Latest News
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Jetstar Asia, a low-cost airline operated by Qantas Australia, will be closed.
Qantas, Australia's flag carrier, announced on Wednesday that it would close Jetstar Asia in Singapore, its low-cost subsidiary, to recycle as much as A$500,000,000 ($326.40million) for fleet renewal. Qantas announced that Jetstar Asia Airbus A320s will be redeployed in Australia and New Zealand. Jetstar Asia is still negatively affected by the rising costs of suppliers, airport fees and competition. Qantas stated that the low-cost carrier's ability "to deliver returns comparable with the stronger performing core market in the group" was fundamentally challenged. Jetstar Asia expects to report a underlying EBIT of A$35million in the current financial period. The airline will cease operations on July 31, but will continue to operate flights for seven weeks. Reporting and editing by Pooja Deai, Alan Barona, and Rishav chatterjee from Bengaluru.
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US EIA cuts ethane forecasts for 2025 and 2026 due to curbs on China exports
The U.S. Energy Information Administration announced on Tuesday that U.S. ethane imports would fall by 24 percent in 2025 while production of shale gases will drop by 4 percent. This was after Washington asked U.S. exporters to obtain licenses for shipping ethane into China, its top buyer. The license requirement already has an impact on exports, as half of U.S. exports go to China. It also raises questions about whether ethane should be extracted from natural gas or left in the stream. The EIA forecast that U.S. exports of ethane will drop to 410,000 barrels a day by 2025, from an earlier forecast of 540,000 barrels a day. It also said that the output would decrease to 2.8 millions bpd compared to 2.9 million estimated previously. The government's statistics arm predicted that exports would drop by 51%, to 310,000 barrels per day (bpd), while production would decline by 12%, to 2.7million barrels per day. EIA's monthly Short-Term Energy Outlook stated that "we reduced our forecast of U.S. ethane for 2025 and 2026, because we expect ethane to not be separated from natural gas without an export outlet." Ethane can be separated from natural gases by a process known as ethane recover, if the prices of ethane are higher than those for natural gas. Analysts have stated that if export problems continue, almost all of the ethane exported to China could be kept in the natural gas stream, increasing the volume of gas and reducing the output of ethane. Energy Transfer and Enterprise Products Partners are two of the largest U.S. producers and exporters of ethane. They have said they received letters from U.S. Commerce Department asking them to apply for a permit to ship ethane into China. Enterprise also said that it received notice from the U.S. Government of its intention to deny urgent requests for three proposed ethane export cargoes totaling approximately 2.2 million barrels towards China. According to data from ship tracking, at least nine vessels that were originally scheduled to load ethane before sailing to China are either stalled or drifting on the U.S. Gulf Coast.
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The first crude oil from Guyana’s fourth platform will be exported between August and September
The government announced on Tuesday that the first crude oil cargo from Guyana’s fourth oil production plant, which arrived in April and has been installed, will be exported between the end of August and the beginning of September. Exxon Mobil, Hess and CNOOC from the United States and China control all of Guyana's crude and natural gas production. Each party exports their share, but the government is also entitled to profit oil. Why it's important According to the companies, the floating facility built by SBM Offshore, called One Guyana is expected to start producing in the next few months. This will increase the consortium's production capacity to over 900,000.00 barrels per daily (bpd). Two sources familiar with the transaction have confirmed that the first shipment of Guyana's new crude, "Golden Arrowhead", will consist of 1,000,000 barrels. The seller or the destination of the cargo was not immediately known. The facility will produce crude oil and associated gas from the Exxon Group's Yellowtail, Redtail offshore field. REACTION Exxon did not respond immediately to a comment request. The Guyana government has not provided any further information. CONTEXT Since its start in early 2020 of exporting crude oil, the growing oil nation has become the fifth largest Latin American crude producer after Brazil, Mexico and Venezuela. Shipping data shows that Guyana's oil output rose by 54% to 582,000 barrels per day last year, driven by the demand of European refiners for sweet crudes which are easy to process. The country's output capacity is expected to reach around 1.7 million barrels per day by 2030.
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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.
How Germany intends to get to net no without breaking the bank
Germany faces a tough time finding methods to spend for its efforts to become climateneutral by 2045 offered the country's current tight budget constraints.
The German cabinet passed its 2025 budget plan on Wednesday after months of wrangling, however this left a 17 billion euro ($ 18.58. billion) gap in between predicted spending and income still to be. covered.
Such financing shortages will make the costly job of. moving industries and farming to low or absolutely no emissions. more difficult and could weaken some of the union. federal government's energy jobs.
The expenses of the energy shift, consisting of. electrification, carbon sequestration and sustainable hydrogen,. are difficult to compute however will face the low trillions. of euros.
The Berlin government has to be able to show how the. expense can be shared relatively between the public at big and energy. consumers, while also seeking to draw in personal investment.
Here is an overview of federal government instruments up until now:
CO2 PRICING AND ETS
Co2 emissions prices and necessary trading in. CO2 contamination allows, introduced in the European Union in 2005,. has worked and is still considered one of the most effective. mechanisms to encourage decreases in emissions.
It covers power plants, markets and airline company operators. Participants are designated, or must purchase, certificates which they. can offer if they have surplus carbon licenses.
EU mentions receive money from the sale of the licenses. Germany received around 18 billion euros in 2023 for its Climate. and Transformation Fund, which is developed to money other. decarbonisation measures.
FUEL TAX
This national tax in Germany has been imposed on heat and. transportation because 2021 on fuels like heating oil and diesel to. cover sectors not subject to the carbon license scheme. It is. designed to motivate changing to electric vehicles or heatpump.
The original plan was to pay people an environment rebate to. soften the effect of the tax on low-income families or people. who rent and have no impact over the energy efficiency of. their buildings. But this has actually not happened due to spending plan. constraints.
RENEWABLE RESOURCE LAW
A renewable resource additional charge, presented in 2000 to promote. green power through feed-in tariffs paid to solar and wind. generation plant operators, has been instrumental in the. arrangement of enough capacity for Germany to derive over 50% of. power production from zero-carbon production facilities.
Customers needed to pay towards the surcharge in their bills. However because of its high cost, it was waived in the second half. of 2022 and totally abolished as of 2023. Currently the country's. basic spending plan bears the cost.
This implies that in 2024, for instance, more than 20 billion. euros streams to power transportation grid operators so that they can. pay green power producers repaired costs when the grids get. their output which gets top priority on the grid.
ELECTRICAL ENERGY COST LEVIES
Germany likewise has actually imposed additional levies on the power. price to assist pay for renewable energy. These consists of offshore. wind connection charges, network use costs, and relief for huge. customers from pro rata charges spread amongst the rest. The. government is likewise considering a brand-new levy to help with the. building of new gas-fired, but hydrogen-ready, power plants.
GRID FEES
Charges for using the electrical energy network comprise around 20% of. individuals's bills in Germany and these will increase to show the. expense of enhancements to the grid required to carry big volumes. of renewables. The overall expense is likely to face several. hundred billions of euros by 2045.
SPREADING THE EXPENSES OF A HYDROGEN TRANSPORTATION GRID
Economy Minister Robert Habeck is backing a system to spread out. the costs of a tidy hydrogen transportation grid over future. generations.
Under this plan, the state would pay into an amortisation. account for the construction of the facilities and recuperate. that over the long-lasting.
CLIMATE PROTECTION AGREEMENTS
Climate protection arrangements, also referred to as carbon. agreements for distinction, grant subsidies to companies for. at first costly, alternative fuels, which they obtain at. tenders.
The companies pay back the aids to the state once. running expenses fall as the alternative innovation ends up being more. effective.
IMPROVING RENEWABLES POST-PAYMENT ASSURANCES
The government wants to replace the 20-year payment. warranties under the old renewable energy law, due to the fact that consumers. can no longer pay the bill for generous hand-outs to manufacturers.
The objective is to run with rate caps instead to decrease the. burden on the country's basic budget plan, while holding on to. growth plans.
(source: Reuters)