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Officials in Italy are concerned about Chinese involvement in energy grids
Two government sources say that Italy is worried about the impact of Chinese involvement on its energy infrastructure companies, which could hamper their plans to expand in Europe. Other countries, however, are wary of Beijing-linked deals due to security concerns. Last week, Rome's concerns were brought into sharp focus when Italian gas grid operator Snam canceled plans to buy a stake in Germany’s largest independent transmission company of gas after Berlin objected, according to officials who declined to be identified due to the sensitive nature of the matter. According to reports, the German Economy Ministry opposed Snam's deal due to State Grid Corporation of China being an indirect shareholder in Snam. Berlin is a major supporter of European Union efforts in coming up with plans to combat China's increasing industrial and political power, including Beijing dominance in rare earth production. CHINA SEEKS INVESTMENTS as Strategic Sources close to the issue said Berlin wanted to make Snam a financial investor, and thus prevent it from becoming an industrial partner of Germany's Open Grid Europe. The office of Prime Minister Giorgia Melli declined to make a comment. The State-owned Assets Supervision and Administration Commission of China, which supervises state-owned firms, has not responded to an email seeking comments. The German economy ministry stated that the decision to abandon this transaction was made by all parties involved. Foreign trade law allows the review of non-EU investments. In this case, the Ministry of Foreign Affairs said that only the indirect investment planned by the Chinese State Grid Corporation of China was examined. Italian state lender Cassa Depositi e Prestiti, or CDP, sold to the State Grid Corporation of China a 35 percent stake in CDP Reti in 2014. CDP Reti is a holding firm that owns 31.35 % of Snam and 29.85 % of Terna, a power grid company, as well as 26% of Italgas, Italy's largest gas distributor. Snam owns 13.5% of Italgas. The same representative of the Chinese state-owned company sits on the board of Snam and Terna. He also serves as a director for Italgas, CDP Reti and CDP Reti. This position gives him a good view into Italian energy policy. The first two sources claim that China's State Grid told Rome it was strategic to invest in Italian energy infrastructure. One of them said, "The Chinese group does not plan to sell the stake." Sources said that to liquidate the Asian investor, it would take billions of Euros. No state-backed company has the funds available. The indirect stakes in three Italian companies owned by China's State Grid are valued at more than 5 billion euro ($5.76 billion). CDP has declined to comment. ($1 = 0.8682 euros) (Additional reporting by Valentina Za and Elvira Pollina in Milan, Christoph Steitz in Frankfurt; Editing by Gavin Jones and Andrew Heavens) The CDP-State Grid pact detailing CDP Reti corporate governance expires next November. It will automatically renew unless either party opts out six months prior to the expiration date. ($1 = 0.8682 euro) (Additional reporting from Valentina Za in Milan and Elvira pollina in Frankfurt, with editing by Gavin Jones & Andrew Heavens).
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Maguire: US LNG export dominance will be tested as sellers look past Europe to Europe.
The U.S. has risen to the top in the global LNG exporter rankings thanks to a potent combination of American innovation and full-throated support from the political establishment. This narrative suggests that "freedom gas' shipments will continue to climb to all markets over the next few years. The U.S. is expected to export liquefied gas in the amount of a third of what the second largest exporter will do by 2025. However, due to the high proportion of LNG sales going to Europe, American LNG suppliers are at risk of experiencing rapid drops in volume as European consumers reduce gas consumption. The U.S. shares of LNG exports to the region with the highest imports, Asia, are far lower than those from Australia and Qatar, who enjoy much more affordable shipping times for key markets like Japan, China, and India. Exports will have to increase sharply on key markets outside Europe, where countries like Australia, Malaysia, and Russia already dominate. The increased competition will test the U.S.'s ability to remain as the world's top LNG supplier. It will result in higher transit costs and lower profit margins for U.S. sellers as they compete to get deals. EURO CENTRIC The European countries accounted for more than two-thirds (67%) of U.S. LNG exported this year. This is the largest concentration of U.S. LNG flows to one continent since 2022 when Europe's LNG demand spiked after Russia's invasion in Ukraine. Kpler data show that while Europe's total LNG needs in 2025 have increased by only 2%, despite the fact that Europe's LNG volumes have risen by 25% from last year. This is because Europe's power sector has re-tooled its generation sources to move away from fossil fuels. As Europe's utilities continue to accelerate the deployment of renewables and batteries, the regional gas demand will likely decline by 2030, leading to a shrinking LNG market. The International Energy Agency (IEA), in its latest outlook, forecasts that the total European Union's gas demand will decline by a little over 10% by 2035, due to a greater use of heat pumps and electric, as well as higher energy efficiency, and resulting from more renewables. FAR-FLUNG HEEADWINDS In order to offset the shrinking volume into Europe, U.S. LNG suppliers will need to look further afield and compete with other major LNG sellers in Asia to gain market share. Asia is currently the largest LNG-importing region. To sustainably increase volumes in cost-sensitive markets like China and India, U.S. Exporters may have to undercut their rivals' prices while incurring higher delivery costs. In 2025, U.S. LNG exports are only 8% of total LNG exports. Other exporters, such as Australia and Qatar, hold much higher Asian market share. For U.S. Liquefied Natural Gas to grow its share, it will have to be more affordable than other suppliers. The challenge will be to lower the sale price, as shipping LNG from Europe to Asia is more than twice the cost of shipping LNG from Europe to Asia. According to LSEG, the journey time of an LNG vessel between Sabine Pass (U.S.) and Rotterdam (Netherlands) is approximately 15 days. The journey from Sabine Pass in Louisiana to Dahej in India takes over 30 days. This is a double in travel time, as well as a greater amount of LNG leaking during the trip, which will reduce cargo revenue. The combination of lower sales prices and higher transit costs can not only erode profits, but also affect exporter creditworthiness. Longer journeys may require short-term credit because they will tie up cash flow for longer. The overall risk of LNG exporters will increase if they shift from servicing only cash-rich European customers to attracting demand from emerging markets firms with lower credit ratings. This may also result in higher credit line costs. TRADE TENSIONS The aggressive moves of U.S. LNG producers to increase market share in Asia may also cause trade tensions with Qatar. Qatar is heavily dependent on gas exports to earn its national income and plans to dramatically boost its LNG export volume. Qatar has pledged to invest heavily in the U.S. in the next decade, including in facilities which export LNG from the U.S. Gulf Coast. It could therefore renege on these commitments if U.S. LNG expansions are considered too disruptive. Canada, Russia Australia, Mozambique, and Mexico also have plans to increase LNG export volumes over the next few years. They will therefore be competing for the same markets as U.S. Exporters. In general, increased supplies from other suppliers and higher delivery costs for new markets could slow U.S. LNG growth in the future, forcing LNG exporters over time to accept a smaller share of global LNG exports. These are the opinions of a columnist who writes for. You like this article? Check it out Open Interest The new global financial commentary source (ROI) is your go-to for all the latest news and analysis. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on You can find us on LinkedIn.
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India and Afghanistan launch air cargo services for trade
An Indian official in the foreign ministry announced on Friday that air cargo services will soon be available between India and Afghanistan. The two countries are seeking to restore their ties after their relations with Pakistan soured. Nooruddin Aziz, Afghanistan's Taliban trade minister, made the announcement during his visit to New Delhi. He urged India to increase trade and open cargo hubs, as Kabul sought to access grains, pharmaceuticals and industrial goods after its border with Pakistan was closed following military clashes. Anand Prakash is a joint secretary at the Indian Foreign Ministry. He said that the air freight corridors between Kabul and Delhi, and Amritsar in northern India have been "activated" and that cargo flights would be operating on these sectors "very shortly". "All formalities on our part are complete." "We are waiting for the Afghan side to complete all their paperwork... Once they finish them, cargo flights will begin," Prakash said on the sidelines an India-Afghanistan Business Conference. Indian airlines don't fly to Afghanistan because Pakistan has closed its airspace to them. Tensions between New Delhi, Pakistan and Islamabad have risen this year leading to the worst clashes they've had in decades. Afghan airlines have regular passenger connections from Kabul to Delhi. India and Afghanistan had historically friendly relations, but New Delhi doesn't recognise the Taliban government that came to power after the withdrawal by the U.S. led NATO forces from Kabul in 2021. In recent months they have re-calibrated their ties, due to deteriorating relations with Pakistan (a buffer country between India and Pakistan) as well as India's concern about China's intrusion into Afghanistan. Amir Khan Muttaqi, the Afghan Taliban's Foreign Minister, visited New Delhi in India last month. This was the first trip by a Taliban leader to India since 2021. Since then, the two countries have improved their ties. India has reopened its Kabul embassy that had been closed in 2021. Reporting by Nigam Prrusty, Writing by Sakshi dayal; Editing and YPrajesh by Alison Williams.
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German Ministry says Snam and ADIA have decided to cancel their planned OGE stake acquisition.
The German economy ministry reported that the Italian Snam, State Grid and ADIA had all decided to cancel a planned purchase of a stake in German gas transmission network Open Grid Europe. Snam agreed in April to purchase a 24.99% share in Open Grid Europe’s OGE, Vier Gas Holding, from a division Abu Dhabi’s ADIA. The deal was scrapped last week after a lengthy review by Berlin. According to sources, Germany was worried about China's participation as owner of Snam indirect shareholder State Grid in a possible deal that could have involved a critical part of Germany's energy infrastructure. The German economy ministry announced on Friday that foreign trade law permits the review of non-EU investments. In this case, the only indirect investment that was considered was the one by the Chinese State Grid Corporation of China. This group has a direct stake in Snam. (Reporting and editing by Miranda Murray, with Christoph Steitz)
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Chinese cruise ships avoid Japan amid diplomatic dispute
Sources and cruise schedules reviewed indicate that Chinese cruise operators are scrambling in order to avoid Japanese ports, as Beijing and Tokyo are engaged in a diplomatic conflict. This is expected to boost demand for tourism to South Korea. The tensions sparked by the recent events have been cited by tour and port agents. You can also read our blog posts. Japan's new premier could lead to Chinese tourists being redirected from Japan to South Korea. Sanae Takaichi, Japan's new prime minister, told Japanese legislators earlier this month that a Chinese attack against Taiwan could lead to a military response. Adora Magic City is a Chinese cruise liner that visits the touristy island of Jeju in South Korea as well as Japan. According to an announcement posted on the website of South Korea’s Jeju Province, the ship has altered its December schedule to avoid the Japanese ports Fukuoka Sasebo, and Nagasaki, as originally planned. The notice stated that the cruise ship would spend between 31 and 57 hours at Jeju instead of its usual nine-hour schedule. Unofficially, a Jeju official said that the cruise operator asked for a schedule change without giving any reason. The official declined to identify himself as he wasn't authorised to talk to the media. It seems that they are working on a Plan B. Adora Cruises has not responded to a comment request. Japan is counting the costs of the diplomatic conflict. Tokyo-based East Japan International Travel Service said this week that it had lost 80% its bookings for remainder of year. Lee Yong Gun, CEO of South Korean port agent Eastern Shipping told reporters that other Chinese cruise ships were also in discussions to reroute. Lee stated that "if the China-Japan relations further deteriorate and China excludes Japan’s products, culture, and tourism, then I expect Korea to benefit from this." He said that the operator of the "Dream", which departs the Chinese city Tianjin wanted to avoid Japan by rerouting to a South Korean Port in Incheon, or Busan, over the next two weeks, but there wasn't enough time to do so, citing an earlier discussion with the operator. Tianjin Orient International Cruise Line which operates the ship did not reply to a comment request. There have been no previous reports on cruise ships skipping Japan to stay longer in Korea, or even considering it due to the diplomatic disputes. According to Qunar, an online travel agency, South Korea was the most popular destination among Chinese tourists in terms of bookings of international flights over the weekend between November 15-16. Many Chinese airlines are offering refunds for routes to Japan. This is expected to increase air travel in South Korea. Jeju Air's executive said that the South Korean budget airline is expecting an increase in Chinese tourism, even though there has been no immediate impact. The chief executive of the South Korean tour agency that caters to Chinese tourists said on Wednesday he just received a request from a Chinese client who asked if an event originally scheduled for Japan in early next year could be relocated to South Korea. He said that "South Korea is clearly going to benefit from this dispute." He said that for the moment, they were in a waiting-and-seeing mode. South Korea welcomed more than half as many Chinese tourists in 2013 due to the territorial dispute between Beijing, Japan and some islands. The Chinese advisory against traveling to Japan has caused South Korean shares in travel-related companies this week to soar. Travel agency Yellow Balloon Tour has seen a 24% increase, and Shinsegae, a department store operator, has seen a 6% gain on the hope that Chinese tourists will switch to South Korea. Travel industry experts said that it may take some time for Chinese tourists to increase in South Korea. Kim Seol Yeong, a tour operator based in Jeju for Chinese cruise tourists, said that the diplomatic dispute had only occurred a few days earlier. It might take some time before we see a rise in Chinese tourists visiting Korea. Luna Wang, 34, from Hangzhou, China, had considered returning to Japan this year, but she may opt for South Korea now. "It seems that Japan is no longer safe for Chinese to travel." She said, "I guess the only option that is good for me to travel to Korea is to go to Japan." The founder of Moment Travel, a Chinese company in Chengdu, noted a dramatic shift in perceptions regarding travel to Japan. Su Shu, the founder of Moment Travel in Chengdu, said that there is now a feeling that anyone who travels to Japan is a traitor. Reporting by Ju-Min Park in Seoul; Casey Hall in Shanghai; and Sophie Yu, in Beijing. Editing by Anne Marie Roantree, Thomas Derpinghaus, and Anne Marie Roantree.
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Singapore GasCo will seek LNG bids in Q1 of 2026 to supply LNG from 2028
GasCo, Singapore's state-owned gas buyer, will be seeking offers for the supply of liquefied gas for delivery in 2028 in order to fill a supply gap expected in the country. This company was established earlier this year in order to centralise Singapore’s gas supply and procurement after LNG prices spiked due to the Ukraine-Russian war. Alan Heng, in an interview with The Straits Times on Thursday, said that existing contracts will cover Singapore’s demand for the next two-years, but the gap in supply is expected to reach around 3 million metric tonnes in 2028-2029 and about 6 million in 2035. He said that he expected the increase to be quite significant by 2028-2029, taking into account imports of gas and electricity from neighbouring nations. Gas is used to generate 95% the electricity in the city-state. Heng stated that buyers will continue to manage the existing contracts. He said that deals for gas piped will mostly end by 2028, and LNG between 2028-2032. GasCo will evaluate new offers based on price and reliability of supply, as well contractual flexibility. "It could be that you refuse cargoes. You can also ask for more cargoes. "But having the ability to divert cargoes can also be helpful for us." Heng said that GasCo will almost double its current headcount of 25 employees by the end of next year. NEW DEALS Heng announced last month that GasCo had been in contact with LNG suppliers to establish long-term agreements, and it expected U.S. supplies to be included in its portfolio. GasCo, Heng said, will seek to purchase Brent-linked supplies, as used by Singapore’s power companies. Heng acknowledges that the volume of gas Singapore imports will decline over time as Malaysia and Indonesia increase their production to meet domestic demand. If there is a pipelined gas supply, LNG will be complemented by it. "But if there is no piped gas, LNG will become the predominant supply," said he. Singapore has already seen a rise in the volume of LNG imported. Heng says that a wave of new LNG supply, which analysts predict will come online by the end of this decade, will benefit buyers. We think now is a great time to sign a contract because there will be a lot of LNG heading our way.
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Maguire: US LNG export dominance will be tested as sellers look past Europe to Europe.
The U.S. has risen to the top in the global LNG exporter rankings thanks to a potent combination of American innovation and full-throated support from the political establishment. This narrative suggests that "freedom gas' shipments will continue to climb to all markets over the next few years. The U.S. is expected to export a third of its liquefied gas in 2025, compared with the second largest exporter. However, due to the high proportion of LNG sales going to Europe, American LNG suppliers are at risk of experiencing rapid volume drops as European consumers reduce gas consumption. Further, the U.S. shares of LNG exports to the region with the highest imports, Asia, are far lower than those from rivals Qatar and Australia. These countries enjoy much more affordable shipping times for key markets like Japan, China, and India. Exports will have to increase sharply on key markets outside Europe, where countries like Australia, Malaysia, and Russia already dominate. The increased competition will test the U.S.'s ability to remain as the world's top LNG supplier. It will result in higher transit costs and lower profit margins for U.S. sellers as they compete to get deals. EURO CENTRIC The European countries accounted for more than two-thirds (67%) of U.S. LNG exported this year. This is the largest concentration of U.S. LNG flows to one continent since 2022 when Europe's LNG demand spiked after Russia's invasion in Ukraine. Kpler data show that while Europe's total LNG needs in 2025 have increased by only 2%, despite the fact that Europe's LNG volumes have increased by 25% since last year. This is because Europe's power sector has shifted away from fossil fuels. As Europe's utilities continue to accelerate the deployment of renewables and batteries, regional gas consumption is expected to decrease from 2030s onwards. This will result in a shrinking LNG market. The International Energy Agency (IEA), in its latest outlook, forecasts that the total European Union's gas demand will decline by just under 10% by 2035, due to a greater use of heat pumps and electric, as well as higher energy efficiency, and more output from renewables. FAR-FLUNG HEEADWINDS In order to offset the shrinking volume into Europe, U.S. LNG suppliers will need to look further afield and compete with other major LNG sellers in Asia to gain market share. Asia is currently the largest LNG-importing region. To sustainably increase volumes in cost-sensitive markets like China and India, U.S. Exporters may have to undercut their rivals' prices while incurring higher delivery costs. In 2025, U.S. LNG exports are only 8% of total LNG imports. Other exporters, such as Australia and Qatar, hold much higher Asian market share. For U.S. Liquefied Natural Gas to grow its share, it will have to be more affordable than other suppliers. The challenge will be to lower the sale price, as shipping LNG from Europe to Asia is more than twice the cost of shipping LNG from Europe to Asia. According to LSEG, the journey time of an LNG vessel between Sabine Pass (U.S.) and Rotterdam (Netherlands) is approximately 15 days. The journey from Sabine Pass in Louisiana to Dahej in India takes over 30 days. This is a double in travel time, as well as a greater amount of LNG leaking during the trip, which will reduce cargo revenue. The combination of lower sales prices and higher transit costs can not only erode profits, but also affect exporter creditworthiness. Longer journeys may require short-term credit because they will tie up cash flow for longer. The overall risk of LNG exporters will increase if they shift from servicing only cash-rich European customers to soliciting the demand of firms with weaker credit ratings in emerging markets. This may also result in a rise in the cost for credit lines. TRADE TENSIONS The aggressive moves of U.S. LNG producers to increase market share in Asia may also cause trade tensions with Qatar. Qatar is heavily dependent on gas exports to earn its national income and plans to dramatically boost its LNG export volume. Qatar has pledged to invest heavily in the U.S. in the next decade, including in facilities which export LNG from the U.S. Gulf Coast. It could therefore renege on these commitments if U.S. LNG expansions are considered too disruptive. Canada, Russia Australia, Mozambique, and Mexico also have plans to increase LNG export volumes over the next few years. They will therefore be competing for the same markets as U.S. Exporters. In general, increased supplies from other suppliers and higher delivery costs for new markets could slow U.S. LNG growth in the future, forcing LNG exporters over time to accept a smaller share of global LNG exports. These are the opinions of a columnist who writes for. You like this article? Check it out Open Interest The new global financial commentary source (ROI) is your go-to for all the latest news and analysis. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on You can find us on LinkedIn.
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FAA wants to overhaul air traffic control system with new data system
Federal Aviation Administration announced on Thursday that it is looking to implement a new, comprehensive system for air traffic controllers to receive flight data. Congress approved in July a plan worth $12.5 billion to upgrade the nation's outdated air traffic control system and increase controller hiring, following years of complaints about airport congestion and delays. Sean Duffy, Transportation Secretary, has stated that he would like an additional $19 million from Congress to reform air traffic control. Duffy said that the FAA was forced to use eBay at times in order to obtain spare parts, and technical problems have repeatedly slowed traffic this summer. In a government report published last year, 51 out of 138 air traffic controls telecommunications system were unsustainable. The FAA wants proposals for a new platform that would replace both the existing en route systems and the terminal systems. This platform, called the Common Automation Platform, is a state-of-the art system of air traffic control. To track and control airplanes, the FAA uses two systems – En Route Automation Modernization System (ERAM) & Standard Terminal Automation Replacement System(STARS). ERAM provides data to aircraft for navigation between airports. STARS tracks flight near airports using Terminal Radar Approach control, or TRACON facilities, and air traffic towers. STARS is used to sequence planes, issue conflict alerts and provide weather updates for arriving or departing aircraft. The FAA is looking to combine the platforms to create a modern, single system. It has also sought feedback on a new system of runway safety lighting to modernize air traffic flow. The FAA announced in September that it had two candidates competing to be the project manager for the multibillion dollar air traffic control overhaul known as "prime integrator." Peraton, owned by Veritas Capital and a company in the national security market, as well as Parsons, an IT provider for national security markets and global infrastructure, which is partnered with IBM, both bid on the position. Duffy said that he and FAA Administrator Bryan Bedford must meet President Donald Trump within the next few weeks before any selection can be made. (Reporting and editing by Chris Reese, Jamie Freed and David Shepardson)
Indian Tejas fighter plane crashes at Dubai Air Show killing pilot
The Indian Air Force confirmed that a Tejas fighter plane, manufactured in India, crashed during a display at the Dubai Air Show on Friday and killed its pilot.
Witnesses report that the fighter was at a low level at 2:15 pm (1015 GMT), before it came down in a fireball. Black smoke was seen rising behind an airstrip fence in footage from the scene.
In a press release, the IAF stated that a court of inquiry was being formed to determine the cause of this accident.
The crash is India's second known crash. It is important for India to modernise the air force fleet, which is mainly Russian or ex-Soviet fighters. The first crash occurred during an exercise in India, in 2024.
Dubai's government posted a photo of firefighters dousing a smouldering wreckage. The government said that emergency teams were on site managing the situation.
The accident occurred on the last day, Monday, of the Middle East’s largest aviation show. Reporting by Shivam Patel from New Delhi, and Federico Maccioni from Dubai. Editing by YPrajesh and Alex Richardson.
(source: Reuters)