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South Korea's US Investment Package takes shape with Texas nuclear power plants and projects
South Korea and the United States have finalised implementation of Seoul’s $350 billion investment pledge under a trade agreement struck last year, which lowered US tariffs to 15% on South Korean products. 150 billion dollars of the $350 billion are earmarked to shipbuilding. Details for the other $200 billion strategic investments have yet to be worked out. South 'Korea’s Industry Ministry told lawmakers on Tuesday that President Donald Trump will make a final statement. The plan is still awaiting review by the US Government Investment Committee and further negotiation with US Commerce Secretary Howard Lutnick. According to South Korean legislators and media reports, the following details are provided on the various projects currently being discussed. TEXAS GAS FIRED POWER PLANT The first project identified under the investment package will be a combined-cycle gas plant of more than 6 gigawatts in Encinal (Texas) to provide electricity to AI data centers and semiconductor plants. South Korea's Industry Ministry said Seoul plans to spend more than $20 billion on the project. It is expected to yield returns of $43 billion to $40 billion over a period of 20 years. According to Yonhap News Agency the Industry Ministry told lawmakers that South Korea will provide all funding for this project, while ownership of the project would initially be divided equally between both countries. According to Yonhap, US officials want a long-term ownership model whereby the US would own 90% and South Korea 10%. The project is the first to be confirmed as part of the larger investment package, according to lawmakers. WESTINGHOUSE STAKE: EIGHT NUCLEAR Reactors Seoul and Washington have discussed the construction of eight large nuclear reactors within the United States. According to Korea Economic Daily, and other media outlets, nuclear energy could represent a large portion of the total investment package. The industry ministry briefed lawmakers on the current discussion, which includes six reactors using Westinghouse AP1000 technology as well as two using South Korea APR1400 designs. The APR1400 would be the first South Korean designed reactors to be built in the United States. Separately Seoul is in negotiations to purchase a stake of the US nuclear company Westinghouse. The lawmakers said that discussions about a 5%- 10% stake are still ongoing. According to Yonhap, the industry ministry informed lawmakers that South Korea will retain voting rights with a stake that size in Westinghouse. According to Korea Economic Daily, the value of an investment could range from $15 billion to $20 billion depending on Westinghouse’s valuation before a planned IPO. A 15% stake would be worth between $2.25 and $3 billion. Westinghouse is owned by Canadian asset managers Brookfield and their partners, with 51% of the equity. Canadian uranium miners Camco holds 49%. ALASKA LIGNA PROJECT A second project that is being discussed is South Korea's participation in the Alaska Liquefied Natural Gas Project, which has been stalled for years. This project involves a pipeline and export scheme championed Trump. Alaska LNG, estimated at $50 billion, will transport gas from northern Alaska through a pipeline of 1,300 km (807 miles) to Nikiski, where it can be exported to Asian countries. South Korea approached the plan with caution, and last November Industry Minister Kim informed parliament that Alaska LNG is a "high risk business". South Korean media has reported that Seoul had sought to include the project into the investment memorandum, but without any binding commitment. The participation of the United States in the World Cup is still under debate, and no decision has yet been made. Other Potential Investments According to Yoon Hu-duk, a lawmaker from the ruling party, another potential investment is Washington's request for South Korean assistance in reprocessing spent fuel nuclear. The lawmaker stated that Washington had proposed a plan to process 4,000 tons spent nuclear fuel. Yonhap reported that the US has a link between this and South Korea's efforts to build nuclear submarines and secure fuel. In a joint document, Washington and Seoul agreed to work closely together on fuel procurement at a summit of leaders held in November last year. According to Yoon, another potential project is carbon capture and utilisation storage (CCUS). Major US energy companies have already made large-scale investments in this area.
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TUI narrows 2026 operating profit outlook
TUI, a German travel company, lowered its forecast for 2026's operating earnings, citing regional conflict as the reason why consumers continued to book holidays later. However, demand was still strong in the fourth quarter. As jet fuel prices'spiralled,' airlines have been unable to increase their profits. Consumers worried about the escalating conflicts have either 'delayed booking or stopped booking holidays. The company stated that "early indications" for the winter season indicate a continuation of a 'later booking environment, against the backdrop of ongoing geopolitical and economic uncertainty." TUI, Europe's largest tour operator, which operates cruise ships, airlines, and hotels, suspended its revenue guidance and cut its profit forecast in March because of the surging costs for jet fuel and the uncertainty over the Iran war. Travel group expects underlying annual earnings before interest and taxes to be between EUR1.2 billion and EUR1.3 billion ($1.4billion and $1.5billion), not the EUR1.1 billion-EUR1.4 billion previously forecast.
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Maguire: Rapid EV adoption in the US fuel market has caused a split.
Electric vehicles are on the rise across the US, creating a two-tiered market for fuel. This divides motorists into those whose prices are dictated by international oil markets and those whose bills depend on local electricity rates. Geographical factors are becoming increasingly important in determining transportation costs, and who reaps the benefits of energy transition. A COUNTRY WITH TWO FUEL MARKERS The cost of EVs is measured in kilowatt hours, while the price of gasoline per gallon is expressed in US dollars. Orennia, an energy intelligence platform, has published a list by US state that shows the cost of charging an EV in dollars per gallon. Orennia estimates that the average cost of charging an EV in the United States is around $1.56 per gallon. The American Automobile Association reports that the current price to refuel a gasoline vehicle is $4.43 per gallon. Orennia converts the cost of electricity at home overnight, since most US EVs charge their cars overnight. It compares two similar-sized cars, the 2025 Hyundai ioniq 6 and the 2025 Hyundai elantra. The cost of recharging is different from the cost of gasoline. This can have a significant impact on the cost of living. One group is still exposed to OPEC, refinery shutdowns, geopolitical shocks, and local fuel inventories. One of the two depends on electricity generation mix, utility rates and state policies. WIDE DIVIDE Orennia data show that Hawaii is the most expensive for EV charging. The average cost there is $3.45 per gallon. Wyoming is the cheapest for EV charging, with an average price of around $1.14 per gallon. The $2.30 difference between the most expensive EV charging state and the cheapest EV charger states highlights the vast differences in charging costs across the nation. The average national cost to charge an EV is about $1.56 per gallon. In 40 states, the average cost to charge an EV falls below $2. According to the latest AAA data, California is the top state in the nation for gasoline prices. The average cost per gallon is $6.08. Indiana has the lowest average gas prices, at around $3.92 per gallon. Gasoline prices in 44 states are currently above $4.00 per gallon. The difference between the most and least expensive states is approximately $2.17. The average national gasoline price is around $4.43 per gallon. This is 18% more expensive than the average cost of charging a mid-sized electric vehicle. Global Ties The smaller price difference between the most affordable and the least expensive gasoline markets, compared with the range in EV charging cost, highlights the greater exposure of US consumers to global markets. There are certain regional trends on the US fuel market. The West Coast is among the most costly, while the Gulf Coast is one of the least expensive, aided by the proximity of refineries and energy production. While there are differences at the state level, gas prices tend to move in a similar direction because they all share the same oil market. When there are crude rallies, drivers from Arizona to Wisconsin feel the effects. The gasoline market is still largely domestic and becoming increasingly global. ELECTRICITY IS LOCAL Electricity prices are clustered around regional utility structures, rather than a national pattern. Hawaii is the most expensive for charging an electric vehicle, at approximately $3.45 equivalent to a gallon of gasoline. California is close behind. Hawaii's grid is isolated, making it more expensive to generate electricity than in the continental United States. California, on the other hand, has a stretched infrastructure and rate policies that have led to higher utility costs. New England's Connecticut, Massachusetts and Maine are also among the most expensive states. Louisiana, Idaho Washington, Utah, and some Plains states are at the opposite end of the spectrum, where EV fuel costs are below or close to $1.10 equivalent per gallon. Depending on where you are, these differences can be huge and change the appeal of EVs. Fuel costs for a driver charging an EV in Hawaii are more than three-times higher than those of a driver in Louisiana. Few consumers are aware that the cost to operate the same vehicle in different countries can be so vastly different. But EVs are currently cheaper to refuel than gasoline everywhere. Even in Hawaii where electricity is most expensive, driving an electric vehicle costs less than regular gasoline. Californian drivers pay among the highest prices in the nation for both electricity and gasoline. Even then, EV owners still enjoy a significant advantage in terms of operating costs. Future Control Charges for fuel are lower than they were in the past, but this has implications that go beyond household bills. Transportation costs in the US have been largely determined by factors that are beyond the control most consumers and state governments. Crude oil, refinery capacity and fuel inventories, as well as geopolitical events, were the main factors that determined what drivers paid to fill up. In addition to utilities, power producers and state regulators, transportation costs are also increasing as EV adoption increases. The amount drivers will pay per mile is likely to be influenced by residential electricity rates, plans for time-of-use pricing and investments in the power infrastructure. Transport costs are now linked to both global and local energy markets. This shift will result in new regional winners as well as losers. Electric vehicles could offer a cost advantage to drivers in states that have abundant, low-cost electricity. Residents of states with high power prices will likely see less economic benefit from the switch. In this?sense the switch from gasoline to electric power is not just about changing the fuel type that powers the cars of the nation. The price of mobility is changing as well. The geographic factor will become more important as the number of Americans switching to electric vehicles increases. These are the opinions of a columnist who writes for. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
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Study says EU rail suppliers lose out on EUR97bn a year because of closed markets
The 2026 World Rail Market Study revealed on Tuesday that trade barriers prevent European rail suppliers from accessing foreign markets. This results in a loss of business of approximately EUR97 billion ($111billion) per year. As part of an 'overall push to reduce emissions and divert passengers and cargo away from carbon-intensive road and air transport, governments around the world have increased investment in rail infrastructure. Even as the rail industry grows, European firms are losing out because the "fastest-growing" markets have become more difficult to enter. The study is conducted by Bain & Company on behalf of the European Rail Supply Industry Association (UNIFE) and covers 66 countries, accounting for 99% global rail traffic. It's published every two years. EU rail suppliers have access to only 56% of world rail markets. This is down from 59% when the study was conducted in 2024. The decline has been going on for nearly two decades. China, India, and the US are stepping up their efforts to boost domestic production, making it more difficult for foreign suppliers?to compete for contracts. The study concludes that a market is inaccessible if foreign suppliers are not allowed to bid for contracts directly or are required to manufacture products locally or operate through joint ventures, or provide services like maintenance on-site rather than outsourcing. The global rail market will grow by an average of 3.2% per year, from EUR221 in 2023-2025 to EUR266.8 in 2029-2031. The rail industry has recovered from the COVID-19 pandemic-induced supply-chain disruptions, and the demand slump. "Strong growth globally and full order 'books' for the industry is very positive.?However, seeing global access decline for?the European Rail Supply Industry for the third time in a line is concerning," UNIFE director general Enno Wiebe stated in a press release.
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Lithuania to fortify key substation near Russia against explosive drones
Lithuania plans to defend itself against drones at a future substation of the power grid that will link the Baltic States with Western Europe. Intelligence sources claim Russia may target this area with a 'false flag attack. Andrius Semeskevicius, CEO of Litgrid, said that the construction plans included fencing strong enough to resist an explosives laden truck. Sensors would be used to search for tunnels dug up by hostile actors. "We used to plan for natural disasters when we designed our grid. In an interview, he stated that "we now think about all hybrid and non-hybrid potential threats". The Gizai Substation, which will be built 30 km west of Kaliningrad in Russia's exclave, is the first new facility in the area since Russia invaded Ukraine in full force in 2022. The substation will be built as part of the key grid section that is being constructed to ensure a steady supply of power to the Baltic States in case of an extended conflict. The route of the Suwalki Gap, which runs through Poland and Lithuania and is squeezed in between Russia and Belarus (the ally of Russia), has caused concern for years within NATO. Both Warsaw and Vilnius belong to the alliance. These concerns have increased in the last month after Berlin blamed Moscow for a series sabotage attempts against Germany's electric grid. Russia denied any involvement. Last month, intelligence sources said that the region was concerned about a fake flag drone attack from Russia to "test NATO unity". False flag attacks are designed to mislead people as to who was actually behind the attack. No Ordinary Concrete The Gizai Substation is the key node in the Harmony Link interconnection between Poland and the Baltic Grids, after the Baltic Grids decoupled last year from Russia's grid. An official of a grid company from the'region, who spoke on condition that he remain anonymous, said: "This line is absolutely vital for Lithuania. It's their lifeline in case the'system collapses." The timing of this decision was linked to the increasing tensions and threats of sabotage in the region. Semeskevicius explained that the substation would be spread over a 35-hectare area, which means a drone strike from a military aircraft could only damage a small amount of equipment. He added that the distance between buildings and fences provides protection in case someone throws inside a Molotov Cocktail. He said: "We're designing Gizai to fit a new reality... We are protecting ourselves against multiple Shahed Drones that could crash-land 100 kilograms worth of explosives". Russia is using low-cost and long-range Shahed drones designed by Iran to wreck havoc on Ukrainian cities, military infrastructure and energy facilities. This has left millions of people without heating and lighting. Semeskevicius said, "We can't use plain concrete. It needs to be customized for better resistance". He said that the right concrete is reinforced with plastic threads to prevent it from crumbling. Substations include duplicate units of important equipment so that they can continue to operate if one unit is damaged or destroyed. It could take many years to replace the bespoke equipment. "You can't down a Shahed or a drone that has an optical cable attached." So we need reinforced-concrete sarcophagi around equipment", ?said Semeskevicius. It is necessary to?artificially cool down the equipment inside the sarcophagi. This adds cost. He said, "Without this, we may not have any power". Officials have confirmed that the Lithuanian military advises Litgrid about how to protect critical energy infrastructure from modern threats and physically secure it. The most expensive?interconnection Lukas Savikas, the Energy Minister of Lithuania, said that Lithuania would ask the EU for at least half the Gizai cost to be covered by the EU later this month. Litgrid claims that the cost of a secured?substation is at least EUR48million more than originally planned. The price may increase if the "geopolitical situation" worsens. Savickas stated, "Our position has always been that these costs shouldn't fall exclusively on us." Senior Polish officials echoed this view and said that countries bordering Russia "risk losing their competitiveness" if they are forced to pay for additional security. Wojciech Wrochna (Poland's deputy energy minister responsible for strategic energy infrastructure) said that Harmony Link could not become the "most expensive interconnection in Europe" and called on the EU to increase funding of grid security measures. Wrochna said that "our European partners must change their mentality." The issue goes beyond Harmony Link. The issue affects the whole energy system. The EU granted only 112 millions of the 382 million euros requested by the Baltic States and Poland to secure the grid. The European Commission has not responded to the request for comments.
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Oil prices rise slightly ahead of possible US-Iran talks
Oil prices rose for the first session in five on Tuesday, as investors awaited the outcome of potential US-Iran negotiations at the United Nations General Assembly next week. Brent crude futures contract for November rose $1.14 or 1.1% to $101.48 per barrel at 0317 GMT. WTI's October contract, due to expire on Tuesday, rose 87 cents or 0.9% to $96.65 per barrel. The most actively traded contract for November was up 85 cents or 0.9% at $93.22 per barrel. Tehran and Washington exchanged threat on Sunday. US President Donald Trump said he was open to meeting Iranian president Masoud Pezeshkian who is expected to visit New York for the UN meeting this week. Tim Waterer is the chief market analyst for KCM Trade. He said that the move higher in WTI, and the stronger opening in Brent, appears to be a typical bounce after a recent drop, rather than a shift in fundamentals. "Traders positioned to take further losses are removing some of their risk from the table as the diplomatic narrative unfolds." Al Jazeera, citing Mohsenrezaei, Iran's chief of security, reported that Iran had also communicated its conditions for re-engaging with mediators over the weekend. Waterer stated that oil prices would likely remain volatile and susceptible to headlines, until either there is a clear progress in diplomatic efforts or a setback between the US and Iran. Middle East tensions remain high after Yemen's Iran backed Houthis claimed they had attacked Riyadh, a Saudi Aramco plant in Yanbu, and increased efforts to cut-off Saudi-backed forces on the Red Sea Coast. Three Iranian sources claim that China privately asked Tehran to help stop the Houthis' attacks after Saudi Arabia had appealed for Beijing in response to a recent increase in military operations by the group. Saudi Aramco increased exports via the Strait of Hormuz following attacks on its East-West Pipeline, which forced it to stop some shipments through Yanbu. Tanker tracking data revealed that around?14million barrels of its crude oil was loaded onto seven supertankers in the Gulf on Sunday. "Supply worries are easing, as shipments across the Strait of Hormuz have reached a six-month-high and Saudi Arabia is working to restore its East West pipeline...Crude implied volatilty eased by 3.3%?to 50.39 although it still remains historically high," stated Saxo Bank analyst in a note for clients. In a separate incident, on Monday an armed group shut valve seven of Libya's Sharara crude oil pipeline to Zawiya, which resulted in a'significant decline' in production from the Sharara oilfield. Two engineers on the field said that production has dropped by around 200,000 barrels a day, and is now between 100,000 and 105,000 barrels a day.
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Oil prices rise slightly ahead of possible US-Iran talks
Investors awaited developments regarding potential US-Iran negotiations at the United Nations General Assembly, this week. Brent crude futures November contract gained 22 cents or 0.22% to $100.57 per barrel at 0021 GMT. WTI's October contract, due to expire on Tuesday, gained 2 cents or 0.02% at $95.8 per barrel. The most actively traded contract for November was up 13 cents or 0.14% at $92.49 per barrel. Iran and the US exchanged threatening messages on Sunday. However, President Donald Trump stated that he was open to meeting Iranian President Masoud Peshkian who is expected in New York for 'the UN General Assembly' this week. Tim Waterer is the chief analyst at KCM Trade. He said that the move higher in WTI, and the stronger opening in Brent, has the appearance of a typical bounce to cover shorts after the recent drop, rather than any fundamental change. "Traders who had been positioned to take further losses are taking some risks?off the board while the 'diplomatic narrative' plays out." Al Jazeera, citing Iran’s chief of security, Mohsenrezaei, reported that Iran had also communicated to mediators its conditions for reengaging in talks over the weekend. Waterer said that the prices would likely remain in a range and be sensitive to headlines, until either there is a clear progress made or if diplomatic efforts between Iran and the United States are hampered. Middle East tensions remain high after Yemen's Iran backed Houthis claimed they attacked Riyadh, a Saudi Aramco plant in Yanbu, and increased efforts to cut off Saudi-backed troops from the Red Sea Coast. Three Iranian sources claim that China privately asked Tehran to help curb the Houthis' attacks after Saudi Arabia had appealed to Beijing in response to an increase in military activities by this group. Aramco increased exports via the Strait of 'Hormuz following attacks on its East-West Pipeline that forced it to stop some shipments via Yanbu. Saudi Aramco loaded approximately 14 million barrels of crude oil onto seven supertankers in the Gulf on Sunday. Separately Massoud Sulman, Chairman of Libya's National Oil Corp, told reporters on Monday that Sharara's oilfield had seen a reduction in production. He did not give a reason.
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Canada wants to reduce the time required to review major projects
Canada unveiled a draft bill on Monday that would accelerate the approval process for major natural resource projects. Prime Minister Mark Carney said this was necessary to deal with US tariffs. Carney believes that Canada must reduce obstacles to its growth. This includes streamlining the complex approval process for major projects, which can take a decade or more to complete. The bill states that the time could be reduced to one year, in part because federal impact assessments and permits reviews can be conducted simultaneously rather than one after another. The government released a statement saying that the legislation would establish clearer, simple, and more predictable processes for project proponents as well as Indigenous groups who participate in consultations. This will give investors the confidence they need to invest and build in Canada. Some major Canadian oil pipelines have been hampered by years of delays and legal challenges. This has led to the cancellation of some projects, while others like Trans Mountain's expansion, saw costs spiral. The government stressed that the achievement of the one-year deadline was not solely dependent on the regulatory processes, but would also require the project proponents?to provide data and project information timely. Carney's Liberals, who are in power at the moment, have a majority of members elected to the House of Commons. This ensures that?the legislation will eventually pass. The opposition parties may demand changes or drag out the approval procedure.
US Energy officials consider power shifting in PJM electrical grid
U.S. Energy officials questioned PJM's 'power structure' on Thursday, as regulators weighed reforms for the country's biggest power grid. The grid faces growing risks of blackouts due to a 'data center demand that soars' and 'little new electricity supply' is added.
PJM, a company that covers 67 millions Americans in the Mid-Atlantic region and the 'Midwest', including the largest concentration of data centres in the world, has been struggling with power shortages and rising electricity prices ever since the demand for the region started to increase two years ago.
At a Federal Energy Regulatory Commission technical conference, officials from the White House and state governments met with power industry executives to discuss possible solutions to PJM’s supply and pricing problems. Some of these proposals included giving the grid operators board of managers greater independence from their stakeholders, including voting members such as utilities and independent producers, and more power to enact change?in the 13 state and District of Columbia market. PJM has hundreds of members including transmission owners and power plants operators who vote on the market rules in a multi-layered procedure. The?board then decides whether or not to approve any proposed changes.
According to proposals made at the conference these members could serve as an advisory group instead of directly voting on PJM regulations - a move that would?shift more decision-making power onto the board managers. David LaCerte, FERC commissioner said: "I do not know how to fix it without breaking up the system so that the board can get a spine." LaCerte stated that the 'board' should be more aggressive and not bend to the will of the stakeholders whose competing interests could ultimately slow down PJMs primary task of ensuring the 'grid operates reliably and affordably.
DILEMMA OF RETENTION
Participants at the FERC conference expressed concern that board members who serve three-year term terms run the risk being removed if they adopt an unpopular or opposing stance with the membership. Sources said that two years ago, PJM’s board chair and a member were removed after clashing with other members.
Peter Lake, Senior Director, Power at the White House’s National Energy Dominance Council, said: "PJM requires an independent and transparent board, which can make decisions without fearing to be fired after each board meeting."
Extending the term of PJM's board members was one solution proposed to this retention dilemma. David Mills, PJM's CEO, was asked by FERC commissioners what a reasonable term would be. He suggested a period of six to nine years.
The critics also claimed that the governance of PJM - including the stakeholder votes and board deliberations - lackS transparency, as they are usually conducted out of public view.
We don't want to be shrouded by mystery or secrecy. James?Danly, U.S. deputy secretary of energy, said that he wanted to know exactly what was going on. FERC commissioners 'also discussed giving states in PJM, including governors more power to make decisions in the grid. Governors can have a political impact on PJM, including capping the power price in the most recent grid auctions. However, they do not have a voice in PJM governance or membership. Jon Gordon, of the energy trade group Advanced Energy United, said that by giving the board more power and taking some authority away from members, the state can focus on affordability as well as reliability.
PJM proposed its own set of reforms in order to get'more power generation onto the grid, to connect data centers rapidly?and avoid shortfalls. Lake, who was the chair of the Public Utility Commission of Texas 'after a fatal and widespread grid failure that occurred in the state after 2021 Winter Storm Uri', said he saw warning signs similar to those four years ago.
He said that the root cause of this failure was a flawed governance structure and a failing stakeholder process. These are the same ills which harm PJM now.
(source: Reuters)