flight. However fallout from the taking place safety crisis has actually pumped up expenses for those reliant on Boeing. Interviews with airline company executives, union leaders, pilots, providers, travelers and government authorities, demonstrate how the incident is rippling through the trillion-dollar global air travel industry.
Boeing's resulting downturn in MAX shipments has actually hit profits at airline companies like Southwest and some suppliers who planned to gear up brand-new airplanes. It has bothered and stranded guests as airline companies fly fewer routes, and has actually led to a slowdown in pilot working with, interviews reveal.
We believed ... there would be a bit of bumps, stated Palmerton, a notary and marriage officiant in Bellingham. Never. in a million years (did we believe) it would lead to Southwest,. Palmerton stated about the airline company's choice to cut service to. her local airport.
Boeing is the largest U.S. exporter and uses almost. 150,000 people locally. It supports millions more through a. supply chain that consists of thousands of organizations big and little. worldwide.
Economic expert Joseph Brusuelas estimates it cumulatively. contributes $1 trillion a year to the U.S. economy and supports. over 5 million jobs.
Boeing described executive remarks made earlier that. described the scenario as difficult, but kept in mind business efforts. to enhance quality are settling with improved factory. operations. Boeing expects to get back to a MAX production rate. of 38 each month in the back half of the year.
SECURITY OVER SPEED
Under pressure from regulators, Boeing has actually promised to. focus on security over speed, which has actually decreased its jet. production. It delivered 175 jets in the first half of 2024,. down 34% from a year ago and 46% less than its European competitor. Airplane turned over to customers.
Ramp-up hold-ups have some suppliers waiting to benefit from. their investments. Montreal-area part provider Meloche. Group invested C$ 10 million ($ 7.34 million) this year to support. higher need, including that of the LEAP engines that power MAX. aircrafts.
However GE Aerospace and its partner France's Safran. have formerly said they are slowing down LEAP. production this year, citing Boeing's crisis.
Meloche now expects to miss its C$ 150 million revenue target. this year by 5%, although CEO Hugue Meloche stated sales should. rise 25% in 2025. The Jan. 5 event adds headaches for airlines currently fighting. engine hold-ups on some Airplane A320 jets and. industry-wide supply chain bottlenecks.
Airline companies prepare months beforehand before putting a new. airplane in service. They employ and train pilots, and plan their. network, sustaining significant preparation and infrastructure. costs. The airplane shipment delays mean they can't recover. those costs.
HIT TO AIRLINES
While the full financial effect of Boeing's crisis is. challenging to quantify, it is taking a toll on airline incomes. and jobs. U.S. budget carrier Allegiant, a Boeing consumer, has. said that delays in aircraft deliveries are costing it about $30. million a year. United Airlines, another customer, has actually slashed its. hiring prepare for the year by almost 30%, pointing out fewer aircraft. deliveries. Competing American Airlines has actually likewise called down. its hiring strategies.
We have seen some Boeing delivery delays, American's CFO. Devon May told in April. So, we're most likely not going. to be working with as many people as we would have expected back in. January.. The scenario is more alarming at Southwest - which operates an. all-Boeing fleet and is now dealing with the prospect of a proxy. battle, in part due to jet delivery hold-ups. The business had been employing personnel on an assumption it would. receive 85 jets this year, but it now anticipates only 20 planes. A lack of aircraft has actually struck its revenue and got worse expense. pressures as the carrier invests millions of dollars to keep. flying older aircrafts. It is also approximated to have left the. airline with about 800 excess pilots.
EXPENSE CUTS
With its profits under pressure, Southwest has chosen to. focus on more profitable markets and exit Bellingham and. three other airports. It has already stopped working with pilots and suspended training for. brand-new hires and drawn up strategies to offer its pilots reduced hours. and successfully lower pay.
That's a remarkable reversal in fortune for its pilots, who. barely six months back were so much in need at competing carriers. that the company was having a hard time to stabilize the attrition rate.
In Bellingham, Southwest accounts for about 40% of guest. traffic. Its arrival in late 2021 assisted the little city airport. contend as a lower-fare alternative to Canada's Vancouver. International Airport, which had practically 25 million showing up and. leaving travelers in 2015. Travelers from Canada accounted. for over half of Bellingham's estimated guest traffic of. over 630,000 in 2015.
City authorities see a financial impact as soon as Southwest stops. operating in the city in August. It 'd definitely be felt in our. neighborhoods, said Kip Turner, Director of Aviation at. Bellingham International Airport.
GUARANTEE HIGHEST QUALITY. Considering that the Jan. 5 event, Boeing has actually suddenly announced. sweeping management changes that consisted of the departure of its. CEO Dave Calhoun at the end of the year. The planemaker has actually increased inspections at its own and. suppliers' facilities, broadened training for brand-new hires, and. instructed supervisors to invest more time on the factory flooring.
Industry executives say while they are encouraged by. Boeing's action strategy, they need outcomes.
We are wishing to make sure that they produce the highest. quality airplane, that we can confidently fly safely every. single day, said Alaska Airlines CFO Shane Tackett.
(source: Reuters)