2024-09-09 20:53

Sept 9 (Reuters) - The Biden administration on Monday said it had approved a major transmission line in Nevada that will run hundreds of miles along the state's border with California and be able to provide power to about 5 million homes. WHY IT'S IMPORTANT The milestone is the administration's latest effort to speed approval of major clean energy projects as part of its climate change and jobs agendas. President Joe Biden has a goal to decarbonize the U.S. electricity grid by 2035, a feat that will require massive investments in new transmission to move clean wind and solar energy to population centers. BY THE NUMBERS Public utility NV Energy's Greenlink West Transmission project will run for 472 miles from North Las Vegas to Reno, according to U.S. Bureau of Land Management documents. Once it is built, the line could transmit up to 4 gigawatts of electricity, enough to power about 5 million homes. NV Energy has said its Greenlink project, which includes Greenlink West and the smaller Greenlink North, will cost about $4.24 billion. Greenlink North is in the early stages of the federal permitting process. BLM also said it approved the 700-megawatt Libra Solar project in Mineral County, Nevada, which could provide enough power for 212,000 homes. It will be the largest solar and battery storage project in Nevada once it is constructed. CONTEXT Nevada is a key battleground state in the Nov. 5 U.S. presidential election between Democratic Vice President Kamala Harris and Republican former President Donald Trump. KEY QUOTE "In Nevada and across the country, our leaps forward to efficiently permit wind, solar, transmission and other clean energy projects are part of a broader strategy to lead the world in the global clean energy race and fight against pollution -- all while protecting our communities and investing in local economies," White House National Climate Advisor Ali Zaidi said in a statement. Sign up here. https://www.reuters.com/business/energy/us-approves-major-transmission-project-nevada-2024-09-09/

2024-09-09 20:52

Shell pauses drilling; Shell, Exxon, Chevron evacuate staff Francine forecast to become 4th hurricane of season by Wednesday US crude oil futures rise about 1.5%, natgas slumps about 5% HOUSTON, Sept 9 (Reuters) - U.S. Gulf of Mexico offshore oil and gas producers on Monday were evacuating staff and curbing drilling as Tropical Storm Francine churned through the energy region on a path to bring high winds and drenching rains to the U.S. mid-South. Francine is moving toward U.S. Gulf of Mexico waters and predicted to become the fourth hurricane of the Atlantic season, which ends Nov. 30. Francine could become a Category 1 hurricane with winds of up to 85 mph (137 kph), ahead of landfall on the Louisiana coast on Wednesday evening, the National Hurricane Center said. It is likely to bring life-threatening storm surge to the upper Texas and Louisiana coasts and hurricane-force winds to Southern Louisiana this week. New Orleans and other communities began offering flood-preventing sandbags to residents. Grand Isle, on the tip of Louisiana's coast, called for a voluntary evacuation of residents and canceled Tuesday school sessions. The storm's path puts U.S. oil and gas producing facilities and coastal liquefied natural gas (LNG) export plants at risk. Areas along coastal Louisiana could experience 5-10-foot (1.5-3-m) storm surges, the NHC said. U.S. Gulf of Mexico federal offshore waters account for about 15% of total U.S. crude oil and 2% of natural gas production. U.S. crude oil prices on Monday rose 1.5% after falling to multi-month lows last week on worries the storm could disrupt production and refining along the Gulf Coast. U.S. natural gas futures slumped about 5% on concerns Francine could cut demand by curtailing flows to Gulf Coast LNG export plants and causing homes and businesses to lose power. OFFSHORE AND ONSHORE IMPACT Exxon Mobil (XOM.N) , opens new tab said it shut-in output and evacuated staff from its Hoover offshore production platform, about 150 miles (241 km) east of Corpus Christi, Texas. Shell (SHEL.L) , opens new tab said it was evacuating non-essential personnel from three offshore oil platforms, and had paused drilling operations at two others. Chevron (CVX.N) , opens new tab is evacuating non-essential staff from four offshore platforms, but production remains at normal levels, a spokesperson said. BP (BP.L) , opens new tab said it was not expecting major impacts to its Gulf facilities. Occidental Petroleum (OXY.N) , opens new tab and Woodside Energy (WDS.AX) , opens new tab said they were prepared to implement storm plans as appropriate. Freeport LNG, which operates the nation's second-largest export plant for the super-chilled gas, said it had begun storm preparations at its Texas plant without providing details. Cheniere Energy (LNG.N) , opens new tab did not have an immediate comment on its Sabine Pass LNG facility. Sempra (SRE.N) , opens new tab and Venture Global LNG did not reply to requests for comment on their Louisiana liquefaction plants. Heavy rainfall and the risk of flash flooding is expected from far northeast Mexico to ports of the Texas coast, southern Louisiana and southern Mississippi, the NHC said. The U.S. Coast Guard has imposed restrictions for vessel navigation in some Texas ports, including the ports of Brownsville, Corpus Christi, and Freeport, which handle oil imports and exports. The ports of Houston and Galveston in Texas, and New Orleans in Louisiana, were open to vessel traffic on Monday. The deepwater Louisiana Offshore Oil Port (LOOP) was operating in normal conditions. Texas officials called on residents to prepare for the potential for flash flooding and heavy rain. The Texas electric grid said local outages were possible if the storm hits the state. In July, Hurricane Beryl killed eight people and left more than 2 million customers without electricity for days in Texas. The outage affected energy infrastructure and left hundreds of gas stations without power. Sign up here. https://www.reuters.com/business/energy/shell-pauses-some-oil-drilling-operations-storm-francine-approaches-texas-coast-2024-09-09/

2024-09-09 20:45

BELO HORIZONTE, Brazil, Sept 9 (Reuters) - Anglo American (AAL.L) , opens new tab hired financial advisers to sell two nickel mines in Brazil, the miner's country head, Ana Sanches, told journalists on Monday. At an event in Belo Horizonte, Sanches said the company has already mapped firms with potential interest in buying the mines, which are located in the cities of Barro Alto and Niquelandia, both in the Brazilian state of Goias. The two assets produce together about 38,000 tons of nickel per year. Sanches did not name the financial advisors which had been hired or provide a specific timeline for the sales, but said she was not expecting any deal to be announced this year. "We are now talking to companies around the world, there are trips already scheduled to strategic locations abroad to present the nickel project," she said. The country head added Anglo American could also sell some exploratory assets in other regions together with the two mines, depending on how the talks advance. Sign up here. https://www.reuters.com/markets/commodities/anglo-american-hired-advisers-sell-two-nickel-mines-brazil-says-country-head-2024-09-09/

2024-09-09 20:20

WASHINGTON, Sept 9 (Reuters) - Nippon Steel (5401.T) , opens new tab defended its $14.9 billion bid for U.S. Steel (X.N) , opens new tab, arguing it would strengthen the U.S. Steel industry and that politics are motivating the U.S. opposition to the deal, according to a strongly worded letter first reported by Reuters. Here is a summary of some of the key arguments Nippon Steel makes to rebut the national security risks that were outlined by the Committee on Foreign Investment in the United States (CFIUS), as first reported by Reuters. CFIUS on Japan as ally In its letter to the companies, CFIUS describes Japan as "a critical ally of the United States", adding that the committee "considered the importance of our alliance to both countries’ national security." Response by Nippon Steel and U.S. Steel In their response, the steel companies describe the statement as "essentially paid lip service." The committee "does not seriously engage with that fact or explain how it impacts their analysis of the risks," the companies said, adding that CFIUS doesn't take into account a U.S.-Japan agreement which "explicitly recognizes that Japanese steel does not present risk to the U.S. market." The companies also assert that CFIUS has "never blocked an acquisition by a Japanese company before." CFIUS on India CFIUS implies that Nippon Steel might decide to move U.S. production to India, by citing its presence and reported expansion there and relatively lower production costs. "India is one of the largest production markets for Nippon Steel outside of China," CFIUS said, citing public reports suggesting Nippon Steel plans to double its production capacity in India by 2030. "A review of the overall cost of steel production in facilities in the United States and India shows that costs in the United States are significantly higher than that in India," it added. Response by Nippon Steel and U.S. Steel The companies counter that Nippon Steel's expansion into India will not threaten its in-roads into the U.S. "India is a growth market for Nippon Steel, but that growth will not come at the expense of Nippon Steel’s commitment to the U.S. market," they said. "Simply put, Nippon Steel intends to invest in the United States and grow U.S. Steel to serve the U.S. market; Nippon Steel is investing in India to develop India-produced steel to serve the Indian market, consistent with India’s similar focus on the development of its domestic steel industry," they said. CFIUS on Tariffs CFIUS alleged that Nippon Steel makes "limited use of trade remedies," or measures aimed at imposing tariffs on foreign rivals, and has at times opposed efforts to erect protective U.S. tariffs on steel imports. The committee said this indicates that its potential takeover of U.S. Steel might imperil its future bids for tariff relief, despite the American company's history of aggressively seeking tariffs. “While U.S. Steel frequently petitions for (trade) relief, Nippon Steel features prominently as a foreign respondent resisting trade relief for the U.S. domestic steel industry," CFIUS said. Response by Nippon Steel and U.S. Steel "It is simply not true that Nippon Steel has made 'limited use of trade remedies,'" the companies counter, emphasizing that Nippon Steel has participated in both of the two active trade measure proceedings in Japan. Nippon Steel has also recently called for the Japanese government to follow the U.S. lead and impose an anti-dumping tariff on Chinese steel exports to protect Japanese domestic industry, the steel firms argue. But to shore up any doubts, Nippon Steel proposes in the letter to maintain an internal "trade committee" to ensure that decisions to pursue trade cases are made without interference by Nippon Steel. Sign up here. https://www.reuters.com/markets/commodities/nippon-steel-rebuts-cfiuss-case-against-its-bid-us-steel-letter-2024-09-09/

2024-09-09 20:16

Sept 9 (Reuters) - Losses from cryptocurrency-related frauds and scams increased 45% in 2023 from 2022, totaling more than $5.6 billion, as scammers increasingly took advantage of the speed and irreversibility of digital asset transactions, the U.S. FBI said Monday. WHY IT IS IMPORTANT Cryptocurrencies like bitcoin and ether have become more popular as token prices have soared to new highs and as exchange-traded funds tracking their prices have hit the U.S. market this year. That growth, however, has also increased the use of cryptocurrency by criminal actors, the FBI's Internet Crime Complaint Center said in a new report. While crypto transactions are recorded on publicly available blockchains, allowing law enforcement to easily trace funds, often money is transferred quickly overseas, where U.S. officials can encounter obstacles like lax anti-money laundering laws in certain jurisdictions, the FBI said. BY THE NUMBERS In particular, losses from investment scams with a nexus to cryptocurrency accounted for 71% of all crypto-related losses last year, the report said. Call center scams and government impersonation scams accounted for 10% of losses. The FBI received the most complaints referencing cryptocurrency from people over the age of 60, with losses from that group amounting to more than $1.6 billion. KEY QUOTE "Since cryptocurrencies eliminate the need for financial intermediaries to validate and facilitate transactions, criminals can exploit these characteristics to support illicit activity such as thefts, fraud, and money laundering," the FBI said. Sign up here. https://www.reuters.com/technology/losses-crypto-scams-grew-45-2023-fbi-says-2024-09-09/

2024-09-09 19:02

Sept 9 (Reuters) - U.S. natural gas futures fell about 5% on Monday on expectations a hurricane forecast to hit Louisiana later this week could cut demand by curtailing gas flows to Gulf Coast liquefied natural gas (LNG) export plants and causing homes and businesses to lose power. Oil and gas producers have started evacuating staff and curbing drilling along the Gulf Coast to prepare for Tropical Storm Francine as it churned across the Gulf of Mexico. The U.S. National Hurricane Center projected Francine will strengthen into a hurricane on Tuesday before hitting the Louisiana coast on Wednesday. Louisiana is home to three of the nation's seven big LNG export plants. Because over 75% of U.S. gas production comes from big inland shale basins like Appalachia in Pennsylvania, West Virginia and Ohio and the Permian in West Texas and eastern New Mexico, analysts said hurricanes were more likely to reduce gas prices by cutting demand through power outages and knocking LNG export plants out of service. That is different from 20 years ago when 20% of the nation's gas came from the federal offshore Gulf of Mexico. Back then, Gulf Coast hurricanes usually caused gas prices to spike higher, but now that offshore region produces only about 2% of the country's gas. Front-month gas futures for October delivery on the New York Mercantile Exchange fell 10.5 cents, or 4.6%, to settle at $2.170 per million British thermal units (mmBtu). On Friday, the contract closed at its highest level since July 12 for a second day in a row. The price drop came despite a forecast for more demand next week than previously expected and higher LNG feedgas so far this month. Also weighing on gas prices for much of this year has been the tremendous oversupply of gas left in storage after a mild winter. There was still about 10% more gas in storage than normal for this time of year even though injections have been smaller than usual in 16 of the last 17 weeks. Analysts said those small weekly builds happened mostly because several producers cut output this year after spot prices at the U.S. Henry Hub benchmark fell to a 25-year low in the spring and have remained relatively low since. SUPPLY AND DEMAND Financial firm LSEG said gas output in the Lower 48 U.S. states slid to an average of 102.4 billion cubic feet per day (bcfd) so far in September, down from 103.2 bcfd in August. Meteorologists forecast weather across the U.S. would remain mostly near normal through Sept. 12 before turning warmer than usual from Sept. 13-24. Energy traders, however, noted that warm weather in mid-September would only average around 75 degrees Fahrenheit (23.9 degrees Celsius), compared with a daily average of 79 F in mid-August. LSEG forecast average gas demand in the Lower 48, including exports, will rise from 100.7 bcfd this week to 101.2 bcfd next week. The forecast for next week was higher than LSEG's outlook on Friday. Gas flows to the seven big U.S. LNG export plants rose to an average of 13.4 bcfd so far in September, up from 12.9 bcfd in August. That compares with a monthly record high of 14.7 bcfd in December 2023. On a daily basis, LNG feedgas hit a three-month high of 13.6 bcfd on Sunday. Looking ahead, Berkshire Hathaway Energy's 0.8-bcfd Cove Point LNG export plant in Maryland will likely be shut for about three weeks of routine annual maintenance around Sept. 20, according to the plant's history and notices to customers. Sign up here. https://www.reuters.com/business/energy/us-natgas-prices-fall-5-hurricane-threatens-lng-power-demand-2024-09-09/