Latest News
-
US electricity prices rise as a brutal heatwave stresses grids
The U.S. electricity prices have risen to their highest level since winter, as businesses and homes turned up their air conditioners in order to escape the brutal heatwave that blanketed the eastern half. This has put a strain on regional power grids. Extreme weather reminds the consumers of the deadly freeze in February 2020, which left millions of Texans with no power, water or heat for days. And a brutal heatwave in August 2020 that caused the California The power grid imposed rotating outages on about 800,000 consumers over two days. AccuWeather, a weather forecaster, predicted high temperatures for New York City, the largest city in the United States. United States On Monday, the mercury is expected to reach 98 F. This will break the record set 137 years ago of 96 F. The weather is expected to rapidly cool down in New York from 94 F to 85 F by Thursday, and then to 78 F by Friday. This compares to the current record highs for Monday and Tuesday of 96 F, set in 1888. A normal high of 82 F is also seen in New York at this time of year. Prices for next-day electricity at the PJM West hub In Pennsylvania, the cost of electricity has risen by more than 430% since January to $211 per Megawatt Hour (MWh). New England Power prices have risen by more than 18% to $161 per MWh - their highest level since February. This compares to average power prices of $55 per megawatt hour in PJM, and $81 per megawatt hour in New England for 2025. HEAT WEATHER ALERT PJM Interconnection operates the power grid for all or part of 13 states. New Jersey Illinois The alert, which was issued on Monday, asked generators to be prepared to run at full capacity in the event of a heat wave. PJM predicted that power demand would reach 160,000 Megawatts (MW), 158,000 MW, and 155,000 MW for Monday. On a normal day, one megawatt is enough to power around 800 homes. However, this number drops dramatically on hot summer days when air conditioners are turned up in homes and offices. Grid operator says the alert is aimed primarily at transmission and generator owners, who can plan maintenance accordingly. It also sends a signal to nearby regions that PJM exports of power may have to be curtailed. Reporting by Scott DiSavino, New York; and IshaanArora, Bengaluru. Editing by Jan Harvey & Andrea Ricci.
-
Air India to undergo annual audit by India's watchdog within days of deadly crash
A government memo revealed that ten officials from India's aviation watchdog would visit Air India headquarters for an audit on Tuesday. This comes as the airline faces intense scrutiny following a plane crash which killed 271 people. Air India is not being audited because of the crash, but it has received warnings from the aviation safety watchdog for lapses. It has also cut its routes citing the need for "operational security" after the deadly June 12 crash in India's Ahmedabad. During the visit, officials from the Directorate General of Civil Aviation will examine documents related to Air India's operations, audit findings, and action taken reports, according to a memo that was seen by. Adhiraj Yadav will lead the 10-member DGCA Team, which will include a number of flight operations inspectors. The team also includes two officials who will check cabin safety standards. Memo stating that top Air India executives must be present for the "annual surveillance and regulatory auditor" from June 24 to 26. Air India and DGCA didn't respond to questions. The watchdog issued a warning on Saturday to Air India over "repeated serious violations" in relation to the scheduling of pilot duty. It also directed that three executives be removed from their roles as crew schedulers. Air India has confirmed that it has followed the order. After years of complaints from travelers about poor service, Air India will be taken over by Tata Group 2022. It faces many challenges to rebuild its reputation. Air India was warned by the authorities for violating safety regulations after it flew three Airbus planes that were overdue on checks of emergency equipment and escape slides. The investigation into the cause of June 12's incident continues.
-
Middle East flights suspended by airlines
Israel's attacks against Iran have caused international airlines to stop flights to certain Middle East destinations because of airspace closures and safety issues. The conflict has entered a new phase after the U.S. invasion on Iranian nuclear sites Some airlines have cancelled flights to hubs such as Dubai is Qatar's Doha. Here are some airlines that have cancelled flights from and to the region. AIRBALTIC AirBaltic, a Latvian airline, announced that it had cancelled all flights from and to Tel Aviv up until September 30. AEROFLOT Aeroflot, a Russian airline, has announced that it has cancelled flights between Moscow & Tehran and changed other routes throughout the Middle East. AIR EUROPA Spanish airline cancels flights from and to Tel Aviv through July 31. AIR FRANCE-KLM French flag carrier suspends flights to Tel Aviv and Beirut until July 14, and until June 25, respectively. Air France has also cancelled flights to and out of Dubai and Riyadh up until June 24. KLM has cancelled all flights from and to Tel Aviv, at least until July 1, and warned that flights from, to or via Beirut may be affected until June 29. DELTA AIR LINES Travel to, from or through Tel Aviv could be affected between June 12 and July 31. EL AL ISRAEL AIRLINES The airline announced that it has cancelled all regular flights to EL AL and Sundor until June 27. Flights scheduled to depart until July 15 are also closed to new bookings. ETIHAD AERWAYS Etihad has announced that it will no longer be operating flights between Abu Dhabi, Tel Aviv and Tel Aviv after July 15. EMIRATES Emirates has temporarily suspended its flights to and out of Iran (Teheran), Iraq (Baghdad, Basra), and Afghanistan (Bahdad and Basra), until June 30. FINNAIR Finnair has cancelled all flights from and to Doha until June 30 as well as flight AY1982 for July 1. Finnair added that it will not fly through the airspace over Iraq, Iran or Syria. FLYDUBAI Flydubai has temporarily suspended its flights to and out of Iran, Iraq and Israel until June 30, 2018. British Airways, owned by IAG, has announced that flights to Tel Aviv will be suspended until July 31, and flights to Amman or Bahrain until June 30. After cancelling flights to and from Dubai and Doha the previous day, British Airways was scheduled to resume Dubai and Doha routes on June 23, Iberia Express, IAG's low cost airline, announced previously that it would cancel its flights to Tel Aviv up until June 30. Iberia has cancelled all flights to Doha and Dubai until the 24th of June. ISRAIR Israeli Airlines has announced that all flights to and from Israel have been cancelled until June 30, 2018. Israir has halted the sale of its flights up to July 7 inclusive. ITA AIRWAYS Italian Airlines announced that it will extend the suspension of Tel Aviv flight until July 31. This includes two flights scheduled for August 1. LUFTHANSA GROUP Lufthansa has suspended flights from and to Tel Aviv, Tehran and Beirut until July 31. Amman and Erbil flights are cancelled through July 11. German Airlines added that they would not use the airspace of these countries until further notice. PEGASUS Turkish Airlines has announced that they have cancelled all flights to Iran and Iraq until July 30, and flights to Lebanon, Jordan and Lebanon until June 30. QATAR AIRWAYS Qatar Airways has temporarily suspended flights to and from Iraq and Syria. RYANAIR Ryanair has announced that it will cancel flights from and to Tel Aviv up until September 30. SINGAPORE Airlines The Asian carrier has cancelled flights from Singapore to Dubai up until the 25th of June. Romania's flag airline has suspended all commercial flights from and to Tel Aviv, Beirut, and Amman till June 24. TUS AIRWAYS The Cypriot Airlines cancelled all flights scheduled to depart and arrive in Israel until June 30, inclusive. The airline said that flights scheduled to depart between July 1-7 are currently sold out, pending any further developments. UNITED AIRLINES According to the U.S. airline, travel from and to Tel Aviv could be affected between June 13, and August 1, 2013. There may be problems with flights to and from Dubai between June 18th and July 3th. WIZZ AIR Wizz Air has announced that it will suspend its flights to and from Tel Aviv, Amman and Jordan until September 15, 2015. Hungarian Airlines will not overfly Israeli, Iraqi or Iranian airspaces until further notice. (Reporting and compilation by bureaus, compiled by Agnieszka Olesnka, Elviira Loma, and Tiago Brancao; Editing by Matt Scuffham, Alison Williams and Matt Scuffham)
-
Norway secures four new offshore wind sites
The Norwegian energy regulator identified four additional areas that are most suitable for future offshore development. It announced this on Monday. The government will now consult on the findings to determine the best way forward. Norway is planning to open enough land by 2040 for offshore wind development to reach 30 gigawatts, which could increase the country's capacity to produce electricity by 75%. Initially, the Norwegian Water Resources and Energy Directorate NVE identified 20 areas that were suitable for offshore wind deployment. After further study of the remaining land, it found that four other areas were also suitable. Kjetil Lind, NVE's director, said that NVE had found four areas in southern Norway with better economic, grid and wind conditions. The impact on the environment, other industries and the environment was relatively minimal. The government must decide which acres to select, he said. The government has not stated how many areas they are hoping to move forward. Terje Aasland, the Energy Minister, said that the government would conduct a consultation with industry and other stakeholders to get their input. They will also weigh in local support as well as the need for additional power. Lund, NVE's Lund, who presented the report said that offshore wind in Norway was not profitable at present without significant financial assistance. The Energy Minister declined to comment on future potential subsidies but stated that he expects costs for offshore winds to decrease over time. Norway's first offshore turbine farms, Soerlige Nordsjoe II (norwegian crowns worth $2.26 billion) and Utsira Nord (norwegian crowns worth 35 billion), have received state assistance of 23 billion Norwegian crowns.
-
LSEG data indicates that the Cheniere Sabine LNG Plant in Louisiana is on track for exit reduction.
According to data provided by financial firm LSEG, the amount of natural gases flowing to U.S. liquefied gas company Cheniere Energy’s Sabine Pass Export Plant in Louisiana is on track to reach a preliminary 3-week high on Monday. Energy traders noted that an increase in gas flow and a Cheniere notice that it had completed work on the pipeline that supplies gas to the plant by June 20 are signs that the facility is exiting a maintenance period of three weeks. According to LSEG, gas flows in the 4.5 billion cubic feet per day Sabine region were expected to reach a preliminary 4.2 bcfd Monday. This is up from an annual average of 3.0 bcfd, since late May. A billion cubic feet of gas is enough to power five million U.S. households for one day. Cheniere officials were not available to comment immediately. Cheniere informed customers that the pipeline Creole Trail, which provides some of the gas used in Sabine, had been completed on June 20, 2018. The company stated that it began the latest work on the pipeline in May. Gas flows to all eight major U.S. export LNG plants, including Sabine rose to a preliminary 3-week high of 15 bcfd Monday. This is up from 14.7 bcfd Sunday and averaging 14.1 bcfd in June. This compares to a total LNG average of 15.0 Bcfd and a record monthly high of 16.0 Bcfd for April. (Reporting and editing by Alexandra Hudson, Emelia Sithole Matarise).
-
Forget AI. Maguire: The bigger problem in the power sector is keeping cool.
In the developed world, utilities are struggling to meet demand from data centres. Globally, however, the challenge of keeping people cool will be a greater drain on power grids. Data centres and air conditioners will both triple their electricity consumption over the next decade. This will put utilities under severe strain, already struggling with aging grids, and long backlogs of new supply. According to the International Energy Agency, data centre electricity consumption is expected to increase by 800 terawatt-hours (TWh) in 2035 from 416 TWh around 2024. According to the U.S. Energy Information Administration, this is enough electricity to power 75 million American households for an entire year. The global demand for cooling systems is expected to increase by 1,200 TWh in 2035. That's nearly as much energy as the Middle East consumes each year, according to data from thinkthank Ember. The location of the demand spike and the consequences of not meeting this spike also differ significantly between the drivers. The majority of data centres are expected to expand in developed economies that have modern power networks. Demand will increase primarily due to the processing of search requests from businesses and social media apps. The vast majority of air conditioning demand is expected to grow in emerging economies, where heat-related illnesses and deaths are already a threat for many communities. The likelihood of increased deaths and human suffering in developing countries, which could be the result of a power system shortage, is of a completely different magnitude from the economic impact and risk of slower searches that may occur if power supply for data hubs are not improved. BUILDING EFFECT Climate change will lead to heatwaves that are more intense, longer and more frequent in many parts of the world. This is especially true in developing countries like South and Southeast Asia, where high humidity can increase the effects of heat stress. According to a report by India's Centre for Science and the Environment, "even a heatwave lasting only a few day can cause tens and thousands of deaths excess in India." In order to combat this, many new homes and office buildings in countries with warm climates are increasing the number of cooling systems they contain. Many of these areas have already experienced a construction boom, which has increased the need to cool space. According to the IEA, in 2022, approximately 36% of households will have some type of air conditioning. By 2035 this share is expected jump from 50% to 60%. IEA data show that to power this expanding footprint, installed cooling capacity is expected to increase from around 850 gigawatts in 2022, to 1,750 GW in 2035, and 2,700 GW in 2050. INDIA-LED In the next decade, India will be the largest consumer of cooling systems. It has the largest population in the world and will have the largest economy. According to the IEA, India currently has around 110 million air conditioners out of the 2.4 billion units used globally. By 2035, India will have a 13% share in the global air conditioner market (approximately 500 million units). This figure is expected to reach more than 1.1 Billion units by 2050. Indonesia, a fast-growing nation with a large population prone to humid and hot weather, will triple its air conditioners by 2035. Brazil, Mexico, and the Middle East all plan to double theirs. WIDENING LOADS All regions will have to work hard in order to increase electricity supply in order for data centres and cooling system demand to grow as projected. The challenges of addressing these demand drivers are different depending on where power is required. Most data centres in the United States and Europe are built near existing generation sites so that server farms have access to uninterrupted power without transmission delays. Many of the cooling systems in developing economies are located within multi-story buildings or on previously undeveloped lands. This means that power providers have to expand their geographical reach and increase volumes. In India, Indonesia, and other countries, the need to increase the scale and scope of electricity production may lead to an expansion of the use of coal, which could cause pollution and accelerate the warming trend. The sheer size of the energy demand will mean that fossil fuels will be insufficient to meet this growth. A variety of other power sources will be required. The "all-of-the above" approach means that clean energy and renewable resources should become a larger part of the mix of electricity generation over time. This could lead to the eventual elimination of high pollution fuels. In the short term, fossil fuels will be burned more to meet the increasing demand for electricity. Heat stress will only increase in the future as people are forced to stay safe and comfortable at higher temperatures. This puts more strain on already stressed electrical grids. 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 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.
-
The fear of an Iranian oil calamity in Hormuz is more than just a myth.
Fears of Middle East oil disruption after US strikes on Iran Iran has attempted to blockade the Strait of Hormuz in the past. US Navy is likely to respond quickly in the event of disruptions Ron Bousso LONDON, 22 June - The U.S. strikes against several Iranian nuclear sites are a significant escalation in the Middle East conflict. This could cause Tehran to disrupt essential exports of gas and oil from the region, causing a spike in energy prices. History tells us, however, that any disruption will likely be brief. Since Israel launched surprise airstrikes on Iran on June 13 investors and energy markets were on high alert, fearing disruption of oil and natural gas flows from the Middle East. This was especially true for the Strait of Hormuz - a chokepoint that connects Iran with Oman, and through which 20% of global demand for oil and natural gas passes. Since June 13, Brent crude oil prices have increased by over 10%, to more than $77 per barrel. Although Israel and Iran have both targeted their respective energy infrastructures, there has not been a significant disruption of maritime activity in the area so far. The decision of President Donald Trump to bomb three of Iran's nuclear sites early Sunday morning, along with Israel, could change Tehran's calculations. Iran has few options and could respond by attacking U.S. targets in the region or disrupting oil flow. Although such a move is almost certain to lead to an abrupt spike in energy prices worldwide, the history of the market and its current dynamics suggests that any move will likely be less harmful than investors fear. Can they do it? First, we need to know if Iran has the capability of blocking or seriously disrupting the Strait of Hormuz. Answer: Probably yes. Iran could try to place mines in the Strait which measures 34 km wide (21 miles at its narrowest). The Iranian army or paramilitary Islamic Revolutionary Guard Corps could also strike or seize ships in the Gulf. This is a tactic they have used in recent years. Hormuz was never completely blocked but it has been interrupted several times. During the Iran-Iraq War of the 1980s, both sides were involved in what was called the "Tanker Wars", which took place in the Gulf. Iraq attacked Iranian ships and Iran attacked commercial vessels, including Saudi, Kuwaiti, and U.S. Navy ships. Ronald Reagan, the then-President of the United States, deployed his navy in 1987 and 1988 after Kuwait appealed to him. This was called Operation Earnest Will. The operation ended shortly after an American navy ship shot down Air Iran Flight 655 killing all 290 of its passengers. At the end of 2007, tensions in the Strait erupted again in a series skirmishes involving the Iranian and U.S. Navy. One incident involved Iranian speedboats approaching U.S. battleships. No shots were fired. In the Gulf of Oman, Iranian troops captured the Advantage Sweet crude oil tanker chartered by Chevron in April 2023. The vessel was freed more than a full year later. The U.S. Navy would respond to any Iranian attempt at disrupting maritime traffic in the Gulf with a swift, forceful response, thus limiting the possibility of a long-lasting supply shock. HISTORY LESSON History has shown that major disruptions in global oil supply have been short-lived. Brent crude doubled to $40 per barrel in mid-October 1990 after Iraq invaded Kuwait. By January 1991, prices had returned to pre-invasion levels after a U.S. led coalition launched Operation Desert Storm. Kuwait was liberated the following month. Even less impactful was the start of the second Gulf War between March and may 2003. The 46% rise in stock prices between November 2002 to March 2003, which was the period leading up to the war, was reversed quickly in the days before the U.S. led military campaign. In February 2022, Russia invaded Ukraine, causing oil prices to spike to $130 per barrel. However, prices fell back to $95 in mid-August, their levels before the invasion. The rapid rise in oil prices curbed the demand at the time, and this was a major factor for the relatively quick turnaround of the oil price spikes, according to Tamas Varga an analyst with oil brokerage PVM. The global oil market was also shook by the Arab embargo of 1973 and the Iranian revolution of 1979, when attacks on oilfields in the country severely disrupted the production. These attacks did not include the blockade of Hormuz, and they were not met by a direct military response from the United States. There is certainly spare capacity on the current global oil markets. OPEC+ is an alliance of oil producing nations that holds around 5.7 millions barrels of excess capacity per day. Saudi Arabia and United Arab Emirates have 4.2 million bpd. Today, the Strait of Hormuz is the main route through which oil is transported from Saudi Arabia and UAE. However, the two Gulf countries could bypass this strait via oil pipelines. Saudi Arabia is the top oil exporter in the world, with around 9 million barrels per day. It has a crude oil pipeline that runs between the Abqaiq Oilfield in the Gulf Coast in the east and the Red Sea port of Yanbu in west. The pipeline can handle 5 million barrels per day and has been temporarily expanded by 2 million barrels per day in 2019. The UAE produced 3.3 millions bpd of oil in April. A 1.5 million bpd oil pipeline links its oilfields on the coast to the Fujairah terminal, east of the Strait of Hormuz. This western route is also vulnerable to the attacks of the Houthis, who are backed by Iran and have disrupted the Suez Canal shipping in recent years. Iraq, Kuwait, and Qatar have no other alternative to the Suez Canal. Iran may decide not to block the Strait, in part, because it would disrupt its oil exports. Tehran may also see any further escalation as futile in light of U.S. intervention and instead downplay the importance and return to nuclear negotiations. Fearing a further escalation of the situation, the energy markets are likely to react to the U.S. strike with a dramatic increase in crude oil prices. Even in the worst-case scenario, where the Strait of Hormuz was blocked, historical evidence suggests that markets shouldn't expect a persistent supply shock. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
-
South Africa accepts a World Bank loan of $1.5 billion to upgrade infrastructure
The National Treasury announced on Monday that South Africa had signed a loan agreement worth $1.5 billion with the World Bank to revamp its energy and transport infrastructure, and re-ignite the economy. Over the past decade, Africa's most developed economy has struggled with growth. Regular blackouts have crippled its productivity. Meanwhile, deteriorating rail networks and chronically crowded ports have hampered major industries like mining and automaking. The government hoped the loan would ease transportation bottlenecks and increase energy security. However, it did not specify what specific projects World Bank money was to be used for. This financing will also help to limit the rise in debt service costs, as it has more favorable terms than commercial loans. Since years, state-owned energy companies Eskom, and Transnet, have suffered from operational and financial problems, preventing growth. In the first quarter, it rose only 0.1%. The Treasury set the rate of interest on the World Bank loan at six-month Secured overnight Financing plus 1.49%. This is not the $500 million in financing that the World Bank Group has considered to unlock private investment into the electricity transmission grid. The grid needs to be extended to connect more renewable projects. The budget presented by Finance Minister Enoch Goongwana last month included more than 55 billion rand (over 1 trillion rand) in investments across transportation, energy, and water to support public services and growth. The goal was to have the public debt peak at 77.4% gross domestic product during the current fiscal period, and then slowly decline afterward.
Cerberus, a Chinese port operator, has targeted Darwin Port amid Australia's local-ownership push.
A senior executive from the Chinese operator of Darwin Port said that the U.S. firm Cerberus was interested in buying the lease. This comes amid an Australian government push to return the port to Australian ownership.
Terry O'Connor is the Australia non-executive Director of Landbridge, a Chinese company that operates Darwin Port. He said a Cerberus executive had met with Peter Dummett, Chief Executive Officer at Darwin Port, a fortnight earlier and expressed an interest. However, he hadn't yet spoken to Landbridge's Board.
Cerberus has not responded to our request for comment. Landbridge previously stated that the port was not for sale and it hadn't discussed the issue with the Australian Government.
China's Ambassador to Canberra, on Sunday, criticised Prime Minister Anthony Albanese for his election promise last month that he would return the strategically-located northern port to local control.
In 2015, the Northern Territory government sold Landbridge the 99-year lease of the port for $506 million. This was a controversial move that was criticized by Barack Obama, the U.S. President at the time. Around 2,000 U.S. Marines carry out exercises six months a year in Darwin, the northern city where the U.S. is expanding its air base to accommodate U.S. Bombers.
The Australian newspaper reported for the first time on Tuesday that Cerberus Capital Management was preparing an official proposal to purchase the port. Cerberus Capital Management was founded by billionaire Stephen Feinberg, who was appointed U.S. Deputy Secretary of Defence in March.
Mao Ning, a spokesperson for the Chinese Foreign Ministry, said Tuesday, in response to a Darwin Port question, that "the Chinese enterprise concerned" obtained the lease through the market and their legitimate interests and rights should be protected.
The Australian federal Government is conducting a separate process in order to identify potential Australian investors and buyers for the port.
Luke Gosling said that he had met with many potential supporters of the Port Darwin in a recent statement. Gosling is the federal lawmaker who serves as the special envoy to Northern Australia and defence.
He added, "We will work through this process methodically."
Last week, Northern Territory Treasurer Bill Yan said that the port had to be prepared for "heavier defense logistics, the surge of critical mineral exports, and the growing LNG shipments", as well as operate in "Australian interest".
Yan's office has not responded to a comment request.
John Coyne is the director of national-security programs at the Australian Strategic Policy Institute. He said that Landbridge selling the port to make a profit would be a better option for the Albanese Government than intervening to end the lease for national security reasons, which could result in retaliation from China.
He said that Beijing would not be pleased with the sale of such an asset, and added that China might discourage foreign investment into Australia. (Reporting from Sydney by Kirsty Neetham; Additional reporting in Beijing by Liz Lee; Editing by Muralikumar Anantharaman).
(source: Reuters)