Latest News
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New York City's major power line goes offline for the second time this July
The $6 billion transmission system that was designed to bring Canadian hydropower to New York City has been shut down a second time in the last month. This disrupted a clean energy project that was meant to reduce New York City's dependence on dirty fossil fuel generators. The 1,250 megawatt Champlain Hudson Power Express transmission line (CHPE) can provide up to 20% New York City electricity. Hydro-Quebec announced on Monday that the transmission line is offline because of a cable problem. Hydro-Quebec and private-equity company Blackstone Inc. developed the project. New York ISO's data, which controls the flow of electricity in the state grid, shows that the shutdown is expected to last until at least Friday. Hydro-Quebec has confirmed that the current cable problem with?CHPE is not related to a shutdown on July 1. The line began operation in May after a 15-year planning and development period. The energy demand in New York is expected to increase this week as temperatures reach 100 degrees Fahrenheit. According to federal data, the city's reliance on generators that have?the best pollution controls will be 6 times higher than those with the most advanced emissions controls due to CHPE's power outage. The 339-mile (546km) 'power line' stretches along the length of New York State from the Canadian border up to Astoria in Queens where the?energy is fed into the New York City grid. New ISO stated that its energy demand planning studies didn't assume CHPE was available to meet summer peak demand. "That's one of the reasons why the grid worked reliably during this heatwave earlier in August." While reserves were tight, we had enough generation and reliability resources to meet the demand regardless of CHPE status," New York ISO spokesperson Kevin Lanahan stated. (Reporting by Tim McLaughlin, Editing by Chizu Gregorio and David Gregorio).
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Sources say that Riyadh Air is looking at ordering 25-30 Boeing 787s as well as more Airbus.
Industry sources say that Riyadh Air is looking at acquiring between 25 and 30 additional Boeing 787 Dreamliners, by utilizing its contractual rights with the U.S. aircraft manufacturer. It may also increase its Airbus order list. The airline, which last week conducted 'its first commercial revenue flight', has ordered up to 72 Boeing Dreamliners by 2023. This includes 39 definitive orders and options for another 33. Sources said that Riyadh Air could announce its intention to convert the majority of these options into outright purchase as soon as next week at the Farnborough Airshow. However, they warned that details are still being discussed. Riyadh Air and Boeing declined to comment. Riyadh Air has also placed an order for?25 Airbus A350 - 1000 long-haul 'jets, with options to purchase another 25. Industry sources claim that some of those?orders may also be turned into firm orders. Airbus declined comment. (Reporting and editing by Louise Heavens, Tim Hepher)
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Hapag-Lloyd's outlook for the year is raised on the back of strong demand and freight rates
Hapag-Lloyd, the German'shipping company', raised its financial -year outlook on Monday. It cited strong market -demand and positive freight rate developments. Hapag-Lloyd now expects its earnings before interest tax, depreciation, and amortisation for the full fiscal year to range from $2.7 billion to $3.7 billion. This is up from the previous forecast of between $1.1 billion to $3.1 billion. The company has also increased its group's?earnings prior to interest and taxes (EBIT), for the year, to a range of $100 million to $1 billion. The forecast was subject to high uncertainty due to the volatility of freight rates, as well as major geopolitical issues. Hapag-Lloyd & Maersk will resume some sailings through the Suez Canal. This Asia-Europe trade route was abandoned by most shippers after Yemeni Houthi rebels destroyed vessels in 'the Red Sea. Shippers were forced to use the much longer route around Africa's Cape of Good Hope. However, firms are considering returning to the Red Sea Route. Shipping rates increased as a result of the longer trips?around Africa.
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US lawmakers debate whether to end twice-yearly clock switching
The U.S. House of Representatives will vote this week on a measure to extend daylight saving time year-round. Another group of legislators wants standard 'time to be permanent. The House Rules Committee will meet at 4:00 p.m. Monday, the House Rules Committee will meet to determine if any amendments are needed before the House takes up the measure this week. The House Energy and Commerce Committee approved the Sunshine Protection Act 48-1 on May 1. In March 2022, the U.S. Senate voted to permanently extend?daylight savings time but the House did not take up the issue due to opposition. Hawaii and Arizona don't observe daylight saving time. The supporters of the measure claim that the time change causes sleep disruptions, increased workplace injuries and car crashes. They believe that brighter evenings will also spur more economic activity in winter. Since the 1960s, daylight saving time has been implemented in the United States. This involves moving the clocks one hour forward during the summer months. Two lawmakers introduced the Sunshine for Our Kids Act last week. The act makes standard time the default time for all states, but allows them to opt in for daylight saving time if that is what they prefer. Reps Pat Harrigan, Mary Gay Scanlon and others argue that standard time is better for mornings to be in sync with the natural light?and circadian rhythms. Donald Trump has been aggressive in his push to end the?bi-annual clock-?switching. The U.S. Senate will need to decide again if it wants to consider the measure, which is opposed by U.S. Senator Tom Cotton of Arkansas, a Republican, and others. Cotton said that it would lead to absurdly late winter dawns and force many children to attend school in darkness. In World War II, the United States implemented a year-round daylight savings time. They did it again in 1975 to reduce energy consumption. It was unpopular, and Congress repealed the law later that same year. (Reporting and editing by Nick Zieminski.)
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Canada's Oil Sands Alliance signs agreement to advance Pathways Carbon Capture and Storage Project
The Oil Sands Alliance, the Alberta government and the federal government of Canada announced on Monday that they had reached an agreement for the 'Pathways carbon capture and storage 'Project. This was a condition set by the government to'move forward with the new West Coast oil pipe. The Oil Sands Alliance said that the Pathways Project, when operational, will be able to transport and safely store approximately 6 million metric tonnes of CO2 per year by the mid-2030s. Early July, Canada announced plans to build a pipeline from Alberta to the Pacific Coast. This would allow the fourth largest oil producer in the world to have greater export capacity to Asia. It would also reduce its dependence on the United States. Mark Carney has tried to strike a balance between Alberta's goal of increasing oil production and?environmental concerns. He has said repeatedly that federal support for the new crude pipeline in Canada depends on oil sands producers in Canada implementing a large-scale project to capture and store carbon emissions. This would reduce emissions from Canada's most polluting sector. The biggest Canadian oil sands companies -- Suncor Energy and Canadian Natural Resources, Cenovus Energy Imperial Oil, ConocoPhillips Canada, ConocoPhillips Canada, Cenovus Energy -- proposed the Pathways Project in 2022 but refused to assume?the cost of its construction. The initial estimate was C$16.5 billion. However, the companies and the government have agreed to scale down the project and build it in phases. The government-owned Trans Mountain ?Corp will build a new 1-million-barrel-per-day pipeline in coordination with Pembina Pipeline Corp PPL.TO. Pembina will have a 10% stake during construction and the opportunity to increase that up to 10% after the project is operational. The government of Premier Danielle Smith has stated that construction could begin as soon as September 2027.
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First time in Brazil, container ship is refueled with ethanol
The container carrier, operated by CMA CGM, refuelled?with the ethanol during a port stop in Santos, Brazil. This is the first time this type of fuel has been used to move the engines of deep-sea vessels in Brazil. CMA CGM IRON received 650,000 liters anhydrous alcohol from Brazilian ethanol and Sugar merchant Copersucar in a refueling service provided by Danish marine services group Bunker One. The CMA vessel, one of the 12 vessels operated by the group, is equipped with a trifuel engine. This engine can run on any combination of bunker fuels or methanol. The CMA vessel is a tiny part of the 700-vessel fleet, but it's used to test lower-carbon fuels. "We view bioethanol as an additional solution to reduce greenhouse gas emissions. The Santos test facility shows that bioethanol can be used in a safe and efficient manner under real commercial conditions, said Christine Cabau Woehrel. "We want to demonstrate with this operation that the ethanol is already available as a solution to decarbonize maritime industry", said Copersucar?Chief executive Tomas Manzano. Copersucar manages the Evolua Etanol distributor, which is owned by dozens of sugar and ethanol producers in Brazil. The company estimates that ethanol reduces carbon emissions from a vessel by 70% compared to bunker fuel derived from oil. However, they said that the price was higher. The companies believe this could be offset by creating and selling carbon credits. Marine?transportation is one of those sectors that are harder to reduce carbon emissions. The International Maritime Organization has a?net-zero carbon goal for 2050. The IMO has not yet reached an agreement with companies on legally binding measures. This makes any initiative like CMA's a voluntary one. Reporting by Marcelo Téixeira, Editing by Chizu Nômiyama
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UN shipping agency opposes any fees in the straits after Trump plans Hormuz fee
The?U.N. The 'U.N. Trump stated in a post on Truth Social that the process would start immediately. He did not elaborate. A spokesperson for the United Nations said, "We're aware of this post and are awaiting more details." International Maritime Organization. "We've always maintained a consistent stance against fees - IMO is opposed to charging fees for the passage through straits that are used for international navigation." There is "no legal basis" to introduce tolls for transiting through a strait. Officials from the shipping industry expressed their concern at?the newest development. They added that, in their opinion, such a move would violate international law. "How will this make it safer for people to travel through the water and what guarantees will this provide?" One official who declined to be named said about Trump's position. (Reporting and editing by Sharon Singleton, Susan Fenton, and Jonathan Saul)
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Residents say that gunmen have killed at least 18 people, in the state of Benue, Nigeria.
Residents and local officials reported that gunmen had killed at least 18 people in Nigeria's northern state of?Benue in a weekend assault. This prompted a protest march by angry locals, who blocked the roads to protest against the violence. Benue is a frequent site of conflict between farming communities, cattle?herders and armed groups. These conflicts are often fueled by competition for land and resources. Udeme Edet, Benue Police spokesperson, gave a lower toll of deaths for the attack that took place in the early hours of Sunday morning. He said: "Eight people were killed and five others wounded." Residents in Otukpo Nobi, a community within the Otukpo Local Government Area said that armed men who were suspected by the?locals as Fulani herders opened fire between 3:30 and 4:30 a.m. Maxwell Ogiri, the local government chair, 'linked the violence to the murder of the head of the herders association two weeks ago. The attack was not immediately claimed by any group. Women and youths protested in 'the town of Otukpo. Reporting by Ahmed Kingimi and Hamza Ibrahim; Writing by Chijioke Ahuocha; Editing Helen Popper
Why is it so simple for Iran to close the Strait of Hormuz?
Iran, following through on a long-standing threat, has closed the Strait of Hormuz in retaliation to U.S. and Israeli strikes. This waterway is vital, as it carries a fifth of all global oil supplies.
The United States has said that it could consider escorting ships through the Strait of Hormuz, which would be very difficult to secure, as the Houthis from Yemen proved last year when they disrupted Red Sea shipping.
According to United Nations data, about a fifth of global oil and LNG normally passes through the Strait. Traffic has decreased by 97% since February 28 when the U.S./Israeli war on Iran began.
Why has Iran cut off the Strait now?
The threat of cutting off the Strait was made before, when a commander from Iran's Islamic Revolutionary Guard Corps said in 2011 that it would be "easier to drink a glass water".
The Guards warned that they would close the border in the past, especially during tensions about sanctions and Iran's nuke programme in 2016-2018, and also during Israeli and U.S. attacks in June of last year.
Analysts have viewed the closing of the Strait of Hormuz as a last resort due to the strategic changes that it could cause among Iran's adversaries and the possibility of retaliation by its own energy sector.
This equation has been changed by the attack on Iran that began on 28 February with the death of its supreme leader. Iranian officials have described the war as a existential one, with the Guards taking over the strategy.
What is at stake?
Kuwait, Iran Iraq, Qatar, and the United Arab Emirates are oil and gas producing countries. The only sea exit is the narrow passage of water that connects the Gulf of Oman with the Gulf of Iran.
On Monday, oil prices briefly rose to their highest levels since 2022. According to the United Nations, high oil prices may trigger another cost of living crisis like what happened in 2022 after Russia invaded Ukraine.
A prolonged conflict may also lead to a fertilizer shortage, putting the global food supply at risk. According to Kpler, about 33% of all fertilisers in the world, including ammonia and sulphur, travel through the Strait.
A prolonged war could cause fears of an economic crisis in the world similar to the ones that followed the Middle East oil shocks of the 1970s.
Why is it so difficult to secure the streit?
According to shipping broker SSY Global, the shipping lanes are only two nautical miles wide. Ships must turn around and face Iranian islands as well as a mountainous coastline that offers cover for Iranian forces.
Tom Sharpe said that although the conventional navy of Iran has been largely destroyed, there are still many options available to the Guards. These include fast attack craft and mini submarines. They also have mines as well as jetskis with explosives.
According to the Centre for Information Resilience (a non-profit group of researchers), Tehran is able to produce 10,000 drones per month.
Sharpe stated that it would be possible to protect three or four vessels a day in the strait using seven or eight destroyers as air cover. However, this would only be feasible for a short time, depending on the reduction of the mini-submarine threat. To sustainably do so over months, however, would require additional resources.
Adel Bakawan of the European Institute for Middle East & North African Studies said that even if Iran were to lose its ability to deploy ballistic rockets, drones, and floating mines, there would still be a danger from suicide attacks.
Kevin Rowlands, Editor of the RUSI journal at the Royal United Services Institute, explained that if the war continues for several weeks, an escort would be formed.
He said that "the world needs oil flowing through the Gulf and there are plans in place to put protective measures in place."
What have the US and other countries promised?
On March 3, President Donald Trump stated that the U.S. will provide protection for oil tankers through the Strait of Hormuz, but attacks have already occurred and very little has gotten through.
He said that he also ordered the United States Development Finance Corporation (USDFC) to provide insurance and guarantee for shipping companies.
Emmanuel Macron, the French president, said that several European countries as well as India and?other Asian nations were planning a mission to 'provide protection. He said that such a mission could only be carried out once the conflict is over.
France has deployed a dozen navy vessels, including an aircraft carrier strike group to the Red Sea, the Eastern Mediterranean and possibly the Strait of Hormuz.
A spokesperson for the British government said that British Prime Minister Keir starmer had spoken with the German and Italian leaders on options to support commercial shipping through the Strait.
"We are looking at various options," General Caine said to reporters on Tuesday at the Pentagon without giving any details.
WHAT HAPPENED AT OTHER SHIPMENT CHOKEPOINTS?
Yemen's Houthis - a group allied to Tehran, but with a much smaller arsenal than Iran - managed to close down the majority of traffic through the Red Sea, Bab al-Mandab strait, and on the way to the Suez Canal, for over?two years despite the protection provided by U.S.-led forces.
The majority of shipping companies still use a much longer route via southern tip Africa. Danish shipping company Maersk announced that it would return to the Suez Route in phases starting January.
The EU-led force that countered piracy off the coast of Somalia has had more success than Iran's Revolutionary Guards, but they were fighting against forces much less well-equipped.
AREN'T THERE OTHER WAYS TO USE THE STRAIT?
The UAE and Saudi Arabia are looking for ways to bypass this strait. They have built more oil pipelines.
These alternatives are also not operational at the moment. An attack by Houthi militants on a Saudi east-west pipeline in 2019 proved that they were vulnerable. (Additional reporting by Rene Maltezou, Kate Holton and Charlie Devereux, Writing by Angus McDowall and Timothy Heritage, Editing by Timothy Heritage).
(source: Reuters)