2025-12-04 06:36

Turkey aims to reduce reliance on Russian energy Gazprom supply contracts were due to expire at year-end US investment would hedge against higher prices, says minister Turkey in talks over Iranian gas imports Also in negotiations for nuclear plants ISTANBUL, Dec 4 (Reuters) - Turkey has extended its expiring Russian gas import contracts by a year as it plans U.S. infrastructure investment as part of efforts to reduce reliance on Russian energy, the Turkish energy minister said. Turkey is Russia's last major natural gas market in Europe after years of war-related Western sanctions on Moscow. It imports a total of 22 billion cubic metres of gas under the Gazprom (GAZP.MM) , opens new tab contracts that expire at the end of the year, amounting to less than 40% of Turkey's overall gas mix, down from more than 50% in 2018. Sign up here. The Russian gas is supplied via the Blue Stream and TurkStream pipelines under multi-year contracts starting from February 2003 and January 2020 respectively. Turkish state gas importer BOTAS has separately signed a series of long-term contracts for liquefied natural gas (LNG), much of which is from the United States, taking advantage of large global LNG supply over the next few years. BOTAS will continue to be supplied by Gazprom next year, but with a more short-term focus of one year, Energy Minister Alparslan Bayraktar said in embargoed comments to reporters in Istanbul on Wednesday. Gazprom did not reply immediately to a request for comment. INVESTMENT IN U.S. GAS PRODUCTION The minister said Turkey also plans to invest in U.S. gas production facilities to hedge against potential price increases on the 1,500 LNG cargoes it has agreed to buy from the U.S. over the next 15 years. "To hedge our position and create the whole value chain, we are considering investing in the upstream U.S. market," Bayraktar said. State company TPAO was in talks with U.S. energy majors including Chevron (CVX.N) , opens new tab and Exxon (XOM.N) , opens new tab and a deal could be concluded next month, he added. The U.S. became Turkey's fourth-largest gas supplier this year at 5.5 bcm. Most of the U.S. LNG deals came shortly before President Tayyip Erdogan's September visit to the White House, where U.S. President Donald Trump asked him to stop buying oil from Russia, Turkey's largest supplier since 2022. Russia supplied about half of Turkey's crude imports from January to September this year, but Turkish refiners cut imports sharply in November, Kpler data shows. Private companies handle Turkey's oil and oil product imports, but Bayraktar said they are likely to comply with reductions, having done so in 2016-2017 in compliance with sanctions on Iran. "It will be their call," he said, adding that the government would step in if supply security was threatened. IRANIAN GAS TALKS AND TURKMEN SUPPLIES Turkey is also in negotiations with Iran over a 10 bcm gas import contract that expires next July, aiming to ramp up gas supplies from Turkmenistan, Bayraktar said. Turkey signed a one-year 1.3 bcm gas deal with Turkmenistan this year, sourcing the gas via Iran. Separately, Turkey plans to add two more floating storage and regasification units (FSRUs) over the next few years to increase its LNG intake capacity, with the potential to charter them later to Morocco and other countries, the minister said. Turkey currently has three FSRUs and two on-shore LNG gasification terminals, with combined capacity of 50 bcm. In expectation of significant increases in its electricity consumption, Turkey also plans to build two more nuclear plants and is in talks with South Korea's KEPCO (015760.KS) , opens new tab and Canada's AtkinsRealis (ATRL.TO) , opens new tab over deals to build them. U.S.-based Westinghouse has expressed interest in being involved in the second plant with KEPCO, Bayraktar said. https://www.reuters.com/business/energy/turkey-extended-russia-gas-contracts-by-year-eying-us-gas-investment-2025-12-04/

2025-12-04 06:34

Spate of attacks on Russia-linked ships in Black Sea Attacks near Turkish coast have alarmed authorities Minister says Zelenskiy asked for help with gas supply ISTANBUL, Dec 4 (Reuters) - Turkey is telling Russia, Ukraine, and all other parties to keep energy infrastructure out of their conflict and wants energy flows to continue uninterrupted, Energy Minister Alparslan Bayraktar said after a series of attacks off Turkey's Black Sea coast. Ukraine, which is targeting Russia's oil exports as Moscow bombards its power grid, has taken responsibility for an attack by seaborne drones on two empty tankers heading towards a Russian port last week. But it denied any link to another incident on Tuesday in which a Russian-flagged tanker loaded with sunflower oil said it had come under drone attack. Sign up here. "Hopefully, this horrible war will end. But as of today also, we say to all the parties - Russia and Ukraine - to keep the energy infrastructure out of this war," Bayraktar told journalists in embargoed comments on Wednesday. "We need to keep the energy flows uninterrupted," he said, adding that routes like the Caspian Pipeline Consortium pipeline should be kept safe. HIGHER SHIPPING RISKS Ankara, a NATO member that has kept warm relations with both Kyiv and Moscow during war, has said the attacks on Russia-linked vessels near Turkey are unacceptable and warned both sides, discussing the issue at a NATO meeting on Wednesday. President Vladimir Putin has responded by threatening to sever Ukraine's access to the sea and said Russia would intensify attacks on Kyiv's facilities and vessels. The attacks have sent Black Sea shipping insurance rates higher and prompted one Turkish company to halt Russia-related operations due to security concerns after one of its vessels was damaged near Senegal by external impacts. No one claimed responsibility. The CPC pipeline, which carries over 80% of Kazakhstan's oil exports and handles more than 1% of global supply, briefly halted operations on Saturday after a mooring at its Black Sea terminal near Russia's Novorossiisk port was damaged by a Ukrainian drone attack. Five industry sources later said Kazakhstan will divert more crude via the Baku-Tbilisi-Ceyhan (BTC) pipeline in December. "According to the flow numbers in the BTC, there is no, let's say, reduction. BTC is as of today supplying 600,000 to 700,000 barrels of oil to the global markets," Bayraktar said. TURKEY, UKRAINE DISCUSSED GAS SUPPLY Last month, Ukrainian President Volodymyr Zelenskiy visited Ankara for talks with President Tayyip Erdogan. "The topic we had with Zelenskiy in the room was, of course, they asked us to help them for gas supply to Ukraine," Bayraktar said when asked about what was discussed during the meetings. He said Ukraine had a similar arrangement with Greece, and added that Turkey's state energy company, BOTAS, and Ukraine's Naftogaz were working on how Ankara could help Kyiv. Bayraktar did not elaborate further, but said Ukraine had a "huge capacity" in underground storage, meaning it could store energy brought in cheaply during the summertime for the winter. https://www.reuters.com/business/energy/turkey-told-russia-ukraine-keep-energy-infrastructure-out-war-minister-says-2025-12-04/

2025-12-04 06:32

Shutdown likely to be complete by June, sources say Exxon considers buying feedstock for derivative units post-shutdown, sources say Feedstock naphtha import requirements to drop, analyst says SINGAPORE, Dec 4(Reuters) - ExxonMobil (XOM.N) , opens new tab plans to wind down operations at the older of its two steam crackers on Singapore's Jurong Island from March, four sources familiar with the matter said, part of a global petrochemicals sector trend to reduce capacity amid industry losses. The shutdown of the plant, which opened in 2002, is expected to be complete by June, two of the sources said. The sources asked not to be identified because they were not authorised to speak to media. Sign up here. The imminent shutdown of the U.S. major's first cracker in the Asian oil trading hub comes as chemical producers grapple with losses from overcapacity led by China, the world's largest consumer of petrochemicals used to make products ranging from plastics and clothes to shoes and cars. "As a matter of practice, we do not comment on market rumors or speculation," an ExxonMobil spokesperson said in response to Reuters' queries. The planned shutdown comes after Exxon's start-up earlier this year of a new steam cracker in the southern Chinese city of Huizhou, which can produce around 1.6 million tpy of ethylene. Exxon has in the past two years gradually scaled down term contract volumes with customers in Singapore, a second of the four sources said. Local buyers will likely switch to offtake from the two remaining ethylene producers in Singapore, traders said. Exxon has a second 1.1 million tpy cracker at Jurong Island which started operations in 2013. South Korea, another major petrochemical hub in Asia, is also seeing sector consolidation. POST-CLOSURE PLANS Exxon is considering buying feedstock to continue operating some of its derivative polyolefin units after the cracker's shutdown, depending on margins, the first source said. "Unless they can secure very low olefins prices, this is unlikely to be economically viable in the long term," said Catherine Tan, ICIS senior manager for chemical analytics. Tan expects Exxon to reduce imports of naphtha, the cracker's main feedstock, as a result of the shutdown. For the first 11 months this year, Exxon imported around 1.5 million metric tons (13.4 million barrels) of naphtha, compared with nearly 2.5 million tons for all of 2024, data from ship-tracking firm Kpler showed. In October, Exxon said it expected to cut 10-15% of its Singapore workforce by 2027. The U.S. major also agreed to sell its petroleum retail business in the city-state to Indonesia's Chandra Asri, co-owner of Aster Chemicals which runs the Bukom refinery-petrochemical complex. In September, however, Exxon started operations at a new refining unit at its 592,000 barrel-per-day (bpd) Singapore refinery. https://www.reuters.com/business/energy/exxon-permanently-shut-one-steam-cracker-singapore-march-sources-say-2025-12-04/

2025-12-04 06:28

At least 175 IndiGo flights were cancelled as of early Thursday IndiGo did not rejig roster planning adequately ahead of new rules The airline's stock has lost 6% this week BENGALURU, Dec 4 (Reuters) - Thousands of IndiGo (INGL.NS) , opens new tab passengers were stranded by flight cancellations on Thursday - a third day of chaos after India's biggest airline did not make sufficient changes to its roster planning to accommodate new government regulations. At least 175 IndiGo flights were cancelled as of early Thursday, leaving passengers at major airports in New Delhi, Mumbai, Hyderabad, Pune and Bengaluru angry and upset. On Wednesday, at least 150 flights were cancelled. Sign up here. Shares of IndiGo, which commands 60% of the market and has built its reputation on punctuality, fell 3.4% on Thursday and are now down 6% for the week. The Federation of Indian Pilots said IndiGo was not able to make timely roster adjustments and plan its schedule properly due to new rules aimed at improving safety. The rules, announced last year, went into effect on November 1. It was not immediately clear why IndiGo was suffering such a huge impact this week. IndiGo has acknowledged that stricter flight duty time limits have been a factor in the cancellations. It did not respond to a request for comment on Thursday. Other airlines, including Air India, Spicejet (SPJT.BO) , opens new tab and Akasa Air, have not had to cancel flights. The new rules have increased the amount of mandatory rest per week for pilots by 12 hours to 48 hours. In addition, pilots are now only allowed to make two night-time landings per week, down from six under the old rules. Officials from India's civil aviation regulator are due to meet IndiGo's senior management later on Thursday, and will seek details about what has led to the crisis and if there is a recovery plan in place, according to a government source with direct knowledge of the plans who declined to be identified. The regulator did not immediately respond to a request for comment. "INDIGO STANDARD TIME" On Thursday, 73 flights were cancelled at Bengaluru airport, its spokesperson said. Around 30 were cancelled in Delhi, and 68 in Hyderabad, and 85 IndiGo flight cancellations are planned for Mumbai on Thursday, according to airport sources. A Reuters photographer said she was stuck inside her IndiGo plane for three hours when it landed in the western city of Pune on Wednesday night, with the pilot citing operational issues and the lack of permission to dock the plane until other planes had flown. The debacle is a major setback for a two-decade-old airline that has more than 2,000 flights daily and a fleet of more than 400 planes, mostly Airbus (AIR.PA) , opens new tab A320s. The airline has prided itself on its lack of delays, and its staff will often announce "IndiGo Standard Time" when boarding has been completed before scheduled, a play on "Indian Standard Time". It remains to be seen just how badly the rostering woes will affect IndiGo, which garnered $9 billion in revenue in the past business year. Its biggest rival, Air India, has its own troubles, grappling with much scrutiny following a June crash that killed 260 people. At airports, frazzled and furious passengers stood in long queues inside crowded terminals as they tried to gather details about their flights. Ram Shankar Yadav, who was travelling with family to attend his younger brother's wedding celebrations, told Reuters that his flight had been delayed for six hours. "We don't have enough chairs. People are taking newspapers to sit on the floor," Yadav told Reuters by telephone from the airport in Pune. "People are angry. There's nobody to manage; their helplines are not working," he added. https://www.reuters.com/sustainability/sustainable-finance-reporting/indias-bengaluru-airport-says-73-indigo-flights-cancelled-dec-4-2025-12-04/

2025-12-04 06:06

Volume declines, surveys have sparked worries about future of alcohol industry IWSR data shows weekly drinking per person in the U.S. is relatively stable Weekly drinks per capita hits lowest since 1995, but only down by around 1 drink per week Alcohol makers, IWSR say drop is due to temporary economic pressures LONDON, Dec 4 - Americans say they are drinking less alcohol than ever before. But new data shows the number of drinks U.S. adults have per week has in fact not changed by much for decades. The data from drinks market research firm IWSR, shared exclusively with Reuters, shows that the number of weekly drinks per U.S. adult has hovered between 10 and 12 since 1975. While it is currently at its lowest since 1995, this reflects a decline of around 1.1 servings per person per week from a recent peak of 11.5 drinks in 2021. Sign up here. Surveys indicating a historic shift away from drinking, steep declines in alcohol sales, and falling drinking rates among young people have all fed a debate in recent years about whether drinking might be in long-term decline, especially in the key U.S. market. Possible drivers include a trend towards healthier lifestyles. Drinks makers argue falling sales volumes are more to do with the economy than consumers turning against alcohol. IWSR said its data could not rule out fundamental behaviour change as a factor, but did counter the widespread narrative that there has already been a historic shift away from drinking. "We're not at any sort of historic low," Marten Lodewijks, president of IWSR told Reuters, adding it will likely take years to determine whether the current decline is due to economic cycles or a long-term shift in consumer habits. IWSR, at least, thinks short-term conditions including huge pressures on consumer finances from high interest rates and inflation or political turbulence are bigger drivers. Its data also shows that steep declines in volumes of alcohol sold are less dramatic when converted to weekly drinks per person, which better accounts for shifts away from high-volume drinks like beer to lower-volume spirits, Lodewijks said. He also pointed to separate IWSR survey data that showed increases in the number of Gen Z respondents that reported recent drinking between 2023 and 2025. This indicated the cohort did not shun alcohol more than older generations despite widely being seen as leading the shift away from drinking. Other surveys focused on drinking among younger consumers have registered declines. But analysts including Laurence Whyatt at Barclays say other data, including Gen Z spending on alcohol as a portion of income, supports the idea that economic pressures play a big role in how much they drink. https://www.reuters.com/world/us/are-americans-drinking-less-new-data-says-yes-not-by-much-2025-12-04/

2025-12-04 05:58

Macron in Beijing for fourth state visit to China French President being accompanied by large business delegation Urged China's Xi to cooperate on geopolitics, trade, environment Xi told France to maintain its independence in geopolitics BEIJING/PARIS, Dec 4 (Reuters) - French President Emmanuel Macron urged Chinese leader Xi Jinping to boost cooperation on geopolitics, trade and the environment, as the European Union seeks China's help in ending the war in Ukraine and Beijing looks for economic wins from U.S. tariffs. On his fourth state visit, Macron is walking a delicate tightrope, trying to reduce France's massive trade deficit with China and secure industrial jobs at home to bolster his legacy, without antagonising the world's second-largest economy. Sign up here. China, for its part, wants to ease trade frictions with the 27-strong EU over its heavily subsidised electric vehicle industry, while presenting itself as a more reliable market to the U.S. for economies hit by President Donald Trump's tariffs. "The imbalances we see accumulating today are not sustainable, they carry the risk of triggering a financial crisis and threaten our ability to grow together," Macron told his host during their Thursday meeting at Beijing's Great Hall of the People. "There are solutions," he said, calling for rules that were fairer and stronger, rather than based on "survival of the fittest." Xi told Macron their countries should follow their own geopolitical paths. "No matter how the external environment changes, our two countries should always demonstrate the independence and strategic vision of major powers," he said. However, no major business deals were signed at a ceremony between Xi and Macron, who was traveling with a big business delegation. Nothing was said of a package of Airbus (AIR.PA) , opens new tab orders that the group has discussed with Beijing for months and is often tied to diplomatic visits. The Chinese leader was not expected to approve the long-anticipated 500-jet Airbus order, as that would weaken Beijing's leverage during trade talks with the U.S., which is pressing for new Boeing purchase commitments. Top executives from Airbus (AIR.PA) , opens new tab, France's largest bank BNP Paribas (BNPP.PA) , opens new tab, electrical giant Schneider (SCHN.PA) , opens new tab and train maker Alstom (ALSO.PA) , opens new tab, along with leaders of the French dairy and poultry industry groups, have joined Macron in China. WIDER POWER DYNAMICS AT PLAY Macron, who like other European leaders has been pleading in vain with Beijing to lean on Moscow to end the war in Ukraine, repeated his call on Thursday. "I hope China will join our call and our efforts to at least reach a ceasefire as soon as possible and a moratorium on strikes targeting critical infrastructure," he said. "It's key as winter is coming." Earlier this month, China offered its assurances to Russia of China's continued support. Xi said China remained committed to peace in Ukraine. Xi on Friday will accompany Macron to southwestern China's Sichuan province, lavish treatment considering Xi seldom joins visiting world leaders once they leave Beijing. Macron has also treated Xi to provincial outings when he came to France. But despite the apparent bonhomie between the two men, analysts say wider power dynamics between Europe and China were at play. Xi is unlikely to lift the minimum prices required for most French brandy sales in China, given that the anti-dumping probe that led to the price rule was launched in response to the wider EU's decision to impose import tariffs on Chinese EVs. An easing of Chinese duties on EU pork shipments is also not expected, as Beijing seeks to pressure Brussels into agreeing to a minimum price plan for its EVs. Xi reiterated China's support for peace in Gaza and announced a further $100 million in aid to the Palestinians for reconstruction, although far below the 1.6 billion euros ($1.87 billion) the EU pledged in April for the next three years. China's top leader also encouraged Macron to deepen cooperation in aerospace and nuclear energy, as well as in artificial intelligence, the green economy and biopharmaceuticals. The two leaders signed 12 cooperation agreements following their talks, covering population ageing, nuclear energy, and panda conservation, but without specifying their monetary total. BIG BUSINESS Macron in the past has sought to project a robust European front in dealing with China, pushing Brussels to deploy protectionist counter-measures to slow the flood of subsidised Chinese goods hammering European industry. The EU's goods trade deficit with China has ballooned by nearly 60% since 2019, while France's trade balance with the $19 trillion economy continues to widen. Macron also raised European concerns with China's move to restrict exports of critical minerals. Beijing's threat of new curbs on rare-earth exports to the West in October, on top of restrictions announced in April, has caused fresh panic in European car, clean energy and semiconductor sectors all heavily dependent on them. "It is essential to create an environment of trust and to deal with every instability risk in supply chains," Macron said. China is France's seventh-largest trading partner, buying around $35 billion in goods each year, according to Chinese customs data. About 10% of those products are cosmetics, with aircraft parts and alcoholic spirits among other key exports. For its part, France takes some $45 billion worth of Chinese products, mostly low-value parcels through online platforms like Shein selling cheap clothes, accessories and gadgets direct from Chinese factories, thanks to an EU customs waiver on purchases below 150 euros ($174.86). ($1 = 0.8579 euros) https://www.reuters.com/world/china/chinas-president-xi-jinping-met-french-president-emmanual-macron-beijing-2025-12-04/