2025-06-10 20:56
HOUSTON, June 10 (Reuters) - U.S. liquefied natural gas developer Commonwealth LNG is close to signing a deal with Japan's biggest power generator, JERA, to supply it with 1 million metric tons per annum (mtpa) of LNG from its proposed export facility in Louisiana, two sources told Reuters. The deal would run for 20 years and bring Commonwealth LNG to 8 mtpa committed under long-term contracts. The company has said publicly that it wants to get contracts for at least 8 mtpa of its 9.5 mtpa LNG export terminal capacity to give the project the financial go ahead. Sign up here. The U.S. is the largest exporter of LNG in the world and based on projects under construction and those expected to get the financial go ahead this year, the country could triple its export capacity by 2030. "They have agreed to terms on the deal and should be signing it soon," one of the sources familiar with the negotiations told Reuters. Commonwealth LNG did not respond to a request for comment. JERA declined to comment. Commonwealth was one of the projects impacted by a pause on new LNG export licenses imposed by former President Joe Biden pending a study on the economic and environmental impact of further U.S. LNG expansion. That freeze was lifted by the Trump administration, which has promised to unleash American energy. In February Commonwealth received a conditional non-free trade agreement (non-FTA) export authorization from the Department of Energy. Commonwealth said it expects to reach a final investment decision in September 2025 for the project, with first LNG production expected in the first quarter of 2029. In May JERA announced that it had signed an agreement with NextDecade to purchase 2 mtpa of LNG from its Rio Grande project's fifth liquefaction facility. https://www.reuters.com/business/energy/jera-close-signing-deal-1-mtpa-lng-commonwealth-sources-say-2025-06-10/
2025-06-10 20:42
OPEC forecasts 24% rise in energy needs by 2050 OPEC warns of risks from inadequate investment in oil and gas OPEC secretary general criticizes net-zero targets as 'unrealistic' CALGARY, June 10 (Reuters) - Oil demand growth will remain robust over the next two and a half decades as the world population grows, OPEC Secretary General Haitham Al Ghais said on Tuesday. The organization expects a 24% increase in the world's energy needs between now and 2050, with oil demand surpassing 120 million barrels per day over that time period. Sign up here. That estimate is in line with the group's 2024 World Oil Outlook. "There is no peak in oil demand on the horizon," Al Ghais said, speaking at the Global Energy Show in Calgary, Alberta. He said OPEC admired what Canada's oil industry has done to increase its oil output in recent years. Canada achieved record oil production in 2024, as the completion of the Trans Mountain pipeline expansion boosted the ability of oil companies to get their product to market. Danielle Smith, premier of Canada's main oil-producing province of Alberta, has spoken of her desire to double the province's oil and gas output by 2050. Al Ghais said OPEC has been consistent in warning of the dangers of inadequate global investment in oil and gas, given its forecast for demand growth. He said failing to invest enough capital to meet projected demand growth risks undermining energy security and causing volatility for both producers and consumers, and added OPEC believes there is a need for US$17.4 trillion in capital investment in the global energy sector over the next 25 years. OPEC+ is unwinding its output cuts at a faster pace than originally anticipated, lifting production by 411,000 barrels per day for May, June and July. The increases, along with concerns that U.S. President Donald Trump's trade war will weaken the global economy, have pressured oil prices in recent months. Global Brent futures settled at $66.87 a barrel on Tuesday. The U.S. Energy Information Administration (EIA) on Tuesday said it expected Brent oil prices to fall near $60 a barrel by the end of the year and average $59 a barrel next year, hitting U.S. oil production. Al Ghais on Tuesday also said OPEC welcomed recent pushback against what he referred to as unrealistic climate goals that are overly focused on meeting specific deadlines. He said there is a need for countries to reduce emissions but stressed that should not mean picking and choosing between energy sources. He said instead governments and companies should be looking for ways to reduce emissions from oil and gas through technologies such as carbon capture and storage. https://www.reuters.com/business/energy/oil-demand-growth-continue-no-peak-sight-opec-secretary-general-says-2025-06-10/
2025-06-10 20:41
Deal could give Mexico a fixed quota with no tariff or lower tariff, sources say Volumes exceeding quota could face 50% tariff Mexico presses for exemption from Trump's steel tariff June 10 (Reuters) - The United States and Mexico are negotiating a deal to reduce or eliminate President Donald Trump's 50% steel tariffs on imports up to a certain volume, industry and trade sources said on Tuesday. An industry source familiar with the talks said that a likely outcome would include a quota arrangement, under which a specified volume from Mexico could enter duty free or at a reduced rate and any imports above that level would be charged the full 50% tariff. Sign up here. It was unclear whether the deal would eliminate tariffs altogether for in-quota steel import volumes from Mexico or reduce them to a lower level, the source said. The specific volume level of the quota also was not yet determined. Bloomberg News first reported the negotiations over tariff reductions for Mexican steel, quoting people familiar with the matter as saying that the two sides were close to a deal. The report said that terms of the agreement had not been finalized but would allow U.S. companies to import Mexican steel tariff-free as long as total shipments are kept below a level based on historical trade volumes. A White House spokesperson declined comment, while a spokesperson for the Commerce Department which administers Trump's "Section 232" national security tariffs on steel and aluminum did not respond to a request for comment. Mexico was the third largest source of U.S. steel imports in 2024 at 3.52 million net tons, down 16% from 4.18 million in 2024, according to U.S. Census Bureau data compiled by the American Iron and Steel Institute. Canada was the largest foreign steel supplier at 6.56 million net tons in 2024, followed by Brazil at 4.5 million. When Trump first imposed 25% steel tariffs in 2018, Mexico and Canada were granted exemptions with special procedures aimed at curbing any import surges beyond historical volumes. But these measures stopped short of a formal quota arrangement such as that for Brazil. Trump canceled all steel and aluminum quotas, exemptions and exclusions in April to strengthen the metals tariffs, raising the effective rate. A second trade source told Reuters that industry officials were pressing for a clearly defined steel quota arrangement for Mexico, given past import surges from Mexico. U.S. officials have long sought to curb the transshipment of steel products from third countries such as China via Mexico to the United States. Mexican Economy Minister Marcelo Ebrard told reporters at a morning event that the government had argued to U.S. officials that the tariffs were unjustified, noting the United States runs a trade surplus with Mexico in steel and aluminum. "Putting a tariff on a product where you have a surplus is quite debatable because the objective of the tariff is to reduce the deficit," he added. Ebrard said countries like the UK had been exempted from similar measures and urged the U.S. to do the same with Mexico. He warned the tariffs would hurt jobs and supply chains in both countries due to their economic integration. https://www.reuters.com/world/americas/us-mexico-close-deal-that-would-cut-steel-tariffs-bloomberg-reports-2025-06-10/
2025-06-10 20:33
TSX ends up 0.2% at 26,426.31 Stops just short of record closing high Energy rises 1.3%, with Cenvous up 2.4% Materials is only major sector to end lower June 10 (Reuters) - Canada's main stock index rose on Tuesday, led by energy and consumer-related stocks, as investors welcomed recent signs of economic resilience and potential progress in U.S.-China trade talks . The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 50.51 points, or 0.2%, at 26,426.31, stopping just short of the record closing high it posted on Friday. Sign up here. "Markets are enjoying the moment," said Angelo Kourkafas, senior investment strategist at Edward Jones, adding that economies, particularly in the U.S., remain resilient, corporate profits are rising and global trade tensions are easing. U.S. Commerce Secretary Howard Lutnick said trade talks with Chinese officials were going well and he hoped they would end on Tuesday night, but said they could run into Wednesday. The energy sector rose 1.3% even as the price of oil gave back some recent gains, settling 0.5% lower at $64.98 a barrel. Cenovus Energy (CVE.TO) , opens new tab is in the process of ramping up production at its Christina Lake oil sands site in Alberta after shutting output due to wildfire risk in early June, its CEO confirmed. Shares of Cenovus ended 2.4% higher. Consumer staples added 1.7% and consumer discretionary was up 1%. The materials sector was the only one of 10 major sectors to lose ground, falling 1.2% as the price of gold steadied and copper prices dipped. https://www.reuters.com/markets/europe/tsx-futures-rise-crude-prices-climb-us-china-talks-focus-2025-06-10/
2025-06-10 20:33
Canada aims to diversify exports amid US trade tensions Carney government seeks projects to boost Canada's energy status CALGARY, June 10 (Reuters) - The U.S. relies on Canadian oil imports, despite comments to the contrary by U.S. President Donald Trump, Cenovus Energy (CVE.TO) , opens new tab CEO said on Tuesday. Trump has threatened on-again, off-again tariffs on Canada's oil, of which nearly 4 million barrels per day are exported to the United States. Canada is the world's fourth-largest oil producer, and fifth-largest natural gas producer. Sign up here. Trump has previously said the U.S. does not need to import goods, including oil and gas, from Canada. Canada's Prime Minister Mark Carney, who won a minority government in April on a wave of anti-Trump voter sentiment, has said the country's old relationship with the U.S. based on steadily increasing economic integration is over. Jon McKenzie, who heads oil sands company Cenovus and chairs the Canadian Association of Petroleum Producers industry group, said trade tensions between the two nations have highlighted the need for Canada to diversify its exports. But he said that need does not take away from the fact the two countries' energy systems are inextricably linked. "What hasn't changed is energy economics and energy physics. The reality is we are hardwired into the U.S. system," McKenzie said at an energy conference in Calgary, Alberta. Canada depends on U.S. refiners to buy the vast majority of its exported oil, while landlocked U.S. refineries in the Midwest are configured to process the grade of crude that Canada produces. McKenzie said Canada has the opportunity to grow its oil output in the coming decades, and added the country's new government needs to recognize Canada's co-dependence with the U.S. and seek to improve that relationship. "We need to make sure that we don't act viscerally when we're threatened, and that we act intelligently in our long-term interest," he said. As part of its response to the U.S. tariff threat, Carney has pledged to identify and fast-track projects of national interest aimed at helping Canada become what he calls a conventional and clean energy superpower. McKenzie said the oil and gas sector does not want the federal government to pick winners and losers by deciding which projects to fast-track. He said the industry instead wants to see broad regulatory reform that will remove barriers to investing in oil and gas projects. https://www.reuters.com/business/energy/us-still-dependent-canadian-oil-despite-trumps-claims-cenovus-ceo-says-2025-06-10/
2025-06-10 20:10
Businessman eyes deal this year, expanded Petrobras role Novonor would keep roughly 3.5% stake under latest offer Shares are collateral for Novonor debt, making banks key SAO PAULO, June 10 (Reuters) - Brazilian businessman Nelson Tanure has begun talks with the banks that will be key to his bid for petrochemical firm Braskem (BRKM5.SA) , opens new tab, he told Reuters, as he aims to clinch a deal this year and give oil giant Petrobras (PETR4.SA) , opens new tab a larger role in operations. Braskem is Latin America's largest petrochemical firm, and its controlling shareholder Novonor has been exploring a sale for years as it looks to exit bankruptcy protection and turn the page on a vast corruption scandal. Sign up here. Tanure is the latest bidder trying to unlock a stalemate between Novonor, the banks holding Braskem shares as collateral and state-run Petrobras, which is an influential shareholder and key supplier of the firm. In his first public comments since revealing his Braskem bid last month, Tanure said he began courting engineering group Novonor, formerly known as Odebrecht, after the Abu Dhabi National Oil Company's offer to buy its Braskem stake collapsed over a year ago. "After Adnoc withdrew their offer, I began confidential discussions with (Novonor) in absolute secrecy," Tanure wrote in response to questions. Novonor would remain a shareholder in the proposed deal, Tanure said, with the latest proposal reducing its stake from 38.3% to around 3.5%, adding: "I would not make an agreement if they did not remain involved." Tanure said the deal is still under discussion. Novonor confirmed the talks in May, but declined to comment on details provided by Tanure. During the corruption scandal a decade ago, Novonor used its Braskem stake as collateral for some 15 billion reais ($2.7 billion) in bank loans. The shares' value has fallen with profit margins in petrochemical markets and now covers less than a quarter of that debt. Despite Tanure's progress with Novonor, its creditors view his offer with skepticism as they have their own plans for Braskem, according to two people familiar with the matter. State development bank BNDES and other major banks have proposed pooling the shares pledged as collateral into a private equity fund that would make investments to turn the company around before selling the shares, Reuters reported in November. BNDES President Aloizio Mercadante confirmed talks with Petrobras and other banks to resolve the standoff at the time. On Tuesday, the bank declined to comment on Tanure's competing proposal to Novonor. "The success of this acquisition necessarily depends on alignment with (the banks)," Tanure said, although he pushed back at the idea that the lenders effectively control Braskem. "It's important to clarify that the shares still belong to the Novonor group. They are merely pledged to banks as collateral for loans." The Rio de Janeiro-based businessman, who has a track record of investing in companies undergoing contentious restructuring, is a major shareholder in power firm Light (LIGT3.SA) , opens new tab and oil company Prio (PRIO3.SA) , opens new tab. If he can clinch the deal for Braskem, Tanure sees a larger role for Petrobras, which has a right of first refusal for Novonor's stake under their shareholder agreement. "I believe their presence in (Braskem's) operations is small and needs to be expanded," Tanure said. "We must acknowledge that Petrobras has seniority and management expertise in oil companies comparable to the best in the world." Petrobras declined to comment. Last week, Petrobras CEO Magda Chambriard said Braskem was a very important asset, but its current management was "not what we want." Asked by Reuters about Tanure's offer, she said: "We can only applaud. We want a solution." Tanure said his ambitions for Braskem include transforming its Camaçari complex in Bahia state into a hub for sustainable innovation and "green" petrochemicals with lower emissions. ($1 = 5.5626 reais) https://www.reuters.com/business/energy/brazilian-businessman-tanure-courts-banks-after-hatching-braskem-bid-with-2025-06-10/
