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Saudi Arabia lifts alert for southern city after Houthi strike
Saudi Arabia's Civil Defense lifted the alert they had issued in the southern city Khamis Mushait on Wednesday. A day earlier, Houthi attacks in Khamis Mushait and?three other cities nearby injured 73 people and ignited?oil? installations. On Tuesday, Yemen's Houthis who are aligned with Iran struck an airbase at Khamis Mushait as well as oil infrastructure in nearby cities. This was one of the largest attacks on Saudi Arabia since the U.S. and Israel launched their war against Iran in February. Saudi authorities have not provided?details' for the reasons why Wednesday's alert was issued in Khamis Mushait. The fighting between Saudi Arabian and the 'Houthis' has intensified in recent months. This has raised fears that a wider conflict will return after a truce brokered by the U.N. in 2022, which largely ended years of war. Saudi Arabia is the leader of an Arab coalition backing a government based in Yemen’s south that was forced out of Sanaa 12 years ago by the Houthis. The conflict is now a part of a wider regional war. Both Saudi Arabia and the Houthis are close allies with Iran. In July, the Houthis announced a naval blockade in the Red Sea against Saudi Arabia. This prompted the Saudi-led Coalition to attack?what they said were Houthi Military Facilities in Yemen. Saudi-backed Yemeni forces launched an offensive in recent days on Houthi-held territories after the group tried to advance against government positions. The government claims it is aiming to recapture the entire Houthi-held area. Al Masirah TV of the Houthi group, citing its health ministry, reported that Saudi airstrikes on Yemen's Al Jawf in the last two days had killed at least '21 people. Saudi Arabia has neither announced nor confirmed that it is carrying out attacks?there. Saudi Arabia described the Houthi attacks as a dangerous escalate, and the Saudi-led coalition said they would take steps to prevent further attacks. The Houthis claim that their attacks are a response to Saudi Arabia's escalation of violence in Yemen.
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Airports continue to warn about the impact of air traffic disruption on flights in the UK
After a major failure in air traffic control, flights from British airports were resumed on 'Wednesday morning. However hubs warned it would take time before operations returned to normal. The shutdown that lasted for hours on Tuesday resulted to the cancellation of over 1,000 flights, leaving hundreds of thousands of passengers stranded. This has increased pressure on NATS, a provider of air traffic control, and Martin Rolfe, its boss. Ryanair, Europe’s largest airline, has already asked him to resign because of his role in the August 2023 system meltdown, when cancelled flights cost operators PS100,000,000 ($135,000,000). Heathrow Airport near London said that operations had'restarted' and passengers should contact their airline to confirm the schedules as they may have been altered due to Tuesday's problems. In a press release, the UK's busiest hub stated that it expects knock-on effects as crews and aircraft reposition. "We understand how frustrating this situation can be and... we are working closely with our local NATS team, and airline 'partners' to restore normal operations as soon as possible." London Gatwick is Britain's second-busiest airport and advises passengers to contact their airline first. Ryanair reported that around 150,000 passengers were affected by the outage after it cancelled more than 200 flights. British Airways said it cancelled or diverted 100 flight with tens and thousands of people being impacted.
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Portugal will use all available tools to protect refining capacity during the Galp-Moeve merger
Luis Montenegro, Portugal's Prime Minister, said that the government was monitoring merger talks between the?Portuguese Oil Company Galp and Spain’s Moeve. The government will use every tool available to protect Portugal's strategic refining capability. Moeve and Galp began talks in January to create two joint ventures - one that would operate 3,500 fuel stations in the Iberian Peninsula and another that would combine Galp's refineries?in southern Sines with Moeve refineries in southwest Spain's Huelva & Algeciras. Moeve will hold the majority of?the refining company, one of Europe's largest, while Galp will retain just over 20%. Montenegro announced late on Tuesday that the government has been closely monitoring negotiations "from the first day to safeguard Portugal's refinery capacity". They described it as an issue of sovereignty, strategic security and energy. He told the parliament that "we will not refrain from?using?the full range of action available to government as a shareholder, and through its regulatory authority." Portugal, which has had a law in place since 2014, to protect strategic assets, including those in energy, and the state owns approximately 8.4% of Galp, is the only country that did not specify what tools it could use. Even though the government has no direct veto, it can use its leverage to seek assurances about the future of the refinery, which is the only one in the country.
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ENOC executive: Costs of oil vessel transit through Hormuz increased after the Iran war
An executive of Emirates National Oil Company (ENOC), said that the cost of oil vessel transit through the 'Strait of Hormuz has increased significantly since the Iran war. This is due to a sharp increase in the costs of cargo insurance and 'additional war risk premiums. According to ENOC?director Paul Bradshaw, cargo insurance now represents a significant percentage of the value being shipped. "I've seen up to 6%." Bradshaw said at the APPEC Conference that this could mean an additional $10 million in cargo insurance. There is a higher premium for transits. Bradshaw explained that the rates for attempting to escape used to be zero, but now they can reach up to 10% of the cargo. He said that transit costs have risen to $10 to $20 million and that some market participants have decided to not insure. In order to better control costs and voyages, more national oil companies have taken back control of their shipping operations. Bradshaw stated that some NOCs have taken on their own ships to have greater control in times of conflict. He said that only a small number of shipowners were willing to take on the risk for safety reasons. The 'Iran war' has caused disruptions around key chokepoints, causing cargoes to be moved onto more complex and longer routes. This has affected the freight economy and vessel availability.
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NTSB: Pilots may have considered abandoning landing after touchdown during Miami cargo crash
The National Transportation Safety Board announced on Tuesday that evidence from a flight recorder indicated that the pilots of a cargo plane operated by Amazon Prime Air involved in a fatal crash may have considered abandoning the landing after the plane touched down. Five people were killed and five injured when a?32-year old Boeing 767 operated from Miami by 21 Air crashed into two cars after it overran the runway. Jennifer Homendy, Chair of the NTSB, told reporters that on Wednesday investigators would be interviewing both pilots and releasing details from "the cockpit voice recording". The NTSB stated that 30 seconds prior to the end flight data recording the nose landing gear, right main landing equipment, and left main landing were all landed on the runway with a speed of 158 knots. The brakes were then released, and the throttles increased to values that were consistent with go-around thrust. This was a late attempt at aborting the landing and getting back into the air. The throttle was reduced to idle power 11 seconds before recording ended. Brakes were then re-applied. The ground speed at the end was 65 knots. The NTSB stated that there was no indication in the recorded data of speed brakes or reverse thrusters being used to slow the plane. Homendy leads a team of 32?investigators at Miami International Airport. She stated that the NTSB had been able to open one of the?two closed runways?since the incident to allow departures in an easterly directions late on Tuesday. Amazon's cargo plane was flying its third flight of the day from San Juan in Puerto Rico. The plane had flown earlier from Cincinnati to Miami, and then from Miami to San Juan on Sunday. EDT (1753 GMT). NTSB reported that the captain, 55, has 7,145 flying hours and received his 767 type rating in May. The first officer, 37 has 2,655 flight hours and received his 767 type rating in April 2025.
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Evidence suggests that pilots may have considered abandoning landing after Miami cargo plane crash
The National Transportation Safety Board (NTSB)?said Tuesday that evidence recovered from a?flight data /recorder indicated the 'pilots may have considered aborting the landing of an Amazon Prime Air cargo aircraft before it crashed and killed five people in Miami. The 32-year old Boeing '767 operated Miami-based 21 Air, overran the runway by about 1,300 feet (396 meters) and crashed on Sunday into two vehicles on the ground. Five people were killed and five injured. NTSB Chair Jennifer Homendy stated that investigators would be interviewing both pilots on Wednesday. The NTSB stated that the nose landing gear and the right main landing gear touched the ground 30 seconds before recording ended, while the left main landing gear landed 19 seconds?before recording finished. The brakes were released a few seconds later and the throttles increased to values that corresponded with the go-around thrust. The NTSB also stated that there was no indication in the recorded data that thrust reversers or speed brakes were used.
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Why Air India's financing call has been scrutinized by Singapore politicians
Air India's request to its owners, Tata Sons and Singapore Airlines, for $1.5 billion has sparked debate in Singapore about the exposure of state investor Temasek to Indian carrier. A government minister stated that the news of the funding request had led to anti-Indian abuse on the internet, and asked the police to investigate the comments. Here are some key facts AIR INDIA REQUEST FOR FUNDING Air India approached India's Tata Group as well as Singapore Airlines to discuss equity funding. This comes after Air India and its budget airline posted a record-breaking annual loss of 2,33 billion dollars last month. Singapore Airlines, which is majority owned by Temasek (a state-owned investor), holds 25,1% of Air India. It has also taken a share of Air India's losses. Why has the request sparked political scrutiny? In a post on social media, opposition Workers' Party legislator Kenneth Tiong stated that Temasek's money should not be used for Air India via Singapore Airlines. Singaporeans are indirectly shareholders in the flag airline because Temasek manages and owns its assets, and its reserves are part of Singapore's national reserve, according to Tiong. Singapore Airlines was defended by the government in a strong manner in Tuesday's debate in Parliament. Transport Minister Jeffrey Siow stated that investment decisions belong to the board of Singapore Airlines and that Singaporeans are not paying for Air India's investment. Siow said that Singapore Airlines has not asked for additional capital from its shareholders. Air India and Tata did not publicly comment on the funding request. WHAT HAS TEMASEK AIRLINES AND SINGAPORE RAILWAYS DONE? Temasek said that it views the investment of Singapore Airlines in Air India as a long-term one and has supported it. Singapore Airlines said on Tuesday that it will continue to fund its investments in India 'through internal resources and subject to board approval, and within a disciplined framework for capital allocation. The?stake was described as a strategic long-term?commitment in line with the multi-hub strategy. Why has it been racist abuse? Senior Minister K. Shanmugam stated over the weekend, that the news of the funding request had prompted anti-Indian abuse on the internet. This included suggestions that Temasek Chief Executive Dilhan Pillay Sandrasegara preferred?Air India due to his Indian ethnicity. Shanmugam described such remarks as libellous, and said that the CEO is as Singaporean as any other. Temasek didn't respond to a comment request. Shanmugam said he asked the police to investigate those 'comments and separate comments about Singaporeans who were missing in flash flooding abroad. Prime Minister Lawrence Wong also condemned this abuse and said that seemingly valid arguments should not cover prejudice or hostility against foreigners.
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US watchdog will review whistleblower warnings on voting rules
The?U.S. The?U.S. Postal Service Office of Inspector General?announced on Tuesday that it will conduct an independent review of allegations made by a whistleblower. This whistleblower warned that proposed?USPS mail in voting restrictions may result in thousands of legal votes being discarded. A federal judge in Boston, extended on Friday a ban that prevented President Donald Trump from implementing the new USPS rule which would have tightened mail-in voting requirements before the November congressional elections. Last week, the?administration of President Donald Trump asked the Supreme Court for permission to enforce the new USPS rule regarding the?use mail-in votes. They said that the new rules would 'threaten integrity of the November congressional election.' The lawmakers cited a whistleblower warning that the "verification" system planned by USPS "risks collapsing absentee voting and disenfranchising many millions of Americans." USPS regulations would require new standards for voter data and ballot envelopes, and could refuse delivery to ballots that did not meet these requirements. Critics say this could lead to thousands of 'legitimate' votes being thrown out as the November 3, 2016 election approaches. Republicans are in a fierce battle to keep control of the?Congress during elections. Critics claim that restricting mail in ballots would disproportionately benefit Republicans, given that Democratic voters are more likely to mail in ballots. The new USPS rule requires that?states provide lists of mail-ballot recipients to the postal service, and use envelopes with unique barcodes approved by the agency for outbound and returned ballot mail. Postal service officials could refuse to mail ballots that don't meet the new standards, or those associated with voters not listed on the list.
Dangote's proposed Kenyan refinery faces challenges, including crude supply
Aliko Dangote, a billionaire, has set his sights on replicating the project that launched Africa's largest oil refinery, in Nigeria, less than three years ago.
But the construction of his company's planned new 700,000-barrel-per-day Lamu refinery in Kenya promises to bring a whole new set ?of issues -- not least where to secure crude supply in ?a country that, unlike oil-rich Nigeria, currently has no commercial output.
Plans are changing rapidly. Discussions about Dangote's East African Refinery centered on Tanzania until April.
Dangote said to the Financial Times that he would prefer the refinery be located in Mombasa in Kenya. However, in July an executive stated it would be constructed in Lamu. This deep-water port is critical for the refinery’s success.
The company hopes to finish the refinery before 2030. It will hold a groundbreaking at the end this month. Aliko Dangote said that he expected it to cost between $15 billion and $16 billion.
The project will test whether the model which helped Nigeria become a fuel exporter and a country with less crude oil supplies can be replicated in a region that has a lesser energy infrastructure.
Devakumar Edward, vice-president of Dangote Industries said that there are no challenges to be overcome in terms of regulatory, financial and feedstock issues. It has been previously stated that the company believes this project will improve regional fuel supply as well as energy security.
Brendon Verster is a senior economist with Oxford Economics.
RAISING CAPITAL
In July, a company executive stated that Dangote Group intends to finance the Kenyan Refinery using internal cash flow and?bonds. Dangote plans to launch the largest ever IPO for Africa, a Lagos refinery.
Dangote, if he follows the Lagos playbook, could add his own equity to a mix that includes commercial bank loans, and development finance institutions like Afreximbank.
The company has already announced other major expansion plans. On Monday, it said that it would spend $14.3billion to double the capacity of its Lagos facility. Analysts say that Dangote is already pursuing multiple oil-related project and that securing funding could be a problem.
Kaase GBakon, a former petroleum economist with the state-owned Nigerian Oil Company NNPC, said that raising capital for Lamu would be a challenge, given the group's goal of obtaining?40 billion dollars (including Lamu), between 2025 and 3030 for the announced energy projects.
Dangote also suggested that East African nations like Rwanda, South Sudan and Tanzania could each take a 30% equity stake. This would create a new funding source and tie the governments to the project. However, no specific details were given about potential deals.
CRUDE SOURCES
According to Kenyan reports, the chief economist of Kenyan President William Ruto said that, in terms of feedstocks, the plant would be able to secure a daily crude oil supply of 600,000 barrels from East Africa. This includes South Sudan, Uganda and Kenya.
None of these sources are simple. Kenya has oil reserves that have been proven but it has taken years to start production.
The prospect of a crude pipeline connecting South Sudan's oil fields, whose exports have been disrupted due to insecurity in Sudan, with Kenya's Lokichar Basin and Lamu Port is still a long way off.
Maximillian Ezeude is an oil and gas lawyer from Lagos who told us that South Sudan exports go through Sudan while Uganda barrels are sent to Tanzania via EACOP.
Ezeude stated that "This leaves the coastal facility reliant on an unstable international seaborne market".
The Middle East is the nearest major source of seaborne imports, and the Iran War is disrupting exports.
The refinery is located in the Lamu Port - South Sudan - Ethiopia Transport (LAPSSET), a special economic zone near Lamu Port. Lamu Port currently does not have any operational oil storage terminals.
The LAPSSET corridor project provides for oil storage facilities at Lamu that can store between 1 and 1.5 million barrels of oil, as well marine loading facilities that can handle vessels of the Suezmax class.
This infrastructure is still largely unbuilt.
PROJECTS WILL ENGENDER GROWTH, SAYS PRESIDENT
The refinery could also have an impact on?Lamu Old Town, located on Lamu Island. This is a World Heritage Site 10 km (6 miles), from Lamu Port. Greenpeace Africa also called on the project to stop due to concerns over habitat destruction and marine degrading.
Kenya's Ruto said that the country, whose one refinery was shut down by Essar Energy of India?in 2013, believes the new plant can eliminate costly fuel imports.
According to official figures, it spent $4 billion (511,5 billion Kenyan Shillings) on petroleum last year.
Ruto, speaking of the Lamu Project, said: "We must make decisions that will change and transform our country."
Benjamin Oluwatobi Ajayi is an energy analyst in Lagos. He said that the challenge posed by the project was "substantial".
He said that the execution risk was increased by the size of the required debt, the ESG-related constraints on financing, the competition for capital between multiple projects and the need to coordinate many lenders and stakeholders in a short time frame.
(source: Reuters)