2025-08-26 12:00
LAUNCESTON, Australia, Aug 26 (Reuters) - China's imports of liquefied natural gas (LNG) are poised to rise for a fourth straight month in August, but this may not be quite as bullish as it first appears. The world's biggest buyer of the super-chilled fuel is on track to see imports of 6.04 million metric tons in August, the strongest since the same volume was landed in January, according to data compiled by commodity analysts Kpler. Sign up here. China's imports of LNG have been trending higher since hitting a five-year low of 4.48 million tons in February. But while that piece of data is indicative of a recovery in demand, there is a more important number that shows China's appetite for LNG remains muted. The last time that imports were higher than the same month a year earlier was October 2024, meaning that in the 11 months since then arrivals have been weaker on a year-on-year basis. It would be hard to claim that China's LNG demand was recovering until imports in a month exceed the level for the same month in the prior year. The question then becomes what will it take for China's LNG demand to return to year-on-year growth? The answer is most likely linked to spot prices. The LNG China is currently importing is largely volumes secured under long-term contracts, and what it is not buying is spot cargoes. The spot price for LNG for delivery to North Asia has been trending lower in recent weeks, ending at $11.40 per million British thermal units (mmBtu) in the seven days to Aug. 22. This is down from the peak so far in 2025 of $16.10 per mmBtu from mid-February, but it's also worth noting that the lowest price this year has been $11.00 in the week to May 2. The spot price has not dropped below $11 per mmBtu since May 2024, meaning LNG has been expensive in comparison to recent years, with a low of $8.30 in 2024 and $9.00 in 2023. A spot price above $10 per mmBtu means LNG struggles to be competitive in China against domestic and pipeline natural gas, resulting in utilities paring imports. INDIA SLUMP The impact of high spot prices can be seen in other price-sensitive buyers in Asia, such as India, where imports are on track to fall for a third straight month in August to 1.83 million tons, according to Kpler data. If the final figure for August remains at this level, it would be the weakest month for India since June 2023. A further question for the market is whether spot prices are likely to continue to trend lower given weakness in buyers such as China and India. So far this year demand in Europe as the continent works to refill natural gas storages has kept prices robust, but this is starting to taper as inventories reach satisfactory levels. Europe's August imports are forecast to reach 7.86 million tons, down from 8.84 million in July and a fifth consecutive monthly decline. However, Europe's LNG imports are still up strongly on a year-on-year basis, with August likely to be 22% higher than the 6.45 million from the same month last year. For the first eight months of the year Europe's LNG imports are 82.71 million tons, 22.1% higher than the 67.74 million for the same period in 2024, according to Kpler data. It's also worth noting that demand has been rising in Asia's developed economies, which are less sensitive to price movements. Japan, the world's second-biggest LNG buyer, is on track to receive 5.83 million tons in August, the most since February, amid higher demand in the northern summer. South Korea, the third-ranked LNG importer, is estimated to have August arrivals of 4.99 million tons, the most since December 2023. In effect, Europe's strong growth this year and seasonal demand in Japan and South Korea are keeping spot LNG prices at levels high enough to crimp imports by China, India and other price-sensitive buyers in Asia. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn , opens new tab and X , opens new tab. The views expressed here are those of the author, a columnist for Reuters. https://www.reuters.com/markets/commodities/chinas-lng-imports-are-set-rise-4th-month-its-not-bullish-2025-08-26/
2025-08-26 11:56
MOSCOW, Aug 26 (Reuters) - Russia hopes that a U.S.-Russian joint venture involving Boeing in the Sverdlovsk region can resume its operations, Russian First Deputy Prime Minister Denis Manturov told the TASS state news agency in an interview. The joint venture between Russia's largest titanium maker VSMPO-AVISMA and U.S. aircraft manufacturer Boeing halted operations in 2022 after Boeing decided to suspend purchases of titanium from Russia. Sign up here. Moscow did not impose any restrictions on titanium supplies to the U.S., Manturov noted, saying it was still possible for U.S. companies to buy Russian titanium. https://www.reuters.com/business/aerospace-defense/russia-says-it-hopes-resume-titanium-joint-venture-with-boeing-2025-08-26/
2025-08-26 11:55
Aug 26 (Reuters) - China's Sinopec said on Tuesday it has agreed to provide engineering services for Saudi Arabia's ACWA Power to build the world’s largest integrated green hydrogen and green ammonia project in the kingdom. The project, to be built in Yanbu city in Saudi Arabia, will produce annually 400,000 metric tons of green hydrogen and 2.8 million tons of green ammonia, using wind and solar power, Sinopec said. Sign up here. Commercial operation is slated to start in 2030, Sinopec said, without providing financial details. Sinopec Engineering Group, Sinopec's subsidiary, will be responsible for the front-end engineering design and convertible engineering, procurement and building of the project. https://www.reuters.com/sustainability/climate-energy/sinopec-wins-engineering-contract-saudi-arabian-green-hydrogen-project-2025-08-26/
2025-08-26 11:51
Aug 26 (Reuters) - PetroChina (601857.SS) , opens new tab on Tuesday proposed to take over three natural gas storage facilities from its controlling shareholder, state-owned China National Petroleum Corporation, in a deal worth 40.02 billion Chinese yuan ($5.59 billion). The deal comes as PetroChina looks to ensure stable operation and high-quality development of its natural gas industrial chain. Sign up here. The transaction is estimated to add 10.97 billion cubic metres of working gas storage capacity to the company's portfolio. PetroChina is riding the country's increasing reliance on natural gas, a lower-emission fuel viewed as a key bridge in its shift to greener energy. The largest Chinese oil and gas firm posted a 5.4% decline in first-half net income earlier in the day. However, the company's gas segment reported 18.6 billion yuan in earnings, which was higher than the amount logged in the same period a year ago. PetroChina expects Chinese oil demand to continue facing competition from alternative energy. However, it projects natural gas demand to recover and grow rapidly. ($1 = 7.1529 Chinese yuan renminbi) https://www.reuters.com/business/energy/petrochina-buy-natural-gas-facilities-cnpc-559-billion-deal-2025-08-26/
2025-08-26 11:47
TOKYO, Aug 26 (Reuters) - Japan's industry and land ministries on Tuesday proposed revising guidelines to extend offshore wind project leases by 10 years, from the current 30 years, to help developers manage soaring construction costs and complete projects. The proposal was submitted to a joint expert panel of the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). Sign up here. Under current operational guidelines for public tenders in general maritime areas, operators must remove their facilities within the 30-year permit period, after which a new tender is held. The proposed revision would allow operators to renew their permits if they meet certain conditions. Because current guidelines require construction, operation, and decommissioning to be completed within 30 years, actual operations typically last only about 20 years. Extending the period would boost electricity sales, improve cash flow for project-finance loan repayments, attract a broader range of equity investors, and allow for earlier capital recovery, some panel members have said. The new guidelines will apply from the next auction round, a land ministry official said, adding that no decision has been made on whether it will cover the past three rounds. Japan's government has been expected to sweeten terms for developers to build a large-scale offshore wind sector as it seeks to revive ambitions derailed by soaring costs and global project delays. The government aims to have 45 gigawatts of offshore wind capacity by 2040 to cut reliance on imported coal and gas, reduce carbon emissions, and bolster energy security. It had 0.3 GW at the end of 2024. But progress has stalled after three major auction rounds. Trading house Mitsubishi Corp (8058.T) , opens new tab, the winner in the first auction in 2021, warned in February that surging costs had forced it to reassess its plans. Despite the planned lease extension, a Mitsubishi-led consortium is preparing to withdraw from three offshore wind projects due to profitability concerns, several Japanese media reported late Tuesday. https://www.reuters.com/sustainability/climate-energy/japan-proposes-10-year-extension-offshore-wind-farm-leases-ease-cost-pressures-2025-08-26/
2025-08-26 11:46
Groups led by Mitsubish won projects to provide 1.76 GW Mitsubishi Corp spokesperson says nothing decided yet Japan seeking energy security, proposes extending wind project leases TOKYO, Aug 26 (Reuters) - Mitsubishi Corp (8058.T) , opens new tab-led consortia are preparing to withdraw from three offshore wind power projects in Japan's Chiba and Akita prefectures due to concerns over profitability, the Nikkei business daily reported on Tuesday. Japan, the world's second liquefied natural gas (LNG) buyer after China, has turned to wind and solar energy as well as nuclear power station restarts to bolster energy security and achieve carbon neutrality by 2050. Sign up here. In 2021, groups led by Mitsubishi were selected to operate three projects in the Akita prefecture in the north and the Chiba prefecture to the east of Tokyo, with total projected capacity of 1.76 gigawatt (GW) to be launched in 2028-2030. A Mitsubishi Corp spokesperson told Reuters nothing had been decided, adding that the company is still examining its domestic offshore power projects. Japan's industry ministry, or METI, could not be immediately reached for a comment. Japan is targeting future offshore wind farm capacity of 10 GW by 2030 and 45 GW by 2040. It has held three offshore wind auctions, the first of which, for the projects in Akita and Chiba, was won by the Mitsubishi-led consortia. Sources have said Japan was likely to sweeten terms for offshore wind developers, including foreign players such as Germany's RWE (RWEG.DE) , opens new tab, Spain's Iberdrola (IBE.MC) , opens new tab and BP (BP.L) , opens new tab, as some other players decided to quit. In a sign of commitment to the offshore wind industry despite Mitsubishi's issues, Japan's industry and land ministries on Tuesday proposed revising guidelines to extend offshore wind project leases by 10 years, from the current 30, to help developers manage soaring construction costs and complete projects. In February, Mitsubishi said it was reviewing how to proceed with its offshore wind projects in Japan given a "significantly changed" business environment, showing Japan's vulnerability to rising costs across offshore wind projects globally. Earlier this year, METI acknowledged the renewable energy rollouts could be behind the schedule, predicting that Japan's demand for LNG could be on the rise again as artificial intelligence booms, after years of decline. https://www.reuters.com/business/energy/mitsubishi-led-groups-withdraw-three-offshore-wind-projects-japan-nikkei-says-2025-08-26/
