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Tokyo Gas and Glenfarne Sign Letter of Intent for 1 MTPA LNG Offtake from Alaska LNG
Energy developer Glenfarne announced on Friday that it had signed a letter of intent (LOI) for the purchase of 1,000,000 metric tons of liquefied gas per annum from Alaska LNG Project. Tokyo Gas confirmed it had signed the LOI. It said that as a strategic Glenfarne partner, it allows the Japanese LNG buyer to progress meaningful negotiations about the purchase of LNG. This is a significant step forward for the $44 billion Alaskan LNG project, which has been criticized due to its high cost. Glenfarne aims to make a final investment decisions (FIDs) on the Alaska LNG pipeline by the end of 2025, and for the LNG export components in 2026. Glenfarne, which acquired a 75% stake in the Alaska LNG Project in March and assumed the role of lead developer in that project, has already signed preliminary agreements for more than half the third-party offtake capacities available. The developer stated that preliminary agreements included deals with Japan's largest LNG buyer JERA as well as Taiwan's CPC and South Korea's POSCO. These total 11 MTPA out of the 16 MTPA Glenfarne is expecting to contract in order to close the financial aspect of the project. (Reporting and editing by Rashmi aich; Yuka Obayashi)
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Maguire: Malaysia's coal binge reveals what other nations are doing to take advantage of the LNG boom.
Not only the U.S.A., Qatar, and Australia are fighting for a piece of the lucrative market for LNG exports. Malaysia also wants to get a piece of the lucrative LNG export market and is upgrading its own power-generation system. Data from Kpler & Ember show that Malaysia has increased its thermal coal imports to record levels and coal-fired power generation to new highs. Malaysia, the 11th largest producer of natural gas in the world, can now export gas in the form liquefied gas and earn valuable trade revenue. The coal-to-gas conversion comes with a price, since the country must import the majority of its coal. This has led to a spike in emissions in the power sector, which is the highest ever recorded this year. The coal boom can be justified by the fact the country earns roughly twice as much from LNG exports than it does on coal imports. Malaysia's LNG-export drive is likely to continue on economic grounds, even though additional LNG volumes that the country wants to sell could add to the already oversupplied markets of the world in the future. Import BOOM Malaysia imports between 30 and 35 million tons of thermal coal each year according to Kpler's data. The U.S. Energy Information Administration estimates that Malaysia produces 3 to 4 million metric tonnes per year. According to data from customs, coal imports, primarily from Indonesian neighbours cost between $5 and $6 billion per year. According to Ember, the burning of this coal - which produces roughly half of Malaysian electricity - results in around 72 million tonnes of CO2 emissions every year. Malaysia was able to reduce the share of natural gas in its electricity production by systematically increasing coal's contribution from less than 10% at the beginning of this century. Ember data show that natural gas accounted for around 80% in early 2000s of Malaysia's electrical supply, but this has dropped to around 30% in 2025. GAS FREEDOM (SELLING) Malaysia has been able to increase its gas exports due to a reduction in the use of gas at home. The country realized this was a lucrative revenue source decades ago. Malaysia has been consistently among the top five LNG suppliers since the early 2000s. Malaysian energy companies relied on gas as the main source of electricity in the country and also one of its most profitable exports until about a decade back. Since then, the authorities have been working to slow down the growth in domestic gas usage for power generation, so that more could be diverted into LNG export hubs, and then onto highly-paying markets like Japan and South Korea. Malaysia's decision on gas conservation was largely driven by the fact that Malaysia's domestic gas reserves are at their peak and will soon be in terminal decline. According to Energy Institute data, Malaysia's proven natural gas reserves were around 1.15 trillion cubic metres around 20 years ago. However, they were last estimated around 910 billion cubic meter. Money Matters According to company filings, Malaysian national oil and natural gas company Petronas is committed to increasing LNG export volumes and has plans to build a third floating LNG facility by 2027. Although the exact terms of the LNG export deal are not disclosed, estimates from the industry place the country's annual LNG export earnings at approximately $12 billion. The economic case for continuing to export LNG in the long-term seems strong. These export revenues are about twice as much as it costs to import coal. Malaysia imports LNG when prices are right and power requirements dictate. Malaysia has agreed to purchase U.S. LNG in trade talks that aim to avoid U.S. tariffs for Malaysian exports. Malaysia is expected to continue being a net LNG exporter for some time. Due to its proximity to Asian buyers, compared to Australia and the U.S., the planned growth of LNG exports may cause rivals to rethink their plans to increase sales profitably in the future. These are the opinions of the columnist, an author 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 information. 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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US warns that it could force out some Pennsylvania railcars
Sean Duffy, U.S. Transportation secretary, warned late Thursday that his department may soon order a Pennsylvania transit agency not to use a fleet railcars because of fire risks. He also raised a number of safety and financial concerns. On October 1, the Federal Railroad Administration issued an emergency order that required the Southeastern Pennsylvania Transportation Authority (SEPTA) to fix fire risks from its Silverliner IV Railcars within 30 days after a safety recommendation made by the National Transportation Safety Board in response to a series five fires. Duffy wrote to Pennsylvania Governor Josh Shapiro that "SEPTA does not have the capacity to address these safety and fiscal concerns on its own." If changes aren't made immediately, the crumbling commuter train system of SEPTA will explode in flames before long and someone will die. In the Philadelphia region, millions of people use the rail system every year. SEPTA is America's sixth largest public transit system. SEPTA provides service in five counties of the Greater Philadelphia region and connects with transit systems in Delaware, New Jersey and Pennsylvania. Duffy pointed out that Philadelphia will be hosting the FIFA World Cup 2026 and "SEPTA’s rail and bus system must be prepared to serve tens and thousands of additional guests in a safe manner." Shapiro's spokeswoman said that the governor has been "fighting for additional recurring revenues to support SEPTA since the last two years." He also secured $46 Million in new funding as part of the budget for last year. She said Shapiro had requested another $167 millions for SEPTA, but Republican senators in the state Senate have opposed this plan. She added, "Instead of releasing a press statement, if Secretary Duffy really wants to be helpful he should contact his fellow Republicans to get them to finance the Governor's package of mass transit funding for SEPTA." SEPTA's regional rail fleet consists of 225 Silverliner IV railcars, which are about 50 years old. They represent around two-thirds but due to financial reasons they must continue using them. SEPTA stated that a complete shutdown of the cars could cost the authority $2 billion and require a 2/3 reduction in service. The authority is currently in financial crisis. The vehicles are among the oldest in the nation and the agency has created a set of forty mitigation measures including notifications to staff, safety checks and audible alerts for malfunction lights. (Reporting and editing by Leslie Adler; David Shepardson)
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Alaska Air reduces annual profit forecast due to higher fuel costs
Alaska Air Group cut its profit forecast for 2025 on Thursday due to higher fuel prices and operational challenges including adverse weather. Analysts also expected the carrier's fourth-quarter profits to be well below analyst expectations. Fuel prices have soared as a result of refinery outages along the U.S. West Coast. This has added pressure to airlines who are already struggling with increasing operating costs. Alaska Air's CFO Shane Tackett said that fuel is volatile and it was difficult to estimate earnings for the fourth quarter. Storms and an overstretched air traffic control system have led to costly disruptions in the U.S. aviation industry this year. The company expects to achieve an adjusted annual profit per share of at least $2.40 compared to its previous forecasts of more than $3.25. According to LSEG, it also expects a fourth-quarter profit adjusted of at least forty cents per share. Analysts had estimated 88 cents. Alaska Air also suffered a major IT failure in July. This caused hundreds of flights to be cancelled and thousands of passengers to be stranded during the busy summer travel season. The industry has begun to see some results from its efforts to reduce seat supply, and to counter the discounting pressures that followed a slump in demand during the first half year. Tackett stated that "we expect positive unit revenue in the fourth quarter." The company's yields - a key indicator of pricing power - rose by about 1.4% during the quarter ending in September. However, its unit costs, excluding fuel, increased by about 8.6%. He added that "costs will improve meaningfully sequentially on an unit cost basis" from Q3. The company reported a quarterly profit adjusted at $1.05 per share. This was below the analysts' average expectation of $1.13 each. Total operating revenue for the third quarter rose by 23%, to $3.77billion from $3.76billion a year earlier. This was higher than expected. Reporting by Shivansh Tiwary, Rajesh Kum Singh and Shreya Biwas; Editing by Alan Barona and Shreya Barona
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Alaska Airlines cancels all flights due to a technology failure
Alaska Airlines, a U.S. airline, said that it has grounded all flights in its airports due to a technology problem. A Federal Aviation Administration (FAA) advisory revealed that the ground stop was also applicable to Alaska Airlines subsidiary Horizon Air. According to the advisory, the ground stop request was for a duration of 1 hour and 10 minutes ending at 0000 GMT. A computer outage also caused the airline to temporarily ground all flights for three hours in July. Alaska Airlines is currently experiencing an IT issue that affects operations. Temporary ground stops are in place. Alaska Airlines apologized for any inconvenience. Customers who posted complaints and concerns online were also addressed by the airline via social media. It said that the IT team was working hard to resolve this issue as quickly as possible. This was in response to a user on X who had asked if there were any issues with the airline's mobile app. A user had asked the airline about problems with bookings on its website. The response was similar. (Reporting and editing by Muralikumar Aantharaman, Jamie Freed and Kanishka Shakil)
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FAA delays flights in New York City, Houston, and Washington
The Federal Aviation Administration announced late Thursday that staffing problems at air traffic control are causing delays in airports such as New York, Washington DC, Newark, and Houston. This comes as the U.S. Government shutdown enters its 23rd consecutive day. The FAA reported staffing problems at 10 locations, and announced ground stops in Houston Bush and Newark Airports. The average delay for flights at Ronald Reagan Washington National Airport was 31 minutes, while delays at New York LaGuardia airport were 62 minutes. The government shutdown will require 13,000 air traffic control officers and 50,000 Transportation Security Administration agents to work without pay. FlightAware is a website that tracks flights. It reported Thursday that more than 4,200 U.S. flight delays occurred, including over 15% at Reagan, Newark, and LaGuardia airports and 13% at Bush. The federal government is concerned that controllers' absences could increase during the weekend. On Tuesday, controllers will not receive their first full pay. White House Press Secretary KarolineLeavitt warned that there would be "significant flight delays, disruptions, and cancellations" in major airports throughout the United States during this holiday season. Democrats deny that they are to blame and claim it's President Donald Trump and Republicans refusing to negotiate. The debate about the shutdown has shifted to the air traffic control system, with both sides blaming each other. Both unions and airlines are calling for a swift end to the shutdown. During a 35-day government shutdown in 2019, the number of controllers and TSA agents absent increased as they missed paychecks. This led to longer waits at checkpoints. The authorities were forced to slow down air traffic in New York City and Washington. This put pressure on legislators to end the standoff. Even before the shutdown, many air traffic controllers were working six-day weekends and mandatory overtime. (Reporting and editing by Leslie Adler, Lincoln Feast, and David Shepardson.)
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Norfolk Southern's strong merchandise volume helps it to beat its quarterly profit target
In its first earnings report following the announcement of the merger between Union Pacific and Norfolk Southern, the U.S. railroad company beat Wall Street's expectations for the third quarter profit. Mark George, CEO of Osiris Group, said in an earnings call that while the impact was not significant in the third-quarter, the reaction from competitors to the merger announcement had begun to affect revenue. Surface Transportation Board approval is required for the deal that drew positive feedback from U.S. president Donald Trump. Norfolk reported lower quarterly volumes for its coal and intermodal segments. Trump's tariffs are causing a decline in the freight market and consumer markets. This is affecting railroads. In the earnings call, company executives noted that coal prices are still under pressure due to uncertainty surrounding export trade. They also stated that they expect that utility demand will continue to be supported by growing electricity consumption as well as lower coal stockpiles. The volume of coal shipped by railroad operators has fallen due to a weakening demand, as consumers switch to natural gas which is cheaper. According to data compiled and analyzed by LSEG, Atlanta-based Norfolk posted an adjusted profit per share of $3.30 for the third quarter. This compares to analyst estimates of $3.19, which were based on LSEG's data. The company's total operating revenues for the third quarter increased by 2%, to $3.1 billion. This was in line with analyst expectations. The company's adjusted operating ratio, which is a key indicator of efficiency, was 63.3% during the third quarter. This represents a 10-basis point improvement over the same period in the previous year. Union Pacific's strong coal volume helped it to surpass Wall Street profit estimates earlier on Thursday. Last week, CSX, a peer, beat estimates for the quarter on improved intermodal volumes, higher prices in its merchandise segment and lower coal prices.
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Norfolk Southern's profit increases by a quarter
In its first earnings report following the announcement of an $85 billion agreement to create the nation's only coast-to-coast rail freight operator, Norfolk Southern reported a higher third-quarter profit. Surface Transportation Board approval is required for the deal that drew positive feedback from U.S. president Donald Trump. Union Pacific's strong coal volume helped it to surpass Wall Street profit estimates earlier on Thursday. Last week, CSX, a peer company, beat Wall Street's quarterly estimates due to improved intermodal volumes, higher pricing and increased merchandise prices, which helped offset lower coking prices. Union Pacific has said that it will file its merger application at the STB before the end of this year. The review may take between 12 and 18 months. Norfolk, an Atlanta-based company in Georgia, reported a profit adjusted of $3.30 for the quarter reported, compared to $3.25 per share a year ago. The total operating revenue of the company for the third quarter increased by 2%, to $3.1 billion compared to last year. The company's adjusted operating ratio, which is a key indicator of efficiency, was 63.3% during the third quarter. This represents a 10-basis point improvement over the same period in the previous year.
Asia fuel oil margins soar tracking strength in Europe market
Margins for high sulphur fuel oil (HSFO) rallied at Asia oil hub Singapore to more than twoyear highs this week, led by a strong European market, trade sources told Reuters.
The strength implies potentially higher procuring costs for the fuel which usually goes into refineries as feedstock or into refuelling hubs as marine fuel.
Singapore 380-cst HSFO/Dubai crack spread for November hit discounts of $2.85 a barrel at the Asia close on Thursday, based upon information from monetary group LSEG. The spread was last seen greater in May 2022. On the other hand, the December crack spread closed at discounts of about $5 a. barrel.
Margins have rallied greater in spite of a boost in fuel oil. products to Asia this month, with strength spilling over from. markets in the West, trade sources said.
Supplies into Europe's Amsterdam-Rotterdam-Antwerp oil center. have tightened this month and increased European cost benchmarks.
The 3.5% Rotterdam barge fracture spread to Brent futures. skyrocketed to a $3.78 a barrel premium today, data from LSEG. revealed, their highest since LSEG records begin in 1988.
The European market has actually tightened up amid declining imports. from the United States in the middle of an arbitrage window that is shut,. according to trade sources.
HSFO inflows from the U.S. to Rotterdam have actually dropped from. over 200,000 metric heaps in September to zero in October so far,. with simply one freight of about 72,000 tons expected to get here in. end-October, Kpler information revealed.
A spike in Egyptian demand for fuel oil coincided with the. lower supply in Europe, buoying margins for the fuel.
Stress in the Middle East, which is an essential exporting area. of fuel oil, also kept sentiment supported, sources said.
(source: Reuters)