2025-09-09 12:29

NextDecade to announce FID on new Rio Grande LNG train -Total CEO Total to continue investing in US energy US LNG exports hit all-time record high last month LNG market could face glut if all planned projects built, Total CEO says PARIS/MILAN, Sept 9 (Reuters) - The U.S. is building too many liquefied natural gas plants, TotalEnergies (TTEF.PA) , opens new tab CEO Patrick Pouyanne said on Tuesday, warning it could lead to a long-lasting glut in the market if all planned projects come online. Pouyanne earlier said that a final investment decision on additional units at the Rio Grande LNG project in Texas, in which Total has a stake, would be announced later on Tuesday. Sign up here. The French oil major is the world's largest buyer of U.S. LNG, with gas surpassing oil in the company's sales mix for the first time last year, as a transition to cleaner fuels boosts global gas demand in a trend expected to last decades. The United States is the world's top LNG exporter, with total annual capacity expected to reach 115 million tons this year and more projects on the way, according to the U.S. Energy Information Administration. "We are building too much," Pouyanne said during a panel on LNG at the GasTech conference in Milan. "We are facing many U.S. projects. We will face oversupply ... for some years if all these projects come onstream." However, Pouyanne earlier told CNBC in an interview that the U.S. presented "plenty of energy" investment opportunities for Total. "We continue to explore gas and LNG, and we will announce a new train for Rio Grande LNG; the FID (final investment decision) will be announced today," he said. Pouyanne will meet with the U.S. energy and interior secretaries later on Tuesday. NextDecade (NEXT.O) , opens new tab, which is developing Rio Grande, did not immediately respond to a request for comment outside of U.S. business hours. The Houston-based LNG producer has previously said it was targeting mid-September for the final investment decision on a fourth and fifth train, or liquefaction unit, at Rio Grande. TotalEnergies has a 17.5% stake in NextDecade and a 16.7% interest in Phase 1 of the Rio Grande project, which includes the first three trains. In April, it signed a 20-year deal to purchase 1.5 million tons per year from Train 4, although Reuters reported last month that Total had declined its option to invest in Train 5. https://www.reuters.com/business/energy/totalenergies-ceo-says-us-lng-drive-may-cause-global-oversupply-flags-new-rio-2025-09-09/

2025-09-09 12:09

Stocks get lift from Fed easing expectations Traders await payrolls benchmark revision Markets unrattled by France political upheaval Investors weigh 50bp cut, look to U.S. CPI, PPI releases for clues Political turmoil in many countries complicates outlook for FX bond markets SINGAPORE/LONDON, Sept 9 (Reuters) - Global stocks and the dollar steadied on Tuesday ahead of a key revision to U.S. payrolls numbers that could help shape investor thinking about the likely course of Federal Reserve policy, while gold hit a new record high. Elsewhere, European markets brushed off French political uncertainty after the government's collapse on Monday. Sign up here. S&P futures (.EScv1) , opens new tab ticked 0.1% higher and Nasdaq futures (.NQcv1) , opens new tab rose 0.2%, which would see the tech-focused index surpass a record high scaled in the previous session. Europe's STOXX 600 index (.STOXX) , opens new tab was up 0.1% after Asian shares (.MIAPJ0000PUS) , opens new tab earlier added 1%. French blue chips (.FCHI) , opens new tab were up 0.2% and earlier rose as much as 0.7% while the country's government bonds were steady. Breathing new life into the equities rally were expectations that the Fed will cut rates when it meets next week, following Friday's weak U.S. jobs report. While consumer and producer price inflation data are due in the week ahead, investors are betting that a 25-basis-point cut this month is a done deal, with focus now on whether the Fed could deliver a larger 50-bp move. The U.S. Labor Department will report a preliminary revision estimate to the employment level for the 12 months through March later in the day. "They are likely to cut anywhere between half a million and 750,000 jobs off the payrolls count for the 12 months to March, if you get a figure like that it's only going to spur that dovish repricing a little bit further," said Pepperstone's Brown. Markets are now pricing in an over 11% chance the Fed could lower rates by 50bp this month, compared to zero a week ago, according to the CME FedWatch tool. Spot gold earlier touched a fresh record high of $3,659.1 an ounce, buoyed by expectations of imminent Fed cuts. POLITICAL TURMOIL Renewed uncertainty over the political landscape across various economies has rattled currency and bond markets in the past few sessions. French President Emmanuel Macron is seeking his fifth prime minister in less than two years after opposition parties united to kick out centre-right Prime Minister Francois Bayrou over his unpopular plans for budget tightening. Bayrou, handed a 364-194 defeat in a parliamentary confidence vote on Monday, will officially offer his resignation to Macron on Tuesday. The government's collapse was already largely priced in, and Macron has so far ruled out calls for a snap parliamentary or presidential election, which the far-right National Rally has called for. "If we were to avoid elections, clearly that would be more of a market positive than the alternative, though it doesn't do much to alter the rather perilous fiscal trajectory that France remains on," said Michael Brown, senior research strategist at Pepperstone. "It does remove a little bit of risk in the short-term, which is why markets are by and large shrugging all of that off this morning." French 10-year bonds came under modest pressure, pushing yields up around 1.2 basis points to 3.4845%, broadly in line with the rest of the government debt market. "The tail risk is having a new presidential election before 2027 and a prime minister whose policies are not well received by financial markets," said Kevin Thozet, investment committee member at Carmignac. "Markets are saying the probability of this happening is very low, so no reason to panic." The euro hit a more than six-week high of $1.1756 and was last 0.1% lower on the day. Along with upheaval in France, investors are also mulling Ishiba's resignation in Japan, a heavy election defeat for Argentina President Javier Milei's ruling party in local elections and the abrupt replacement of Indonesia's finance minister. Still, losses across currencies were capped by a broadly weaker dollar, while most bond markets have since largely held steady. The yen was last 0.6% stronger at 146.6 per dollar, clawing back its losses from the previous session. The two-year U.S. Treasury yield , which typically reflects near-term rate expectations, rose 1.8 bps to 3.513%. The benchmark 10-year yield rose 2 bps but was still near a five-month trough, last at 4.0684%. In commodities, oil prices gained on Tuesday after OPEC+ decided to increase production by less than what market participants had anticipated. Brent crude futures were up 0.9% at $66.58 per barrel. https://www.reuters.com/world/china/global-markets-wrapup-4-2025-09-09/

2025-09-09 12:07

Baker Hughes to collaborate on 500-megawatt project Geothermal energy gains interest from Big Tech for AI power needs CTR's Hell's Kitchen project spans 4,500 acres near Salton Sea Baker Hughes to help raise capital for Hell's Kitchen project NEW YORK, Sept 9 (Reuters) - U.S. oilfield services firm Baker Hughes (BKR.O) , opens new tab is collaborating with Controlled Thermal Resources in California to develop one of the world's largest single geothermal power projects, with plans to market the electricity to data centers, the companies said on Tuesday. Energy-intensive data centers, which are used to produce the next wave of artificial intelligence technologies, are driving U.S. power demand to record highs and propelling the advancement of electricity sources that had been in decline or sparsely used. Sign up here. CTR has been working on the development of its "Hell's Kitchen" geothermal power and critical minerals project for roughly 13 years. The privately-held company has about 4,500 acres (18.2 square kilometers) in and around the Salton Sea in Imperial County, California for development. Baker Hughes has signed onto the second phase of Hell's Kitchen, which involves producing 500 megawatts of power, or enough to power about 375,000 homes, with the possibility of expanding from there, CTR told Reuters. Baker will deploy high-temperature drilling technologies, power systems, and services historically used for oil and gas field production to help streamline and lower project costs, CTR CEO Rod Colwell told Reuters. "That kind of expertise is very powerful," Colwell said. Baker will also assist in raising capital for the project. While geothermal energy has been used in the U.S. for decades, it remains less than 0.5% of the country's electricity supplies due partially to high upfront costs. Recently, however, geothermal power producers have found new customers in Big Tech as the Silicon Valley companies scour for the vast amounts of electricity needed for their AI expansion plans. Meta, in June, said that it had signed power purchase agreements for advanced geothermal in New Mexico for its data centers. Google reached an agreement last year for geothermal power in Nevada. Conventional geothermal energy production involves drilling wells deep into the earth to release extremely hot salty brine, which produces steam that can be used to propel power turbines. Geothermal power plants, according to the Energy Information Administration, emit about 99% less carbon dioxide than fossil fuel power plants. CTR declined to provide details on the total project costs. CTR is nearing a final investment decision on the first phase of Hell's Kitchen, which involves producing 50 MW of electricity that has been committed to the local electric utility. Commercial operations for that phase are supposed to begin in 2027. The timeline for the start of operations of the second-phase power plants is likely to be in the late 2020s. https://www.reuters.com/sustainability/climate-energy/baker-hughes-joins-giant-california-geothermal-power-project-2025-09-09/

2025-09-09 12:00

Ethiopia says dam will provide power to country, region Egypt fears its water supplies could be affected Trump tried to broker deal over project during first term Many Ethiopians not yet on the national grid GUBA, Ethiopia, Sept 9 (Reuters) - Ethiopia officially inaugurated Africa's largest hydroelectric dam on Tuesday, a project that will provide energy to millions of Ethiopians while deepening a rift with downstream Egypt that has unsettled the region. Ethiopia, the continent's second most populous nation with over 120 million people, sees the $5 billion Grand Ethiopian Renaissance Dam on a tributary of the River Nile as central to its economic ambitions. Sign up here. The dam's power has gradually increased since the first turbine was turned on in 2022, reaching its maximum capacity of 5,150 MW on Tuesday. That puts it among the 20 biggest hydroelectric dams in the world - about one-quarter of the capacity of China's Three Gorges Dam. At a ceremony on Tuesday at the site in Guba, an Ethiopian fighter jet flew low over the mist from the dam's white waters, which plunge 170-metres (558 feet). Beneath the canopy of a giant Ethiopian flag, Prime Minister Abiy Ahmed later addressed a crowd of dozens of dignitaries including the presidents of Somalia, Djibouti and Kenya. "To our (Sudanese and Egyptian) brothers; Ethiopia built the dam to prosper, to electrify the entire region and to change the history of black people," Abiy said. "It is absolutely not to harm its brothers." Abiy has said Ethiopia will use the energy to improve Ethiopians' access to electricity and export surplus power to the region. The dam's reservoir has also flooded an area larger than Greater London, which the government says will provide a steady water supply for irrigation downstream while limiting floods and drought. DROUGHT RESTRICTIONS? Ethiopia's downstream neighbours, however, have watched the project advance with dread since construction began in 2011. Egypt, which built its own Aswan High Dam on the Nile in the 1960s, fears the GERD could restrict its water supply during periods of drought, and could lead to the construction of other upstream dams. It has bitterly opposed the dam from the start, arguing that it violates water treaties dating to the British colonial era and poses an existential threat. Egypt, with a population of about 108 million, depends on the Nile for about 90% of its fresh water. Egypt would continue to closely monitor developments on the Blue Nile and "exercise its right to take all the appropriate measures to defend and protect the interests of the Egyptian people", Egyptian Foreign Ministry spokesperson Tamim Khallaf told Reuters on Monday. While Egypt has refrained from any direct reprisals against Ethiopia, it has drawn closer in recent years to Addis Ababa's rivals in the Horn of Africa, notably Eritrea. Sudan, meanwhile, has joined Egypt's calls for legally binding agreements on the dam's filling and operation, but could also benefit from better flood management and access to cheap energy. 'NOT A THREAT' Ethiopia in 2020 began filling the reservoir in phases while arguing that the dam would not significantly harm downstream countries. Independent research shows that so far, no major disruptions to downstream flow have been recorded — partly due to favourable rainfall and cautious filling of the reservoir during wet seasons over a five-year period. In Ethiopia, which has faced years of internal armed conflict, largely along ethnic lines, the GERD has proven a source of national pride, said Mekdelawit Messay, an Ethiopian water researcher at Florida International University. "It has been a banner to rally under, and it shows what we can achieve when unified," Mekdelawit said. Ethiopia's central bank provided 91% of the project's funding, while 9% was financed by Ethiopians through bond sales and gifts, without any foreign assistance, local media has reported. Sultan Abdulahi Hassan, a farmer who lives near the dam, said the dam has brought electricity to his village. "We now have refrigerators. We can drink cold water. We now use electricity for everything," he told Reuters at the launch. While the extra power will help the country's burgeoning bitcoin mining industry, most rural Ethiopians may have to wait a little longer to benefit. Underdeveloped transmission networks in rural areas are a major constraint on electricity access. While urban areas had a 94% electrification rate as of 2022, just 55% of the country's total population had electricity, according to the World Bank. https://www.reuters.com/sustainability/boards-policy-regulation/ethiopia-launches-africas-largest-hydroelectric-dam-2025-09-09/

2025-09-09 11:57

PRETORIA, Sept 9 (Reuters) - South Africa's economic growth rate quickened in the second quarter of 2025, reaching its fastest in two years, though it remains well below the level needed to meaningfully reduce high levels of poverty and inequality. Statistics South Africa recorded , opens new tab growth of 0.8% in quarter-on-quarter terms, better than economists' predictions for an expansion of 0.5% (ZAGDPN=ECI) , opens new tab. Sign up here. There was a broad-based improvement from the first quarter, when growth of 0.1% was recorded, as eight of the 10 sectors tracked by the statistics agency registered higher output, including mining and agriculture. Household consumption picked up, helped by interest rate cuts by the country's central bank. But analysts said a continued contraction in gross fixed capital formation was worrying, adding much higher investment was needed for the growth rate to be sustainably stronger. Gross domestic product growth has averaged less than 1% annually over the past decade, below the rate at which the population has expanded. "Economic growth was a little bit better than we expected ... though this doesn't quite eliminate all of the concerns around trend growth," said Elna Moolman, Standard Bank's head of South Africa macroeconomic research. The coalition government formed last year has been trying to boost growth through reforms, though its efforts are yet to bear fruit. Longstanding domestic issues such as logistics bottlenecks at the ports and on the freight rail network are only slowly easing, and the global economic backdrop has worsened because of U.S. President Donald Trump's trade policies. Last month, Trump imposed a 30% tariff on goods from South Africa, the highest rate in Sub-Saharan Africa, which is expected to affect the economy's performance from the third quarter onwards. In July, South Africa's central bank forecast growth of 0.9% this year, following several downward revisions to the forecast. https://www.reuters.com/world/africa/south-african-growth-rate-quickens-though-still-sluggish-2025-09-09/

2025-09-09 11:50

OSLO, Sept 9 (Reuters) - Norway's Green Party played a crucial role in the re-election of the Labour-led government on Monday by securing 4.7% of the vote and ensuring Labour and its allies have 87 seats in parliament - two more than needed to hold a majority. Here is a look at the Greens' main energy policy proposals, their potential impact, and how likely they are to come to pass: Sign up here. WHAT DO THEY WANT TO DO? The Greens want to halt new exploration at once and phase out existing petroleum activities by 2040. At the same time, they say the country must remain a stable natural gas supplier to Europe in the short-term so the phase-out must be gradual and prioritise oil over gas fields. That is important because Norway has become Europe's largest gas supplier following Russia's invasion of Ukraine in 2022, providing one-third of all gas imports to the European Union. Under its proposals, existing fields would be shut down one-by-one, starting with the ones that emit the most greenhouse gases, generate the least income and produce more oil than gas. The Greens also want to stop investments aimed at increasing production or extending the lifespan of fields already in production, including projects to electrify offshore platforms with power from shore. HOW WOULD THIS AFFECT THE STATE'S FINANCES? Norway pools its state revenues from oil and gas production into a $2 trillion sovereign wealth fund - the world's largest - which invests in bonds, equities, property and renewable energy projects abroad. Under the Greens' proposals, state revenues from petroleum would drop by some 70 billion crowns ($7.0 billion) a year, or 20% of total revenue for the period up to 2050, in a worst-case scenario that excludes any potential positive impact on revenue from emerging industries as part of the energy transition. HOW LIKELY IS IT TO HAPPEN? The Green Party is one of four parties Labour relies on for support. They all have their priorities and Norway's oil and gas industry is one of several issues on the table. Still, Labour needs to pass its budget next month and it will rely on its allies, including the Greens, to do so. The Greens are not expected to win on everything, but they will need some victories to show their supporters. WHAT DOES EUROPE THINK? The Greens say their plan would maintain steady gas supplies to Europe in the short run, while in the longer-term the EU itself plans to cut its emissions by 90-95% by 2040, meaning its demand for fossil fuels will fall. European Commission President Ursula von der Leyen wrote in a social media post on Tuesday that she would continue to work closely with Norway to advance a shared commitment to energy independence and a clean energy future. WHICH FIELDS MIGHT BE SHUT AND WHEN? In practice, the Greens' plans could mean closing down the most-polluting Stafjord, Brage, Draugen and Ula fields first, followed by another eight by 2030 - including the Snoehvit field that supplies the Arctic Hammerfest liquefied natural gas plant. "That will bring down the emissions from the fossil fuel industry, and it will also ensure that we take the competence, the people, and the capital from that sector over to renewables," Green Party leader Arild Hermstad told Reuters. Together, output from the first four fields with the highest emissions in 2024 stood at 5.33 million standard cubic metres of oil equivalent, or 2.2% of Norway's total petroleum production, according to official data. WHAT ABOUT POWER EXPORTS? Several parties in Norway want to stop cross-border electricity exchanges and not renew interconnector cables - two cables to Denmark will need replacing by 2027. Not the Greens. The party is a strong supporter of European climate objectives and wants non-EU Norway to collaborate closely with Brussels. The Nordic country participates in the union's common market via the European Economic Area treaty. ($1 = 9.9776 Norwegian crowns) https://www.reuters.com/sustainability/climate-energy/greens-key-player-norway-election-seek-gradual-phase-out-oil-sector-2025-09-09/