2025-12-25 09:49
Russia aimed for 20% of global LNG market by 2030–2035 LNG output projected at 90–105 mln tons by 2030 Russia's oil output seen stable in 2025 MOSCOW, Dec 25 (Reuters) - Russia has pushed back by "several years" a plan to reach an annual liquefied natural gas output target of 100 million tons, Deputy Prime Minister Alexander Novak told state TV on Thursday, citing the effect of Western sanctions on its energy industry. Russia's long-term plans to gain a fifth of the global LNG market by 2030-2035, from 8% currently, have been challenged by sanctions imposed over the conflict in Ukraine, including against the new Arctic LNG 2 plant. Sign up here. A recently updated government strategy, which outlines Russia's long-term plans in energy sector, sees the country producing 90-105 million tons of LNG by 2030 and 110-130 million tons by 2036. "Our goal was to reach 100 million tons. It is clear that, due to sanctions-related restrictions, this will now be pushed back by several years," Novak told Rossiya-24 TV station, without elaborating. Novak also said that Russia's oil and gas condensate production this year is seen broadly unchanged from 2024, at around 516 million tons, or some 10.32 million barrels per day. That's an improvement on a previous outlook for 1% decline, given by President Vladimir Putin in October. Russia's LNG production rose by 5.4% in 2024 to 34.7 million tons, below the expected 35.2 million tons. The European Union plans to ban Russian LNG imports from January 1, 2027, while there is also fierce competition form the United States, which is expanding sales in Europe, and from Qatar, which already dominating sales to Asia. Postponements in the implementation of the Arctic LNG 2 project, which started production in December 2023 but was only able to deliver a first cargo to end-buyers in China this August, underscore Russia's struggle to significantly raise LNG output. Murmansk LNG, which is slated to become Russia's largest LNG plant, with eventual output of 20.4 million tons per year, also faces delays. https://www.reuters.com/business/energy/russia-delays-lng-output-target-100-million-tons-per-year-due-sanctions-2025-12-25/
2025-12-25 09:20
TOKYO, Dec 25 (Reuters) - Japan Iron and Steel Federation Chairman Tadashi Imai said on Thursday that China's planned export-licence requirement would not be effective in curbing steel export volumes or support a recovery in prices. The world's largest steel producer, China, plans to roll out a licence system from 2026 to regulate exports of the metal, as robust shipments have fuelled a growing protectionist backlash worldwide. Sign up here. "Our understanding is that this measure is intended to curb exports of substandard steel products, and we don't believe it will be an effective countermeasure for current issues such as suppressing export volumes or influencing market prices," Imai told a press conference, adding that the permits were aimed at controlling product quality. Ballooning exports by Chinese steelmakers have become an international concern, with Japan among countries criticising Chinese firms for receiving government subsidies that encourage overproduction and low-priced exports, worsening global market conditions. The federation forecast Japan's domestic steel demand from the construction and manufacturing sectors would remain flat in the fiscal year starting in April, with crude steel output expected to be unchanged from the current year. The Japanese trade and industry ministry predicted this week that Japan's crude steel output for the current year would fall 3.2% to 80.33 million metric tons, the lowest since fiscal 1968. Asked about the impact from U.S. tariffs, including a 50% levy on steel and a 15% tariff on Japanese goods, Imai, who is also president of Nippon Steel (5401.T) , opens new tab, said the tariffs would cut about 20 billion yen ($130 million) from his company's profit this fiscal year, with exports to the U.S. halving from a year earlier. "But the overall impact, including indirect effects from the 15% tariff on automobiles, was smaller than we had anticipated," he said. ($1 = 155.8400 yen) https://www.reuters.com/world/asia-pacific/chinas-export-licences-wont-reduce-excess-steel-exports-japan-lobby-head-says-2025-12-25/
2025-12-25 08:57
HANOI, Dec 25 (Reuters) - Vietnam's largest conglomerate, Vingroup (VIC.HM) , opens new tab, said on Thursday it would withdraw its investment proposal for the nation's $67-billion North–South high-speed railway project to concentrate on its other projects. The decision on the registration, which was submitted in May, followed a reassessment of resources after Vingroup was awarded major national projects, including an Olympic-standard stadium and rail lines connecting key locations, the company said in a statement. Sign up here. Shares of Vingroup and its units, including developers Vinhomes (VHM.HM) , opens new tab and Vincom Retail (VRE.HM) , opens new tab, fell 7% and hospitality firm Vinpearl (VPL.HM) , opens new tab was down 3% after the announcement, dragging the benchmark index (.VNI) , opens new tab down 2.24%. In May, Vinspeed, a subsidiary founded by Vingroup Chairman Pham Nhat Vuong, proposed the bid for the 958-mile (1,540-km) railway linking Hanoi and Ho Chi Minh City, promising to self-fund 20% of the project while seeking an 80% state-funded loan at zero interest over 35 years. However, the central bank expressed concerns over Vingroup's high leverage and lack of experience in rail infrastructure, warning that the loan request and required guarantees could pose risks to banking stability. A May 19 opinion reviewed by Reuters indicated the proposal would need "special state guarantees." The finance ministry also flagged the proposal's zero-interest terms and 30-year debt repayment schedule, servicing only at maturity, as equivalent to a state subsidy that could impact Vietnam's credit ratings. In addition to Vingroup, investors including auto industry company THACO, Vietnam Railways and Vietnam Investment and Development Group have shown interest in the high-speed rail project. Vingroup said its withdrawal would not impede the project's progress and would allow the company to focus on delivering other large-scale initiatives. The government has said the winner of the North-South railway will be announced in January. https://www.reuters.com/world/asia-pacific/vietnams-vingroup-withdraw-bid-67-bln-north-south-high-speed-railway-2025-12-25/
2025-12-25 08:41
FY2026 budget totals 122.3 trln yen, 29.6 trln yen new bond issuance Debt reliance to fall from this fiscal year, Takaichi says TOKYO, Dec 25 (Reuters) - Japanese Prime Minister Sanae Takaichi sought on Thursday to ease market concerns over her expansionary fiscal policy, saying the government's draft budget maintains discipline by limiting reliance on debt. There has been growing investor unease about fiscal expansion under Takaichi's administration, which has driven super-long government bond yields to record highs and weighed on the yen. Sign up here. The budget for the year starting in April, to be finalised on Friday and submitted to parliament early in 2026, will total 122.3 trillion yen ($785.4 billion), Takaichi told ruling coalition executives. The huge spending will come on top of a 21.3 trillion yen stimulus package, compiled in November and funded by a supplementary budget for the current fiscal year, that focused on cushioning the blow to households from rising living costs. Despite the record size, new government bond issuance for the next fiscal year will be capped at 29.6 trillion yen, staying below 30 trillion yen for a second straight year, she said. The reliance on debt will fall to 24.2% from 24.9% in the initial fiscal 2025 budget, which dipped below 30% for the first time in 27 years, she said. The 24.2% debt dependence ratio would be the lowest since 1998. "We believe this draft budget strikes a balance between fiscal discipline and achieving a strong economy while ensuring fiscal sustainability," Takaichi said. In a separate speech at Japanese business lobby Keidanren, Takaichi said that her "responsible, proactive" fiscal policy means strategic spending with a long-term perspective. "It does not mean expanding expenditures indiscriminately based solely on scale," she said. In a report to clients, Yusuke Matsuo, Mizuho Securities' senior market economist, said Takaichi would still need to promote proactive fiscal spending to avoid alienating her political base. He added that financial markets could be reassured if the government sticks to a less aggressive stance on spending. Signalling a shift in the government's reflationary policy push, private-sector members of a government panel on Thursday called on the government to clearly show the public how the debt-to-gross domestic product ratio can be steadily reduced under Takaichi's government. The four private-sector members include former Bank of Japan Deputy Governor Masazumi Wakatabe and economist Toshihiro Nagahama - known as reflationist aides of Takaichi. Their proposals were discussed at the Council on Economic and Fiscal Policy (CEFP), which oversees Japan's fiscal blueprint and long-term economic policies. ($1 = 155.7200 yen) https://www.reuters.com/world/asia-pacific/japan-pm-stresses-fiscal-discipline-next-years-budget-with-lower-debt-reliance-2025-12-25/
2025-12-24 23:35
TOKYO, Dec 23 (Reuters) - Japan will conduct test mining of rare-earth-rich mud from the deep seabed off Minamitori Island, some 1,900 kilometres (1,180 miles) southeast of Tokyo, from January 11 to February 14, the head of the government-backed project said on Tuesday. The operation will mark the world's first attempt to continuously lift rare-earth mud from a depth of around 6,000 meters on to a vessel. Sign up here. Tokyo, like its Western allies, is seeking to secure stable supplies of critical minerals as China, the dominant supplier of rare earths, tightens export controls. "One of our missions is to build a supply chain for domestically produced rare earths to ensure stable supply of minerals essential to industry," Shoichi Ishii, program director of the Cabinet Office's national platform for innovative ocean developments, told reporters. The Japanese government is pressing ahead with a national project as part of broader efforts to strengthen maritime and economic security. The January test will focus on connecting the deep-sea mining system and confirming its ability to lift 350 metric tons of rare-earth mud per day. Environmental impacts will be monitored both on board and on the seabed throughout the operation. No production target has been set, but if successful, a full-scale mining trial will be conducted in February 2027. The government-funded project has spent about 40 billion yen ($256 million) since 2018, Ishii said, though estimated reserves have not been disclosed. Ishii also said that while their research vessel was conducting rare-earth surveys within Japan's exclusive economic zone (EEZ) around Minamitori Island from May 27 to June 25, a Chinese naval fleet entered the waters on June 7. "We feel a strong sense of crisis that such intimidating actions were taken, despite our activities being limited to seabed resource surveys within our EEZ," he said. China's foreign ministry said the activities of its military vessels are in line with international law and international conventions, and called on Japan to "refrain from hyping up threats and provoking confrontation," in a reply to Reuters' request for comment. ($1 = 156.0200 yen) https://www.reuters.com/world/asia-pacific/japan-test-mine-rare-earth-mud-deep-seabed-2025-12-23/
2025-12-24 23:22
Crews rescue dozens from high water in mountain community Residents in flood zones warned to flee or shelter in place Motorists urged to keep travel to minimum LOS ANGELES, Dec 24 (Reuters) - Torrential rains unleashed widespread flash flooding and mud flows across Southern California on Wednesday, as authorities warned motorists to stay off roads while urging residents in flood zones to evacuate or shelter in place. In the rain-soaked mountain resort of Wrightwood, east of Los Angeles, emergency crews spent much of the day answering dozens of rescue calls and pulling drivers to safety from submerged vehicles, San Bernardino County Fire Department spokesperson Christopher Prater said. Sign up here. No casualties were reported as of Wednesday night, according to Prater. Aerial video footage posted online by the fire department showed rivers of mud coursing through inundated cabin neighborhoods. Downpours measuring an inch (2.54 cm) or more of rain an hour in some areas were spawned by the region's latest atmospheric storm, a vast airborne current of dense moisture siphoned from the Pacific and swept inland over the greater Los Angeles area. The Christmas Eve storm was expected to persist into Friday, posing unsafe driving conditions during what would normally be a busy holiday travel period, according to the U.S. National Weather Service. "Life-threatening" storm conditions were expected to persist through Christmas Day over Southern California, "where widespread flash flooding is underway," the weather service said. A flash-flood warning was posted across much of Los Angeles County until 6 p.m. PST, urging motorists: "Do not attempt to travel unless you are fleeing an area, subject to flooding or under an evacuation order." Los Angeles city officials urged residents to heed evacuation orders issued for about 130 homes considered especially vulnerable to mudslides and debris flows in areas where last year's wildfires ravaged the community of Pacific Palisades. The San Bernardino County Sheriff's Department issued an evacuation warning for Wrightwood earlier in the day, but elevated the advisory to a shelter-in-place order as flood conditions worsened. The Angeles Crest Highway, a major traffic route through the San Gabriel Mountains, was closed in two stretches due to flooding Wednesday's heavy rainfall was accompanied by strong, gusty winds that officials said were downing trees and power lines. In upper elevations of the Sierra mountains, the storm was expected to dump heavy snow. NWS meteorologist Ariel Cohen said 4 to 8 inches of rain had fallen in some foothill areas by 9 a.m. PST, and the Los Angeles City News Service reported numerous rockslides in the mountains. Forecasts called for more than a foot (30.48 cm) of rain falling over some lower-terrain mountain areas by week's end. Forecasters even issued a rare tornado warning for a small portion of east-central Los Angeles County due to heavy thunderstorm activity over the community of Alhambra. As of Wednesday night, rainfall over the region had subsided, but a second wave of the storm system was due to hit on Thursday, forecasters said. https://www.reuters.com/business/environment/atmospheric-river-drenches-los-angeles-triggers-widespread-flooding-2025-12-24/
