2023-12-26 10:32

BENGALURU, Dec 26 (Reuters) - India's Adani Green Energy (ADNA.NS) on Tuesday said its key shareholders will invest 93.50 billion rupees ($1.12 billion) in the company to expand its renewable power capacity. The company will issue up to 63.1 million warrants on a preferential basis, at an issue price of 1,481 rupees per warrant. Each warrant can be converted into one equity share, it said in a statement. The funds will be utilised to reduce the company's debt and accelerate investment in various projects, it said. According to a government memo from April, India is trying to boost non-fossil capacity, including solar and wind energy, to 500 gigawatts (GW) by 2030 after missing its target to install 175 GW of renewable capacity by 2022. The world's third-largest greenhouse gas emitter is also looking to boost the share of non-fossil capacity to 50% by 2030, from 42.6% currently. In a press release, Adani Green said it is now "fully equipped" to achieve its target of 45 GW renewable capacity by 2030 from 8.4 GW currently. The company has so far raised $3 billion for its renewable capacity, which also consists of a green loan of $1.36 billion from an international bank consortium, and a separate $1.44 billion fundraising which includes a $300 million joint venture with France's TotalEnergies (TTEF.PA). Adani Group, the parent firm of Adani Green, is looking to raise up to $4 billion for its green hydrogen plans, a report in October said. Shares of Adani Green closed up 4.4% after the news but are still down over 17% this year, after a report by U.S. short-seller Hindenburg in January triggered a rout in Adani Group's listed entities. ($1 = 83.1800 Indian rupees) https://www.reuters.com/business/energy/indias-adani-green-raise-112-bln-expand-renewable-capacity-2023-12-26/

2023-12-26 09:55

LATEST DEVELOPMENTS: Gantz says situation on Lebanese border must change WHO says tens of thousands fleeing heavy strikes Residents in central Gaza Strip say Israeli shelling intensifies with nightfall CAIRO/GAZA/JERUSALEM, Dec 27 (Reuters) - Israeli forces pounded central Gaza by land, sea and air on Wednesday and Palestinian authorities reported dozens more deaths, with the U.N. health agency saying thousands of people were trying to flee the fighting. Reflecting Israeli resolve to wipe out Hamas despite international calls for a ceasefire amid a humanitarian crisis, Israel's military chief Herzi Halevi said on Tuesday the war would last many months. There were "no short cuts in dismantling a terrorist organisation", he said. Israel also signalled it could step up its response to cross-border attacks from northern neighbour Lebanon, where Hamas ally Hezbollah is based. A Gaza health ministry statement said an Israeli air strike killed 20 Palestinians on Wednesday near the Al-Amal Hospital in Khan Younis, in the southern Gaza Strip. There was no immediate comment from the Israeli military. In central Gaza's Al-Maghazi district, five Palestinians were killed in one air strike, medics said, while to the north in Gaza City health officials said the bodies of seven Palestinians killed overnight arrived at Al Shifa Hospital. Residents in the central Gaza Strip said with nightfall, Israeli tank shelling intensified east of Al-Bureij and Al-Maghazi refugee camps where tanks have been trying to force their way through. Israel's military on Wednesday reported three more soldiers killed in action in Gaza, bringing total military losses in the enclave since ground operations began on Oct. 20 to 166. The war erupted after Hamas killed 1,200 people and captured 240 hostages in a cross-border rampage on Oct. 7, the deadliest day in Israel's history. Prime Minister Benjamin Netanyahu has responded with an assault that has laid much of Hamas-ruled Gaza to waste. The Gaza health ministry said Israeli forces had killed 195 Palestinians and wounded 325 in the past 24 hours, bringing the recorded toll to 21,110 killed and 55,243 wounded in Israeli attacks in the coastal Palestinian territory since Oct. 7. Nearly all the enclave's 2.3 million people have been driven from their homes, many several times. In Tel Aviv, a huge clock counted the time elapsed since Hamas took the hostages as families kept up their campaign for their loved ones to be freed. LEBANON BORDER At Israel's northern frontier, security sources said Hezbollah had fired the most rockets and weaponised drones on Wednesday that it has in a single day since the series of daily clashes began. The Israeli military said its warplanes had targeted Hezbollah military sites and other locations in Lebanon, and minister Benny Gantz said the situation must change. "If the world and the Lebanese government don't act in order to prevent the firing on Israel's northern residents, and to distance Hezbollah from the border, the IDF will do it," he told a press conference, referring to the Israel Defence Forces. The IDF said it was working in several areas of Gaza, particularly around Al-Bureij and Khan Younis, which it described as a terror base for Hamas. "We have expanded our activity and today we added another brigade and we are continuing to act there with the use of new military tactics above ground and underneath," IDF spokesperson Daniel Hagari said. PEOPLE FLEEING The U.N. World Health Organization said on Wednesday its staff had seen tens of thousands of people fleeing heavy strikes in Khan Younis and the Middle Area on foot, on donkeys or in cars. Makeshift shelters were being built along the road, it said. “WHO is extremely concerned this fresh displacement of people will further strain health facilities in the south, which are already struggling to meet the population’s immense needs,” said Rik Peeperkorn, WHO representative in the West Bank and Gaza, said in the agency's statement on X. “This forced mass movement of people will also lead to more overcrowding, increased risk of infectious diseases and make it even harder to deliver humanitarian aid.” Israel says it is doing what it can to protect civilians, and blames Hamas for putting them in harm's way by operating among them, which Hamas denies. Even Israel's closest ally the U.S. has said it should do more to reduce civilian deaths from what President Joe Biden has called "indiscriminate bombing". Israeli government spokesperson Eylon Levy also urged the United Nations to help clear the backlog of aid waiting to enter Gaza, describing the U.N. aid mechanism as "woefully unsuccessful". The Israeli military said it was continuing to strike militant targets in Gaza, at one point using its navy to hit suspects deemed to pose a threat to ground troops. In the Shejaia district of Gaza City, an Israeli attack on militant fighters on foot caused secondary explosions, indicating the area was rigged with explosives to attack soldiers, a military statement said. In the Israeli-occupied West Bank, six youths were killed in an Israeli raid into the city of Tulkarm, the Palestinian health ministry said. An Israeli military statement said Israeli forces on a counter-terrorism operation came under attack by militants who threw explosive devices at them. The attackers were struck by an Israeli air force aircraft, it said. Residents said the youths were neither fighters nor militants. "It was a sight I could not see," Saida Famawi, the mother of one of the youths, said. "It was something you cannot look at." https://www.reuters.com/world/middle-east/vessel-near-yemen-said-report-drones-explosions-red-sea-2023-12-26/

2023-12-26 09:46

MADRID, Dec 26 (Reuters) - Spanish oil company Repsol (REP.MC) is under investigation by the country's antitrust watchdog over possible abuse of its dominant position in the nation's wholesale fuel market. The company may have abused of its dominance of the wholesale market between March and December 2022 to increase its petrol station network's market share, the CNMC watchdog said in a satement on Tuesday. The CNMC statement said that Repsol, Spain's largest oil company, may have offered additional discounts at its petrol stations while raising wholesale prices for rivals such as independent petrol stations. The investigation was opened after complaints were filed by two associations representing independent fuel station operators. "The regulator is investigating us for something that benefited consumers," a Repsol spokesperson said on Tuesday. "We categorically reject the terms of the file opened by CNMC." Cepsa, Spain's second-largest oil company, Repsol and oil major BP (BP.L) in December 2022 said that their offices had been raided by CNMC as part of an investigation into possible anticompetitive practices in the energy market. A spokesperson for CNMC declined to comment when asked about other companies it has previously raided. Repsol has been fiercely critical of a potential extension of a 1.2% tax on energy companies' turnover, saying the government's proposals threaten investment in the energy sector. The company has already frozen a hydrogen project in northern Spain. ($1 = 0.9083 euros) https://www.reuters.com/world/europe/spanish-competition-watchdog-investigates-oil-company-repsol-2023-12-26/

2023-12-26 09:35

Dec 26 (Reuters) - Japan's Mitsui and Co 8031.T has decided to pull its employees out of Russia's Arctic LNG 2 liquefied natural gas (LNG) project, the Sankei newspaper reported on Tuesday, citing several sources, in yet another blow for the project. Fearing the backlash from the sanctions, foreign shareholders suspended participation in the project, renouncing their responsibilities for financing and for offtake contracts for the plant, the daily Kommersant reported on Monday. Sanctions have also resulted in Novatek declaring force majeure over LNG supplies from the project, industry sources told Reuters last week. Following are some facts about the Arctic LNG-2 project: PLANT The plant is located on the Gydan Peninsula in the Arctic and will have three operational lines with a capacity of 6.6 million metric tons of liquefied natural gas (LNG) each. Novatek, Russia's largest LNG producer, plans to start production by the end of this year. The second and third lines are due to start operations in 2024 and 2026 respectively. Arctic LNG-2 would be Russia's third large-scale project for producing LNG after a Gazprom (GAZP.MM)-led Sakhalin 2 plant in Russia's Pacific and Yamal LNG controlled by Novatek. SHAREHOLDERS Arctic LNG-2 is led by Novatek (NVTK.MM) which holds a 60% stake. Other shareholders include French energy major TotalEnergies (TTEF.PA), China's CNPC and CNOOC Ltd (0883.HK) as well as Japan Arctic LNG - a consortium of Mitsui & Co, Ltd. (8031.T) and JOGMEC - each holding a 10% stake. Investors will be able to sell LNG in accordance with their shares. Novatek will have the right to sell 11.9 million tons of LNG per year from the project. Other shareholders will be able to sell around 2 million tons each. INVESTMENTS Investments are valued at up to $21 billion. Novatek had initially planned to raise some 9.5 billion euros ($10.11 billion) in project financing from both Russian and foreign banks. But after Moscow started what it calls its special military operation in Ukraine in February 2022, international banks and shareholders halted financing due to sanctions. LNG CONTRACTS Arctic LNG-2 has a licence for LNG exports from Russia. As of early November, according to public information, Novatek has secured 4.3 million tons of LNG sales per year. Novatek and India's Deepak Fertilisers and Petrochemicals Corporation signed a non-binding memorandum of understanding (MoU) on the supply of LNG and low-carbon ammonia in February 2023. No sales volumes have been disclosed. In January 2022, Novatek signed a deal with China's ENN Natural Gas to supply around 0.6 million tons of LNG per year for 11 years. In June 2021, Novatek and Glencore (GLEN.L) signed an agreement on long-term LNG supplies of 0.5 million tons per year to terminals in Eastern Asia. In June 2021, Novatek and China's Zhejiang Provincial Energy Group signed an agreement, which built on an MoU signed in October 2019 and established key commercial terms for annual supply of up to 1 million tons of LNG from the Arctic LNG-2 project for a term of 15 years. In February 2021, Novatek Gas & Power Asia agreed with China's Shenergy Group to supply about three million tons of LNG over a duration of 15 years, or about three LNG cargoes a year. In April 2019, Novatek and Vitol signed an agreement which may result in a 15-year deal on supplies of 1 million tons of LNG per year. In April 2019, Novatek and Repsol signed an agreement, which may open up the possibility for a 15-year deal on supplies of 1 million tons of LNG from Arctic LNG 2 and other Novatek projects. ($1 = 0.9393 euros) https://www.reuters.com/markets/commodities/russian-arctic-lng-2-project-targeted-by-us-sanctions-2023-12-26/

2023-12-26 09:11

Mitsui pulling out employees from ALNG2, retains stake - media Samsung yet to start some blocks delivery for Russian shipyard Stakeholders suspended participation over U.S. sanctions - media China criticises sanctions TOKYO/BEIJING/SEOUL, Dec 26 (Reuters) - Japan's Mitsui and Co (8031.T) has decided to pull its employees out of Russia's Arctic LNG 2 liquefied natural gas (LNG) project, the Sankei newspaper reported on Tuesday, citing several sources, in yet another blow for the project. At the same time, Mitsui's joint venture with Japan's JOGMEC is expected to retain its stakes in the Arctic LNG 2, the report said. Mitsui declined to comment, while JOGMEC was not immediately available for comment. Arctic LNG 2, located on the Gydan peninsular north of the Arctic circle, is a key element in Russia's strive to boost its global share on the global liquefied natural gas market to 20% by 2030 from 8% now. It's also a part of Russia and China's 'no limits' partnership, developed as Moscow has been diverting its vast energy resources from Europe to the commodity-hungry Asia amid Western sanctions against the Kremlin over the conflict in Ukraine. It has already faced difficulties due to U.S. sanctions and a lack of gas carriers. Fearing the backlash from the sanctions, foreign shareholders suspended participation in the project, renouncing their responsibilities for financing and for offtake contracts for the plant, the daily Kommersant reported on Monday. China's state oil majors CNOOC Ltd (0883.HK) and China National Petroleum Corp (CNPC) each have a 10% stake in the project, which is controlled by Novatek (NVTK.MM), Russia's largest LNG producer and owner of a 60% stake in the project. France's TotalEnergies (TTEF.PA) and a consortium of Japan's Mitsui and Co (8031.T) and JOGMEC also have a 10% stake each. With three trains, Arctic LNG 2's capacity is meant to be 19.8 million metric tons per year and 1.6 million tons per year of stable gas condensate. Its first LNG tankers were expected to set sail in the first quarter of next year, according to Novatek. But industry sources say that commercial LNG supplies from the project are now expected no earlier than the second quarter of 2024. Sanctions have also resulted in Novatek declaring force majeure over LNG supplies from the project, industry sources told Reuters last week. The European Union may also impose restrictions on Russia's LNG supplies. A Beijing-based industry official with direct knowledge of the matter told Reuters last week that CNPC and CNOOC have both asked the U.S. government for exemptions from sanctions on Arctic LNG 2. On Tuesday, China unleashed its criticism against the U.S.' sanctions over Arctic LNG 2. Economic cooperation between China and Russia was in the mutual interest of both countries and "should not be interfered with or restricted by any third party," Chinese foreign ministry spokesperson Mao Ning said at a regular press conference. "China has always opposed unilateral sanctions and long-arm jurisdiction without the basis of international law," she added. In another impediment for the project, South Korea's Samsung Heavy Industries (010140.KS) said on Tuesday it has not started making blocks and equipment for 10 out of 15 Arctic LNG carriers contracted with Russian Zvezda shipyard. It added that it still has been delivering blocks and equipment for five of them to Zvezda. https://www.reuters.com/business/energy/japans-mitsui-pull-out-employees-russias-arctic-lng-2-sankei-2023-12-26/

2023-12-26 06:55

Dollar hovers near five-month low Muted volumes in holiday-thinned trade Oil prices jump as Middle East tensions, rate cuts in focus NEW YORK/SINGAPORE, Dec 26 (Reuters) - Global stocks crept higher on Tuesday and the dollar lingered near a five-month low as investors held fast to bets that cooling U.S. inflation will lead the Federal Reserve to cut interest rates next year. Oil prices jumped over 3% earlier in the session to the highest in almost a month, as Middle East strife continues and investor hope possible rate cuts will boost global economic growth and fuel demand. Trading was thin on the day after Christmas with several markets, including those in Australia, Hong Kong, Britain and Germany, closed for Boxing Day. MSCI's gauge of stocks across the globe (.MIWD00000PUS) gained 0.39%. On Wall Street, the Dow Jones Industrial Average (.DJI) rose 0.43%, the S&P 500 (.SPX) gained 0.42%, and the Nasdaq Composite (.IXIC) added 0.54%. In a sign the U.S. economy was holding up, a report by Mastercard on Tuesday showed U.S. retail sales rose 3.1% between Nov. 1 and Dec. 24, lower than last year's 7.6% gain. "Consumers are still spending, but they're still price conscious and want to stretch their budgets," said Arun Sundaram, an analyst at CRFA Research. The yield on 10-year Treasury notes was down a touch at 3.895%, while the two-year U.S. Treasury yield was up 1.8 basis points at 4.3584%. U.S. crude trimmed earlier gains to finish up 2.1% at $75.12 per barrel and Brent was at $80.66, up 2.01% on the day. The dollar index slipped 0.17% to 101.47, a hair's breadth from a five-month low of 101.42 struck on Friday. A soft dollar helped to lift the euro up 0.3% to $1.104. Investors were still digesting data released on Friday that showed U.S. prices fell in November for the first time in more than 3-1/2 years, underscoring the economy's durability. Inflation, as measured by the personal consumption expenditures (PCE) price index, fell 0.1% last month. "In a way, markets could not have asked for better news from the continued easing of the core PCE deflator in November," said Nicholas Chia, Asia macro strategist at Standard Chartered. "Thin liquidity conditions are likely to exacerbate the so-called 'Santa Claus rally' in equities ahead of the turn of the year," Chia added. The end of the year tends to be a strong period for stocks, a phenomenon dubbed the "Santa Claus Rally." Stock investors have cheered recent signs from the Fed on the outlook for rates. At the conclusion of its policy meeting on Dec. 13 the Fed signalled it had reached the end of its tightening cycle and opened the door to interest rate cuts in the coming year. Markets are now pricing in a 75% chance of a 25 basis points rate cut from the Fed in March, according to the CME FedWatch tool, compared with a 21% chance at the end of November. Markets are also pricing in more than 150 basis points of rate cuts next year. "The Federal Reserve has aggressively changed its rhetoric to engineer a significant easing of financial conditions," Citi analysts said in a note. "A combination of slower core inflation and rising recession concerns led Fed officials to shift rhetoric away from a commitment to fight inflation with higher-for-longer rates and toward reassuring markets that they will not 'hang on' to higher rates for too long." In Asia, China stocks (.SSEC) fell 0.47%, weighed down by semiconductor shares, while gaming stocks stabilised after a slew of companies announced share buyback plans. Hong Kong's Hang Seng Index (.HSI) remained closed. Japan's Nikkei (.N225) gained 0.16% and remains the best performing major Asian stock market with a 27% rise in 2023. The yen was flat versus the greenback at 142.47 per dollar, retracing some recent gains made on the prospect of the Bank of Japan soon ending its ultra-easy policy. The Asian currency is up 4% this month, on course for a second straight month of gains against the dollar. But for the year, the yen remains down 7.8% against the greenback. Spot gold added 0.7% to $2,067.19 an ounce, while Bitcoin fell 3.26% to $42,171.00. https://www.reuters.com/markets/global-markets-wrapup-1-2023-12-26/