2024-07-09 12:39

TOKYO, July 9 (Reuters) - Japan warned on Tuesday against the risk of heatstroke in Tokyo and areas in its east and west, as hot and humid conditions behind several recent deaths drove some people to use new "cooling shelters" set up around the capital. Authorities urged people to avoid physical activity as the environment ministry issued top 'danger'-level alerts, while media said scores of people were hospitalised, with some dying from heatstroke symptoms over the last few days. "It's a life-threatening emergency," said 60-year-old Hisako Ichiuji, who resorted on Tuesday to a "cooling shelter" at the capital's Tokyo Tower, a popular tourist spot. Typically facilities such as community centres or libraries equipped with air conditioners, the shelters are part of a scheme adopted this year requiring local governments to provide people a respite from the heat after warnings go out. "(In the past) the temperature wasn’t like this," Ichiuji added. "I think it’s important to keep ourselves hydrated, and take shelter in a facility like this." An 86-year-old farm worker was found dead on Monday in a field in the southwestern Fukuoka region, surrounded by towels and bottles of water, the Asahi newspaper said. Temperatures hit a record 40 degrees Celsius (104 degrees Fahrenheit) on Monday in the city of Shizuoka, while other areas, some in Tokyo, have witnessed record temperatures for this time of year. As demand soared, Japan's biggest power provider, JERA, increased output at some plants and pulled back online some it had halted for maintenance, to help those struggling to beat the heat. TEPCO (9501.T) New Tab, opens new tab, the main electricity provider to Tokyo, had to buy power from another utility to prepare for an expected surge in demand. On Tuesday, Trade Minister Ken Saito said the government was monitoring the situation "with a sense of urgency" and would take every step to ensure stable electricity supply. The farming and fishing industries are preparing for the impact of rising temperatures, which the agriculture ministry said this month were affecting the quality of staples such as rice and thinning the catch of some fish, such as salmon. Sign up here. https://www.reuters.com/world/japan/japan-issues-heatstroke-warning-cooling-shelters-offer-respite-2024-07-09/

2024-07-09 12:32

July 9 (Reuters) - Carbon capture firm 1PointFive said on Tuesday it has entered into an agreement with Microsoft (MSFT.O) New Tab, opens new tab to sell the tech giant 500,000 metric tons of carbon dioxide removal (CDR) credits over six years. 1PointFive is the carbon capture, utilization and sequestration unit of oil and gas firm Occidental Petroleum (OXY.N) New Tab, opens new tab. The agreement is a part of Microsoft's goal to become carbon negative by 2030. Earlier this year, telecom company AT&T (T.N) New Tab, opens new tab had agreed to purchase CDR credits from 1PointFive as part of its goal to reduce emissions and become carbon neutral in its global operations by 2035. Carbon credits are tradable permits that allow the owner to emit certain amounts of greenhouse gases. Each credit permits the emission of one metric ton of carbon dioxide or the equivalent in other greenhouse gases. 1PointFive said the CDR credits for Microsoft will be provided by STRATOS, its facility currently under construction in Texas, which is designed to capture up to 500,000 metric tons of carbon dioxide annually when fully operational. Sign up here. https://www.reuters.com/sustainability/occidentals-1pointfive-sell-carbon-credits-microsoft-2024-07-09/

2024-07-09 12:12

July 9 (Reuters) - Saudi state oil giant Aramco (2222.SE) New Tab, opens new tab made its return to the debt market on Tuesday after a three-year hiatus, joining top companies and governments in the Gulf that have tapped markets this year to fund investments. Aramco hired banks to sell bonds maturing in 10, 30 and 40 years, a document from one of the banks working on the deal showed. Aramco is likely to raise at least $3 billion across the three tranches, a source with knowledge of the matter said. The company did not immediately respond to a request for comment. "The timing suggests Aramco is taking advantage of the last window ahead of the summer illiquidity," Zeina Rizk, co-head of fixed income at Amwal Capital Partners told Reuters. Gulf companies and governments have raise funds in debt markets this year to take advantage of favourable market conditions, with top oil exporter Saudi Arabia issuing $12 billion of dollar-denominated bonds in January and $5 billion in sukuk, or Islamic bonds, in May. Aramco, which last tapped global debt markets in 2021 when it raised $6 billion from three-tranche sukuk, flagged in February it was likely to issue bonds this year. Aramco has long been a cash cow for the Saudi state, fuelling decades of prosperity. It expects to declare $124.3 billion in dividends for 2024, the majority of which goes to the Saudi government. Last month, the oil giant awarded $25 billion worth of contracts for its gas expansion plans, said it would buy 10% of Renault (RENA.PA) New Tab, opens new tab and Geely's (0175.HK) New Tab, opens new tab thermal engines joint venture Horse Powertrain and announced a non-binding deal with U.S. energy firm Sempra to buy liquefied natural gas. Aramco's bond sale is "likely an indication the company will continue to pursue acquisitions aggressively", said Yousef Husseini, an analyst at EFG Hermes. A portion of Aramco's dividends also go to the Public Investment Fund - the kingdom's sovereign wealth fund steering its goal of weaning the economy off oil - which owns 16%. The government, which directly owns about 81.5% of Aramco, raised $11.2 billion by selling a slice of shares in its crown jewel last month. Proceeds could boost the country's funding and its aim of shifting the economy away from oil under a plan called "Vision 2030". PIF, which has spent billions on everything from electric cars to sports and planned futuristic cities in the desert, has also raised almost $8 billion from three debt sales. "As Saudi Arabia's funding needs for its investment programme remain significant in the medium-term despite some timelines being extended, and in the absence of hoped-for levels of FDI, tapping the debt markets reduces pressure on domestic funding and liquidity," said Monica Malik, chief economist at Abu Dhabi Commercial Bank. Citi (C.N) New Tab, opens new tab, Goldman Sachs International (GS.N) New Tab, opens new tab, HSBC (HSBA.L) New Tab, opens new tab, JPMorgan Chase (JPM.N) New Tab, opens new tab, Morgan Stanley (MS.N) New Tab, opens new tab and SNB Capital (1180.SE) New Tab, opens new tab have been appointed as joint active bookrunners for the three-part bond sale. The banks will arrange investor calls on Tuesday for the potential sale of benchmark-sized notes, according to the document, which did not disclose the size of the issuance. Abu Dhabi Commercial Bank, BofA Securities, the Bank of China, Emirates NBD, First Abu Dhabi Bank, GIB Capital and Mizuho are among the bank that are acting as joint passive bookrunners. Aramco's 40-year tranche would become its second-longest dated bonds after $2.25 billion of notes due in November 2070. ($1 = 0.7805 pounds) Sign up here. https://www.reuters.com/business/energy/saudi-aramco-returns-debt-market-with-dollar-bond-sale-2024-07-09/

2024-07-09 12:11

LONDON, July 9 (Reuters) - The outcome of France's parliamentary election is negative for the country's credit rating, Moody's has warned, as a grand coalition would make decision-making and the task of bringing its debt under control more difficult. France is facing complex negotiations to form a government after a left-wing surge in elections on Sunday blocked Marine Le Pen's quest to bring the far right to power. Possibilities include the left forming a minority government - which would be at the mercy of a no confidence vote from rivals unless they reach deals - and the cobbling together of an unwieldy coalition of parties with almost no common ground. "In light of the constraints that any future government faces, we are unlikely to see expenditure-based fiscal consolidation in 2025," Moody's said in a note, echoing many of the concerns S&P Global voiced on Monday. France is also unlikely to be able to push through further tax hikes, given that its tax-to-GDP ratio is already the highest in the OECD, Moody's added. "Hence, the fiscal implications of the election outcome are credit negative," said the ratings agency, whose current Aa2 "stable" outlook rating on France is a notch higher than both S&P and Fitch. France's spending trajectory means its general government deficit is not likely to drop below 4% of GDP until 2027, by which point its near 110% debt-to-GDP ratio will have ballooned a few more percentage points. Moody's pinpointed a trio of triggers for a rating change. * The outlook would move to negative if, for example, the fiscal and debt numbers looked likely to be materially worse than previously expected, in particular its interest payments relative to revenue and GDP. * There was a weakening commitment to fiscal consolidation. * There was a reversal of the labour market liberalisation and pension reforms of the last seven years that Moody's thought would materially dampen the country's medium-term growth potential and/or fiscal trajectory. "The current unprecedented circumstances will test French institutions and policy effectiveness," Moody's said. Sign up here. https://www.reuters.com/markets/europe/frances-election-outcome-negative-credit-rating-moodys-2024-07-09/

2024-07-09 12:07

HOUSTON, July 9 (Reuters) - Oil and gas companies in Texas restarted some operations on Tuesday after Hurricane Beryl lashed the state with 80-mph (129-kph) winds, while some facilities sustained damage and power had not been fully restored. Beryl's impact on oil and gas production was expected to be limited. The storm made landfall on Monday near the coastal town of Matagorda. Energy firms shut operations ahead of its arrival and Texas' largest ports and navigation channels closed. On Tuesday, some ports reopened and most producers and facilities were ramping up output. Some were limited by the slow restoration of power to homes, businesses and industrial customers. Weather forecasting firm AccuWeather issued a preliminary estimate of $28 billion to $32 billion in total damage and economic loss from the hurricane in the U.S.   About 2 million customers remained without power in Texas and 12,000 more in Louisiana on Tuesday, according to PowerOutage.us, including some 1.5 million served by provider CenterPoint Energy (CNP.N) New Tab, opens new tab. The Texas figure was more than double the number of customers that lost power in May during a weather event in Houston. It took more than a week for those outages to be resolved in some city neighborhoods. CenterPoint said it had restored power to more than 800,000 customers, and expects to reach 1 million customers re-connected by the end of Wednesday, of the 2.26 million impacted. "I can't give you a timeline, but it's not going to be tomorrow," Centerpoint's Local Government Relation manager Paul Lock, replied to a question on when power would be fully back during a press conference. Texas Lieutenant Governor Dan Patrick urged CenterPoint to work as quickly as it can to restore power. "We can do a post-analysis of their success or failures after we get the power back," Patrick added in response to questions about whether the power company was prepared in advance of the hurricane. Houston was sunny on Tuesday with temperatures in the high 90 degrees Fahrenheit (32.2° degrees Celsius), causing problems as power outages knocked out air conditioning. Many gasoline stations in Houston were closed due to lack of power or fuel stocks. Beryl lost strength quickly upon making landfall and by Tuesday was downgraded to a post-tropical cyclone, the U.S. National Hurricane Center said. It warned that flash flooding and tornados remained possible from mid-Mississippi to the Lower Ohio Valley. TEXAS FLOODING EASING Texas is the largest U.S. oil and gas producing state, accounting for some 40% of oil and 20% of gas output, and is also a major shipping and refining hub. Any weather-related interruption could affect crude and fuel production levels, as well as imports and exports. "Although the hurricane did not cause severe disruptions in U.S. oil production and refining so far, several oil ports remain closed, while vast power outages can weigh on oil demand," Goldman Sachs said in a note. Most refineries in Houston and Texas City are designed to maintain operations even amid heavy rainfall, but some of those facilities, ports and other energy infrastructure can develop problems from sustained power interruptions, experts said. Marathon Petroleum Corp (MPC.N) New Tab, opens new tab was preparing on Monday to restart multiple units at its 631,000-barrel-per-day (bpd) Galveston Bay oil refinery in Texas City, sources said. The plant was awaiting power to restart operations, the company said in a state regulatory filing. Phillips 66's (PSX.N) New Tab, opens new tab 265,000-bpd Sweeny refinery in Texas returned plants to normal operations after an upset on Monday caused by Beryl. Citgo Petroleum temporarily reduced production over the weekend at its 165,000-bpd Corpus Christi plant. Ports from Point Comfort through Houston, including Freeport, Galveston, and Texas City, saw damage along with substantial operational delays, a shipping agency wrote in a note to clients. The Port of Corpus Christi reopened ship navigation on Monday. The Port of Freeport said it reopened on Monday, adding that some facilities were running on backup power while utility crews worked to restore electricity. The Houston Ship Channel opened to inbound traffic with restrictions, a notice from the shipping agent said. Port Houston said its terminals would be resuming operations on Wednesday. Vessel and cargo operations at the Port of Galveston, about 50 miles (80 km) from Houston, remained suspended on Tuesday as power outages continued in parts of the city, said Rodger Rees, CEO of maritime commercial center Galveston Wharves. At least one cruise ship was cleared to dock at Galveston on Tuesday. Shell (SHEL.L) New Tab, opens new tab, Chevron (CVX.N) New Tab, opens new tab and BP (BP.L) New Tab, opens new tab started redeploying personnel who had been evacuated from their Gulf of Mexico platforms. Exxon Mobil (XOM.N) New Tab, opens new tab was assessing its Hoover offshore platform, while working to restart operations, it said. Freeport LNG, the third-largest liquefied natural gas facility in the U.S., has not provided an operational update since it said it reduced production on Sunday. Enterprise Products Partners' (EPD.N) New Tab, opens new tab unit tripped due to the weather at its natural gas liquids (NGL) processing facility in Mont Belvieu, in east Texas, according to a filing. Energy Transfer's (ET.N) New Tab, opens new tab Mont Belvieu NGL facility was fully operational on Tuesday, the company said, following issues reported in a regulatory filing. Mont Belvieu is the pricing point for North American NGL markets. Sign up here. https://www.reuters.com/business/energy/oil-companies-texas-restoring-operations-following-hurricane-beryl-2024-07-09/

2024-07-09 11:37

NEW DELHI, July 9 (Reuters) - India plans to spend $1 billion to expedite the construction of 12 hydropower stations in the northeastern Himalayan state of Arunachal Pradesh, two government sources said, a move that could raise tensions with China that lays claims to the region. The federal finance ministry under Nirmala Sitharaman recently approved up to 7.5 billion rupees ($89.85 million) in financial assistance to each hydropower project in the northeastern region, the sources said. Under the scheme, about 90 billion rupees will likely be allotted for the 12 hydropower projects in Arunachal Pradesh, said the sources, who have direct knowledge of the matter. The scheme is likely to support northeastern states and help them finance equity holdings in the projects they host. Having state governments on board generally helps in expediting regulatory clearances, locals rehabilitation and negotiations on sharing electricity with the host state. The plans for the hydropower stations are expected to be announced in the 2024/2025 federal budget that Prime Minister Narendra Modi's government will unveil on July 23, the sources said, declining to be named as the information remained confidential. The Indian finance and power ministries and China's foreign ministry did not immediately respond to Reuters' requests for comment. Last August, the government awarded contracts to state-run firms NHPC (NHPC.NS) New Tab, opens new tab, SJVNL (SJVN.NS) New Tab, opens new tab and NEEPCO for the construction of the 11.5-gigawatt-capacity plants entailing an estimated investment of $11 billion, as part of a broader project to develop infrastructure in the border region. None of the companies responded to a request for comments. These power plants were earlier enlisted with private sector firms, but remained non-starters due to various reasons. India has built less than 15-gigawatt hydropower plants in the last 20 years, while installations of new coal and other renewable sources of energy were nearly 10 times of the new hydropower projects. India and China share a 2,500 km (1553.43 mile) largely un-demarcated border, over which they fought a war in 1962. India says Arunachal Pradesh is an integral part of the country, but China claims it is a part of southern Tibet, and has objected to other Indian infrastructure projects there. The Indian government is pushing projects in the eastern region following reports that Beijing could construct dams on a section of the Brahmaputra river, known as the Yarlung Tsangbo in China, that flows from Tibet through Arunachal Pradesh. India is concerned that Chinese projects in the region could trigger flash floods or create water scarcity. Both countries are working to improve infrastructure along their border regions since clashes in western Himalayas left 20 Indian and at least four Chinese troops dead in 2020. Last week, India Foreign Minister Subrahmanyam Jaishankar met his Chinese counterpart Wang Yi in Kazakhstan where the two agreed to step up talks to resolve issues along their border. ($1 = 83.4710 Indian rupees) Sign up here. https://www.reuters.com/world/asia-pacific/india-races-build-power-plants-region-claimed-by-china-sources-say-2024-07-09/