2024-10-28 00:06

LONDON, Oct 28 (Reuters) - British business confidence sank to a four-month low in October ahead of the first budget plan from the country's new government, a survey showed on Monday, echoing other signs of corporate nervousness about possible tax increases. Lloyds Bank's business barometer - representing the difference between the percentage of firms with positive and negative views - fell by 3 percentage points to +44%. But firms were more upbeat about their own prospects than those for the broader economy - which touched their lowest since March - and the overall index remained above its long-term average. "Many businesses remain confident in their own trading prospects, and the increase in hiring intentions suggests more employers want to grow their workforce," Lloyds economist Hann-Ju Ho said. The survey was based on responses from 1,200 British companies with annual sales of more than 250,000 pounds ($324,575.00) and was carried out between Oct. 1 and Oct. 15. Two surveys published last week also showed a drop in optimism among businesses. Reeves' budget announcement on Wednesday is likely to include an array of revenue-raising changes, including possibly higher social security payments by businesses. ($1 = 0.7702 pounds) (This story has been refiled to remove the attribution to Lloyds in the headline) Sign up here. https://www.reuters.com/world/uk/uk-employers-show-further-signs-pre-budget-nerves-lloyds-says-2024-10-28/

2024-10-27 23:58

QUITO, Oct 27 (Reuters) - Ecuador's national assembly on Sunday approved a bill proposed by President Daniel Noboa that seeks to expand direct private investment in the electricity sector as the nation faces a severe energy crisis with power outages of up to 14 hours a day. The bill sought to permit private investment in projects generating up to 100 megawatts, from the current allowance of 10. The legislation won unanimous backing from the legislature's 120 lawmakers, although some opposition members pointed out that the measure will not immediately solve the worsening crisis. The bill is Noboa's second this year aimed at boosting private investment in Ecuador's electricity sector, which is dominated by publicly owned companies. Its provisions include authorizing private companies to import natural gas for industrial and manufacturing purposes and electricity generation if they comply with technical requirements and quality standards from the sector's control agency. Ecuador's worst drought in over 60 years has plunged the hydropower-dependent country into an energy crisis as diminished reservoirs leave hydroelectric dams offline, pushing the government to impose power cuts to limit the strain on electricity supplies. The proposal will next head to the president, who is expected to sign the legislation into law. Sign up here. https://www.reuters.com/business/energy/ecuador-lawmakers-approve-bill-boost-private-energy-investment-2024-10-27/

2024-10-27 23:56

Ammonia bunkering study finds 400 safety risks Shippers reluctant to order ammonia-fuelled vessels Costs are 2-4 times more than traditional marine fuels SINGAPORE, Oct 28 (Reuters) - At one of the world's biggest bulk export ports in Western Australia, shippers safely completed the first transfer of ammonia from one vessel to another last month, a key test for its adoption as a marine fuel in the push for cleaner energy. The first cargo ships that would be powered by ammonia are set to enter service in 2026, one of several alternatives the industry is tapping to shrink a carbon footprint accounting for nearly 3% of global emissions. But ammonia faces major cost and safety hurdles as a shipping fuel compared to others, such as liquefied natural gas (LNG), methanol, and biofuels. Ammonia's appeal is that it is carbon free, and would be a zero emission fuel if made from hydrogen produced with renewable electricity. But safety is a big challenge for the product typically used for fertilisers and explosives. "Currently the lack of regulation, experience in use and toxicity of ammonia on board ships constitute major safety deterrents," said Laure Baratgin, head of commercial operations at mining giant Rio Tinto (RIO.L) , opens new tab. Top global iron ore producer Rio is the biggest exporter at Dampier, where the ammonia transfer trial was run. It operates dual-fuelled bulk ships that run on traditional marine fuel or LNG, but has yet to charter or order ammonia-fuelled vessels. "Pending our confidence and that of our partners, industry, and communities, that the risks are sufficiently controlled, we will look to charter ammonia dual-fuel vessels, the specific timing of which remains uncertain," she told Reuters. Other shippers are also hesitant. Globally, only 25 ammonia dual-fuel ships have been ordered as of 2024, trailing a fleet of at least 722 LNG-fuelled ships and 62 methanol-fuelled ships as of the same year which includes orders and ships that are already in operation. Only two smaller ammonia-fuelled vessels are in service now, including a tugboat in Japan. DANGEROUS PROPERTIES Refuelling ships, or bunkering, poses particular challenges with ammonia, which can cause acute poisoning and damage to the skin, eyes, and respiratory tract. "The greatest risk is leakage during bunkering operations," in addition to leakage from fuel tanks, said Yoshikazu Urushitani, general manager in the marine fuel division at Mitsui OSK Lines (9104.T) , opens new tab, which is designing an ammonia-powered bulk carrier. A study by the Global Centre for Maritime Decarbonisation (GCMD) identified 400 risks associated with ammonia bunkering, which it says can be mitigated with measures such as emergency-release couplings to shut systems when a leak is detected. The organisation is developing a detailed emergency response plan for ammonia spills, which are harder to contain than oil spills. "For oil, you see it - it stays there and it spreads out in water. But ammonia dissipates in air," said Lynn Loo, chief executive officer of GCMD. Japan's Nippon Yusen Kaisha (NYK) (9101.T) , opens new tab, which has agreed to build the world's first ammonia-fuelled medium-sized gas carrier, has developed equipment specifically for ammonia bunkering. The industry will need to set guidelines for seafarers to safely manage the fuel, said Takahiro Rokuroda, general manager at NYK's Next Generation Fuel Business Group. Singapore, the world's largest ship refuelling hub, has shortlisted companies to study the viability of ammonia for power generation and bunkering and is developing ammonia bunkering standards. PROHIBITIVE COSTS Costs will have to drop sharply to make ammonia competitive in bunkering. Powering ships with ammonia can cost two to four times more than with conventional fuels, industry figures show, due to limited supply for the marine sector and an energy density about two-and-a-half times lower than traditional fuel. "If you want to travel the same distance, you either have to carry about two and a half times that amount of fuel, or you have to bunker more frequently so that you have enough fuel to be able to make that trip," said Loo. Ammonia engines also need extra maintenance as the fuel is corrosive, engine manufacturer Wartsila (WRT1V.HE) , opens new tab says. Still, the American Bureau of Shipping forecasts ammonia will account for about one-third of bunker fuelling by 2050. "We certainly won't bring any product to market until we are 100% certain that all risks have been duly managed," said Kenny MacLean, COO at bunker fuel supplier Peninsula. Sign up here. https://www.reuters.com/markets/commodities/zero-carbon-ammonia-shipping-faces-cost-safety-challenges-2024-10-27/

2024-10-27 23:53

SINGAPORE, Oct 28 (Reuters) - The shipping industry is looking into ammonia as an alternative fuel for powering ships, amid other ongoing plans to cut carbon emissions and achieve net-zero by 2050. read more Here is a list of companies with ammonia-fuelled ship projects: NIPPON YUSEN KAISHA (NYK) NYK (9101.T) , opens new tab, with IHI Power Systems and Nippon Kaiji Kyokai (ClassNK), completed the world's first ammonia-fuelled tugboat, Sakigake, on Aug. 23. The vessel will operate in Tokyo Bay for three months. NYK is also building the world's first ammonia-fuelled medium gas carrier, scheduled for completion in November 2026. MITSUI O.S.K LINES (MOL) MOL (9104.T) , opens new tab, in collaboration with the Global Centre for Maritime Decarbonisation and Yara International (YAR.OL) , opens new tab, completed the world's first ammonia ship-to-ship (STS) transfer at anchorage within the Australian port of Dampier. Two transfers, each involving 4,000 cubic metres of ammonia, took place between two gas carriers to simulate bunkering operations. MOL has also received approval in principle from shipping classification society ClassNK to design a 210,000-DWT (deadweight tonnage) ammonia-powered bulk carrier. ITOCHU Japanese trading house Itochu (8001.T) , opens new tab signed an initial agreement with marine fuel supplier Peninsula Petroleum to jointly develop ammonia bunkering in Algeciras, Spain. TRAFIGURA Global commodities trading house Trafigura (TRAFGF.UL) ordered four medium gas carriers from HD Hyundai Mipo Dockyard, with the option of using either liquefied petroleum gas or ammonia as fuel. These dual-fuelled vessels will be delivered starting from 2027. EASTERN PACIFIC SHIPPING Eastern Pacific Shipping (EPS) is building at least six ammonia dual-fuelled ships including ammonia carriers and bulkers, jointly with MAN Energy Solutions, HD Hyundai Heavy Industries and yards from the China State Shipbuilding Corporation (CSSC), to be delivered starting from 2026. BHP Top global miner BHP (BHP.AX) , opens new tab plans to take delivery of its first ammonia-fuelled bulk carrier in 2026. The company was still shortlisting and evaluating companies for building the vessels, it said earlier this year. BERGE BULK Berge Bulk ordered two 210,000-DWT ammonia dual-fuelled Newcastlemax vessels from Qingdao Beihai Shipbuilding, set for delivery in 2025. MISC Malaysian shipping firm MISC (MISC.KL) , opens new tab signed chartering contracts with PETCO Trading Labuan Company Ltd in September 2023 for two ammonia dual-fuelled Aframax vessels. PETCO's petroleum arm AET signed the shipbuilding contracts with Dalian Shipbuilding Industry Co. Sign up here. https://www.reuters.com/markets/commodities/which-companies-back-ammonia-fuelled-ships-help-cut-emissions-2024-10-27/

2024-10-27 23:36

Brent and WTI down over $4 a barrel Israel hits Iranian military facilities HOUSTON, Oct 28 (Reuters) - Oil prices tumbled 6% on Monday, or more than $4 a barrel, after Saturday's retaliatory strike by Israel against Iran's military bypassed oil and nuclear facilities, not disrupting energy supplies. Brent futures settled at $71.42 a barrel, down $4.63 or 6.09%. WTI U.S. crude futures finished at $67.38 a barrel, $4.40 or 6.13%. Both Brent and U.S. West Texas Intermediate crude futures hit their lowest since Oct. 1 at the open. "Obviously, this is a perfect example of a headline-driven market," said Phil Flynn, senior analyst at Price Futures Group. "We still have a lot of geopolitical risk." Last week, the benchmarks gained 4% in volatile trade on uncertainty over the looming U.S. election and the extent of Israel's expected response to the Iranian missile attack of Oct. 1. On Saturday, scores of Israeli jets completed three waves of strikes before dawn against missile factories and other sites near Tehran and in western Iran, the latest exchange between the Middle Eastern rivals. The attacks were more tailored toward military targets, easing fears that Israel might attack Iran's nuclear facilities or oil infrastructure. Citi lowered its Brent price target for the next three months to $70 a barrel from $74, factoring in a lower risk premium in the near term, analysts led by Max Layton said in a note. The Organization of the Petroleum Exporting Countries and its allies in OPEC+ kept oil output policy unchanged last month, including a plan to start raising output from December. The group will meet on Dec. 1 ahead of a full meeting of OPEC+. Tudor, Pickering Holt analyst Matt Portillo said WTI could trade much lower in the coming year. "Absent a flare-up in the Middle East, our base case for WTI in 2025 remains $65 a barrel, with a bias lower if OPEC+ doesn't show significant constraint on returning volumes to the market," Portillo said. Tensions remain high following the attack, however, and Iran will "use all available tools" to respond to Israel's weekend attack, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said on Monday. Sign up here. https://www.reuters.com/markets/commodities/oil-slips-nearly-4-barrel-after-israel-shows-restraint-strikes-iran-2024-10-27/

2024-10-27 23:29

Oct 27 (Reuters) - McDonald’s on Sunday ruled out beef patties as a source of the E. coli outbreak linked to Quarter Pounder hamburgers, which has killed at least one person and sickened nearly 75 others. "We remain very confident that any contaminated product related to this outbreak has been removed from our supply chain and is out of all McDonald’s restaurants," the fast-food chain's Chief Supply Chain Officer Cesar Pina said in a statement. The Colorado Department of Agriculture said that all subsamples from multiple lots of McDonald’s brand fresh and frozen beef patties had tested negative for E. coli, adding that it had completed beef testing and does not anticipate receiving further samples. McDonald’s said it would resume distribution of fresh supplies of the Quarter Pounder and that it is expected to be available in all restaurants in the coming week, according to the statement. Regulators had been investigating whether McDonald's beef patties could be affected. The U.S. Food and Drug Administration and the U.S. Department of Agriculture didn't immediately respond to a Reuters request for comment. E. coli is killed in beef when cooked properly. The McDonald's Quarter Pounder is served with raw, slivered onions; affected restaurants will serve the burgers without such onions. U.S. fast-food chains have pulled fresh onions out of their menu items after the vegetable was named as the likely source of an E. coli outbreak. McDonald's has pulled the Quarter Pounder from about one-fifth of its U.S. restaurants, including in Colorado, Kansas, Utah and Wyoming, and in parts of Idaho, Iowa, Missouri, Montana, Nebraska, Nevada, New Mexico and Oklahoma. Past E. coli outbreaks have hampered sales at big fast-food restaurants as customers avoid affected chains. Sign up here. https://www.reuters.com/business/retail-consumer/mcdonalds-rules-out-beef-patties-source-e-coli-outbreak-2024-10-27/