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Financial Times – March 11,
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch their accuracy. Headlines Container ship strikes tanker in North Sea carrying jet fuel for the US Navy OpenAI signs $12bn contract with CoreWeave NHS England plans to cut central staffing by 50% Marco Rubio: Ukraine must make territorial concessions to reach a peace agreement View the full article A container ship struck an anchored tanker that was carrying jet fuel to the U.S. Military in the North Sea, triggering explosions. The 37 mariners aboard the vessel were rescued. OpenAI has signed a contract worth nearly $12 billion with CoreWeave. The company will also take a stake of the cloud computing provider to boost the group before its anticipated $35 billion public offering. The government is tightening its control over NHS England's top management. As part of any peace agreement, Ukraine will have to accept Russian control over some territory. This was the statement made by U.S. State Secretary Marco Rubio on Monday at the start of negotiations between Washington and Kyiv. (Compiled by Bengaluru Newsroom)
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Panama Canal considers pipeline for gas transport with an eye towards Asian clients
Canal administrator Ricuarte Vaquez announced on Monday that the Panama Canal is looking into the construction of an LPG pipeline across the trade passage. Japan was identified as the top client for U.S.-sourced gas. Why it's important After a court decision last year, the canal, which is one of the busiest passages for maritime trade in the world, wants to diversify its operation. A drought has limited crossings, and officials plan to build a nearby reservoir. Japan is the largest LPG consumer in the world, and uses the fuel both for domestic use and industrial purposes. KEY QUOTE Vasquez said after a press conference that "we're exploring the possibilities of rolling out an infrastructure with a capacity up to one million barrels per daily (bpd), however, the market is larger." Vasquez stated that "meeting the growing demand for gas through Panama" is a top priority but also a complex task. CONTEXT The move is a response to the escalating tensions that have been sparked between the U.S.A. and Panama by U.S.President Donald Trump's claims regarding reclaiming of the Panama Canal. Despite the pushback by Panamanian President Jose Raul Mulino, who rebuffed Trump's claim, the U.S. president and officials have praised a recent deal, led by U.S. company BlackRock, to purchase the majority of the ports business from Hong Kong conglomerate CK Hutchison. This includes its assets near Panama Canal. By the Numbers Vasquez said that initial studies indicate "possible capacity of traffic through the Panama Canal (of LPG in a decade) could reach 2,000,000 bpd." What's Next? Vasquez stated that the canal anticipates making a decision on the pipeline within the next year. The canal is already set to receive $8 billion worth of infrastructure and sustainability investments over the next ten years. (Reporting and writing by Elida Moreno, editing by Lincoln Feast.
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Australia shares hit a seven-month low, dragged down by banks. Qantas falls on the ex-dividend.
The Australian share market fell to a near seven-month-low on Tuesday. This was due to a decline in financial stocks. It followed a global drop in equity prices after uncertainty over tariffs imposed on the U.S. by President Donald Trump raised concerns of a possible recession in Australia. Qantas also fell as it began trading ex-dividend. The S&P/ASX 200 Index fell 1.5%, reaching 7,843.80 at 2356 GMT. This is its lowest level since 2024. U.S. stocks fell overnight. The S&P 500 registered its largest one-day decline since December 18, 2024 and the Nasdaq, which is heavily loaded with tech, dropped 4.0% as fears of recession in the largest economy in the world grew. Financial stocks, the most heavily weighted sub-index of the benchmark index, dropped as much as 1,9%, reaching their lowest level since the 8th October 2024. The "Big Four" lenders in the country are down between 0.1% to 1.9%. Qantas Airways' share price fell by as much as 10%, putting it on course to have its worst session in March 2020. The airline was trading ex-dividend. Iron ore prices fell amid worries about U.S. Tariffs, and China's promise to reduce crude steel production this year. This clouded the demand outlook. Rio Tinto, one of the sector's heavyweights, and Fortescue both fell 0.5% and 1.7% respectively. Oil prices fell by 0.1% as fears that U.S. Tariffs on Canada Mexico and China would slow economies in the world and reduce energy demand. The gold stocks fell as much as 4.5 percent, marking their weakest session in 2024. After removing its CEO, PolyNovo's stock fell by about 10%, reaching its lowest level since 30 October 2023. After discussions last week with the executive, the decision was made after media reports about the bullying of the CEO by the chairman of the company. The benchmark S&P/NZX50 index for New Zealand was down 0.7% to 12,423.12 point.
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After storm, the Bahia Blanca grain terminal in Argentina is nearing normal operation.
A port board member said that activity at Argentina's Bahia blanca commercial grain port has begun to normalize after a severe thunderstorm disrupted operations last Friday. Port officer: The terminals will be fully operational again on Tuesday. The port city of Bahia Blanca is located southwest of Buenos Aires and is Argentina's second largest grain terminal, but it still lags behind Rosario Port Conglomerate in Santa Fe Province. Bahia Blanca was hit by a torrential downpour of more than 300 millimeters (11.8 in) in just a few short hours, resulting in severe flooding and causing the deaths of at least 16 people. The city, located about 600 km (400 miles), suffered severe structural damage. In an interview, Dolores Valdemoros said that the port is expected to be fully operational tomorrow (Tuesday), because grain trucks have already entered. "Ships have begun to enter." "They are testing to make sure everything is working," she said. Many ships in Argentina, which is a major global grain exporter, complete their loading at Bahia Blanca, after passing through Rosario. According to port data, in January 980,460 tons of grain was loaded at Bahia Blanca.
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CERAWEEK - BlackRock CEO Fink claims nationalistic US policies will stoke inflation
BlackRock CEO Larry Fink stated on Monday that nationalistic policies will increase inflation in the United States, including deporting workers. Speaking at the CERAWeek Conference in Houston, the head of U.S. Investment Management Company added that the markets are discounting the inflation and that there will be additional cost increases within the next six-to-nine months. He said: "I believe that if we are all becoming more nationalistic, and I don't say that that is a bad thing. You know, that resonates with me, that will have an elevated inflation." Fink believes, for instance, that mass deportations can lead to problems in agriculture. Are we going to be able to harvest it now? He said. "I have even told the members of Trump's team that we will run out of electrical workers to build AI data centers. "We just don't enough." Trump's administration has been criticized for its stance on immigration. Threatening hefty tariffs Industry groups have warned that the import cost of goods from certain trade partners could be dramatically increased. What are you prepared to tolerate if I bring up these issues in Washington? Fink said. Fink said.
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Trump Administration aims to cancel sales of oil reserves and support small nuclear
U.S. Energy Sec. Chris Wright announced on Monday that he planned to work with Congress to cancel previously mandated sales of the Strategic Petroleum Reserve in order to deal with low stockpiles. Congress mandated the sale of 100 million barrels from the reserve. This is the largest stockpile in the world for emergency crude oil. A 7 million barrel sale was set up for fiscal years 2026-2027 and subsequent sales until 2031. Wright said in an interview during the CERAWeek Conference that "anything with Congress is harder, and it takes time." Wright stated that it would take between five and seven years, or $20 billion, to replenish the reserve. Joe Biden, the predecessor of Donald Trump and Joe Biden, sold almost 300 million barrels out of the SPR. This was its biggest sale since Russia invaded Ukraine 2022. Wright stated that due to ongoing maintenance problems, it takes longer to refill the reserve than sell from it. Wright said that he would not request $20 billion in oil purchases at once from Congress, as he was working with lawmakers on the purchase of oil. Wright wants to increase U.S. LNG exports. In his speech to Congress, Trump emphasized a $44 billion Alaska LNG proposal. Trump said Japan, South Korea, and other countries wanted to partner with the United States on a "giant" natural gas pipeline, claiming that they would each invest "trillions." The Alaska LNG project requires an 800-mile gas pipeline from Alaska's northern region to Asia. No final investment decisions have been made. Wright said that all options are available to support the project, including a possible loan guarantee by his department's Loan Programs Office (LPO). Wright added that the administration would look into every possible way to help get such a project built, including diplomacy, and possibly a loan guarantee that could be used to finance it at a cheaper rate than banks. U.S. U.S. If the Trump Administration uses the LPO to build Alaska LNG, this would be a significant policy shift from his first term in office when he didn't use the LPO much. Biden used the LPO frequently and signed legislation that increased its financial assistance to hundreds of millions of dollars. Wright downplayed the regional opposition against new natural gas pipelines, saying that he didn't expect it to stop the construction of new projects. Everyone wants lower energy costs. "Everyone in New York and everyone in New England," said he. Trump signed a declaration of emergency on his first day as president, aimed at expanding federal powers in order to push big projects such as generators, transmission, and pipelines to meet the rising demand for power. Wright, who was appointed energy secretary after stepping down as board member of the small modular reactor Oklo, also said that the administration would likely provide financial and regulatory assistance to the new nuclear technology, but did no elaborate on how. There are currently no commercial small modular reactors. (Reporting and editing by Nia William; Timothy Gardner)
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US LNG exporters are looking to renegotiate contracts to cover rising costs
According to company statements and sources, several U.S. producers of LNG are trying to renegotiate with buyers higher prices due to rising construction, labor, and borrowing costs. The higher prices will reduce the competitiveness of U.S. LNG on the global markets, especially at a moment when President Donald Trump wants to expand this industry. Alex Munton is the director of Global Gas and LNG Research at Rapidan Energy Group. He said that "the competitiveness of U.S. Liquefied Natural Gas (LNG) could be affected by a double-whammy." Munton said that rising liquefaction prices, a tighter gas market at home, and declining prices for competing supplies index to oil, could all have an impact on the competitiveness of U.S. Liquefied Natural Gas. Energy Transfer's coCEO said on an earnings call, that negotiations are underway. According to four sources, Mexico Pacific and Venture Global have been seeking to renegotiate supply purchase agreements. Mexico Pacific is trying to renegotiate a higher liquefaction fee with Chinese buyers Zhejiang Energy, and Guangzhou Gas. This according to two Chinese officials who are familiar with the situation. Mexico Pacific is trying to negotiate the price because the U.S. engineering company Bechtel that is building the plant wants a construction cost which has made the project expensive. Mexico Pacific and Bechtel declined to comment. Sources claim that Zhejiang, Guangzhou and other cities have rejected Mexico Pacific’s proposal. The sources did not give any details on Mexico Pacific's costs of liquefaction or how much it wanted to pay for them. One of two sources who have direct knowledge of this matter said that Guangzhou has requested to reduce its share of the project's revenue from 1 MTPA per year to 700,000 tonnes per annum. Zhejiang Energy did not respond to requests for comments sent via email. Guangzhou Development Group (parent company of Guangzhou Gas) did not comment immediately. Venture Global, second largest U.S. exporter of LNG, is also trying to renegotiate a higher price for its CP2 Louisiana project, despite the fact that the plant has yet to begin construction and have not received the financial go ahead, according to separate sources. Venture Global declined to comment on a request. In January, the company told investors that fees for liquefaction could increase to $4 per million British Thermal Unit (mmBtu), up from $2.25. Energy Transfer, which has a 16.5 MTPA facility for LNG export in Louisiana under construction, stated on a February earnings call that it was also renegotiating liquefaction charges with customers to try and align higher construction costs with the offtake agreements. Everyone understands the cost increases. We are continuing to negotiate with the companies in order to reduce their fees, said Marshall McCrea. McCrea stated that customers stuck with their projects despite being asked to pay higher fees. Cheniere Energy, the largest U.S. exporter of LNG, announced in February that it would not be increasing fees. This is in part due to its prices already being linked to inflation, and because its projects are constructed on brownfields, which have cost advantages. Baker Hughes, one the biggest equipment suppliers to the U.S. gas sector, was able to control its inflation, but LNG developers have seen increases, according to Lorenzo Simonelli. Simonelli, who was referring to engineering, procurement and construction companies, said that the EPCs are the ones that we tend to see more of. If we looked at the external climate, we'd say that there was some inflation. In general, the liquefaction fee for U.S. LNG is on track to increase above $2.50/mmBtu because of a tight labor pool, rising construction costs and persistently high interest rates. Poten warned that higher liquefaction costs could reduce the cost-competitiveness for U.S. LNG project, particularly if they are coupled with an increase of U.S. gas prices or a fall in Brent crude oil, Poten stated that inflation, on top of the labor shortages, is driving up equipment and material prices.
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CEO of CERAWEEK NextEra Energy says that the company expects a 55% increase in global energy demand within 20 years.
NextEra Energy's Chief Executive Officer John Ketchum said that the company expects the demand for electricity to increase by 55% over the next two decades compared to the previous two decades. He spoke at the CERAWeek conference held in Houston, Texas on Monday. The boom in artificial Intelligence, which drives demand for data centers that consume a lot of power, is expected to account for 17%. Ketchum warns that the cost of gas-fired electricity generation has more than tripled due to the surge in demand, which makes renewable energy more affordable and available. He said that the cost of building gas-fired energy facilities has increased from $785 per kilowatt in 2022 for some installations to as much as $2,400 per kilogram today. We're going need all of it. Renewables will be needed. Gas will be needed. "We're going need nuclear," Ketchum said. NextEra has been looking into restarting the Duane Arnold Nuclear Facility in Iowa, one of many potential restarts across the United States. Ketchum warned that rising utility bills could lead to a crisis in the affordability of power. Ketchum stated that "if we have affordability problems, it will be very difficult to meet the demand we expect to see." (Reporting and editing by Liz Hampton, David Gregorio, and Georgina McCartney from Houston)
After collision with container vessel off UK coast, tanker carrying jet fuel cargo is on fire
After a collision on Monday with a cargo ship, a tanker carrying jet-fuel was on fire and leaking jet fuel in the North Sea near northeast England. More than 30 crew members were sent to hospital.
The coastguard agency reported that a helicopter, fixed wing aircraft, lifeboats, and nearby vessels equipped with firefighting capabilities had all been dispatched to assist.
The chief executive of Port of Grimsby East confirmed via email that 32 casualties had been brought ashore. Ambulances were waiting to transport them to the hospital in Grimsby. The severity of their condition is not known.
The Stena Immaculate tanker, flying the U.S. flag and the Portuguese flagged Solong container ship are involved. The tanker is part of a U.S. Government programme to provide fuel for the armed services when needed.
BBC images showed a vessel on fire with black smoke clouds billowing up into the grey sky.
LSEG shipping data revealed that the Stena Immaculate was alongside the Solong off the coast according to the latest AIS tracking position update made at 1034 GMT.
Stena stated that its tanker is operated by Crowley, a U.S.-based logistics company. Crowley reported on X, that the tanker carrying Jet-A1 Fuel was hit by the Solong as it anchored near Hull, off the North Sea Coast.
Crowley stated that "the Stena Immaculate suffered a ruptured cargo trough".
The company reported that a fire broke out as a result. Fuel was also released.
Crowley stated that the crew of Stena Immaculate evacuated the vessel after multiple explosions occurred onboard. All mariners are safe and well, Crowley added.
The Stena vessel was a product tanker. One insurance specialist stated that the pollution risk was lower than if this vessel were a crude carrier.
The amount of cargo, the number of tanks breached, and the severity of the fire are all factors.
A spokesperson for the environmental group Greenpeace stated that it was too soon to estimate the extent of environmental damage.
The Greenpeace spokesperson explained that the impact of the incident would depend on several factors. These include the type and amount of oil transported by the tanker and the fuel carried by each ship.
The sea and weather conditions are also important factors in determining the behavior of any spill."
Shipping industry sources reported that the incident took place on a busy waterway which runs from ports along Britain's north-east coast to the Netherlands, Germany and Belgium.
The Royal National Lifeboat Institution, a service that provides emergency response lifeboats, reported "there were reports of a number people abandoning the vessels after a collision" and that there were also fires on both boats.
Marine Traffic, a maritime analytics website, reported that the 140 metre long Solong was on its way to Rotterdam when it struck the 183 metre Stena Immaculate, which was off Immingham in northeast England.
Skuld, a Norwegian ship insurer, confirmed that the Solong is covered by it under protection & indemnity. This segment of insurance covers environmental damage as well as injuries and fatalities to crew members.
The manager of Solong, Hamburg's Ernst Russ did not respond immediately to a comment request. Stena Immaculate’s P&I insurance, listed as Steamship in the company's documents, did not respond immediately to a comment request.
The International Maritime Organization (IMO), the shipping agency of the United Nations, confirmed that it was aware. Reporting by Sachin Ravikumar, Jonathan Saul and Stine Jacobsen; Editing by William James and Hugh Lawson
(source: Reuters)