2023-12-25 06:23

Novatek also declares force majeure on LNG supplies from ALNG 2 Arctic LNG 2 key in Russia's efforts to boost LNG market share U.S. announced sanctions against Arctic LNG 2 in November MOSCOW, Dec 25 (Reuters) - Foreign shareholders suspended participation in the Arctic LNG 2 project due to sanctions, renouncing their responsibilities for financing and for offtake contracts for the new Russian liquefied natural gas (LNG) plant, the daily Kommersant reported on Monday. The project, seen as a key element in Russia's drive to boost its LNG global market share to 20% by 2030 from 8%, was already facing difficulties due to U.S. sanctions over the conflict in Ukraine and a lack of gas carriers. 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. Kommersant, citing unnamed sources in the Russian government, said both Chinese companies, together with France's TotalEnergies (TTEF.PA) and a consortium of Japan's Mitsui and Co (8031.T) and JOGMEC - which also have a 10% stake each - declared force majeure on participation in the project. Novatek, CNOOC, JOGMEC and Total did not immediately respond to requests for comment. CNPC and Mitsui declined to comment. Kremlin spokesman Dmitry Peskov declined to comment on the developments at the Arctic LNG 2 project, referring the questions to Novatek. The newspaper said the suspension may lead to Arctic LNG 2 losing its long-term contracts on LNG supplies, while Novatek will have to finance the project by itself and sell the seaborne gas on the spot market. Initial investments in the Arctic LNG 2 project stood at $21 billion. It already faced difficulties in raising funds following Western sanctions against Russia. 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. The second train of the project is due to become operational next year, while the third is expected to start production in 2026. With three processing 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. Production is due to start in early 2024. Its first LNG tankers were expected to set sail in the first quarter of next year, according to Novatek. But industry sources say commercial LNG supplies from the project are now expected no earlier than the second quarter of 2024. https://www.reuters.com/business/energy/foreign-shareholders-suspend-participation-russias-arctic-lng-2-project-2023-12-25/

2023-12-24 14:44

SAO PAULO, Dec 24 (Reuters) - Brazilian pulp and paper company Suzano (SUZB3.SA) has acquired certain forestry assets from two special-purpose firms managed by BTG Pactual Timberland Investment Group, according to a securities filing. The deal was valued at 1.826 billion reais ($375.7 million) and requires regulatory approval, Suzano said in the filing late on Saturday. The target companies own approximately 70,000 hectares of land in the state of Mato Grosso do Sul, in a region where Suzano already has operations. Some 50,000 hectares of the acquired land are considered "usable," Suzano said, adding that the area is planted with eucalyptus trees of varying ages. The transaction takes place only days after rival Klabin announced the acquisition of land and forests in Parana state from a Chilean seller, for $1.16 billion. That deal took the market by surprise and aims to reduce dependence on third-party wood. Suzano will pay the agreed value in cash on the deal's closing date in 2024. The amount will be converted into dollars if the transaction closes after March 31, it added. The acquisition price may be adjusted to reflect the condition of the targeted assets at the closing date, as is customary in this type of operation, Suzano said. In a separate filing on Saturday, Suzano raised its investment projection for 2024 from 14.6 billion reais to 16.5 billion reais. ($1 = 4.8605 reais) https://www.reuters.com/markets/deals/brazils-suzano-buys-forestry-assets-376-mln-2023-12-24/

2023-12-24 14:14

NEW YORK, Dec 22 (Reuters) - Wall Street is counting on the so-called Santa Claus Rally to bring record highs as markets close out 2023 with strong gains. The S&P 500 (.SPX) is up over 4% in December alone and has risen 24% this year, bringing it within 1% of a new all-time high. The benchmark index is also on track for its eighth straight positive week. If history is any indication, that momentum is likely to continue in the short-term. The end of the year tends to be a strong period for stocks, a phenomenon dubbed the “Santa Claus Rally.” The S&P 500 on average has gained 1.3% in the last five days of December and first two days of January, according to data from the Stock Trader's Almanac going back to 1969. Those gains have been pinned on reasons varying from buying before the new year following tax-related sales to general holiday hopefulness. This year, optimism is high. The Federal Reserve surprised investors earlier in December by signaling that its historic monetary policy tightening is likely over and projecting rate cuts into 2024, following signs that inflation is continuing to moderate. Data on Friday supported that trend, showing annual U.S. inflation - as measured by the personal consumption expenditures (PCE) price index - slowed further below 3% in November. “The narrative will continue to be about the Fed making a dovish pivot,” said Angelo Kourkafas, senior investment strategist at Edward Jones. “That provides support on markets and sentiment and that is unlikely to change next week.” Investors have lately demonstrated a hearty appetite for stocks. BofA clients bought $6.4 billion of U.S. equities on a net basis in the latest week, the largest weekly net inflow since October 2022, BofA Global Research said in a Dec. 19 report. Meanwhile, there has been a "sharp increase" in buying among retail investors over the past four to six weeks, Vanda Research said in a note on Wednesday. "After having chased higher yields aggressively in the past months, the FOMC pivot and strengthening soft-landing narrative have had individuals redirecting their purchases toward riskier securities," Vanda said in a note. "We expect this trend to continue into the new year as yields remain under pressure." Citing confirmation from gauges that measure stock market breadth, Ned Davis Research this week recommended investors shift a further 5% from cash to equities, bringing its equity allocation up to its maximum amount in its portfolio models. To be sure, trading volumes are expected to be thin for the remainder of the year as investors take holiday breaks, leaving stocks particularly sensitive to unexpected news or large trades. One example of outsized moves came earlier this week, when the S&P 500 took an abrupt turn lower on Wednesday afternoon and closed down 1.5% on the day. Some market participants attributed the move to a combination of low volumes, activity in zero-day options and trades by institutional investors, after an extended period of gains for stocks. At the same time, investors heavy in cash could seek to buy into the market next week because of "fear of missing out" on the equity rally, often referred to as "FOMO," said Kevin Mahn, president and chief investment officer at Hennion & Walsh Asset Management. "I think the markets have gotten a little ahead of themselves based upon the extent of the rally so far," Mahn said. "But I could see the market moving up slightly higher ... from here just because of that FOMO trade." https://www.reuters.com/markets/us/wall-st-week-ahead-wall-street-awaits-santa-rally-with-us-stocks-near-records-2023-12-22/

2023-12-24 11:37

DUBAI, Dec 24 (Reuters) - The Iranian navy has taken delivery of cruise missiles with a range of 1,000 km (621 miles) as well as reconnaissance helicopters, state media reported on Sunday, as the U.S. accused Iran of a drone attack on a chemical tanker in the Indian ocean. "The Talaeiyeh cruise missile has a range of over 1,000 km and is a smart missile that can change targets mid-mission," state media cited the head of Iran's navy, Shahram Irani, as saying. Reconnaissance helicopters, drones and marine cruise missiles were among new weapons added to the navy's arsenal, Irani said, adding that "all of this equipment has been designed and produced by Iran's military industry". Although Western military analysts say Iran sometimes exaggerates its capabilities, Iranian-made missiles and drones are a key element in Tehran's military hardware. The U.S. Department of Defense said on Saturday that a drone sent from Iran struck a Liberian-flagged chemical tanker in the Indian ocean, an incident highlighting rising regional tensions and a new risk to shipping lanes in the wake of the Oct. 7 Hamas attack on Israel and Israel's subsequent action in Gaza. Iran on Saturday denied U.S. accusations that it was involved in planning attacks by Yemen's Tehran-aligned Houthi movement on commercial vessels in the Red Sea. https://www.reuters.com/world/middle-east/iran-navy-receives-new-cruise-missiles-amid-growing-regional-tension-2023-12-24/

2023-12-24 11:35

MOSCOW, Dec 24 (Reuters) - Russia's central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank's governor Elvira Nabiullina told RBC media on Sunday. The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over. Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however. "We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month," she said. Nabiullina said the bank was taking into account a wide range of indicators but primarily those that "characterize the stability of inflation". "This will take two or three months or more - it depends on how much the wide range of indicators that characterize sustainable inflation declines," she said. The bank will next convene to set its benchmark rate on Feb. 16. The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle. https://www.reuters.com/markets/europe/russian-cbank-says-it-needs-months-make-sure-cpi-falling-before-rate-cuts-rbc-2023-12-24/

2023-12-24 07:01

JAKARTA, Dec 24 (Reuters) - Thirteen workers were killed and 46 injured on Sunday in a fire at a nickel smelter furnace owned by Indonesia Tsingshan Stainless Steel (ITSS) on Sulawesi island, the owner of the industrial park where the smelter is located said. The fire occurred when workers repaired the furnace and installed plates at 5:30 a.m. on Sunday (2130 GMT on Saturday), killing nine Indonesian workers and four Chinese workers, Indonesia Morowali Industrial Park (IMIP) said in a statement. The fire was extinguished at 9:10 a.m. local time, it added. It had said earlier that an explosion killed eight Indonesian and five Chinese workers. The furnace was shut off the day before to prepare for maintenance, IMIP said, but during the maintenance process excess iron slag flowed from the furnace. "The furnace walls then collapsed and the remaining iron slag flowed out, causing a fire and resulting in some workers at the location suffering injuries and even fatalities," IMIP spokesperson Dedy Kurniawan said in the statement. The workers were injured by hot steam from stainless steel slag and the burning fire, Dedy told a separate interview with local station Metro TV. There was no explosion or oxygen canister on site, he said, revising the company's earlier statement. IMIP is a nickel-focused industrial park owned by China's Tsingshan and its local partner Bintang Delapan Group, which produce stainless steel and carbon steel. ITSS is one of the tenants at the industrial park, IMIP said. IMIP will coordinate with related parties to investigate the incident and cover all treatment costs for victims, the company said. Nickel has become increasingly crucial for resource-rich Indonesia, the world's biggest nickel producer, with billions of dollars of global investment flowing in after the government banned exports of unprocessed ore in 2020. Southeast Asia's biggest economy is trying develop downstream nickel industries and lure big-ticket investment from manufacturers of electric vehicles and their batteries. However, several fatal accidents have occurred in Indonesia's nickel processing industry in recent years. President Joko Widodo is keen to develop the sector but has also called for improvements in safety and has pledged to enhance the monitoring of environmental standards. https://www.reuters.com/world/asia-pacific/smelter-furnace-blast-kills-12-indonesias-morowali-nickel-industrial-park-media-2023-12-24/