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Fired rail board member sues Trump over removal amid major merger decision
A Surface Transportation Board member who was fired by President Donald Trump last August has filed a lawsuit on Wednesday. He is challenging his dismissal as the Surface Transportation Board prepares to consider a major decision regarding combining railways. Robert Primus referred to his firing as an "illegal removal". He said that Trump had "failed to provide a single reason for the termination, much less one that satisfied the statutory requirements of inefficiency, negligence of duty or malfeasance at office." Primus asked a U.S. District Judge in Washington, D.C., to reinstate him. The U.S. Rail regulator is considering a proposed $85 billion merger between Union Pacific and Norfolk Southern, the largest U.S. railroad tie-up for decades. After meeting with Jim Vena, CEO of Union Pacific, in the Oval Office, Trump, who is a Republican, stated that the merger of the rail industry "sounds great to me". A major rail union SMART-TD said that Primus, before being fired, had "made it clear his opposition to the'merger,' which would have been a corporate takeover combining Union Pacific Railroad with Norfolk Southern Railroad." Primus was first nominated to fill a board vacancy by Trump in 2020. He was then nominated for a five-year term by Democratic President Joe Biden, and Biden designated him as chairman in 2024. This is just the latest in a long line of dismissals from independent agencies by the Trump administration. "President Trump removed Robert Primus legally from the Surface Transportation Board. "We look forward to the court affirming this simple fact," White House spokesperson Kush Desai stated. Trump has dismissed the two Democrats at the Federal Trade Commission as well as the vice-chair of the National Transportation Safety Board and members of National Labor Relations Board and Merit Systems Protection Board. He also tried to remove Lisa Cook, the Federal Reserve Governor and the U.S. Postmaster General. The announcement in July of a merger between two major U.S. railroad operators shocked a market that was already very concentrated. Under the Biden administration's aggressive antitrust policies, such a proposal was unthinkable. Union Pacific is the dominant freight rail carrier in Western United States. Norfolk Southern, on the other hand, is the leading carrier in Eastern United States. Together, the two railroads form one of four major U.S. class I railroads along with BNSF Railway, CSX Corp and BNSF Railway. The White House announced last month that it would nominate Surface Transportation Board member Michelle Schultz to a second term, and Richard Kloster, the head of a private consulting firm in transportation, for an open seat within the agency. (Reporting and editing by Chris Sanders, Aurora Ellis, and David Shepardson)
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Alberta submits proposal for new oil pipeline
Alberta announced Wednesday that it would submit a fast-track application to the federal government by the spring of 2026 for a new pipeline carrying crude oil, even if a private firm is not involved in the construction. The main oil producing province in Canada said that it would act as the official proponent of the proposal. It will take the lead on early planning, engineering and design work to determine the route, cost and size of a pipe. Alberta's government has said that the proposed pipeline can transport up to 1,000,000 barrels of crude oil per day to British Columbia's Northwest Coast for export. It will spend C$14,000,000 ($10.04 million), to create a credible proposal that can be considered by the federal government. The company will also work with Canadian pipelines companies Enbridge, South Bow, and government-owned Trans Mountain Alberta has announced that. They have also agreed to provide technical assistance and advice. The companies have not committed to build the pipeline, nor have they invested in such a venture. Deputy Alberta Energy Minister Larry Kaumeyer said Wednesday that the government does not intend to own or construct a pipeline. Requests for comments were not immediately responded to by the companies. The goal of the Alberta government, according to Kaumeyer, is to get the project to the starting line. He added that despite the growing Canadian oil production no private company would be willing to risk a pipeline proposal. The Canadian oil pipeline industry has faced regulatory delays and legal challenges for years. This has led to the cancellation of some projects, and increased costs for others. Trans Mountain expansion The first one was opened in 2008. Canada, which exports 90% of oil to the U.S., is trying to diversify its oil exports partly to protect its economy from tariffs. The Canadian government, under the leadership of Prime Minister Mark Carney, aims to speed up construction on natural resource projects. In August, a new organization was created. Federal office Designed to expedite the review and approval process for projects like mines and pipelines. Kaumeyer explained that if a pipeline project were approved for fast-tracking then a partner from the private sector would be likely to step up and take the project over from the Alberta government. He said: "We're confident that private capital will come to build this pipe." Pipeline companies say they have been urging significant changes to federal legislation, including the lifting of the federal cap on emissions in the oil and gas industry as well as removing the ban on oil tankers near B.C. Before a private entity will consider a new pipeline, it must first be approved by the government. Kaumeyer stated that the federal government was aware of the Alberta pipeline proposal, and that Alberta and Canada were in "ongoing talks" regarding the issue. Carney's office didn't immediately respond to an inquiry for comment. (1 Canadian dollar = 1.3940 dollars) (Reporting from Amanda Stephenson, Calgary; and Devika Nair, Bengaluru. Editing by Margueritachoy and Cynthia Osterman).
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Chernobyl Nuclear Power Plant is cut off by Russian bombardment
Ukraine's Energy Ministry announced on Wednesday that Russian air strikes had cut power to decommissioned Chernobyl Nuclear Power Plant. This included a new containment system erected to minimize contamination from the largest nuclear accident in history. Officials from the energy sector also confirmed that the shelling caused a mass outage of power in Chernihiv, affecting 307,000 customers close to Ukraine's border with Russia. The Chernihiv governor stated that generators have been installed at key sites, such as hospitals. Emergency crews are working to restore the power grid. The Energy Ministry's statement did not mention any increased risk of radioactive releases as a result the cutoff of power to the now defunct Chernobyl plant. It said that emergency crews are working to restore power. A statement from the ministry said that "as a result of Russian shelling energy infrastructure in Kyiv's region, in the city Slavutych," an emergency situation had arisen at Chernobyl nuclear power plant facilities. The new safe confinement unit, which isolates the destroyed fourth power module of the Chernobyl plant and prevents radioactive materials from being released into the environment due to power surges, was left with no power supply. In the statement, it was stated that teams of experts are working to restore power to this facility. Soviet engineers quickly built a "sarcophagus", or protective enclosure, around the Chernobyl Station's fourth nuclear reactor after it exploded and caused radioactivity to spread throughout Europe in April 1986. In 2016, this was replaced with a new containment structure, while the other three reactors of the plant were slowly taken out. The plant was briefly taken over by Russian forces as part of their invasion of Ukraine in 2022. In February, a Russian drone penetrated the roof of the confinement structure. Bill Berkrot edited the report by Ron Popeski, Oleksandr Kozoukhar and Bill Popeski.
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'NextGen' US air traffic reform effort faces delays, rising costs
According to a recent report, the Federal Aviation Administration’s $15 billion overhaul of air traffic control project has been plagued by delays and cost overruns. It is also less ambitious than it was imagined more than 20 year ago. By the year 2024, only 16% of all the benefits expected from the NextGen initiative that began in 2003 have been realized by the FAA. The Transportation Department Office of Inspector General released a report Wednesday that stated, "FAA delivered a delayed and over-budget NextGen, with less transformational benefits than originally planned." The implementation of many key programs and technologies has been delayed until 2030 or later, while upgrades have been added to fewer sites than expected. The FAA has not yet commented. The Terminal Flight Data Manager, a $1 billion automation program that introduces electronic flight strips in order to replace outdated paper ones, and to more efficiently move aircrafts, is behind schedule. It will not be implemented at a number of airports before 2030. FAA has also cut the number of airports deployed by 45%, and reduced the planned capabilities for the program. Costs have also increased by over 20%. In July, the Congress approved $12.5 billion for the overhaul of the U.S. Air Traffic Control System. U.S. Transport Secretary Sean Duffy called on Congress on Wednesday to allocate another $19 billion. Air traffic control issues have plagued the FAA for years. But public concern has increased this year following a series high-profile mishaps, near misses and the catastrophic January incident in which 67 people were killed when an American Airlines regional jet and a U.S. Army chopper collided. The FAA has about 3,500 fewer air traffic controllers than the targeted number. The FAA's persistent staffing shortage has caused delays in flights, even though many employees work six-day weekends and mandatory overtime. According to a report released by the government in June, overtime costs for air traffic control have increased more than 300 percent since 2013. Last year, air traffic controllers logged 2.2 millions hours of overtime at a cost of $200 million. (Reporting and editing by Sergio Non; David Shepardson)
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Einride, a self-driving truck manufacturer, raises $100 Million
The latest funding round for Swedish self-driving vehicle startup Einride raised $100 million from investors including asset management company EQT Ventures, and quantum computing firm IonQ at an undisclosed value. The company said that the capital would allow them to expand their customer base, develop new technology and scale up the deployment of their autonomous freight trucks. Self-driving trucking technology is a promising way to grow the long-haul and freight industry. However, it faces regulatory scrutiny. As they follow fixed routes, usually on highways with no pedestrians or intersections, self-driving services do not require as much mapping. Einride will raise $110 million in 2021 from investors including Maersk Venture Capital and Singapore's state investor Temasek. The company entered the U.S. in the following year and acquired GE Appliances as well as Swedish vegan milk producer Oatly, and tire manufacturer Bridgestone. (Reporting and editing by Vijay Kishore in Bengaluru, Zaheer Kachwala from Bengaluru)
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Globe and Mail reports that Alberta will support a new oil pipeline proposal.
The Globe and Mail reported Wednesday that the Alberta government was preparing to submit a request for a new pipeline from the British Columbia coast to Enbridge, South Bow and Trans Mountain. Three sources with knowledge of the matter were cited. Report said that the plan was to draft a proposal along with an estimate and submit it to the new Major Projects Office of the federal government. However, a final route had not been determined. The report cited a source familiar with the plans as saying that Enbridge, South Bow, and Trans Mountain would work with the Alberta Machine Intelligence Institute and the government to create models of potential routes. The report stated that Alberta is only taking a small risk by filing the application. This is far less than what it spent on the Keystone XL project, which was abandoned in 2021. It also noted that the goal of the province's pipeline plan and route is to not own the pipeline, but rather to develop it before it can be handed over to private capital. The office of Premier Danielle Smith, Enbridge and South Bow, as well as Trans Mountain, did not respond immediately to a comment request. Could not verify the report immediately. Mark Carney, the Prime Minister of Canada, told the Calgary Herald in July that a new oil pipeline along the coast of British Columbia is likely to make the list of projects considered to be of national significance by the Canadian government.
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Black Bayou receives regulatory approval for underground storage of gas in Louisiana
Developer of the Black Bayou Energy Hub announced on Wednesday that the developer has been given approval to build the facilities in Cameron and Calcasieu parishes. Black Bayou Gas Storage announced that the Federal Energy Regulatory Commission had approved the project in August, after a review concluded that there would not be any significant environmental impact. The company stated that the certificate was an important step in moving towards a final decision on investment. Black Bayou Gas Storage announced that Mercuria has invested $50 million as part of its partnership in the project. The project will provide a total of 34.7 billion cubic foot (bcf), from four caverns, to existing and future LNG plants. These LNG plants are expected to export more than 30 bcf per day. Black Bayou stated that the initial operations of the first two caves will begin in 2028. The next two are scheduled to follow in 2030. Reporting by Shariq Khan in New York, and Robert Harvey in London. Editing by David Goode.
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After drone attacks, Russia's oil exports to the western port of Russia have increased by 25%
According to three sources of trading, Russia increased oil exports through its western ports in September by 25% compared to August. This was due to refinery shutdowns caused by Ukrainian drone strikes. Sources said that September exports via western ports Primorsk Ust-Luga, and Novorossiisk increased to 2.5 million barrels a day (bpd). Ukraine has intensified its drone attacks against refineries and pipelines for export, leading to fuel shortages in Russia. The authorities have responded by implementing plans to limit the exports of diesel and gasoline. Industry sources reported in September that Transneft, the Russian pipeline monopoly, warned oil producers to expect a reduction in production due to attacks. At least for now, Russia can stick to its crude production plans due to higher exports. Estimates showed that the daily loadings of Urals and KEBCO grades, as well as Siberian Light, at Primorsk and Novorossiisk increased by 500,000 barrels a day (bpd) in September, up 25% compared to August. The traders reported that oil loadings had been increased by 600,000 barrels per day compared to initial plans. One trader, citing preliminary data on refinery outages, said that September's levels of refinery outages exceeded August's record-high levels and were approximately 1.5 times higher than in the same month last. Exports increased despite drone strikes on Transneft's pipeline system and the major export ports Primorsk, Novorossiisk and Novorossiisk in August and Septembre, which temporarily suspended loading.
Sources say that KKR is exploring the sale of a stake worth $7 billion in Canada's Pembina Gas Infrastructure.
Four people with knowledge of the matter confirmed on Wednesday that KKR was exploring the possibility of selling its 40% stake in Pembina Gas Infrastructure. The value placed on its ownership in the Canadian midstream operator is expected to be around $7 billion.
Pembina Gas Infrastructure is a joint venture formed by Pembina Pipeline Corp and an investment firm in 2022. It owns infrastructure for natural gas, natural gas liquids, transportation, storage, and processing in Western Canada.
Sources said that KKR had been working with Scotiabank's investment bankers in recent weeks in order to gauge interest from potential buyers in the stake. They cautioned, however, that there was no guarantee of a sale and spoke under condition anonymity in order to discuss confidential information.
KKR and Scotiabank declined to comment. Pembina Pipeline has not responded to requests for comment.
Sources said that the KKR stake is expected to attract other alternative asset managers as well as infrastructure funds. These buyers are attracted to minority stakes because they can earn steady returns without having any operational knowledge.
Sources said that it is rare to have a substantial stake in a large Canadian pipeline asset, adding that this gives the Pembina Gas share an additional scarcity value.
The Canadian energy sector has seen a strong deal activity this year. Investors have been paying attention as companies consolidate and scale up to meet the growing demand for energy and infrastructure projects.
Pembina Gas, when it was created, was valued at C$11.4billion ($8.17billion) by the parties. This meant that a sale to KKR for the price proposed would have been a significant profit for the investment company. Pembina has grown by bringing projects online and buying additional assets.
Pembina Gas, according to their website, has the capacity to process 5 billion cubic feet of natural gas per day, and they have assets in both the Montney shale and Duvernay formations.
(source: Reuters)