2025-05-30 00:04
May 30 (Reuters) - Viva Energy Group (VEA.AX) , opens new tab said on Friday the Victorian government has cleared the construction of its liquefied natural gas (LNG) terminal project in Geelong, amid growing concerns over a potential gas shortage in Australia. The Australian government has been actively seeking gas supply commitments to help close the gap between supply and demand, following a warning from the country's competition regulator that the east coast may face a longer-term shortfall. Sign up here. "We believe the LNG terminal is vital to ensure the secure supply of gas to the south-east market," Chief Executive Scott Wyatt said. The fuel retailer said that the current timeline targets first gas delivery from the proposed project in time for the Victorian winter of 2028. https://www.reuters.com/business/energy/australias-viva-energy-gets-green-signal-proposed-geelong-lng-terminal-2025-05-30/
2025-05-29 23:48
May 29 (Reuters) - Enterprise Products Partners (EPD.N) , opens new tab on Thursday said its ethane and butane exports could be hurt by a U.S. Department of Commerce requirement that it apply for a license to export to China. The United States has ordered a broad swathe of companies to stop shipping goods, including ethane and butane, to China without a license and revoked licenses already granted to certain suppliers, Reuters reported on Wednesday. Sign up here. The Bureau of Industry and Security, an agency of the Department of Commerce, informed the company that exports of ethane and butane pose an unacceptable risk of military end-use in China. Ethane and butane, liquids separated from natural gas, are used to make plastics and chemicals and also for heating and cooking. Chinese petrochemical firms use ethane as a feedstock because it is a cheaper alternative than naphtha, while U.S. oil and gas producers need China to buy their natural gas liquids as domestic supply exceeds demand. Enterprise, one of the top U.S. handlers of ethane and butane through its port terminals, said in a regulatory filing it was evaluating its procedures and internal controls and could not determine if it will be able to obtain a license. In 2024, Enterprise's terminal on the Houston Ship Channel loaded about 213,000 barrels per day (bpd) of ethane, of which about 85,000 bpd, or 40%, went to Chinese markets, the company said. Enterprise cautioned that it cannot determine how alternative markets and uses will develop nor the potential impact on ethane and butane prices. It also said it was uncertain how this restriction may indirectly impact U.S. crude oil and natural gas production and prices as natural gas liquids are byproducts of oil and gas drilling. Enterprise also warned that it was currently unable to ascertain whether these restrictions will have a material adverse effect on the company's financial position, operations, and cash flows. U.S. exports of ethane to China rose to a record 227,000 bpd in 2024, according to U.S. Energy Information Administration data, while those of butane rose to a record 26,000 bpd. Those exports have been seen as one way to reduce China's trade surplus with the U.S. https://www.reuters.com/business/energy/us-terminal-operator-warns-its-ethane-butane-exports-china-could-fall-2025-05-29/
2025-05-29 22:38
BOGOTA, May 29 (Reuters) - Pumping on Colombia's Bicentenario pipeline was suspended after an attack with explosives, its operator Cenit, a subsidiary of state-run energy company Ecopetrol (ECO.CN) , opens new tab, said on Thursday. The attack, in Arauca province, was committed by an unknown group, Cenit said in a statement. Bombings of pipelines are common in Colombia and are often carried out by rebel groups like the National Liberation Army (ELN). Sign up here. The company did not say exactly when the attack took place, but added it was working with disaster authorities and the army to clean up the area. https://www.reuters.com/business/energy/colombias-bicentenario-pipeline-stops-pumping-after-attack-operator-2025-05-29/
2025-05-29 21:57
SEC dismisses lawsuit with prejudice Binance says regulation by enforcement stifles innovation SEC previously dismissed case against Coinbase exchange May 29 (Reuters) - The U.S. Securities and Exchange Commission on Thursday voluntarily dismissed its civil lawsuit against Binance, the world's largest cryptocurrency exchange, extending the regulator's new approach to cryptocurrencies since President Donald Trump reentered the White House. A joint stipulation of dismissal signed by lawyers for the SEC, Binance and Binance founder Changpeng Zhao was filed in the Washington, D.C., federal court. Sign up here. The SEC said dismissing the enforcement case was appropriate "in the exercise of its discretion and as a policy matter," and did not reflect its view on other cryptocurrency litigation. Its dismissal is with prejudice, meaning the SEC cannot pursue the case again. In a statement, a Binance spokesperson called the dismissal "a landmark moment. We're deeply grateful to (SEC) Chairman Paul Atkins and the Trump administration for recognizing that innovation can't thrive under regulation by enforcement." An SEC spokesperson declined additional comment. The SEC sued Binance and Zhao in June 2023, accusing the exchange of artificially inflating trading volumes, diverting customer funds and misleading investors about its surveillance controls. Binance was also accused of unlawfully facilitating trading of several cryptocurrency tokens that SEC leadership during President Joe Biden's administration believed should have been registered as securities. The case was separate from Binance's November 2023 guilty plea and $4.32 billion criminal penalty for violating federal anti-money laundering and sanctions laws through lapses in internal controls. Zhao pleaded guilty to anti-money laundering violations, and was released from prison last September after serving a four-month sentence. In February, the SEC dismissed a separate enforcement case accusing Coinbase, the largest U.S. cryptocurrency exchange, of arranging trading in at least 13 unregistered tokens. The crypto industry has long chafed over regulatory efforts to apply federal securities laws to digital assets, with many companies likening tokens to commodities. Classifying tokens as securities would require cryptocurrency companies to register with the SEC and disclose more to investors. Atkins said on May 12 that developing a regulatory framework that establishes "clear rules of the road" for issuing, trading and safekeeping crypto assets, while discouraging lawbreakers, would be a key priority. On May 20, the SEC sued Unicoin, accusing the startup and executives of fraudulently raising more than $100 million to launch tokens they claimed were safe and backed by real estate and equity in companies that had yet to go public. Trump promised during his 2024 White House run to be a "crypto president," and pledged to reverse an industry crackdown overseen by Atkins' predecessor Gary Gensler. The SEC has since withdrawn or put on hold many cryptocurrency enforcement cases. https://www.reuters.com/sustainability/boards-policy-regulation/us-sec-voluntarily-dismisses-lawsuit-against-binance-2025-05-29/
2025-05-29 21:57
BOGOTA, May 29 (Reuters) - Colombia's investment in exploration and production (E&P) of hydrocarbons could jump some 8% this year to reach $4.68 billion, Colombia's leading industry group said on Thursday, warning this would not prevent a drop in gas production. The Colombian Oil and Gas Association (ACP) said the resources would however, maintain the South American nation's current levels of crude oil production. Sign up here. Investment last year was $4.33 billion, according to the ACP. "Today more investment is required to produce the same amount of oil, due to the natural depletion of the fields and the complexity of the operating environment," ACP President Frank Pearl said. "For gas, we are not managing to either increase production or replenish reserves, which is double the challenge when it comes to energy self-sufficiency," he added. The ACP estimated that $740 million would be invested in exploration this year, while $3.94 billion would go toward production so the country can keep pumping between 760,000 and 770,000 barrels of oil equivalent per day, similar to the 772,000 boepd recorded in 2024. However, it predicted that gas output would decline to 905 million cubic feet per day, compared to 959 million cubic feet last year. Since coming into office in 2022, President Gustavo Petro has sought to reduce the country's dependence on fossil fuels, a major contributor to the nation's economy, and move towards solar and wind energy projects. https://www.reuters.com/business/energy/colombia-oil-gas-ep-investment-could-jump-8-2025-industry-group-says-2025-05-29/
2025-05-29 21:51
Bill could impose 20% tax burden on foreign investors' passive income Demand for US Treasuries, dollar may weaken Some analysts raise more bearish US market outlook NEW YORK/LONDON, May 30 (Reuters) - Wall Street analysts are cautioning that a tax targeting foreign investors in the U.S. budget bill progressing through Congress could end up weighing on demand for U.S. Treasuries and the dollar. The U.S. House of Representatives has approved a sweeping tax and spending bill that includes the possibility of imposing a progressive tax burden of up to 20% on foreign investors' passive income, such as dividends and royalties. Sign up here. The levy, included in section 899, would be paid by entities such as sovereign funds and companies with businesses in the U.S. or individuals from countries that impose taxes the U.S. considers unfair, including digital service taxes. "We see this legislation as creating the scope for the U.S. administration to transform a trade war into a capital war if it so wishes," George Saravelos, head of FX research at Deutsche Bank, said in a note on Thursday, adding the new tax could have an adverse impact on demand for U.S. Treasuries. If passed by the Senate, the rising tax rate on foreigners' investments would come at a time global investors have started to question so-called "U.S. exceptionalism," or its unique ability to outperform other financial markets, due to a growing fiscal deficit and a new trade policy based on tariffs. Financial services firm Brown Brothers Harriman (BBH) said in a note the new tax rate was "playing with fire." "It would deter foreign investment in U.S. assets at a time when the country faces increasing reliance on foreign capital to finance its ballooning debt. Clearly, this is not good for the dollar," said Elias Haddad, BBH's senior markets strategist. If it is also approved by the Senate, it could raise $116 billion in taxes over 10 years, the Congressional Budget Office said, based on estimates produced by the Joint Committee on Taxation. Still, revenues would be nearly flat in 2032 and the provision could turn into losses in 2033 and 2034, according to the calculations. Nomura said there would likely be a push back against the new tax rate or negotiations to seek exemptions for Treasuries and agency mortgage-backed securities, as the bank considers the burden on overseas investors could have unintended consequences for those assets. Rajeev Thakkar, chief investment officer and director at PPFAS Mutual Fund, said an increase in tax rates on investors "may reduce their appetite somewhat." DOLLAR WEAKNESS Geoff Yu, EMEA macro strategist at BNY in London, said that based on his observation of investor flows, there had not been an immediate reaction. "Treasuries are offering value right now - you're getting higher yields, the dollar is weaker," he said, which are both compensating for other factors. U.S. 10-year Treasury yields are trading at around 4.4% . Others noted a more bearish longer-term outlook for U.S. markets. Morgan Stanley said in a note that the new tax would weaken the dollar, as it would reduce foreign appetite for U.S. assets. The U.S. currency is down roughly 8% this year against a basket of other major currencies and is on track for its worst year since 2017. According to law firm Davis Polk, nations that could be considered "discriminatory foreign countries" include many that are part of the European Union, as well as India, Brazil, Australia and the United Kingdom. International companies with subsidiaries in the U.S., which employ 8.4 million workers, also fear the higher tax burden could make it more difficult to operate in the world's biggest economy. In a recent statement, the Global Business Alliance, which represents foreign companies in the U.S., said a tax hike would threaten investments in the country. The White House did not immediately comment on the impact of the new tax burden. https://www.reuters.com/business/finance/wall-street-fears-foreign-tax-budget-bill-may-reduce-allure-us-assets-2025-05-29/
