Latest News
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Royal Mail faces UK probe after missing delivery targets
The British regulator Ofcom announced on Friday that it will investigate whether Royal Mail's service obligations for 2024/25 have been met. Royal Mail, the postal watchdog that oversees services, said that only 76.5% first-class mail was delivered in one working day and 92.2% second-class mail within three days. These are both well below the standards set by the watchdog. Royal Mail Chief Operating Officer Alistair Cochrane stated in a press release that "we are actively modernising Royal Mail and while this effort is beginning to yield results, we still know there is more to be done." Royal Mail was fined after it missed its delivery targets for 2023/24, 2022/23 and 2022/23. The firm, which has been in business for over 500 years, has proposed reforms to the national single-price service obligation that applies to first- and second class services and also suggested the introduction of additional reliability targets. Last year, the parent company of Royal Mail International Distribution Services, International Distribution Services, agreed to be acquired by Czech billionaire Daniel Kretinsky. The deal was delayed earlier this year, but is now expected to be completed in the second quarter 2025. (Reporting by DhanushVignesh Babu and Yadarisa Shabong in Bengaluru; Editing by Shailesh Kuber)
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The UK court dismissed the Turkish Palmali lawsuit against Lukoil Litasco
The trading arm of Russian oil company Lukoil lost a London lawsuit filed by Turkish tanker operator Palmali against a purported oil product deal with the Russian oil producer. Palmali, controlled Mubariz Mansimov of Azerbaijan, sued Lukoil’s Swiss subsidiary Litasco in 2017, initially claiming nearly $2 billion. After Litasco won the case in 2020, Palmali's value was significantly reduced. Palmali had, at the time of the trial, earlier this year, sought just over $120 for Litasco’s alleged breach in its obligations to provide up to 700,000. metric tons cargoes per month. The judge dismissed Palmali’s lawsuit on Friday in a written decision, stating that its contract with Litasco is void due to Litasco’s former chief executive Valery Glovushkin having "a clear conflict of interest" at the time when the contract was signed. The judge upheld Litasco’s counterclaim, which was for repayment of a Palmali loan and payments that were to be made to third parties. Craig Morrison, Litasco's attorney, said that the parties agreed on the value of the counterclaim as being around $14.8million including interest. Palmali and Litasco didn't immediately respond to comments.
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IndiGo denied requests to divert a flight due to severe weather, India claims
The Indian Aviation Regulator said that both the Indian Air Force as well as Pakistan denied an IndiGo passenger flight attempting to avoid bad weather on its way to Indian Kashmir permission to divert to Pakistan. The flight from Delhi, the capital of India, to Srinagar in northern India was forced to fly during a hailstorm. No injuries were reported. The nose of the aircraft was damaged during a post-landing check, according to a statement from the Directorate General of Civil Aviation. A photo shared by the Times of India on social media platform X shows a large hole on the front of an aircraft. Meanwhile, a video circulated on the site showing passengers scream and pray during the turbulence. Could not verify the authenticity of video. Last month, tensions between India's nuclear-armed neighbours and Pakistan caused the two countries to shut down their airspace to the other's airline. Indian Air Force denied the request for the Airbus A321neo to turn toward the India-Pakistan Border, without stating the reason. The IAF didn't immediately respond to our request for comment. The DGCA stated that the flight crew contacted Lahore, Pakistan, requesting entry to Pakistan's airspace. This request was also denied. A spokesperson from the Pakistan Civil Aviation Authority refused to comment. The crew of Flight 6E 2142 flew through the storm and chose the shortest route, which was Srinagar, summer capital of Indian Kashmir. IndiGo released a statement saying that the flight crew and cabin crew adhered to established protocols and that the aircraft safely landed in Srinagar. Later, it was revealed that the aircraft had undergone checks in Srinagar. It would resume its operations as soon as clearances were obtained. After a deadly attack in Indian Kashmir on tourists in April, tensions between India and Pakistan flared up. This led to the worst conflict between two neighbours in almost three decades. Both countries declared a ceasefire earlier this month. However, their airspaces remain closed for each other's carriers. Reporting by Nandan Mandyam, Abhijith Gaapavaram and Ariba Shehid in Karachi. Editing by Joe Bavier.
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Sources: Russia and Bahrain are in advanced discussions over LNG deal
Three sources familiar with the situation say that Russia and Bahrain are in advanced discussions over a three year agreement for the supply of liquefied gas (LNG). Under the deal, Moscow will provide the Gulf Kingdom with 1.5 million tons of LNG. The deal, which would be a first-of-its-kind between the two countries, would continue the expansion of Russia in the global energy markets as well as the LNG competition with United States. Russia, behind the United States and Australia as the fourth largest LNG producer in the world, is aiming to become one of the top three LNG exporters. It plans to produce at least 100 million tonnes per annum (mtpa), super-chilled natural gas, over the next few years. Bahrain, home to the Fifth Fleet of the U.S. Navy, is looking to increase LNG imports in order to address a gas shortage during peak summer demand for air conditioning. The kingdom received its first LNG shipment in six years last month. Sources said that Alexander Novak, the Russian Deputy Premier, met with Mohamed bin Mubarak bin Daina of Bahrain, Minister of Oil and Environment. They discussed the purchase of 15 million tons of LNG per year, or 20 cargos of LNG, for a period of three years. One source said that the talks are in an advanced stage, and the deal should be completed soon. The Yamal LNG plant in Russia, where Novatek, Russia's biggest LNG producer, has a majority stake, is expected to produce large volumes. Novatek and Bahrain’s government communication office did not immediately respond to requests for comments. Reporting by Tomour Azhari, Damascus; Marwa Rashad, London; Additional reporting by Yousef Saba in Dubai. Editing by Nina Chestney & David Goode).
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Operator says damaged CPC pumping stations in Russia are back online
CPC, the operator of the Caspian Pipeline Consortium in Russia, said that a pumping station damaged in February has been restored to service. This route is Kazakhstan’s main way of exporting crude oil. It also transports Russian oil from the Black Sea to be exported by tanker. A drone attack was said to have damaged the Kropotkinskaya pumping stations. The General Staff of Ukrainian Armed Forces has acknowledged that Moscow accuses Ukraine of having struck the site. CPC delivered products while the pumping station is being repaired. The pipeline transports more than 1% daily oil supply in the world. The oil field of Tengiz in Kazakhstan stretches 1,500 km (939 mi) to the Russian Black Sea Port of Novorossiysk. Separately CPC reported that the pipeline restarted oil pumping on Friday, after stopping for 3 days for planned maintenance. (Reporting and editing by David Goodman, Jason Neely and Vladimir Soldatkin)
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Taiwan's MFIG offers to purchase up to 65,000 tonnes of corn
European traders reported on Friday that Taiwan's MFIG buying group had issued an international tender for up to 65,000 metric tonnes of animal feed corn, which could be sourced in the United States, Argentina or Brazil. They said that the deadline for submitting price offers to the tender is on Wednesday, May 28. MFIG is seeking price offers for a consignment between 40,000 and 65,000 tons of yellow corn at a premium to the Chicago December 2025 Corn Contract. Traders said that if corn comes from the U.S. Gulf region, Brazil, or Argentina then shipments are needed between July 21 and September 9. The shipment must be made between August 5-24 if it is sourced from either the Pacific Northwest Coast of the United States or South Africa. Traders said that due to concerns over poor quality, Argentine Corn would only be accepted if the price was the lowest offered, and the bushel price at least four cents below the next cheapest offer of other origins. In its last tender, which was reported on April 29, MFIG bought approximately 65,000 tons corn. The corn would be sourced from United States. (Reporting and editing by David Evans, with Michael Hogan)
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China's LNG consumption is being slowed by WGC-Increased gas production and pipeline supplies
China's increasing natural gas production and pipeline supply is slowing down its liquefied gas imports in this year. This has capped prices in the area, but executives in the industry expect LNG demand to grow from the industrial and power sectors in China in the future. Customs data revealed that imports to the top LNG-importing country in the world fell to 20 millions metric tons over the first four month of this year. This is down from almost 29 million tons for the same period last year. The mild weather conditions and the buyer's resistance to higher prices were the main reasons. Chinese firms also resell instead of importing U.S. goods after Beijing imposed an import tariff of 15% in a trade dispute with Washington. Zhu Yanyan said that China's gas production increased by 2.7 billion cubic meters (bcm) in the first quarter while imports of pipeline gas rose by 1.2 bcm. She added that LNG imports had fallen by 20%, or 5.7 billion cubic meters. She told the delegates of the World Gas Conference that "our domestic gas and pipeline gases are covering the losses of LNG because LNG is expensive." Li Yao, CEO of SIA Energy, expects China to increase its gas production and imports by 8 bcm this year. She said that domestic and imported pipeline gases can more than offset the decline in LNG imports as well as the slowdown in demand caused by the ongoing Trade War. Steve Hill, Mercuria Executive Vice President Gas & LNG, said that Chinese LNG demand had struggled this year due to mild weather and economic uncertainties. However, a recovery is expected, driven by lower gas prices, an economic stimulus and stable relations with the U.S. DEMAND DRIVE On the long term, Chinese companies predict that gas demand will grow over the next decade. This will require more LNG imports. Sinopec Corp's chairman forecasts a peak in gas demand of 620 billion cubic meters between 2035 and 2020. The president of China Oil and Gas Pipeline Network Corp (PipeChina) expects the gas demand to be 650-700 Bcm by 2030-2035. Sinopec and China National Petroleum Corp, both state-owned companies, expect China's gas consumption to increase by 6% in this year. ENN Natural Gas is one of China’s largest private gas distributors. It expects the gas demand to reach between 550 and 600 bcm in 2030. Su Li, vice president of ENN, told reporters that, "Although the growth rate is slowing, the trend will remain upwards, even for the period 2030-2060." She added that ENN wants to increase its LNG supply to overseas markets and domestic markets to meet the growing demand. Shell Vice President LNG Cederic Cremers stated: "Industry is a more important factor than power and it's also a more significant market for transport, especially heavy transport." He was referring to China's conversion of diesel trucks into LNG.
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Source: Lack of tankers has curtailed supplies from Russia's Arctic LNG 2 plant sanctioned by the United Nations.
A source familiar with the situation said that the first production train of the Arctic LNG 2 plant in Russia, which is currently under U.S. sanction, was shut down because the reservoirs were full and there were no tankers available to load. The Russian company Novatek, which holds a 60% stake, has not responded to a comment request. The plant, located on the Gydan Peninsula that extends into the Kara Sea was set to become Russia's biggest LNG plant, with a total output of 19,8 million metric tonnes per year, divided between three trains. Novatek has fallen behind schedule due to a shortage of ice class gas ships, and Western sanctions over Russia’s war in Ukraine. Novatek announced that 15 Arc7 ice class tankers for LNG transport from Arctic projects would be built at Zvezda Shipyard. Sources said that between August and September, the first Arc7 tanker from Zvezda will be delivered to Russia’s largest tanker group Sovcomflot. (Reporting and editing by Vladimir Soldatkin, David Gooddatkin)
Maguire: France's nuclear and solar power output is on the rise.
France's energy producers have raised clean energy production to six-year-highs this year. They've generated 95% of the country's electricity from clean sources, which is far more than any other European nation.
Solar power generation was at a record high and nuclear power production reached its highest level since 2019.
France's ability to maintain growth in clean energy despite lower hydro- and wind-power output shows the resilience of France’s power system. This contrasts with recent declines in clean power production across Europe.
LSEG data shows that France's high energy production levels has also resulted in some of the lowest wholesale electricity prices in mainland Europe. These have been around 25 to 35 percent lower than rival nations such as Germany and Italy so far this year.
The combination of a durable growth in clean energy and power prices below average highlights the importance of France’s energy sector as part of Europe's interconnected energy system. France is a key player within this system because it exports power.
NUCLEAR DEPENDENCE
France's nuclear fleet, which includes more than 50 reactors, is the backbone of the nation's power generation system. It accounts for about 70% of France's electricity.
The country's nuclear reactors, some of which are over 40 years old, require complex and expensive maintenance.
Warm river temperatures in the summer can affect other reactors, limiting their output potential. They may also pose operational risks when there is not enough cooling available to regulate fuel rod temperatures.
France's energy firms have increased the generation capacity of alternative power sources to reduce its dependence on nuclear power. They also closed outdated nuclear power plants.
According to the energy think tank Ember, this has led to a decline in the share of nuclear power in total power generation from 45% in 2018 to 39% by 2024.
Solar and wind farms are the fastest growing sources of power generation and account for 30% of total generating capacity. Hydro plants are responsible for 16% of the total, gas plants for 12%, and bioenergy plants for 2%.
CLEAN COMMITMENT
France's energy firms have reduced coal-fired capacity by nearly half since 2019, while gas-fired capacity has remained largely unchanged.
Ember data reveals that the country's electricity firms have nearly doubled their bioenergy plant capacities and increased hydropower capacity in the last five years.
The French power system, which is based on a reduction of nuclear power while increasing its non-nuclear energy sources, has been able to maintain its clean status as the most environmentally friendly among major economies.
In April, France's electricity system generated almost 98% of its power from clean sources. This is the cleanest monthly share since mid-2024.
This clean power share is compared to 65% for the United Kingdom, 60 % in Germany, and 64% in Europe. France is the clear leader in clean power in the region.
Price Impact
France's electricity costs are among the lowest in Europe thanks to the increase of 17% in clean energy capacity since 2019.
According to LSEG, France's spot base wholesale power costs in 2025 have averaged around 73 Euros ($82) per Megawatt Hour (MWh).
LSEG data show that the average power price in Germany is around 98 Euros/MWh, 107 Euros/MWh for Poland and 125 Euros/MWh for Italy.
These steep discounts on power prices to regional competitors have given French power firms a competitive edge in Europe's interconnected markets for power, since they can export surplus power profitably.
France's cleaner power base is now available to power importers who rely primarily on fossil fuels. These are the opinions of the columnist, who is also an author. ($1 = 0.8863 euros)
(source: Reuters)