2024-12-02 20:23

Most exported to Europe at higher prices Production could go even higher in December UK was major player in the market HOUSTON, Dec 2 (Reuters) - U.S. LNG exports to Europe surged in November as the world's largest producer of the superchilled gas sent more cargoes to the continent and fewer to Asia and Latin America, according to preliminary data from financial firm LSEG. European natural gas prices climbed in November to their highest levels in two years on fears remaining Russian pipeline supplies to Europe will be halted or face further curtailment. European natural gas prices averaged $12.90 per mmbtu in November, more than a dollar higher than $11.79 in October and higher than $12.32 in September, with the benchmark front-month contract at the Dutch TTF hub reaching 49.03 euros per megawatt hour on Nov. 22, equivalent to $14.97 per million British thermal units (mmBtu). The United States is the world's largest LNG exporter and played a major role in 2022 after Russia's invasion of Ukraine led to sharp reductions in Europe's access to Russian gas imports. Nearly seven of every 10 U.S. LNG cargoes headed to Europe in November as LNG exports rose to more than 7.75 million metric tons (MT), up from 7.56 MT in October, with cooler weather favoring higher output, according to LSEG data. Exports to Europe reached 5.09 MT in November or 68% of total LNG exports, up from 3.65 MT, or just under 48% of total exports recorded in October. Asia accounted for about a fifth of total exports, according to LSEG data. The U.K. was a major player in the market, buying .81 MT, or one in every seven cargoes sold to the continent, according to LSEG data. With the arbitrage favoring Europe, U.S. LNG exports to Asia fell to 1.64 MT or 21% of total exports in November, from 2.67 MT or 35% in October, LSEG data showed. There were fewer U.S. LNG cargoes destined for Latin America in November with only .58 MT sold to the U.S. neighbors in November, down from .9 MT in October, LSEG data showed. There were three cargoes sent to Egypt for a total of .23 MT and three cargoes for a total .21 MT that were for orders with no set destination as of Nov. 30. U.S. producers have been ramping up output as the weather cools with top exporter Cheniere Energy (LNG.N) , opens new tab leading the way. On Monday, Cheniere was expected to pull over 5 billion cubic feet (bcf) of natural gas for the fifth time in seven days at its Sabine Pass, Louisiana, export plant, according to LSEG data. Overall U.S. LNG natural gas demand averaged 13.65 bcf per day in November and could have been higher had the second-largest U.S. LNG exporter, Freeport LNG, not experience several outages in November, LSEG data showed. With the United States expecting first LNG in December from Venture Global's 20 MTPA Plaquemines LNG plant in Louisiana and Cheniere's 10 MTPA midscale expansion project, also in the Pelican state, this month could challenge the U.S. all-time record LNG production. Sign up here. https://www.reuters.com/markets/commodities/us-lng-exports-europe-surge-november-higher-prices-2024-12-02/

2024-12-02 20:02

Dec 2 (Reuters) - Slovakia expelled two men suspected of monitoring energy infrastructure targets including along a major pipeline carrying gas from Ukraine, and Interior Minister Matus Sutaj Estok said on Monday security services had dismantled a rogue cell. The men were deported to Ukraine and Hungary, Sutaj Estok said in a video on Facebook. Slovakia's government held a national security council meeting last week to discuss the threat of attacks. "Members of the security and intelligence forces of the Slovak Republic were able to dismantle a rogue cell that posed a potential risk to our security," Sutaj Estok said. He said Slovakia had seen similar security incidents in recent years, including damage to the Nord Stream pipeline or arson attacks in the Czech Republic, and was taking measures to prevent similar attacks. Officials have said they were stepping up preventive measures. Sutaj Estok said security actions centred around activities by two foreigners and a Slovak citizen suspected of planning possible attacks on energy infrastructure. He did not name any state actor behind the cell or any specific attacks being planned. The men used a drone to monitor a transformer station in Velke Kapusany in the east of the country along the Ukraine border, as well as a compressor station for the gas pipeline running there from Ukraine that transports Russian gas, he said. Other equipment was also discovered, including a number of telephones, notebook, thermal cameras, ballistic vests and other items. One suspect also used a car at a railway station at the time of loading Slovak army equipment, Sutaj Estok said. Sign up here. https://www.reuters.com/world/europe/slovakia-expels-two-suspected-monitoring-energy-targets-including-gas-pipeline-2024-12-02/

2024-12-02 19:59

High price of goal lures gold-diggers in Amazon Members of Munduruku enter illegal trade Environment agents swoop to break up camps JACAREACANGA, Brazil, Dec 2 (Reuters) - The involvement of Indigenous people in illegal gold hunting, lured by the prospect of easy money due to record prices, has made Brazil's task of cracking down on wildcat mining in the Amazon far harder, environmental agents and police say. The Munduruku territory, a reservation the size of Switzerland on the Tapajos river, a major Amazon tributary, has become a hot spot for illegal mining, which Brazilian law bans on Indigenous land. But increasingly, Munduruku tribe members are entering the illegal trade that is backed by organized crime. On a recent enforcement operation by Brazil's environmental protection agency IBAMA, agents swooped down in helicopters on muddy tailing ponds to find a camp in a clearing, but the miners had fled, alerted by the noise of the approaching choppers. A pressure cooker on a gas stove was still hot, and dogs barked. The agents destroyed two motors used to pump water through filters to trap nuggets of gold. They said the hammocks and clothing were evidence the miners were Indigenous. Gold mining has brought division within the Munduruku tribe, a majority of whom believe it is wrong, though their leaders say lack of government assistance forces people to seek other ways to deal with poverty. On one recent morning, panhandler Samuel Manga Bal found 60 grams of gold on the river: 20 times his usual daily amount. But his brother Domingo was furious and threatened to kill him if he continued, so he was forced to leave their village. "He wanted me gone," said Manga Bal, now living off growing manioc, but intending to return to mining when he can. "I'm going to go back to mining, because things are so bad now. We don't even have coffee, there's no sugar, nothing, no food, just manioc flower." The reservation is located in the municipality of Jacareacanga, a booming town of 26,000 people, where large 4x4 pickups roar along mostly unpaved streets and shops openly buy gold from miners. Trucks arrive carrying heavy backhoes and uploaders used to dig prospecting ponds. MONEY-MAKER Despite visible poverty, Jacareacanga's per capita GDP is 90,000 reais ($15,157.38), higher than Sao Paulo, Brazil's largest metropolis, a sure sign of the illegal wealth gold mining is generating. Very little taxation is collected, even though the trading of gold is public for all to see in Jacareacanga. President Luiz Inacio Lula da Silva has pledged to wipe out illegal mining that boomed under his far-right predecessor Jair Bolsonaro and has become harder to repress across the Amazon. Evicting miners has become more difficult on the Munduruku territory now that tribe members are looking for gold. Tribal leaders estimate 40% of the gold mining on the reservation is carried out by Indigenous people today. To make matter worse, local police officers have been taking bribes from a gold mining business to turn a blind eye, according to a document seen by Reuters. In a village 10 minutes away by boat, local Chief Jonathan Kaba Biorebu said the way to stop illegal mining is to tap funding for sustainable development. He suggested selling carbon credits to companies seeking offsets for pollution. His village has benefited from a carbon credit deal signed by the local Pusuru Indigenous Association that plans to build 40 wells for drinking water. The association built its offices in the Jacareacanga with carbon credit funding. But Kaba Biorebu is skeptical that carbon credit will become so common as to generate enough income to replace gold mining. The non-Indigenous population of Jacareacanga are all for legalizing the informal mining, known as "garimpo" in Portuguese. "The income here is gold mining," said general store owner Claudemir Pereira. "The majority of the population here depends on this, even the indigenous people, many of whom work mine for gold to survive." The government coordinator for expelling gold mining from Indigenous territories, Nilton Tubino, dismissed legalization and said big mining companies have lobbied against it. A bill to legalize informal mining is stalled in Congress. Sign up here. https://www.reuters.com/business/environment/indigenous-mining-complicates-brazils-fight-against-illegal-gold-2024-12-02/

2024-12-02 19:06

NEW YORK, Dec 2 (Reuters) - Duke Energy (DUK.N) , opens new tab is pausing its assessment of certain U.S. energy infrastructure improvement loans, citing uncertainty over the future of funding under the Trump administration, according to a filing from last week. The electric utility told North Carolina regulators in a letter on Nov. 27 that it would put on hold its work to determine the costs and benefits of tapping into the federal Energy Infrastructure Reinvestment Program. "It is in the best interest of customers to pause any further efforts or expenditures until February, following the appointment of the new administration to gain clarity on the future of the EIR Program," Duke said in its filing with the North Carolina Utilities Commission. The EIR includes low-interest loans, under the Inflation Reduction Act, to help companies transition away from high-carbon-emitting power sources like coal to cleaner or more efficient energy systems. The viability of the IRA, which has been a key driver in the development of low- and no-carbon power supply since being signed into law in 2022, has been thrown into question since the election last month of Donald Trump, who will be sworn in as president on Jan. 20. In North Carolina, coal-fired power plants are expected to be phased out in the 2030s to meet state climate-focused goals. Duke has plans to shift some of its coal-fired power production to natural gas and renewable sources like wind and solar. EIR loans could help lower Duke's infrastructure buildout expenses and lower costs to consumers, said Michelle Carter, clean energy campaigns director at the North Carolina League of Conservation Voters. "There are many more possibilities for the existing coal plants that we have in the state that could use the EIR program to transition to cleaner and cheaper energy much faster than Duke is currently doing," Carter said. Duke was not immediately available for further comment. Sign up here. https://www.reuters.com/business/energy/duke-pauses-assessment-us-energy-loan-program-ahead-trump-administration-2024-12-02/

2024-12-02 16:11

Norway has world's largest sovereign wealth fund Operates under ethical guidelines set by parliament Fund divests from firms found in breach of guidelines OSLO, Dec 2 (Reuters) - The Norwegian sovereign wealth fund's ethics watchdog will next year investigate shoemakers, crypto firms and gambling operators in which the fund has holdings for potential ethical breaches, which could lead the influential investor to sell its shares. The world's largest sovereign wealth fund, which owns 1.5% of listed shares across 8,700 companies globally, operates under ethical guidelines which are set by Norway's parliament. The $1.8 trillion fund's Council on Ethics investigates companies in which it has money invested to ensure these are respected. If they are not, the ethics watchdog recommends the fund divests from them or puts them on a public watch list. A document drafted by the council and sent to the finance ministry on Oct. 10, which was seen by Reuters, said that next year it "will investigate work conditions at a significant number of shoe producers", without naming any. Working conditions at shoe factories in Asia have been under the spotlight for decades, with issues ranging from long hours and low pay to the right to form unions. The document outlining the plan for 2025, which has not been previously reported, says: "companies have a direct responsibility for working conditions within their own operations and gross, systematic breaches of workers' rights can lead to exclusions from the fund". The watchdog said in an emailed statement that its programme "indicates that these are issues the Council will look into", adding: "It is not possible for the Council to predict the outcome of the investigations". CRITERIA Norway's fund currently excludes 189 companies on ethical grounds, including Airbus (AIR.PA) , opens new tab and Boeing (BA.N) , opens new tab for making nuclear weapons and Glencore (GLEN.L) , opens new tab and RWE (RWEG.DE) , opens new tab for producing coal or coal-based energy. Other criteria which dictate its investment decision-making include violation of human rights, severe environmental damage, gross corruption or producing tobacco and cannabis. The fund invests in some of the biggest shoe manufacturers, including Nike (NKE.N) , opens new tab, with a 0.9% stake worth $1 billion, Adidas (ADSGn.DE) , opens new tab, with a 3.6% stake worth $1.5 billion and Puma (PUMG.DE) , opens new tab, with a 1.5% stake worth $100 million. Others include Deckers (DECK.N) , opens new tab, in which the fund has a 1.2% stake worth $300 million, Asics (7936.T) , opens new tab, where its holding of 2.7% is worth $310 million, Birkenstock, in which it has 1.7% worth $170 million and Crocs, with 1.2% worth $100 million. Adidas said last week it had taken "a variety of measures to ensure fair and safe working conditions for workers in its supply chain" over the past 25 years, including conducting 1,200 factory audits last year. Puma said it had invested "a vast amount of time and resources ... to ensure a very high standard regarding ESG topics" for the past 20 years, including requiring all suppliers to sign up to a legally binding code of conduct and actively investigating breaches reported. Puma added that it had high ESG ratings and rankings from MSCI, S&P, ISS and CDP, and was therefore "fully open to collaborate" with the Council on Ethics should it have questions. Nike, Deckers, Asics, Birkenstock and Crocs did not respond to Reuters requests for comment. CRYPTO, GAMBLING The document outlines work the ethics watchdog has already started, as well as new areas for investigation next year. "The Council on Ethics in 2025 will take a closer look at companies involved in cryptocurrencies and gambling/casino, where there is a significant risk of money laundering," it said. Norway's fund is invested in cryptocurrency exchange Coinbase (COIN.O) , opens new tab, with a 0.83% stake worth $453 million as well as gambling firms Flutter Entertainment (FLTRF.L) , opens new tab, in which it has a 2.13% stake worth $691 million and MGM Resorts (MGM.N) , opens new tab, where its 0.87% stake is worth $121 million. Coinbase, Flutter Entertainment and MGM Resorts did not immediately reply to requests for comment. Elsewhere, the watchdog will continue to investigate "several companies" that could be breaching human rights in the occupied West Bank, as previously reported by Reuters. The Council on Ethics makes recommendations to the board of the central bank, which operates the fund. The bank often follows the watchdog's advice to exclude firms, but not always. It can also put a company on notice to change its behaviour or ask the fund's management to engage directly. Those designated for divestment are not named until the fund has sold. The length of time to divest can range from weeks to months, depending on the size of the company. The fund divests from a company progressively so as not to alert markets. Sign up here. https://www.reuters.com/markets/europe/norway-wealth-fund-ethics-watchdog-scrutinise-shoe-producers-crypto-companies-2024-12-02/

2024-12-02 12:35

LONDON, Dec 2 (Reuters) - Iberdrola’s Scottish Power (IBE.MC) , opens new tab said it is seeking 1,000 recruits next year and has urged workers facing redundancy at the Scottish Grangemouth oil refinery and British construction firm ISG to apply for roles. Britain increased the ambition of its climate targets at last month’s annual U.N. climate talks and said it is aiming to create thousands of green jobs through investments in technology to curb emissions. Glasgow headquartered Scottish Power is investing 24 billion pounds ($30.50 billion) between 2024 and 2028 in power infrastructure needed to help Britain meet its climate goals. "Workers at both Ineos (Grangemouth) and ISG will have the sought after skills we are looking for and we have the jobs to match," Sarah McNulty, people and organisation director at Scottish Power, said in a statement. The Grangemouth oil refinery, owned by Petroineos a joint venture between PetroChina International London and INEOS Group, is set to close in the second quarter of next year under plans to turn the 100-year old site into a fuels import terminal leading to the loss of around 400 jobs. ISG, owned by the U.S. firm Cathexis, collapsed last year leading to more than 2,000 redundancies. ($1 = 0.7868 pounds) Sign up here. https://www.reuters.com/business/scottish-power-invites-grangemouth-isg-workers-apply-2024-12-02/