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China's Vice President visits Spain as mutual love blossoms
Han Zheng, Vice President of China, arrived in Spain Tuesday on a four-day visit. He will meet King Felipe and Premier Pedro Sanchez. This is a sign that economic and political relations are becoming more and more close. Han Zheng's trip comes two months after Sanchez made his third visit to Beijing in the last five years. He was there to woo China President Xi Jinping, as the global economy is reeling from President Donald Trump’s tariffs. The socialist premier is trying to position Madrid as a mediator between China and Europe, and to attract more Chinese investments in advanced technologies such as electric vehicles, batteries and hydrogen. Last year, Stellantis and Chinese manufacturer CATL announced their plans to build in Spain one of Europe's biggest EV batteries factories. Spain's relationship with China is not perfect. Spain was hit hard by Beijing's antidumping investigation into EU pork, launched last year as retaliation to Brussels' tariffs against Chinese EVs. Sanchez's final visit to China secured expanded access for Spanish pork stomach exports - a popular product in China that was not previously authorized. Han will meet Sanchez on Wednesday in Madrid, Sanchez’s office announced, while King Felipe is scheduled to receive the Chinese official Thursday, as per the agenda of the royal household. The Spanish monarch will also visit China in the latter part of this year, to celebrate 20 years since the strategic partnership was signed. Han will travel to Seville after his meetings with Sanchez, the Spanish king and Andalusia regional leader Juan Manuel Moreno. Last year, Moreno secured 2,86 billion dollars ($2,86 billion) in Chinese investments for Andalusia. Turespana, a tourism lobby, has projected that the number of Chinese tourists to Spain will increase by 36% this year compared to the previous year. This makes Spain the European destination where the most growth is occurring from Asian nations.
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Sources say that JERA is close to signing a deal with Commonwealth for 1 MTPA LNG
Two sources have confirmed that U.S. LNG developer Commonwealth LNG, which is planning to build an export facility in Louisiana to provide 1 million metric tonnes per year (mtpa), of LNG, will soon sign a contract with Japan's largest power generator JERA. Commonwealth LNG would be able to commit 8 mtpa under the long-term contract. The company stated publicly that they want to secure contracts for 8 mtpa or more of their 9.5 mtpa capacity LNG export terminal to ensure the project's financial viability. The U.S. exports more LNG than any other country in the world. Based on the projects that are currently under construction or those that will be funded this year, it is possible to triple the export capacity of the U.S. by 2030. One source familiar with the negotiations said that the parties had agreed on terms and would sign the agreement soon. Commonwealth LNG has not responded to a comment request. JERA declined comment. Commonwealth was among the projects affected by the pause in new LNG export licences, imposed by the former president Joe Biden. This was pending the completion of a study of the economic and ecological impact of further U.S. LNG growth. The Trump administration lifted the freeze and has promised to unleash American power. Commonwealth received an export authorization conditional to a non-free-trade agreement (non FTA) from the Department of Energy in February. Commonwealth expects to make a final decision on the project in September 2025, and the first LNG production is expected in the first three months of 2029. JERA announced in May that it had entered into an agreement with NextDecade for the purchase of 2 mtpa LNG from its Rio Grande Project's fifth liquefaction plant. Reporting by Curtis Williams, Houston; Editing and production by David Gregorio
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Cheniere wants to expand Sabine Pass plant in US with regulators
According to a FERC report, Cheniere Energy, which is the U.S.'s largest exporter of liquefied gas, has asked the Federal Energy Regulatory Commission to grant permission for the expansion of its Sabine Pass facility. Cheniere submitted a joint request, dated 6 June, to FERC, for authorization to build and operate the Sabine Pass Stage 5 Expansion Project. This project would expand the existing Sabine Pass LNG Facility in Louisiana. With a capacity of 30,000,000 metric tons per year (mtpa), the Sabine Pass terminal is the largest LNG facility in the United States. Six liquefaction train are in operation. According to the FERC document, this expansion includes an addition of 3 natural gas liquefaction train, with a combined maximum LNG production of around 300 billion cubic feet annually. In February, Jack Fusco, the Chief Executive Officer of Cheniere, said that his company would aggressively pursue regulatory permits for expanding capacity now that U.S. president Donald Trump has taken office. Bill Berkrot edited the report by Noel John, who reported from Bengaluru.
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The number of ships passing through the Panama Canal decreased in May due to maintenance.
In a Tuesday bulletin, the Panama Canal Authority reported that the number of ships passing through the canal fell from 34 to 31.4 on average per day. This was due to planned maintenance being performed at one of the locks. Despite an increase in traffic on the world's second-busiest interoceanic route since it lifted restrictions due to severe drought last year, it has not yet allocated all 36 slots available per day. The canal temporarily closed the west lane between May 27 and 31. Panama Canal Authority reported that the east lane was still operational. According to data from the Canal Authority, 973 vessels transited the waterway during May. This is less than the 1 021 ships that passed through in the preceding month, but more than the 805 vessels which were in transit in the same period last year. The drought caused a 5% drop in the toll revenue of the canal in the fiscal year ending September 2024. According to the annual reports, between the fiscal years of 2020 and 2023 the toll revenue for the canal increased by almost 26%, to $3.35billion.
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Spanish Minister says private power companies slow to share information about blackouts
Sara Aagesen, Spain's Minister of Energy, urged private electric companies to share information faster to determine the cause of the worst blackout ever to strike Spain and Portugal. The cause of the power outage that left 60 million people without electricity in two European countries has not been determined, and the blame-game has increased. Aagesen, who was in Nice, France for a U.N. Conference, told reporters that information arrived quickly at first. "Now, information is arriving in bits and pieces much slower." She admitted that the information needed was more detailed, and at times more complex. She said, "But I insist. I continue to ask for this information as soon as possible to identify the causes and to implement the necessary steps." The Spanish energy ministry leads one of the investigations into the events that took place on April 28, which sent investigators, from Spain's cybersecurity and Intelligence services, to the premises of private energy companies to gather information. A spokesperson for the energy ministry declined to comment on what Aagesen meant. Aelec, the lobby group for Spain's major electricity companies, including Iberdrola, Endesa, and other utilities, has not responded to our request for comment. Last week it was reported that private companies were cooperating in the investigations. It said that "it is absolutely false" that the government was withholding or delaying information in response to inquiries about the recent blackout. PROBES and Finger-Pointing A Spanish court is also investigating the possibility that a cyber-attack was responsible for the blackout. Separate investigations are being conducted by Spanish legislators. Red Electrica, the Spanish grid operator, insists that the transmission grid they manage was operating without any problems before the blackout. Beatriz Corredor (chairwoman of Redeia's parent company) blamed last week some conventional power plants (including nuclear, combined cycle and hydroelectric plants) for failing to maintain an appropriate voltage in the power system on that day. Corredor did not say that this was the cause of the blackout. Investigators examine excessive voltage in the grid as a possible cause of the loss of production. Aelec claimed that Corredor's remarks caused confusion and prevented an objective technical assessment. Reporting by Pietro Lombardi. Edited by Aislinn laing and Emelia sithole-Matarise.
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New EU sanctions against Russia to target the energy sector and banks
According to European Commission President Ursula von der Leyen, the 18th package against Russia has been proposed. It targets its energy revenues, banks, and military industry. The new package proposes to ban transactions with Russia's Nord Stream Gas Pipelines as well as banks who engage in sanctions-circumvention. Von der Leyen said at a press conference that "Russia will only understand the language of strength" if it imposes the rule by force. In an effort to reduce Russia's revenues from energy, the Commission also proposed that the price cap for Russian crude oil be lowered to $45 per barrel. It was previously $60. Von der Leyen stated that the cap on oil prices will be discussed during a G7 summit this week. "My assumption would be that we do this together as the G7. She said, "We started this as G7. It was a successful measure from G7. I want to keep it as G7." The proposal also lists additional vessels that are part of Russia's shadow oil fleet and trading companies. Kaja Kallas, EU's chief diplomat, said that the next round of EU sanctions will target Russia’s energy revenue including its shadow fleet and military industry as well as its banking sector. The EU will begin debating this proposal next week. Reporting by Julia Payne, Milan Strahm and Benoit van Overstraeten; Editing by GV de Clercq & Benoit van Overstraeten
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In May, the share of Russian aluminum in LME storages dropped as Indian metal surged.
Data from the London Metal Exchange showed that the proportion of aluminium with Russian origin registered in the warehouses of the London Metal Exchange fell to 69% from 89% in the month of April. The percentage of Indian origin increased to 30% from 10%. To comply with U.S., British and European sanctions over Russia's invasion of Ukraine in 2022, the LME has banned all metals produced in Russia from its warehouse system after April 13, 2024. Metal made before April 13, 2024 can still be traded. Stocks of aluminium with Russian origin, or those on warrant The number of metric tonnes dropped to 221,925 at the end May, from 223,900 at the end April. The data revealed that the amount of aluminium from India increased to 97.950 tons. It was previously 25,050 tonnes. LME warrants are title documents that confer ownership. The share of copper produced in Russia that is available on the LME Metal was removed from warehouses, causing the number to drop to 39,350 tonnes from 66700 tons. The amount of copper produced in China dropped from 59.72 tons to 30,825 tonnes. At the end of April, 59% of LME nickel stocks were made in China. This is a small change from earlier this month. (Reporting and editing by Kirby Donovan; Eric Onstad)
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Singapore's Koh Brothers wins $776 million contract to build tunnels for Changi Airport
Singapore's Koh Brothers Eco Engineering announced on Tuesday that its unit had secured a S$999.7 million contract ($776.77million) from Changi Airport Group for the construction of intraterminal tunnels in the airport's new fifth terminal. Koh Brothers' Koh Brothers Building & Civil Engineering Contractor will execute the contract via an integrated joint venture, with Penta-Ocean Construction a Japanese company. The joint venture is 30% owned by the company that provides engineering services. Changi Airport in Singapore, the fourth busiest airport in the world by international passenger numbers, began building a new terminal in May to capitalize on the growing air travel industry in Asia after the pandemic. According to the International Air Transport Association, passenger numbers in Asia-Pacific will double by 2043 with a growth rate of 5.1% per year, which is faster than expected in Europe and North America. In a statement, the Singapore listed firm stated that construction should take just over four years.
In gas-rich Venezuela, next president faces problem of producing it
Griselda Ascanio keeps an improvised woodburning range all set in her yard in Maracay, 120 kilometers (75 miles) from Venezuela's capital, for the frequent gassupply disruptions that make it challenging to cook.
We can not just weep about it, said the 44-year-old administrator, who collects branches that fall from trees. So. we have learned to resolve problems ourselves.
While it sits atop the world's eighth-largest natural gas. reserves and the greatest in Latin America, Venezuela's output. fell to 4 billion cubic feet each day (bcfd) this year from. almost 8 bcfd in 2016, data from consultancy Gas Energy Latin. America showed.
A production revival would not only ensure more dependable. domestic supply, but potentially relieve scarcities in surrounding. countries and bring much-needed hard-currency income. The gas issue is a key issue as a presidential election. techniques on July 28. Whoever wins faces the daunting task of. securing investment in the OPEC member's gas industry.
President Nicolas Maduro's administration has actually doubled down. on offering gas jobs to foreign business given that in 2015,. but longstanding unpaid debts to a number of the business, U.S. sanctions and the huge financial investments needed have actually limited. development.
The primary opposition coalition, represented by Edmundo. Gonzalez in the ballot, has actually proposed radically broadening the. private sector's function, while restructuring the country's. $ 150-billion financial obligation, something analysts say would take years.
No one is going to massively produce gas in Venezuela in. these conditions, but there is instant interest is small. midstream projects, stated Antero Alvarado, handling partner of. Gas Energy Latin America, describing pipelines and systems to. much better capture and disperse gas.
Venezuela's issues have hindered advancement, resulting in. frequent deficiency of the fuel essential for cooking, generating. power and feeding petrochemical plants and factories.
The gas Ascanio intermittently gets at her home shows up. in cylinders whose circulation is controlled by. government-supported groups. That subsidized lp is amongst. the most costly fuels PDVSA's refineries produce. In some cases,. the state-owned business even turn to importing that gas.
Neighbors from Colombia to Brazil and lots of European countries,. hopeful that Venezuela's production might eventually alleviate their. own gas shortages, have actually pushed the Biden administration to. grant gas projects exemptions from sanctions, business executives. and government authorities have actually stated.
PDVSA and its gas subsidiary did not respond to requests for. comment.
FLARING THE GAS AWAY
Venezuela's practically 200 trillion cubic feet (tcf) of proven. gas reserves are primarily untapped.
Venezuela's natural-gas production has traditionally been. limited in contrast to its possible, the U.S. Energy. Information Administration said in a February report,. attributing the scenario to a bad financial investment climate, lack of. infrastructure and inability to develop projects.
Some 80% of Venezuela's gas output is connected with crude. production.
In the last five years, unprocessed gas flared into the. environment during oil production has actually exceeded volumes offered. commercially, turning the nation into among the world's. biggest natural-gas flarers, according to the EIA.
Maduro's socialist government has actually held undetermined talks. with European companies including Repsol, Eni. and Shell, about a capital-intensive job to. recapture as much as 1.5 tcf of flared gas for the domestic market. and exports.
Offshore, large gas exploration and production tasks. remain mainly stalled, specifically the enormous 12-tcf Mariscal. Sucre. Just one of its 4 fields is in active negotiation. between the government and energy companies Shell and Trinidad and. Tobago's NGC for a joint development that might see. very first output late next year.
Helped by a versatile law that needs less bureaucracy for gas. tasks than for oil tasks, Venezuela's federal government has actually begun. internal speak with offer a second field, Rio Caribe, for foreign. financial investment, according to sources familiar with the plan. We are open to foreign business pertaining to Venezuela, Oil. Minister Pedro Tellechea informed press reporters in June, referring to. energy tasks as Washington recently resumed releasing licenses. for specific advancements in Venezuela.
However lots of gas manufacturers in Venezuela no longer have the methods. to increase production unless PDVSA first pays back financial obligations, business. executives stated.
ANOTHER METHOD
In what would be a policy U-turn, the opposition wants to. reopen the energy industry to foreign financial investment through. privatization while restricting PDVSA's role and restructuring. financial obligations, including paying some lenders with oil.
The technique would brake with twenty years of nationalization. that has concentrated almost all production, transportation,. processing and sales in the state's hands, developing a long chain. of debts among state-owned companies.
The country will require more electrical energy, thus, more gas,. Alvarado stated. If a privatization in the power sector happens,. there will be economic rewards to produce gas for domestic. sales, while bigger offshore projects could concentrate on exports. even through LNG (melted gas).
(source: Reuters)