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Russia tightens restrictions on Black Sea oil export ports
Russia, the second largest oil exporter in the world, imposed new restrictions on a major oil export route on Wednesday. The suspension of a mooring from the Black Sea port Novorossiisk came only one day after the restriction on loadings through a Caspian pipeline. Russia produces around 9 million barrels per day or just over a tenth of the global oil production. The ports of Russia also receive oil from Kazakhstan. Transneft, the Russian oil pipeline monopoly, said that it had suspended an mooring in the Black Sea port of Novorossiisk after a quick inspection by a transportation watchdog. The Novorossiisk Commercial Sea Port is one of Russia’s biggest export outlets. Closing one mooring will not have a significant impact on its operations. "A temporary operation ban has been placed on the oil loading berth 8." Transneft reported that NCSP was ordered to eliminate any violations identified by June 30th 2025. According to industry sources, Berth 8 is the Sheskharis Terminal's low-sulphur fuel tanker terminal. These tanks have a deadweight around 7,000 tons and are primarily used for exports into Turkey and Georgia. LSEG data and other industry sources showed that this berth handled approximately 100,000 tons of diesel between January and March. On Monday, two of three moorings were closed at a terminal near the Caspian pipeline consortium, in which U.S. oil giants Chevron, Exxon Mobil, and others have stakes. Donald Trump, the U.S. president, has expressed his dissatisfaction with Russia over the pace of peace talks in Ukraine and threatened to impose secondary duties on Russian oil buyers. Mark Trevelyan (Reporting and Editing)
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Ukraine April wheat exports are expected to reach 1 million tonnes, says the producers' union
Ukrainian farmers' union UAC stated on Wednesday that Ukraine's exports of wheat are expected to stay high, at 1 million metric tonnes in April compared with 1.1 million in March. UAC stated that exports in March were among the highest for the current season. "Traders have contracted up to 1 million tons of wheat in April. UAC reported that despite the general stagnation of demand in Europe, Ukrainian grain finds buyers, especially in Egypt. Ukraine is one of the world's largest wheat producers and exporters, but last year the Farm Ministry limited exports for 2024/25 to 16,2 million tons in order to maintain a stable supply on a domestic market. According to the Ministry, traders have already exported nearly 13 million tons wheat. Vitaliy Koval, Minister of Agriculture, said that he believes traders are complying with all requirements set by the ministry regarding export volumes. The ministry will not change the amount of wheat that is available for export during the current July-June 2024/25 season, despite the relatively fast pace of shipments. "No changes are planned." Vysotskiy stated that everything was in accordance with the memo. Ukraine exports the majority of its wheat during the first half of the year and then gradually reduces the shipments throughout the rest of the year, shifting to corn. UAC stated that it expects the price of new harvest wheat in Ukraine to drop by $20 per ton, Carriage Paid for (CPT), to between $190 and $200 per ton at the Black Sea in July. If possible, do not sell too quickly. In July-August the market has historically been saturated with wheat exports from major exporting nations - Ukraine and Russia as well as Romania and the U.S., and the price is usually lower even if there's a surplus balance. The union predicted that the price could rise to $220 to 235 per ton of CPT between October and December. (Reporting and editing by David Goodman, Sharon Singleton and Pavel Polityuk)
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Denmark's APMH offers $1.3 billion for the tugboat group Svitzer
Denmark's A.P. Moller Holding, a subsidiary of Denmark's A.P. APMH already owned 47% of Svitzer's shares prior to the bid. The independent board members of the towing company unanimously approved the offer. APMH is the controlling shareholder of Danish shipping giant A.P. Moller-Maersk . APMH stated in a press release that the stock market listing did not generate the investor interest expected. A delisting will allow Svitzer to continue its growth. It added that Svitzer must grow its business to maintain its market position in an industry fragmented and competitive, undergoing consolidation. Svitzer shares have risen 8.2% to 216.4 Danish crowns since their IPO, while APMH is offering 285 crowns.
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Maguire: US natural gas prices prepare for the impact of tariff crossfire on US prices
The U.S. Natural Gas prices have already risen by about 80% in the last year, but they are set to get a new jolt due to the effects of the recent round of tariffs levied by the U.S. Government on goods entering the nation. The U.S. Gas Market will be affected regardless of when and how the new tariffs come into effect. Exports of LNG in the form or gas are likely to become a bargaining tool in any subsequent trade maneuvers. Commitments to increase purchases of U.S. LNG can be a quick way to rebalance the trade ledger to the U.S. for nations that are looking to reduce their trade surplus or avoid future tariffs. As a possible form of reprisal, some countries that are affected by the new tariffs and who already buy U.S. LNG regularly may also threaten to reduce their purchases. Gas exporters, utilities and households will all be affected by the changes in the gas trade volume and price. BIG STAKES According to the U.S. Energy Information Administration (EIA), the U.S. exported nearly 12 billion cubic foot of LNG every day in 2024. This cemented its position as the world's top LNG exporter for the second consecutive year. The LNG shipments generated more than $30 billion in revenue, which was significant for both the companies that shipped the gas as well as the U.S. Treasury. According to Kpler ship tracking data, the Netherlands was the largest market for U.S. LNG in 2024, accounting for 11% of all volumes. France, Japan and South Korea were the next biggest buyers of U.S. LNG. China, Turkey, Spain, and the United Kingdom also made a notable purchase. Tipping the Balance The administration of U.S. president Donald Trump has threatened to impose high tariffs on goods that these countries sell to the U.S., as the U.S. is running up trade deficits. All of these countries already buy a lot of U.S. LNG. It is likely they will increase their purchases in order to ease relations with the Trump Administration. As part of the tariff negotiations, other countries with large trade surpluses, such as Vietnam, may also consider increasing U.S. LNG exports. Plan B LNG will also be a part of any countermeasures that nations take to retaliate against the U.S. after they raised tariffs. China and several European countries, including Germany, have pledged to respond to the planned hikes in tariffs. They are likely to see LNG as a way to cause revenue damage to the U.S. while not risking self-harm. Qatar, Australia, and Malaysia also provide LNG to global clients, so they will be able quickly replace any U.S. LNG volumes lost, while U.S. LNG suppliers may find it difficult to find alternative buyers. GAS FLOW AFFECTS The domestic gas market will be affected by the new tariffs in the United States, regardless of how the LNG export volume trends. The increase in LNG imports will result in a higher demand for gas at LNG export terminals, and a tighter supply of gas for other gas consumers. This will put pressure on U.S. utility companies that rely on gas to produce approximately 40% of their electricity. In response to higher gas prices in the US, several utilities have already reduced their gas usage in favor of increasing coal-fired electricity generation. Gas prices could rise further due to the renewed strength of LNG exports. This would lead to a surge in U.S. electricity emissions, which could accelerate climate changes. If, on the other hand most trade partners choose to reduce U.S. purchases of LNG as part of a tariff reprisal, then demand for LNG export terminals may drop, which could result in more gas being available at home and lower gas costs. It is likely that there will be mixed reactions among trading partners, as some countries may reduce their LNG purchases, while others might increase them. These volume swings may eventually balance each other out, resulting in a total LNG volume that is largely unchanged by the end the year. In the short term, however, the sudden changes in LNG order flows could trigger wild swings on the gas market. Gas market participants will need to be able to take advantage of any price movements that are favorable and to avoid volatile market conditions. These are the opinions of a market analyst at.
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President of a Japanese shipping company fears that US tariffs could slow down cargo flow, he says
Nippon Yusen, Japan's biggest shipping line, fears that tariffs imposed by U.S. president Donald Trump could increase the price of cars and everyday goods, reducing consumer demand and slowing down cargo flow, according to its president. "The tariffs do not fall directly on the consumers but they are ultimately responsible for the burden, which reduces the flow of goods." In an interview with Takaya Soga on Monday, he said that this was his biggest concern. Last week, Trump announced plans to impose 25% tariffs on automobile imports. This move is expected to hurt Japan's export driven economy. He also promised to announce reciprocal duties targeting all trading partners this Wednesday. "Tariffs can have a significant impact on the economy," Soga added, adding that the actual cargo movement will determine the extent of this impact. Soga, however, sees benefits that could come from the trade conflict. He said that even if cargo volume declines, delays caused by tariff-related procedures could disrupt logistics and tighten ship demand, which would increase freight rates. NYK may find new business opportunities if China begins to source raw materials outside of the U.S. In anticipation of U.S. Tariffs, a rush for consumer goods drove cargo movements in December up until the Chinese New Year. However, there has not been a major change in material flow since they went into effect, Soga stated. The United States also plans to charge docking fees at U.S. port for any ship that is a part of a large fleet including Chinese-built or Chinese-flagged ships and will pressure allies to follow suit or face retaliation. According to NYK, of the 800 ships owned or operated, less than 10 percent are Chinese-built. He said that the U.S. Government will examine carefully whether or not this policy will be implemented. Therefore, we cannot state now that we are going to stop ordering vessels from China. Soga anticipates that Red Sea avoidance will continue as long as geopolitical risk in the Middle East persists. Last year, disruptions in the Red Sea caused by attacks by Yemeni Houthi militants consumed extra capacity as many ships took an extended route around Southern Africa. Soga stated that while the congestion of container vessels in the Panama Canal is mostly resolved, NYK has asked the Panama Canal Authority (PCA) to restore Tier 1 priority status for LNG tanker traffic. Soga stated that the company may delay its plans to invest in vessels for offshore wind projects in Japan due to a slower than expected market development. However, overseas investments would proceed faster. (Reporting and editing by Sonali Paul, Additional reporting by Tim Kelly)
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Shipbuilder Austal shares ride military spending wave and defy market decline
Analysts said that the policies of U.S. president Donald Trump, which have caused stock markets around the globe to tremble, are actually benefiting Austal Australia Shipbuilder. The shares of the company that supplies commercial and defence vessels to clients such as the Australian and U.S. Navy, among others, soared by 35% during the three-month period ending in March. This was their best quarter gain in almost two years, since June 2023. The broader benchmark, on the other hand, lost around 4% due to concerns about stretched valuations in financial stocks as well as the impact of U.S. Tariffs. Austal shares have risen in response to Trump's request that Australia and other U.S. allies increase their defence spending. Last week, Australia announced that it would be bringing forward A$1billion in defence expenditures in the federal budget. Dhierin Perkash Bechai is an aerospace analyst for Seeking Alpha and The Aerospace Forum. She said that with higher defense spending, and a greater need for autonomy across all domains, Austal could see more orders from Australia. "That's also driven by the sense that China could become more aggressive in this region amid a fallout with the U.S. Austal has grown its order book by 11% in the last six months, to A$14.2-billion. Austal's two shipyards are located in the United States, which shields it from Trump's possible import tariffs. These have recently roiled the global markets, and further enhances Austal's appeal to investors. The shipyards produce smaller combat vessels, reconnaissance ships and modules for nuclear powered and nuclear armed submarines. Investors want companies that can win business in the U.S. without tariffs or sacrificing their growth ambitions elsewhere, said Nicholas Sundich. Hanwha, a South Korean conglomerate, recently bought a 9,9% stake in Austal. This was nearly a full year after Austal rejected Hanwha's A$1.02 Billion takeover offer. This acquisition shows the foreign interest in Austal.
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Argentina begins gas exports via Bolivia, says Brazilian firm
T otalEnergies exported for the first-time gas from Argentina's Vaca Muerta shale to Brazil's Matrix Energia, Matrix announced in a statement on Tuesday. Sources familiar with the situation claim that 500,000 cubic metres of gas were exported via the Bolivian pipeline Tuesday. The statement from Matrix stated that the objective of this unprecedented operation was to ensure the technical viability and stability of the logistics networks. It also added that it involved many different parts of supply chains, as well as the signing of two natural gas import contracts for a three-party operational agreement. Over the past year, companies from Bolivia, Argentina, and Brazil have been negotiating deals to ensure that Argentina's natural gas can reach Brazil, one of Latin America’s most important markets. Sources said last year that Bolivia initially refused to charge a toll fee for use of its infrastructure. Instead, it preferred a solution whereby it would buy gas from Argentina, and then resell to Brazil. Negotiations improved in the last few months and several supply contracts were identified. Since years, the pipeline has transported Bolivian gas to Brazil and Argentina. However, as Bolivia's gas production declines, export volumes have decreased. The arrival of Vaca Muerta in Brazil is a victory for Brazil's president Luiz Inacio Lula Da Silva who prioritized providing cheaper gas to Brazil's industry. Exports would be a victory for Argentina as well, since its gas production is increasing under the market-friendly policies of President Javier Milei, creating a new revenue stream for a country that had been experiencing a deficit on its energy trade. One of the sources said that the contract was a spot agreement, meaning the supply could be interrupted in winter, when the demand for goods is high in Argentina. Bolivia's state energy company YPFB has not responded to a comment request on the new exports via Bolivian pipelines. (Reporting and editing by Aida Pelaez-Fernandez, Stephen Coates and Fabio Teixeira; Additional reporting by Marianna Pararaga)
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The delays in the Paraguayan soybean barge transit has an impact on crushers in Argentina
According to transport and crushing chambers in both countries, an accumulation of sediment on the Paraguay River delayed barges that were carrying Paraguayan soya beans to Rosario. Argentina, which is the top soybean oil exporter in the world, depends on Paraguayan beans at this time, since the Paraguayan crop has finished and Argentina's harvest starts this month. The barges used to travel from Rosario via the Parana River use the Paraguay River near the mouth of the Bermejo River. Gustavo Idigoras of Argentina's chamber of grain exporters CIARA-CEC said that the delays have affected the flow barges into Argentina. Argentina's grain-processing industry also buys soybeans from Argentine farmers, though the latter have held back more beans than usual because of uncertainty about the exchange rate. Raul Valdez of the Paraguayan Center for Shipowners (CAFyM) said that the delays had also affected iron ore exports into Brazil. Valdez noted that the conditions on the river have improved over recent days due to increased river levels and dredging. Paraguayan soybean exports fell 14.2% during the first two month of 2025 compared to 2024.
EU bans Russia's LNG exports
This week, the European Union's (EU) ban on reexporting Russian LNG via EU ports came into force. The EU's goal is to reduce Moscow’s revenue after its invasion of Ukraine.
The ban prohibiting the reloading Russian cargoes in EU ports to export to a third country was implemented in June 2024. A moratorium will be enforced until March 26th, 2025, for contracts that were signed before June 25, 2018.
Gas experts claim that the measure will have little effect, as transshipments via EU ports into Asia represents less than 10% total Russian LNG exports. However, suppliers would direct this volume towards Europe.
Here are some facts about Russian LNG Exports.
RUSSIAN LNG EXPORTS
In 2024, Russia will be the fourth largest LNG exporter in the world with an annual output of 34.7 millions metric tons. This is up 4% from 2023. Analysts estimate around 2.7 millions tons of LNG were reloaded at EU ports in 2024 for exports to Asia.
The EU does not have any immediate plans to stop purchasing Russian LNG. The EU has stated that it plans to gradually wean itself from Russian gas by the year 2027 thanks to increased exports of Norwegian, United States, and Qatar.
According to a report by the global energy think-tank Ember, Russian gas imports in the EU will increase by 18% by 2024.
The study stated that "this trend will continue in 2025 with an average of 74.3 million cubic metres per day in Russian LNG imports to the EU in February. This represents a 11% increase in a month."
TRANS-SHIPMENTS
From November to June, Russian LNG exports are dependent on EU ports because thick ice blocks access by traditional LNG vessels to Yamal LNG Arctic terminals owned by gas producer Novatek.
Ship-to-ship transfers (STS) are used to reload cargoes onto regular gas carriers, which are then exported to China, Taiwan and India.
Novatek, Russia’s largest LNG producer and Yamal LNG’s principal shareholder, has signed long-term contracts with firms including China National Petroleum Corp. (CNPC), Shell and TotalEnergies (oil majors), German company Securing Energy For Europe and Gunvor, to sell 17 million tons of LNG per year to Europe.
Two Terms
The main LNG terminals in Belgium and France are Montoir LNG and Zeebrugge LNG.
Fluxys, a Belgian gas transport company, has signed a contract for ten years with Yamal LNG to transship gas at Zeebrugge.
Engie, a French energy company, has a contract for 23 years to manage STS operations. TotalEnergies now holds the contract after it purchased Engie's portfolio of LNG.
Robert Songer is an analyst with data intelligence company ICIS. He said that in 2024 around 47 vessels will have completed STSs between Zeebrugge, and Montoir. According to an average LNG cargo of 70,000 tons in 2024, this represents 9.2% of the total Russian LNG exports.
MOSCOW IMPACT
The ban on LNG transshipment will have a limited impact because of the small volume, but it would raise costs for Russian companies as well as disrupt logistics.
Charles Costerousse is a senior LNG analyst with Kpler. He said that Russian LNG could still be transshipped easily within Russian waters, at Murmansk, Kaliningrad, or other possible locations in the Mediterranean.
(source: Reuters)