2025-03-04 11:26
FRANKFURT, March 4 (Reuters) - Germany's natural gas usage could fall some 3% to 7% by 2030 from current levels while it remains central to the country's energy supply, consultants McKinsey said on Tuesday. McKinsey researchers said they had lowered their forecast, but less than those in economy ministry long-term scenarios, because McKinsey anticipates a slower-than-expected transition to electric heat pumps from gas-burning boilers, and stronger than anticipated gas demand in power generation and district heating. WHY DOES IT MATTER? Europe's biggest economy is at energy crossroads, with a conservative-led government expected to bring a more sober update to Germany's energy transition, after a hasty over-reliance on renewable power has turned out to come with some cost and supply risks. McKinsey's six-monthly energy transition index captures trends towards an expected turnaround, which utilities say must address gaps created by the country's nuclear exit in 2023 and a planned withdrawal from coal generation in the coming years. Since Ukraine on January 1 ended transit for Russian pipeline gas, Europe is turning more strongly to seaborne imports of liquefied natural gas (LNG) from the world market. BY THE NUMBERS McKinsey calculated a possible decline to between 690 to 720 terawatt hours (TWh) of German gas use by 2030, down from the current 740 TWh. This would be above between 550 and 650 TWh cited by network development plans drawn up by grid operators on the basis of the minsitry scenarios, it said. German households and businesses consume 45% of annual gas demand, industry uses 30% for its processes, and power stations 25%. KEY QUOTES "Germany will probably be dependent on natural gas for longer than previously assumed," said Thomas Vahlenkamp, senior partner in McKinsey's Duesseldorf office. An abstract from the report referred to the increasing shift to LNG reliance, pointing out, "a tight supply situation could lead to price spikes." Sign up here. https://www.reuters.com/business/energy/german-gas-use-could-fall-3-7-by-2030-mckinsey-says-2025-03-04/
2025-03-04 11:25
BEIJING, March 4 (Reuters) - New Chinese tariffs on American agricultural goods will affect some $21 billion worth of U.S. exports, a Reuters analysis of U.S. census data showed. The biggest blow by value will be to the U.S. soybean trade, the country's largest agricultural export to China, which will be hit by a 10% tariff and was worth just shy of $13 billion last year, the data showed. Reuters estimated the overall impact by comparing the 740 items listed by China on Tuesday against the U.S. census' trade database. Categories such as vegetables or aquatic products contained hundreds of individual items, ranging from frozen haddock fish to onions. In the case of pork or beef, tariffs covered frozen and fresh meat as well as offal. For a complete list of the 740 items published by China's Ministry of Finance see here , opens new tab. Sign up here. https://www.reuters.com/world/which-us-agricultural-products-did-china-hit-with-tariffs-2025-03-04/
2025-03-04 11:19
Putin and Hlaing to meet Hlaing rarely travels abroad Russia seeks widening of cooperation Kremlin: documents will be signed MOSCOW, March 4 (Reuters) - Russia told Myanmar's leader and military junta chief Min Aung Hlaing on Tuesday that Moscow saw good prospects for expanding cooperation in a range of areas including agriculture and nuclear energy. "Despite the illegitimate sanctions against Russia and Myanmar, our trade and economic cooperation is developing successfully, and mutual trade is growing," Prime Minister Mikhail Mishustin said. "There are good opportunities to increase our cooperation in the energy sector, peaceful nuclear energy, transport infrastructure, and agriculture," Mishustin said, according to the Interfax news agency. Russian companies plan to invest in Myanmar's special economic zone in Dawei, Mishustin said, without naming specific firms. The long-delayed Dawei project on the Andaman Sea is intended to be a major hub for industry, technology and transport. Hlaing, 68, who rarely travels abroad, was greeted earlier by Sergei Shoigu, one of President Vladimir Putin's top security officials. He was also due to meet Putin, and the Kremlin said documents would be signed with Myanmar. "We have been very actively developing relations with Myanmar. This is a very important partner of ours in East Asia," Kremlin spokesman Dmitry Peskov said. The country of 55 million people has been in turmoil since February 2021 when the military ousted the administration of Nobel peace prize winner and NLD party leader Aung San Suu Kyi. The junta plans this year to hold an election, which critics have derided as a sham to keep the generals in power through proxies. Along with China, Russia is a supporter of Myanmar's military and has said it is developing cooperation , opens new tab, including between their air forces. The Soviet Union established relations with Myanmar on its independence from Britain in 1948. Russia and Myanmar have long been talking about building a small nuclear power plant in Myanmar that would have a RITM-200 pressurised water reactor. Sign up here. https://www.reuters.com/world/europe/russia-greets-myanmars-junta-chief-moscow-2025-03-04/
2025-03-04 11:13
MOSCOW, March 4 (Reuters) - Kazakhstan plans to increase its oil exports through the Caspian Pipeline Consortium (CPC) pipeline to 6.7 million metric tons in March, from 5.4 million tons in February, Kazakhstan's Energy Ministry told Reuters in a written response to questions. The proposed amount is equivalent to about 1.71 million barrels of oil per day (bpd). On a daily basis, oil supplies from Kazakhstan's oil fields to the pipeline are expected to rise 12% from February, according to Reuters calculations. March is three days longer than February this year. Kazakhstan's average daily oil and condensate output in February was 287,000 metric tons per day, or 2.15 million bpd, including 118,000 tons (about 0.9 million bpd) per day produced on the giant Tengiz field operated by Chevron-led Tengizchevroil, according to the Energy Ministry. The CPC pipeline also carries oil from Russian fields. The export plan including Russia's oil exports was seen at 6 million tons in February, around 1.69 million bpd. Reuters uses a tons-to-barrels ratio of 7.91 for CPC Blend. For Kazakhstan's total oil and condensate output the ratio is 7.5. It is not clear if Russian oil supplies to the CPC pipeline will continue in March following an attack on the Kropotkinskaya station. Russia previously said CPC could reduce flows by 30-40% following the attack. Kazakhstan's Energy Ministry told Reuters that oil exports via the CPC pipeline and the Black Sea terminal had not been interrupted and were in line with the schedules. It added that there were no plans to redirect CPC oil flows elsewhere. The Caspian pipeline, which carries more than 1% of daily global supply, stretches more than 1,500 km (939 miles) and is a main route for Kazakh oil exports. Shareholders in the CPC include U.S. majors Chevron (CVX.N) , opens new tab and Exxon Mobil (XOM.N) , opens new tab, as well as the Russian state, Russian firm Lukoil (LKOH.MM) , opens new tab, and Kazakh state company KazMunayGas. Sign up here. https://www.reuters.com/business/energy/kazakhstan-plans-12-increase-caspian-cpc-oil-exports-march-energy-ministry-says-2025-03-04/
2025-03-04 11:12
New copper mine expected online in 2029 Could produce up to 60,000 T of copper annually, company says Mine cost to exceed earlier $600 million estimate, CEO says Gold rally drives Harmony's half-year profit up 33% JOHANNESBURG, March 4 (Reuters) - Harmony Gold (HARJ.J) , opens new tab, South Africa’s biggest gold producer by volume, will fund the construction of a new Australian copper mine using its own cash, the miner said on Tuesday, as its earnings jumped on a rally in gold prices. The Johannesburg-based miner is diversifying into copper - a metal critical to electric vehicles and power grid infrastructure - as gold mining in South Africa becomes more costly and geologically challenging due to increasing depth. Harmony wholly owns the Eva copper project in Queensland, Australia, and is joint owner with Newmont (NEM.N) , opens new tab of Wafi Golpu in Papua New Guinea. The mine in Australia could produce 55,000 metric tons to 60,000 tons of copper annually from 2029, the company says. The cost of building the mine, expected to take about three years, could be higher than an initial estimate of $600 million, CEO Beyers Nel told Reuters. Harmony is "blessed with a robust and flexible balance sheet and quite comfortable" that it can fund the construction of Eva copper mine on its own, Nel said. Finance director Boipelo Lekubo told analysts the surge in the gold price was a significant tailwind which had increased Harmony's net cash position to nearly $400 million. This and available financing facilities mean Harmony has about $1 billion it can use on its growth projects. Gold prices have risen more than 20% over the past year, driven by safe-haven demand amid global economic uncertainty and central bank buying. Nel said Harmony was updating the planned mine’s studies before announcing how much financing would be required. Harmony also owns the Hidden Valley gold mine in Papua New Guinea. It is among a dwindling number of South African gold miners still battling to squeeze profits from some of the world’s deepest mines. Earlier on Tuesday, Harmony said its net profit jumped 33% to 7.9 billion rand in the six months to December 2024, reaping a windfall from a 28% increase in the price of gold during the half-year period. Harmony said it would pay an interim dividend of 2.27 rand per share or about 1.4 billion rand, compared to about 1.47 rand per share paid out a year ago. ($1 = 18.5896 rand) Sign up here. https://www.reuters.com/world/africa/harmony-gold-half-year-profit-up-33-higher-bullion-price-2025-03-04/
2025-03-04 10:37
NEW YORK/LONDON, March 4 (Reuters) - Mexico's peso rose against the dollar in a volatile session on Tuesday, as traders priced the effect of newly imposed U.S. tariffs of 25% on imports from Mexico. The peso strengthened late in the session after U.S. Commerce Secretary Howard Lutnick told Fox Business that President Donald Trump will reach a middle ground with Canada and Mexico on tariffs and an announcement to that effect was expected on Wednesday. Mexico's trade-dependent economy sends around 80% of its exports to the United States. President Claudia Sheinbaum said some Mexican agricultural exports like avocados could find other destinations, adding she would announce Mexico's full response on Sunday. Investors rightly recognize that imposing 25% tariffs on Mexico and Canada would be an act of economic self-sabotage for the U.S. according to Alejo Czerwonko, chief investment officer for emerging markets in the Americas at UBS Global Wealth Management. "Sheinbaum has been skilfully managing U.S. pressures," he added. Mexican stocks also staged a comeback, with the local benchmark (.MXX) , opens new tab up 0.6% on the day after earlier touching its lowest in five weeks. At its session low, the index fell over 2% while the bounce back took it to a 1.2% gain. The peso fell as much as 1.5% on the day to 21.002 per dollar, the weakest since a tariff-related selloff in early February. But the afternoon rally brought the currency back to positive territory and it ended the day up 0.48% at 20.586 per dollar. The greenback fell across the board as investors weighed the dollar support from tariffs against the economic impact in the U.S., where stocks and bond yields also fell. JPMorgan analysts said Tuesday they continue to believe tariffs will be temporary, with an immediate price reaction on the peso in a range from 2% stronger to 4% weaker. The currency has lost a fifth of its value to the dollar since last April, having been hit with both concerns over U.S. trade and domestic political and constitutional changes. Sign up here. https://www.reuters.com/markets/currencies/trump-tariffs-push-mexicos-peso-toward-2022-lows-2025-03-04/
