2024-07-25 12:13

ISLAMABAD, July 25 (Reuters) - Pakistan's Finance Minister Muhammad Aurangzeb on Thursday arrived in Beijing to open talks on power sector structural reforms suggested by the International Monetary Fund (IMF), two government sources said. He held a meeting with his Chinese counterpart in Beijing, they said, and added that the finance minister together with Power Minister Awais Leghari is leading a delegation, which will take up several proposals with the Chinese side, including reprofiling of nearly $15 billion energy sector debt. The countries, which share a border, have been longtime allies. Rollovers or disbursements on loans from China have helped Pakistan meet its external financing needs in the past. Pakistan's finance ministry, junior Finance Minister Ali Pervaiz Malik and the Chinese finance ministry didn't respond to a request for a comment. Both the finance and power ministers told Reuters in interviews last week that they will be discussing the power sector reforms in their Beijing visit, though they did not specify the timing. China has set up over $20 billion worth of planned energy projects in Pakistan. The reforms has been suggested by the International Monetary Fund (IMF), which this month agreed on a $7 billion bailout for the heavily indebted South Asian economy. Pakistan's power sector has been plagued by high rates of power theft and distribution losses, resulting in accumulating debt across the production chain - a concern raised by the IMF. The government is implementing structural reforms to reduce "circular debt" - public liabilities that build up in the power sector due to subsidies and unpaid bills - by 100 billion Pakistani rupees ($360 million) a year, Leghari has said. Poor and middle-class households have been affected by a previous IMF bailout reached last year, which included raising power tariffs as part of the funding programme that ended in April. Sign up here. https://www.reuters.com/world/asia-pacific/pakistans-finance-minister-beijing-seek-debt-relief-say-sources-2024-07-25/

2024-07-25 12:08

July 25 (Reuters) - CMS Energy (CMS.N) , opens new tab beat second-quarter profit estimate on Thursday as the electric and gas utility benefited from higher sales on warmer weather. During the June-end quarter, extremely hot weather increased the usage of electrical appliances such as air conditioners and refrigerator, boosting earnings for utilities such as CMS Energy. CMS said second-quarter operating revenue for its electric utility jumped nearly 9% to $1.23 billion from a year earlier. The Jackson, Michigan-based company posted an adjusted profit of 66 cents per share, topping average Wall Street estimate of 63 cents, according to LSEG data. "We are on track to deliver our full year earnings guidance after a strong first half of the year prioritizing investments in our electric and gas systems to deliver value for customers," said CMS Energy CEO Garrick Rochow in a statement , opens new tab. The company reaffirmed its 2024 adjusted earnings forecast of $3.29 to $3.35 per share. Sign up here. https://www.reuters.com/business/energy/cms-energy-beats-second-quarter-profit-estimates-warmer-weather-2024-07-25/

2024-07-25 11:44

JOHANNESBURG, July 25 (Reuters) - South Africa, the world's 14th biggest carbon emitter, has made strong commitments to climate action but is moving too slowly to wean itself off coal and roll out renewables to meet them, a key report said on Thursday. Africa's most industrialised country has been lauded for making ambitious pledges to cut greenhouse gas emissions - which are higher even than far richer nations like France, Britain and Italy - and for producing a comprehensive plan to achieve them. "Despite all the strong public support and policy commitments, we've got a huge discrepancy between that and what's actually happening," Melissa Fourie, one of the authors of the Presidential Climate Commission report, said at its launch in the commercial capital Johannesburg. The report, commissioned by the president's office but independent, said a more than six-fold increase in the pace of renewables buildout was needed. Several countries' actions globally are lagging behind their pledges. President Cyril Ramaphosa signed a sweeping climate change act into law this week that set caps for large emitters. Donors are providing $12 billion of mostly loans to fund South Africa's energy transition, a model they hope to export elsewhere in the developing world. At the same time, the country has been firing up its coal burners to end years of power shortages. Last year, officials backtracked on pledges to shut down eight coal-fired power stations and have admitted South Africa will not meet its 2030 targets. The report said total renewable capacity in South Africa was 10.4 gigawatts (GW) in 2022, growing by 1 GW per year since 2015. To meet net zero by 2050, however, it would need between 190 GW and 390 GW, requiring between 6 GW and 14 GW per year. The report blamed "contradictory public policies ... particularly regarding the future of the energy sector," adding: "The lack of consensus about the pace of the coal phaseout is delaying the ... the transition". It added that investment was far below what was required, with 131 billion rand ($7.09 billion) a year being committed, against the 334 billion to 535 billion needed. ($1 = 18.4799 rand) Sign up here. https://www.reuters.com/world/africa/south-africas-climate-action-too-slow-meet-its-bold-pledges-says-report-2024-07-25/

2024-07-25 11:41

CAIRO, July 25 (Reuters) - Egypt raised the prices of a wide range of fuel products on Thursday, the official gazette said, four days before the International Monetary Fund (IMF) conducts a third review of its expanded $8 billion loan programme for the country. The official gazette, citing the petroleum ministry, said petrol prices increased by up to 15% per litre, with 80 octane rising to 12.25 Egyptian pounds ($0.25), 92 octane to 13.75 pounds and 95 octane to 15 pounds. Diesel, one of the most commonly used fuels, saw the biggest increase, rising to 11.50 Egyptian pounds ($0.24) from 10 pounds. This is the second time the government has raised fuel prices since the IMF expanded its loan programme by $5 billion in March. Egypt has committed to slashing fuel subsidies as part of the agreement. But Egyptians who spoke to Reuters, including taxi driver Sayed Abdo, complained that Thursday's move would mean an automatic increase in prices for daily goods. "If you ride with me today and usually pay 10 Egyptian pounds, I will ask you for 15, because fuel prices are raised. That's normal, because when I go get food, what I used to buy with 10 Egyptian pounds becomes now for 15," he said. "We don't know where we're headed with these prices." On Wednesday, Prime Minister Mostafa Madbouly said prices of petroleum products will gradually increase until the end of 2025, adding that the government could no longer bear the burden of increasing consumption. Egyptians have also endured blackouts, which Madbouly said had ended at the start of this week, as the country struggled to import sufficient natural gas to tackle the summer heat. In April, the IMF estimated that Egypt will spend 331 billion Egyptian pounds ($6.85 billion) on fuel subsidies in 2024/25 and 245 billion in 2025/26. The IMF's approval for the third review of the expanded loan program was originally expected on July 10, but was pushed back to July 29, with the lender attributing the delay to the finalisation of some policy details. An IMF spokesperson declined to discuss those details. The IMF is expected to disburse $820 million to Egypt after concluding its review. ($1 = 48.2900 Egyptian pounds) Sign up here. https://www.reuters.com/business/energy/egypt-raises-domestic-fuel-prices-by-up-15-before-imf-review-2024-07-25/

2024-07-25 11:35

MANILA, July 25 (Reuters) - A marine tanker carrying industrial fuel sank in rough seas off the Philippines on Thursday, causing the death of a crew member and an oil spill that could spread to waters off the capital Manila, officials said. Sixteen of the 17 crew members of MT Terra Nova have been rescued, Transportation Secretary Jaime Bautista said, after the ship capsized off the coastal town of Limay in Bataan province. The coastguard said they found the body of a previously missing crew member in the sea off Limay town in Bataan province, less than three hours drive from the capital Manila, on Thursday afternoon. "There is already oil spill. Right now, we cannot dispatch our resources because of strong winds and high waves," Transportation Secretary Jaime Bautista told a situation briefing. The ship was carrying 1,494 metric tonnes of industrial fuel, Bautista said. Philippine coast guard spokesperson Armando Balilo told a separate briefing a 97-metre coast guard vessel had been deployed to combat the oil spill. Smaller vessels were waiting for the weather to clear before setting sail. An aerial survey by the coast guard showed an oil slick spreading roughly two nautical miles and being driven by strong waves. "We are racing against time. We will do our best to contain the fuel," Balilo said. He added the waters where the ship sank is close to Manila and there is "big danger" the spill could reach the capital. "That's part of the contingencies that we are preparing for," Balilo said. Philippine President Ferdinand Marcos Jr. had ordered the environment ministry to assess the damage and the ministry said its chief was on her way to Limay town. Balilo said rescued crew members had described encountering rough seas before the ship capsized. Officials were investigating whether the sinking is related to Typhoon Gaemi, which on Wednesday flooded swathes of the capital Manila and surrounding towns. At least 14 people have died from the typhoon and monsoon rains, according to government data, and officials said the toll could go up. LSEG Eikon data shows Terra Nova has a deadweight tonnage of 1,415 tonnes and was headed to the central province of Iloilo. Last year, oil tanker MT Princess Empress was carrying about 800,000 litres of industrial fuel when it capsized on Feb. 28 and eventually sank, causing an oil spill which took three months to cleanup and hit tourist towns. Sign up here. https://www.reuters.com/world/asia-pacific/one-crew-missing-oil-spill-after-tanker-capsizes-off-philippines-2024-07-25/

2024-07-25 11:26

Novak: Russia constantly in touch with OPEC+ partners Exceeding quotas is a 'very meagre', Novak says Novak expects OPEC+ JMMC to be constructive Russia aims to fulfil OPEC+ deal, Novak says MOSCOW, July 25 (Reuters) - Russian President Vladimir Putin's oil point man said on Thursday that there was no friction with OPEC+ due to Russia exceeding crude production quotas and that the world's second largest oil exporter would compensate for its overpumping. Russia on Wednesday unexpectedly announced that its crude oil production in June exceeded quotas set by the OPEC+ group but said that it would resolve the issue and stick to agreed output levels this month. The news triggered speculation among some oil traders about tension between Saudi Arabia, the world's biggest exporter which leads the Organization of the Petroleum Exporting Countries, and Russia. Together OPEC and others including Russia, in a group known as OPEC+, have made a series of deep output cuts since late 2022. Asked by reporters in Moscow if Arab members of the OPEC+ club were unhappy with Russia's overproduction, Russian Deputy Prime Minister Alexander Novak said: "We have no friction." "What we are under-fulfilling is very meagre," he added. "These are errors that will actually be eliminated, secured and obligations will be fulfilled." An industry source told Reuters that Novak held a call last week with Saudi officials, who expressed concern about Russia's overproduction. "I spoke with the minister (of Saudi Arabia) last week," Novak said. He gave no further details. Riyadh needs higher oil prices to balance its books. Saudi Arabia's economic growth will likely be one of the slowest among the Gulf Cooperation Council countries this year, according to a Reuters poll of economists, who lowered growth forecasts from three months ago due to extended oil output cuts. Russia's production figures are classified so it is unclear just how much Russia pumped in June - and why it needed to make a public statement about it if the overproduction was "meagre". According to industry sources data obtained by Reuters, Russia's July crude oil export plan for its western ports is 1.7 million barrels per day (bpd) down from 2.1 million in June, while refinery runs are seen at 5.36 million bpd, up from 5.16 million bpd. OPEC+ Under OPEC+ deals and voluntary cuts, Russia's quota for June to September was 8.98 million bpd. According to the International Energy Agency, oil production in Russia in June fell to 9.22 million bpd from 9.24 million bpd in May. OPEC estimates Russia's oil production in June at 9.14 million bpd down by 114,000 bpd from May. Novak said Russia was in constant touch with its OPEC+ partners and that he expected the OPEC+ joint ministerial monitoring committee (JMCC) meeting on Aug. 1 to be constructive. "We always have constructive discussions," Novak said. "The general focus is to ensure the balancing of the market, the execution of agreements. We are in constant contact with our colleagues." The OPEC Secretariat on Wednesday said Kazakhstan, Iraq and Russia had submitted plans to make up for overproduction in the first six months of 2024 by curbing output each month through September 2025. OPEC said cumulative overproduction in the six months between January and June was 1.184 million bpd for Iraq, 620,000 bpd for Kazakhstan and 480,000 bpd for Russia. It laid out a schedule for monthly cuts for the three countries between July this year and September 2025 to offset the overproduction. IRAQ Iraq has repeatedly said it is committed to OPEC+ decisions and that it would compensate for overproduction. In February, Oil Minister Hayan Abdel-Ghani said Iraq was committed to producing no more than 4 million bpd. But it produced between 4.189 and 4.217 million bpd between January and June, according to secondary sources used by OPEC to determine members' production. In March, the Iraqi oil ministry said it would reduce crude exports to 3.3 million bpd to compensate for exceeding its OPEC quota. But Iraq shipped an average of 3.41 million bpd in April and 3.36 million bpd in May, according to oil ministry data and Reuters calculations. An OPEC+ online joint ministerial monitoring committee meeting on Aug. 1 will review the market. Three sources told Reuters last week that the panel is unlikely to recommend changing the group's output policy. Sign up here. https://www.reuters.com/business/energy/russias-novak-says-no-friction-with-opec-over-exceeding-production-quotas-2024-07-25/