2025-05-28 23:05
Manitoba declares state of emergency Premier says 17,000 need to move quickly Oil producer Cenovus Energy evacuates non essential workers WINNIPEG, Manitoba, May 28 (Reuters) - Manitoba declared a state of emergency and urged thousands of people in northern and eastern parts of the province to evacuate on Wednesday, as wildfires spread in Central and Western Canada. Manitoba Premier Wab Kinew said at a news conference that 17,000 people needed to move quickly, including from the city of Flin Flon. Many will be put up at soccer fields and community centers in Winnipeg and other cities, and federal armed forces were arriving to help transport evacuees, he said. Sign up here. "This is the largest evacuation in many Manitobans’ living memory and this will require significant resources and co-operation from all levels of government, Kinew said in a statement. Separately, wildfires in Alberta province have prompted a temporary shutdown of some oil and gas production and forced residents of at least one small town to evacuate. Oil producer Cenovus Energy (CVE.TO) , opens new tab said it was scaling back nonessential workers at its Foster Creek facility in response to the wildfires in northern Alberta. Cenovus' Foster Creek operation is among a number of oil sands facilities operated by companies with assets in the Bonnyville-Cold Lake region. That region was affected on Wednesday by wildfires spanning 2,900 hectares (11.2 square miles) near Chipewyan Lake, a small community in the northern part of the province approximately 130 km (81 miles) west of the oil sands hub of Fort McMurray. Cenovus said it was closely monitoring the evolving wildfire situation and the staffing measure was a precaution. Alberta government officials said on Wednesday there was no current threat to Chipewyan Lake, but residents have been placed on a one-hour evacuation notice as winds could shift. Another blaze, nearly 1,600 hectares in size, is burning out of control about 7 km north of Swan Hills, also in the province's north. The approximately 1,200 residents of Swan Hills were ordered to evacuate on Monday evening. One oil and gas producer in that area, Aspenleaf Energy, said on Monday it had temporarily halted operations as a precaution and shut in approximately 4,000 barrels per day of oil equivalent production. https://www.reuters.com/business/energy/cenovus-energy-scales-back-non-essential-staff-foster-creek-facility-2025-05-28/
2025-05-28 23:00
Coal-fired plants asked to boost stockpiles by 10%, cut imports Move seen as bid to support coal prices, now at four-year lows Traders sceptical that guidelines will spur additional buying BEIJING, May 28 (Reuters) - China is pressing its coal-fired power plants to stockpile more of the fuel and import less in an effort to shore up domestic prices, sources with knowledge of the matter said, but traders are sceptical the measures will help to stop the slide. The coal industry in China faces rising stockpiles of the fuel after a massive expansion of output following shortages and blackouts in 2021 is churning out more coal than even the world's largest thermal power fleet can consume. Sign up here. To support miners whose profits are under pressure, the state planner has asked power plants to prioritise domestic coal and increase thermal coal stockpiles by 10%, setting an overall target of 215 million metric tons by June 10, the sources said. The sources spoke on condition of anonymity because they were not authorised to speak to the media. However, with inventories piling up along the supply chain, two of the sources, both coal traders, said the guidelines would be unlikely to spur much buying or support prices. The powerful state planner, the National Development and Reform Commission (NDRC), did not immediately respond to a facsimile request for comment. Mine stockpiles are up 42% from a year ago, while northern Bohai area port inventories are up 25% annually, the state-run China Energy Daily has said. Buyers are also being asked to procure coal from northern ports to chip away at high port stockpiles, three of the sources said. The NDRC's moves follow months of calls from industry groups and companies to curb coal imports and output. Chinese coal prices have marched steadily downwards, however. Prices for medium-grade coal with a heat value of 5,500 kilocalories per kilogram stood at 620 yuan ($86) per metric ton on Tuesday, the lowest since March 2021. Prices have fallen so far that some buyers have tried to wiggle out of long-term contracts in favour of spot sales. China imported a record 542.7 million tons of coal in 2024, but the total is expected to fall this year. Coal imports slid 16% in April on the year. MINES KEEP WORKING Chinese mine production continues to grow despite the collapse in prices, with a government haunted by the shortages and blackouts of 2021 and 2022 unlikely to consider output cuts. "I think they're very mindful to avoid a repeat of that," said LSEG lead coal analyst Toby Hassall. "They will tolerate a period where some domestic production is really struggling." China's coal production rose 6.6% on the year during the period from January to April, to stand at 1.58 billion tons. Industry profits fell 48.9% year-on-year for the same period, official data showed on Tuesday. https://www.reuters.com/sustainability/boards-policy-regulation/facing-sinking-coal-demand-china-asks-power-plants-just-buy-more-sources-say-2025-05-28/
2025-05-28 22:59
Sunnova no longer using Project Hestia loan guarantee Sunnova has $371 mln in bonds outstanding backed by cancelled guarantee, source says DOE Loan Programs Office faces uncertain future amid budget cuts WASHINGTON, May 28 (Reuters) - President Donald Trump's administration has canceled a partial loan guarantee of $2.92 billion that had been awarded to residential solar panel installer Sunnova Energy (NOVA.N) , opens new tab, the company said on Wednesday. A source familiar with the matter said the Department of Energy had "de-obligated" the loan guarantee, meaning the federal government is not responsible for the financing. Bloomberg News first reported the move. Sign up here. Sunnova, which is restructuring its debt and has warned that it may not be able to continue as a going concern, said in a regulatory filing in March that it did not intend to use the DOE facility, known as Project Hestia, for the foreseeable future. In April 2023, former President Joe Biden's administration announced the partial loan guarantee of up to $3 billion to back financing for about 100,000 rooftop solar installations, primarily for lower-income homeowners. At the time, the Energy Department billed the facility as the largest ever U.S. government commitment to solar power. But residential solar has struggled since then as higher interest rates have pushed up financing costs. Sunnova, one of the biggest U.S. residential solar companies, has sold $371 million in bonds that are backed by the Project Hestia loan guarantee, according to a source, but those notes are not included in the debt that the company is seeking to restructure. The program became less attractive to Sunnova because the company could market cheaper, leased systems to homeowners using tax credits created by former President Joe Biden's 2022 Inflation Reduction Act, a company source said. The credit for loans, which was Project Hestia's focus, is less lucrative. The Trump administration, which is pushing to maximize oil and gas production, has said it is reviewing financing from the Department of Energy's Loan Programs Office to companies involved in alternative energy. Under Biden, the office aimed to speed development of the clean energy sector, with loans to companies that struggled to obtain private financing. It faces an uncertain future with job cuts implemented by Elon Musk's so-called Department of Government Efficiency and reductions to the office outlined in the House budget bill. The loans office since 2009 has issued more than $35 billion in loans and loan guarantees and been paid back by companies, including Musk's Tesla. But it has also been a target for Republicans since 2011 over a $535 million loan to Solyndra, a failed solar company. The Department of Energy did not immediately respond to a request for comment. https://www.reuters.com/business/energy/trump-administration-cancels-sunnova-energy-3-billion-loan-bloomberg-news-2025-05-28/
2025-05-28 22:52
May 28 (Reuters) - Fertilizer producer Nutrien (NTR.TO) , opens new tab said on Wednesday it was planning a major terminal at a Pacific Northwest port and is currently exploring sites in the United States and Canada. "Nutrien is reviewing options to increase West Coast port capacity as part of our long-term strategy to strengthen supply chain resilience and support rising global demand for potash," the company said in a statement. Sign up here. The Canada-based company is seeking a deep-water port with rail infrastructure capable of handling bulk potash exports for fast-growing Indo-Pacific markets, including China, India and Japan. https://www.reuters.com/markets/commodities/canadas-nutrien-plans-major-pacific-northwest-terminal-boost-potash-exports-2025-05-28/
2025-05-28 21:58
CAIRO, May 28 (Reuters) - Libya's eastern-based government said on Wednesday it may announce a force majeure on oil fields and ports citing "repeated assaults on the National Oil Corporation (NOC)." The government in Benghazi is not internationally recognised, but most oilfields in the major oil producing country are under the control of eastern Libyan military leader Khalifa Haftar. Sign up here. The government said it may also temporarily relocate the national oil corporation's headquarters to one of the "safe cities such as Ras Lanuf and Brega, both of which are controlled by the eastern-based government. The NOC is currently located in Tripoli under the control of the internationally-recongized Government of National Unity (GNU). The NOC denied in an earlier statement that the corporation's headquarters was stormed deeming it as "completely false". It also emphasized it is operating normally “and continuing to perform its vital duties without interruption.” The acting head of NOC Hussain Safar said that “what happened was nothing more than a limited personal dispute that occurred in the reception area and was immediately contained by administrative security personnel, without any impact on the corporation's workflow or the safety of its employees.” GNU's media office posted video footage from inside the headquarters of the NOC showing “stable conditions and no signs of a storming or security disturbance.” Libya's oil output has been disrupted repeatedly in the chaotic decade since 2014 when the country divided between two rival authorities in the east and west following the NATO-backed uprising that toppled Muammar Gaddafi in 2011. In August, Libya lost more than half of its oil production, about 700,000 bpd, and exports were halted at several ports as a standoff between rival political factions over the central bank threatened to end four years of relative peace. The shutdowns lasted for over a month with production gradually resuming from early October. The North African country's crude oil production reached 1.3 million barrels per day in the last 24 hours, according to the NOC. https://www.reuters.com/business/energy/libyas-eastern-based-government-says-it-may-announce-force-majeure-oil-fields-2025-05-28/
2025-05-28 21:28
Banxico sees 2025 growth close to zero, halves 2026 forecast Economy experiencing "significant weakness," says report Bank sees U.S. trade policies fueling uncertainty, hindering investment Bank governor, deputy governor do not see a recession Core inflation seen slightly higher through rest of year MEXICO CITY, May 27 (Reuters) - The Bank of Mexico slashed its growth forecasts for Mexico's economy this year and next year, citing sluggish domestic activity and uncertainty related to U.S. trade policy, according to its quarterly report published on Wednesday. "The Mexican economy is undergoing a period of significant weakness and faces challenges," the report said. Sign up here. Banxico, as the central bank is known, estimated that Mexico's gross domestic product will grow just 0.1% this year, below its February estimate of 0.6%. The bank also cut its 2026 GDP growth forecast in half, forecasting 0.9% growth compared to its February estimate of 1.8%. Domestic activity is expected to be "sluggish" in coming months, the bank said, with domestic weakness exacerbated by "significant challenges stemming from the changes in U.S. trade policy." Despite the challenges facing Latin America's second-largest economy, some of the governors ruled out an imminent recession. "We are foreseeing a period of weakness for economic activity, but not a recession," Governor Victoria Rodriguez said during a presentation of Wednesday's report. "The economy is stagnant, and it appears it could remain stagnant for a while ... but we're not in a recession right now," said Deputy Governor Jonathan Heath. Banxico noted that Mexican exports have remained resilient in the face of U.S. tariffs, partly due to the preferential treatment under Mexico's trilateral trade deal with the U.S. and Canada. However, the bank flagged uncertainty about the full impact of Washington's tariffs, noting it expects tariffs to harm the U.S. economy, which would lead to lower external demand for Mexican goods. "Uncertainty alone hinders investment decisions and negatively affects the business environment," the report noted. Mexico's economy grew 0.2% in the first quarter from the previous quarter, allowing it to narrowly avoid a technical recession. Still, analysts have underscored the economy's underlying weakness, especially in manufacturing and services. Banxico cited the economy's weakness as a factor when it cut its benchmark interest rate earlier this month by 50 basis points to 8.5%. It was the third straight cut of that magnitude, and the bank said in its report that it expects the current inflationary environment will allow still further cuts. Inflation accelerated in early May to land outside the bank's target range, a trend that Heath described as concerning. Even so, the bank maintained prior estimates that headline inflation will average 3.3% in the fourth quarter before converging to its 3.0% target in the third quarter of 2026. The bank projected the core inflation index, which strips out volatile products, will rise higher than previously anticipated until the first quarter of 2026. It projected an average of 3.4% in the fourth quarter of this year, a percentage point higher than its prior forecast. https://www.reuters.com/world/americas/bank-mexico-lowers-2025-growth-forecast-bringing-it-close-zero-2025-05-28/
