Latest News
-
Freeport LNG Export Plant in Texas to receive more natgas after Monday's outage
According to a filing made by the company with the state's environmental regulators and data from LSEG, a financial firm, Freeport LNG is on track to receive more natural gas at its Texas export plant on Monday. This indicates that a liquefaction station that was shut down on Saturday will likely be back in operation. Freeport LNG is closely watched by the global market because its start-ups and stop-offs often cause price fluctuations. Gas prices in the United States typically fall when flows to Freeport decrease due to a lower demand for fuels from the export facility. Prices in Europe usually rise due to the drop in LNG supply available on global markets. The U.S. futures market was on course to reach a six-week peak on Monday, due to many factors including the anticipated increase in gas flow to Freeport. Prices in Europe, however, rose by about 3%, for reasons that were not necessarily connected to the plant. Freeport informed Texas environmental regulators that Train 1 of the three liquefaction train at its plant shut down on Saturday because there was a problem with its compressor system. Freeport officials had no comment about the latest outage. Freeport has experienced numerous compressor system problems at its plant in the last month. According to the company's filings to regulators, liquefaction train shut down five times due to these issues. LSEG reported that the amount of natural gas flowing into Freeport is on track to hit 1.9 billion cubic foot per day (bcfd), up from 1.8 bcfd Sunday, and a low of 1.4 bcfd Saturday. This compares to an average of 1.8 billion cubic feet per day over the previous seven days. Three liquefaction plants at Freeport can convert about 2.1 billion cubic feet per day of gas to LNG. A billion cubic feet of natural gas can supply five million U.S. households for one day. (Reporting and editing by Scott DiSavino)
-
Israeli military claims it intercepted drones launched from Yemen
Israel's military announced on Monday that it intercepted a Yemeni drone after sirens were heard near Eilat. A day earlier, Yemen's Houthis had launched a drone at an airport in the vicinity of southern Israeli city. The military announced that sirens sounded later on Monday in the Negev region after another drone had been detected. The military did not reveal what happened to the drone. Israel's Ramon Airport, near Eilat, has resumed its operations after a drone fired from Yemen hit the arrivals area on Sunday. Since the beginning of the Gaza war, the Houthis, backed by Iran have launched missiles and drones towards Israel thousands of kilometers north. The militant group claims that this is an act in solidarity with Palestinians. Israel responded by bombing Houthi controlled areas in Yemen, including Hodeidah's vital port. (Reporting and editing by Gareth Jones, Helen Popper, and Ahmed Elimam)
-
Milei's heavy defeat in Buenos Aires sets the stage for Argentina's market to sell off
The Argentinian markets are on the verge of a further selloff after a heavy defeat in Buenos Aires for President Javier Milei’s ruling party. This is raising concerns ahead of a crucial October election. According to the official results, the Peronist opposition party won the Sunday legislative elections in the province's key region, while the radical reformist Milei party came in second. The scale of Milei's defeat was far beyond expectations, said JPMorgan analyst Diego Pereira. He added that the resounding win for the opposition during the regional contest meant Milei had a much steeper climb ahead as he tries to deliver a successful outcome at the national midterm election on October 26. The administration could recalibrate its political strategy in order to correct missteps made over the past few months. According to the official count, the Peronists have won 46.8% in the province. The candidate from Milei's Party has taken 33.8%. Argentina, one of the biggest reform stories in emerging markets since Milei was elected president in December 20,23, has seen its market come under pressure over recent weeks. Markets were impacted by political woes and economic pressures. The latter included allegations of corruption involving Milei’s sister Karina Milei and a sharp drop in government and consumer confidence. MARKET SELLOFF Since the scandal broke out, Argentina's main stock index has fallen by around 20%. Its international government bonds are also down and the pressure on the newly unpegged peso has forced the authorities to intervene in the foreign exchange market. Investors said that early market indicators priced a 5 to 6-point drop in the international bonds of the country. Viktor Szabo is the portfolio manager of Aberdeen Investments. Morgan Stanley warned that international bonds would fall by up to 10 percentage points if Milei's radical reform agenda was thwarted. JPMorgan stated that the currency was also vulnerable to further weakening, which could force central banks to reduce their FX spot reserve to absorb excess pesos. Wall Street banks, however, said that the election dynamics in the rest of the nation would be different from Buenos Aires – a Peronist hotspot. The Milei government was also expected to adhere to its fiscal discipline programme despite economic difficulties. The PBA election was held amid tightening domestic financial conditions. This included a depreciation in the peso and expectations for a slight increase in inflation in August. It also coincided with a slowdown in economic growth, according to Goldman Sachs' analyst Sergio Armella. The provincial election will have very little impact on the policy mix adopted by the Milei government, but it is a setback in terms of politics for the government.
-
London's Tube system shuts down as workers start a week-long strike
London's Tube system came to a halt on Monday, as workers began a strike over pay and conditions of work. This caused commuters and visitors to the British capital great inconvenience. Between Monday and Thursday, there are not expected to be any London Underground trains. The Docklands Light Railway that connects Canary Wharf with the City of London will also not operate on Tuesday or Thursday. Many Londoners chose to cycle to work and others took detours on Monday morning. Laura Sutton, 46 a legal adviser, was at London Bridge Station. She said, "The prospect of having to wait all week is a nightmare... I've probably taken twice as long this morning." The RMT union stated that the dispute was centered on pay, fatigue, shift patterns, and a reduction of the working week. Eddie Dempsey, RMT's General Secretary said: "They're not looking for a king-sized ransom but fatigue and shift rotations can have serious impacts on the health and well-being of our members." Transport for London operates the public transport network in London. The union said it would accept only a deal that led to a shorter working week. Staff typically work 35 hours. It claimed to have worked hard to resolve the conflict and offered staff a pay increase of 3.4%. During the strike, some train services will run in the capital. There were minor delays on the Elizabeth Line (which operates trains to Heathrow Airport) and Overground rail networks. The strikes will also cause disruption to commuters and tourists. Coldplay, a British rock band, has rescheduled two concerts in Wembley Stadium for this week. Post Malone, a U.S. musician, has also postponed two of his London shows until later in the year. Sachin Ravikumar, Will Russell and Marissa Davison. Reporting by Will Russell. William James edited the story.
-
Ukraine's Energy Ministry says that Russian forces have attacked a power station in Kyiv Region.
Ukraine's Energy Ministry said that Russian forces attacked a thermal power plant in the Kyiv area as part of a nighttime attack. This caused localised blackouts, and gas shortages. The strikes came a day following the largest air strike by Moscow in its three-and a-half-year war against Ukraine. The ministry posted a message on Telegram saying that the goal was to "cause even more hardship for the peaceful population in Ukraine", and to leave Ukrainian homes and hospitals, kindergartens, schools and other institutions without heat and light. On Monday, rescuers and technical workers were on the scene. The Russian defence ministry has confirmed that they have hit Ukrainian energy infrastructure. Since its invasion of Ukraine in 2022, Moscow has bombarded Ukraine’s energy infrastructure on a regular basis. This caused massive blackouts the previous years. Ukrenergo, Ukraine's electricity grid company, said Monday that Russia has attacked the power infrastructure of several regions in Ukraine causing localised blackouts. It said that "emergency repairs are ongoing and the majority of consumers have had their power restored on Monday." Mykola Kashnyk, governor of Kyiv Region, stated that the attack damaged the local grid. Over 8,000 properties from eight settlements will be disconnected over the next two day as repairs are carried out. Serhiy Kovalenko wrote in X that the enemy had been attacking energy system installations for several weeks. He added that the recent strikes were not a reason for optimism. (Reporting and writing by Anastasiia and Yuliia, edited by Himani Sarkar & Joe Bavier; Max Hunder).
-
Trans Mountain executive says ships will be able load more TMX by the early 2027.
Trans Mountain, the Canadian pipeline operator, expects the dredging work at the Vancouver port to be finished by the end of 2026, or in early 2027. This will allow ships load more oil, according to a senior executive on Monday. Jennifer Pierce, Chief Administrative Officer of Trans Mountain, said this at the APPEC Conference in Singapore. When this dredging project is finished at the end or beginning of 2027 (end of '26), an Aframax could move out of the dock with 100% of its cargo. This will boost our shippers' competitiveness. Aframax tanks can transport up to 800 000 barrels. However, at Westridge Marine Terminal, they are only able to load around 550,000 barrels due to draft restrictions. Trans Mountain operates the newly expanded 890,000-barrel-per-day pipeline, which has been operating at approximately 85% capacity in the second quarter. (Reporting and editing by Florence Tan, Siyi Liu)
-
Sources say that Wood Mackenzie has been hired by Japan to evaluate the Trump-backed Alaska LNG Project.
Two sources familiar with the matter confirmed that Japan hired Wood Mackenzie, an energy consultancy, to assess the proposed 800-mile Alaska gas pipeline project and LNG plant. This is a sign of its support for the $44billion project pushed by U.S. president Donald Trump. One of the sources said that the assessment could ease concerns of potential Japanese investors and off-takers about a project which has been stalled for decades because of cost and logistical issues. It is not clear what the scope and cost of this deal will be, nor if any report that results from it will be made publicly available. The Ministry of Economy, Trade and Industry in Japan declined to comment. Wood Mackenzie and Glenfarne, the project developers Glenfarne as well as the state-owned Alaska Gasline Development Corporation AGDC did not respond to comments immediately. Trump, since returning to office in 2017, has pledged to advance the mammoth plan to transport gas from Alaska's remote northern region across the state to be chilled and then shipped overseas as LNG. Trump announced in July that Washington and Tokyo would form a joint-venture to develop the Alaskan LNG Project. Japan hasn't confirmed this plan. The final terms of the trade agreement agreed last week included Tokyo's commitment to explore a potential new offtake agreement for Alaskan LNG. Japan has also committed $550 billion in unspecified U.S. investments, including energy and pipelines. When asked about the Alaska LNG Project, Japan's Trade minister Yojimuto said at a late-July press conference that they were continuing to have close discussions with U.S. government officials. CUSTOMERS KEY Despite Trump’s optimism, several Japanese government officials and leaders in the energy industry have expressed doubts over the projected cost of the project which could make gas more expensive than other sources. Source: Yet, project developers are in discussions with at least five Japanese companies. These include JERA, Japan’s largest LNG buyer, Tokyo Gas, Osaka Gas and trading house Mitsubishi Corp. Inpex is an oil and natural gas explorer, whose biggest shareholder is the Japanese Government. JERA's spokesperson said that it is "considering" this project. Tokyo Gas stated that it was "one candidate for procurement". Inpex stated that nothing has been decided about the project. Osaka Gas & Mitsubishi declined to comment. Alaskan LNG developers already signed non-binding agreements with the state-owned Thai Oil and Gas company PTT Group, and Taiwanese State Energy Firm CPC Corp. Securing a deal with Japan would boost the project's success chances. It is the No. The country is the world's No. A deal of this kind could also open up financing options from Japanese state-owned banks, such as Japan Bank for International Cooperation. JBIC announced earlier this year that it would be willing to provide support, considering factors like any involvement of Japanese companies. U.S. officials are promoting the Alaska project to Tokyo, highlighting its security benefits, comparing it to Middle East projects and pointing out that the project is closer to Japan than the Middle East. They also stress the fact the shipments will avoid choke points like the Straits of Hormuz, Malacca and South China Sea. According to Japan's Finance Ministry, Japan receives approximately one-tenth its LNG from the U.S. and similar proportions of LNG from Russia and Middle East. Australia is responsible for 40%. Wood Mackenzie conducted three studies for the Alaska LNG Project over the past decade, commissioned by AGDC as well as other stakeholders. In a 2016 study, it was ranked poorly in comparison to other projects that could provide Asian markets such as Japan. However, a review of 2022 that took into account different financing structures and cost-reductions found it competitive with U.S. Gulf Coast supplies. Alaska LNG developers have hired Australian engineering company Worley to conduct a cost estimate of the project. The goal is to reach a decision on the investment by the end the year. (Additional reporting from Yuka Obayashi in Tokyo and Katya Glubkova; Editing by Christian Schmollinger).
-
Source: India revokes grid acces for 17 GW clean energy projects
According to an official document and a source with knowledge of the issue, India has canceled grid access to nearly 17 gigawatts (17 GW) of clean energy projects that have been delayed. This is to give priority to those projects which are already operational or close to completion. Documents show that the state-run Central Transmission Utility of India Ltd. (CTUIL), informed companies such as Adani Green Energy, ReNew Power NTPC Avaada Group JSW Energy, ACME Solar, and ReNew Power about the cancellations. According to a federal agency that oversees interstate transmission access, the affected projects are located within renewable-rich Indian states like Rajasthan, western Gujarat and Madhya Pradesh. Source who requested anonymity said that the grid access terminations took place in the quarter of June after notices had been sent to the companies. The firms are seeking help from the federal regulator for power, the Central Electricity Regulatory Commission. New Delhi has been prompted by India's rising power demand, driven by mechanised agriculture, industrialisation and urbanisation, to streamline grid regulations to better integrate clean-energy projects and ensure uninterrupted supply of electricity for its 1.4billion people. By 2030, the country wants to reach 500 GW in non-fossil energy capacity. The country's transmission network, which stretches over 495,000 circuit kilometers, is behind the growth of its generation capacity. Officials said that the Central Transmission Utility performed manual inspections prior to revoking access, and will continue its efforts to release transmission lines for projects on track to completion. JSW Energy appealed against the revocation. However, the regulator refused to grant interim relief in an order dated 24 June, and asked CTUIL on 10 July to share its response. According to orders on the CERC's website, the petition has been scheduled for October 7. A spokesperson for Adani stated that there was no cancellation of connectivity due to delays in project commissioning dates. He did not provide any further details. Emails seeking comments from the CTUIL and other companies were not answered. India tightened its rules last week to limit the trading of grid access. Developers are no longer allowed to change their source of generation once they have secured connectivity. CERC mandated also that the project promoters retain control of their projects until commissioning. Violations can lead to the forfeiture of bank guarantee and the revocation or connectivity. (Reporting and editing by Nidhi verma, Sonali Paul, and Sethuraman N.R.)
Brazil lifts coal imports to record as hydro struck lingers: Maguire
Brazil is set to import almost 900,000 metric tons of thermal coal this month, the highest regular monthly tally on record and 3 times the monthly average for 2024 so far, according to data from shiptracking firm Kpler.
The coal buying binge comes as a long-lasting dry spell has slashed hydropower output to three-year lows, leaving power manufacturers short on power-generating fuels heading into the hottest months of the year when electricity need peaks.
Power firms have actually also raised imports of liquefied natural gas (LNG) to their greatest because late 2021, showing that a. high rise in fossil fuel-fired generation is looming in South. America's largest economy.
Greater usage of nonrenewable fuel sources will in turn lift Brazil's power. sector emissions, which are currently at their greatest because 2021.
HYDRO DISAPPOINTMENT
Hydro power generally represents around 65% of Brazil's. utility-scale electrical energy production, with hydro-electricity. generation balancing simply under 40 terawatt hours (TWh) a month. throughout the first half of 2024, Cinder data programs.
However, in September hydro output was up to simply 28.7 TWh as. a drop in rainfall from the year before hit dam output.
Cumulative rainfall in Brazil's southeast - home to many of. the nation's greatest dam systems - was just 584mm (23 inches). over the very first 10 months of the year, according to LSEG.
That was 10% less than the average from 2019 through 2023,. and marks the 2nd straight year of less than 600mm of rain. over the opening 10 months of the year.
The drop in real hydro output likewise cut hydro's share of. Brazil's generation mix to simply 50% in September, requiring power. providers to enhance output from alternate sources in order to. satisfy system demands.
TIDY CUT
While Brazil has one of the world's cleanest power systems,. utilities will likely rely on nonrenewable fuel sources to generate much of. the lost hydropower as output from gas and coal-fired power. plants can be quickly adjusted to stabilize system needs.
Up until now this year, hydro dams have actually created around 63% of. total electricity supplies, wind farms have represented around. 15%, while solar farms have actually produced around 10%.
Nuclear plants have actually represented an extra 2.5% share,. while bioenergy plants - which mainly burn sugar walking stick pulp -. have actually produced an extra 1.5%.
The cumulative share of power generation from clean sources. up until now in 2024 is 92%, which stays among the highest. internationally.
Nevertheless, the staying 8% share of generation has come from. nonrenewable fuel sources, which look primed to be used in even greater. volumes over the coming months if hydro output stays impeded.
Natural gas has actually generated around 6% of Brazil's electrical energy. up until now in 2024, while coal and oil-fired plants produced an. extra 2.2%.
PEAK NEED
A high climb in total power consumption is also putting. Brazil's power companies under pressure to lift output.
Brazil's electricity demand over the first nine months of. 2024 is up nearly 7% from the exact same months in 2023, which is the. strongest growth pace for that duration given that 2021 when the. nation's economy recovered from COVID-19-related restrictions.
However total power need is likely to climb higher still. heading into 2025 as homes, factories and offices all dial up. the use of power-hungry cooling systems throughout summer.
Average temperatures in Sao Paolo - Brazil's most populous. city - can balance over 10 degrees Fahrenheit (5.6 degrees. Celsius) more during November through February than throughout the. other months of the year, according to Weatherbase.
Those greater summer season temperature levels - which can top 30C (86F) -. tend to increase making use of air conditioning system all the time, and. stress power networks.
To satisfy those higher demand levels, energies look set to. lift output from the country's coal and gas-fired power plants,. which will be well stocked from the arranged imports of both. coal and LNG that are en path.
A sharp rebound in rainfall levels could assist bring back. output from dam networks and restrict the total usage of fossil. fuels in 2025.
But for the rest of 2024 a minimum of, considerably higher. generation from coal and gas looks imminent, and suggests a flare. up in local power emissions will follow. << The opinions revealed here are those of the author, a. writer .>
(source: Reuters)