CRIMINAL CAPITALI$M

Indian Oil Probes Allegations of Albemarle Bribes to State Firm’s Officials

By Charles Kennedy - Dec 23, 2024



Indian Oil Corporation (IOC), a state-owned oil giant, has launched an internal investigation over alleged bribes paid by Albemarle to IOC officials to secure contracts more than a decade ago, Indian media report.

Responding to news articles from last week, IOC said in a statement filed with the local stock exchange that “the Company is neither a party to nor these is any allegation against the Company in relation to the proceedings referred in the said news articles”.

The statement goes on to say that “However, the Company has initiated an internal fact finding review concerning the incident which allegedly occurred in 2009 to thoroughly understand the facts surrounding these allegations and to determine the appropriate steps to be taken.”

Last year, the U.S. Securities and Exchange Commission (SEC) announced that Charlotte-based Albemarle Corporation, a global specialty chemicals company and a top lithium producer, agreed to pay more than $103.6 million to settle the SEC’s charges that it violated the anti-bribery, recordkeeping, and internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA).

In India, Albemarle used a third-party intermediary to corruptly retain catalyst business with India’s state-owned oil company by avoiding Albemarle being blacklisted, the U.S. Department of Justice said at the time.

“According to the company’s admissions in connection with the Department’s resolution, between 2009 and 2017, Albemarle, through its third-party sales agents and subsidiary employees, conspired to pay bribes to government officials to obtain and retain chemical catalyst business with state-owned oil refineries in Vietnam, Indonesia, and India,” DOJ said.

Albemarle is thought to have obtained profits of approximately $98.5 million as a result of the scheme, according to DOJ.

“Albemarle’s eventual voluntary disclosure of fraud and subsequent efforts to remedy its business practices abroad are a step in the right direction for the company,” said U.S. Attorney Dena J. King for the Western District of North Carolina.

By Charles Kennedy for Oilprice.com

Eni Launches Supercomputer to Improve Oil and Gas Exploration

SO MUCH FOR THE ENERGY TRANSITION

By Irina Slav - Dec 26, 2024



Italy’s supermajor Eni has launched the world’s most powerful supercomputer outside the United States in a bid to boost its oil and gas exploration results, the Financial Times reported, adding that the company will also use the supercomputer “to perform calculations to advance clean energy.”

Eni itself said back in November, when it introduced the supercomputer to the world, that the supercomputer will help it “optimize industrial plant operations, enhance the accuracy of geological and fluid dynamics studies for CO2 storage, develop more efficient batteries, optimize the biofuel supply chain, and develop innovative materials for applications in biochemistry.”

The machine costs more than $100 million and ranks fifth among the world’s biggest and most powerful supercomputers, Eni said back in November.

“A lot of the other companies realised it would be more efficient to rent time on someone else’s supercomputer,” Thunder Said Energy analyst Rob West told the Financial Times in comments on the Eni news. This even includes the U.S. supermajors, Exxon and Chevron, which have been using the supercomputers at the U.S. National Center for Supercomputing Applications.

Eni, however, has decided to stick with proprietary technology driving both its core oil and gas business and, apparently, its expansion into energy transition technology.

For years, Eni has been taking a different approach to conventional and green energy development, unlike any of the other major international oil and gas firms. The Italian major is divesting or creating joint ventures to operate oil and gas assets internationally while grouping some low-carbon initiatives and projects into separate firms.

Key to these spin-offs and the so-called ‘satellite strategy’ are the separate balance sheets of the companies.

“The satellite model is an approach we have built to have additional funding sources to keep together the need to meet demand for traditional products, while also developing new, greener products,” Eni’s chief financial officer Francesco Gattei told Reuters.

By Irina Slav for Oilprice.com

China Plans the World’s Biggest Hydropower Dam in Tibet

By Tsvetana Paraskova - Dec 26, 2024



China has approved the construction of a huge hydroelectric dam in Tibet, which would be the world’s largest hydropower plant with triple the capacity of the current biggest operational project, the Three Gorges Dam, which is also in China.

The Chinese government has now approved the construction of the new project in the lower reaches of the Yarlung Tsangpo River, the longest river in Tibet and the fifth longest in China, state news agency Xinhua reports.

The new mega-dam could produce 300 billion kilowatt-hours (kWh) of electricity annually, three times higher than the annual design capacity of the Three Gorges Dam.


China says that the huge new hydropower dam would align with its peak carbon emissions goals and carbon neutrality targets. The project is expected to boost the development of solar and wind energy resources in surrounding areas, thus creating a clean energy base featuring a complementary mix of hydro, wind, and solar power, the Xinhua agency quoted an official Chinese government statement as saying.

While hydropower can go a long way to provide a part of China’s electricity, periods of drought in recent years have highlighted the continued dependence on coal for reliable power supply in the world’s second-largest economy.

China has the biggest hydropower capacity in the world, at a total of 425 gigawatts (GW). Even in 2022, when drought shrank hydropower output, the country sourced 15% of its electricity from that segment, according to BloombergNEF.

Hydropower has recovered this year from the historic droughts in 2022 and 2023, but hydropower generation has been on a decline since September, leading to higher fossil fuel-powered electricity output.

Although the share of coal in China’s electricity generation has been declining in recent years with the renewables boom, Chinese coal power generation and demand remain strong. Coal still accounts for about 60% of China’s power generation, despite a surge in hydropower earlier this year after abundant rainfall, which reduced the share of coal in the country’s energy mix during the summer.

By Tsvetana Paraskova for Oilprice.com

China’s EV Uptake Is Years Ahead of Targets and Forecasts

By Tsvetana Paraskova - Dec 26, 2024,

For the first time ever, China’s electric vehicle sales are set to outpace traditional car sales on an annual basis in 2025, years in advance of the Chinese authorities’ targets and years ahead of analyst projections, according to the latest industry forecasts provided to the Financial Times by research companies and investment banks.

China’s combined EV and plug-in hybrid sales are expected to jump by around 20% to over 12 million units next year, HSBC, UBS, Morningstar, and Wood Mackenzie have projected.

Next year, the expected sales of the so-called new energy vehicles are set to more than double from the 5.9 million units sold in 2022.

At the same time, sales of conventional cars with internal combustion engines (ICE) are projected to fall by 10% next year to fewer than 11 million vehicles. This means that China will see EV sales outpacing conventional car sales for the full-year 2025, according to the four research firms and banks that have shared their latest insights with FT.

The second half of this year has already seen EVs outselling conventional cars in China. July 2024 was the first month ever in which new energy vehicle sales exceeded ICE car sales. Since July, China has consistently marked months of EV sales holding more than 50% of new car sales.

In November 2024 alone, the Chinese market once again beat its previous record set in October by over 50,000 vehicles, to reach almost 1.3 million EVs sold, EV research house Rho Motion said earlier this month.

The monthly growth in EV sales in November 2024 was almost entirely due to higher number of BEV sales, which rose by over 70,000 units. Most of the growth resulted from monthly increases in sales from Geely, Tesla, and Changan, according to Rho Motion.

Between January and November 2024, China’s EV sales jumped by 40% from a year earlier to 9.7 million units, Rho Motion noted.

Soaring EV sales in China have contributed in part to the weaker-than-expected oil demand in the world’s top crude oil importer. The other major factors have been wobbling economic performance and surging LNG-fuelled trucking.

By Tsvetana Paraskova for Oilprice.com

Nio’s Mass Market Push Draws Scorn as EV Maker Promises a Profit

By Bloomberg News

December 26, 2024 

(Bloomberg, NIO)

(Bloomberg) -- It’s a wonder three little headlights can stir up such debate. But that’s what many netizens in China have been driven to comment on following the launch of Nio Inc.’s newest sub-brand, Firefly.

The electric hatchback was unveiled last weekend at Nio’s annual gathering for its customers, partners and media. The compact car will start from 148,800 yuan ($20,400) and features a rather plain design punctuated by three little round lights at the front and rear, which look more cutesy than chic.

Nio watchers were quick to point out the resemblance to the Honda e and its symmetrical ‘eye-like’ LED headlights, which most said look a lot better. Many derided the car, saying it undermines Nio’s premium eponymous brand and the automaker’s positioning of itself as a luxury marque. (Also over the weekend Nio showcased its most expensive car ever, the ET9, a four-seater sedan meant to take on Porsche’s Panamera series or Mercedes-Benz’s luxury S range.)

But for Nio, passing its 10-year anniversary and yet to turn a profit, heading down into the mass market to ramp up sales volumes may be the most sensible way forward.

Once regarded as one of China’s brightest electric vehicle stars, Nio has had several near-death experiences.


The first came in 2019 after heavy spending on marketing and splashy showrooms failed to generate demand for its ES8 and ES6 electric sport utility vehicles, and the municipal government of Hefei stepped in with a $1 billion rescue package.

Prospects improved in 2021, when Nio recorded some its highest-ever gross margins, but by 2023, Nio was struggling financially again. In July of that year, Abu Dhabi-backed fund CYVN Holdings invested $738.5 million and later acquired shares in Nio from an affiliate of Tencent for $350 million. In December 2023, CYVN committed to invest a further $2.2 billion in return for a 20.1% stake.

According to Nio CEO William Li, the automaker has fallen short of its own expectations for three consecutive years and is now at least two years behind schedule. At home, BYD is a much bigger threat than it was a decade ago while Nio’s overseas expansion plans have encountered a number of setbacks, including, in Europe, tariffs on Chinese EV imports and a slower-than-expected build out of its battery-swap stations.

External factors, including lithium price hikes and Covid lockdown disruptions, have added to the challenge.

Fronting a media scrum earlier this month in Shanghai, Li was peppered with more than 200 questions and was at pains to assure the public. “We survived five years since 2019, and now with a healthy operating cash flow, we can for sure survive longer than another five, don’t worry,” he said.

That may be easier said than done.

Several Chinese EV brands, including WM Motor, have bowed out due to cut-throat competition domestically, leaving car owners in limbo when it comes to after-sales and maintenance. The most recent is Jiyue, a joint venture backed by giant Baidu Inc. and well-established Chinese player Geely Automobile Holdings Ltd.

Shortly after it displayed a new vehicle at the Guangzhou auto show in November and started taking pre-order deposits of 50,000 yuan, management abruptly cut staff, sparking employee complaints and a customer panic.

Nio also needs to spend money to make money, risking the 42.2 billion yuan it had in cash and cash equivalents as of Sept. 30.

Research and development into advanced driving semiconductors is a must, Li has said, calling that a “reasonable business decision” considering the procurement costs from Nvidia Corp. alone this year. Longer term, it will improve Nio’s gross margin and reduce supply chain risks, Li reasons.

Another thing Nio didn’t address as it launches new brands is, beyond price and specs, how they’re that different and the potential cannibalization between them. Will Firefly owners, who may pay as little as 100,000 yuan under a battery-leasing model, be allowed into the clubby Nio Houses, for example, the upmarket social spaces reserved for Nio car owners around the world?

Without those perks that, at least for Nio’s core customer base, are an important draw, it’s uncertain whether the new brands (there’s also Onvo) can translate into higher sales volumes. Nio is well behind larger rivals in China — its deliveries totaled almost 191,000 units for the first 11 months of 2024, versus around 1.6 million for BYD’s pure electric cars.

Nio is projecting to double sales in 2025 to at least 440,000 units, with Firefly adding “several thousand” deliveries per month, according to Li.

That’s still comparatively tiny but Li is bullish, maintaining that “profitability in 2026 is baseline” the EV maker “can’t afford to miss.”

--With assistance from Danny Lee.

©2024 Bloomberg L.P.

GOOD NEWS

Iraq Plans to Slash Gas Flaring

By Charles Kennedy - Dec 26, 2024

Iraq plans to cut gas flaring next year and eliminate the practice of burning off associated gas at oilfields by the end of 2027, government officials have said.

As of the end of 2024, Iraq, which is OPEC’s second biggest oil producer after Saudi Arabia, is capturing around 67% of the gas at its oilfields, Ezzet Saber Ismael, Iraq’s deputy minister for gas affairs told Bloomberg in an interview published on Thursday.

Earlier this week, Iraq’s Prime Minister Mohammed S. Al-Sudani chaired an energy policy meeting, at which officials discussed ongoing natural gas projects, the office of the Iraqi PM said.

“Current progress includes a significant reduction in gas flaring levels, reaching 67%, with projections to achieve 80% by the end of next year and complete elimination of flaring by the end of 2027,” the office of the prime minister said in a statement.

Iraq is one of the top ten countries in the world in terms of gas flaring, alongside Russia, Iran, Algeria, Venezuela, the U.S., Mexico, Libya, and Nigeria, according to estimates from the Global Gas Flaring Tracker Report by the World Bank.

Iraq has recently launched initiatives to reduce gas flaring, aiming to capture and use the natural gas instead of wasting it.

Despite being OPEC’s second-biggest producer and a major crude oil exporter, Iraq is importing natural gas – including from Iran under a special U.S. waiver – to meet its power generation needs.

Last year, Iraq signed a major deal with France’s supermajor TotalEnergies to develop a Gas Growth Integrated Project (GGIP), which includes the recovery of flared gas on three oil fields in order to supply gas to power generation plants.

Commenting on the agreement, the U.S. State Department said that “the United States strongly supports Iraq’s efforts to become more energy secure and minimize harmful emissions.”

“Minimizing the current practice of gas flaring by capturing the massive amounts of methane being burned away will significantly reduce emissions, improve public health for Iraqis, and utilize captured gas to power Iraq’s electrical grid,” the State Department added.

By Charles Kennedy for Oilprice.com

India’s Oil Demand Growth Set to Surpass China’s

By Alex Kimani - Dec 26, 2024


India’s oil demand growth is expected to exceed China’s for the first time in 2024, and continue in 2025. According to Kang Wu, global head of macro and oil demand research at SPGCI, India’s oil demand in the current year grew by 180,000 barrels per day, surpassing China’s growth at 148,000 bpd. India’s oil demand is expected to increase by 3.2% Y/Y in 2025 compared to a 1.7% clip by China.

Over the past couple of decades, China has carried the lion’s share of global oil demand growth thanks to the country’s remarkable economic boom. However, that is beginning to change. The factors that helped sustain China’s rapid growth since the global financial crisis are unlikely to be replicated in the next decade, particularly in sectors of property construction and local government investment. Indeed, China’s economic slowdown has mainly manifested in the property sector’s decline, hardly surprising considering that the industry represented 20 to 25 percent of GDP at its peak.

But China is now poised to lose its prominence in global oil markets.

“China’s role as a global oil demand growth engine is fading fast,’’ Emma Richards, senior analyst at London-based Fitch Solutions Ltd, has told The Times of India. According to the analyst, over the next decade, China’s share of emerging market oil demand growth will decline from nearly 50% to just 15% while India’s share will double to 24%.

But it’s not just a dramatic slowdown in its economy that will make China a less important player in global oil markets. The country’s booming EV sector will rapidly lower oil demand much faster than India’s: China sold 6.1 million EVs in 2022 compared with just 48,000 sold in India. India is nowhere near as aggressive with its clean energy push compared to China. Last year, India’s coal minister declared that the country has no intention of ditching coal from its energy mix any time soon. Minister Pralhad Joshi said that coal will continue to play an important role in India until at least 2040, referring to the fuel as an affordable source of energy for which demand has yet to peak in India.

By Alex Kimani for Oilprice.com

Airports Around the World Are Going Green

By Felicity Bradstock - Dec 26, 2024

Airports across the globe are transitioning to renewable energy sources, including solar power, to reduce their carbon footprint.

Initiatives like India's Flexible Use of Airspace and the Australian government's renewable energy agreements are contributing to decarbonization efforts.

While progress is being made, a more coordinated global effort is needed to encourage wider adoption of renewable energy across the aviation sector.


Many airports around the globe are now powered by wholly renewable energy, as the aviation and buildings sectors strive to decarbonize in line with aims for a green transition. The International Energy Agency (IEA), the International Civil Aviation Organisation (ICAO), and several other international bodies are encouraging developers to reduce the carbon footprint of their airports to support international climate goals.

The ICAO released a toolkit entitled “A Focus on the Production of Renewable Energy at the Airport Site” that offers developers advice on how to decarbonize airports. It refers to the Paris Agreement aims to keep a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels, which requires significant decarbonization efforts to take place across all sectors.

The document is aimed towards states, civil aviation authorities, and airports, and is “the first in a series of practical and ready-to-use information documents to support the planning and implementation of airport infrastructure projects that envisage significant environmental benefits.” The toolkit has been used by airport developers worldwide to support decarbonization efforts and develop more environmentally friendly airports.

In India, a reported 80 airports are operating on entirely renewable energy. The Airports Council International has accredited airports in Delhi, Mumbai, Hyderabad, and Bengaluru as carbon neutral. The Airports Authority of India (AAI) has supported the installation of solar energy projects on-site at several airports across the country. Multiple airports have adopted green building standards, invested in fleets of electric vehicles (EVs), and installed energy-efficient air conditioning systems, lighting, and other equipment.

According to a press release from the Indian Ministry of Civil Aviation, the government’s Flexible Use of Airspace initiative helped reduce carbon emissions by 90,000 tonnes between 2020 and 2023. The Implementation of 2017 Central Air Traffic Flow Management helped reduce delays and optimize capacity, resulting in lower fuel consumption and a decrease in emissions.

In Australia, CS Energy and Queensland Airports Limited (QAL) recently entered a seven-year agreement to power two of the country’s busiest airports using wholly renewable sources of energy from 2025. Gold Coast and Townsville airports on the east coast of Australia, which handle more than 8 million passengers a year, will be shifting to green in support of sustainable tourism aims. The two airports are set to undergo a significant expansion to prepare them for a significant increase in passenger traffic ahead of the 2032 Olympic and Paralympic Games. QAL has announced aims to achieve net-zero emissions by 2030 by offsetting almost 90 percent of the company’s Scope 1 and Scope 2 emissions.

In June 2024, Investment Fund Managers Investors and Queensland Investment Corporation, which have assets including Sydney and Adelaide airports, signed a $467 million renewable energy pact. The multi-state power purchase agreement will ensure the supply of over 500 GWh of green power annually to the companies’ infrastructure assets.

In the U.K., in 2019, Bristol Airport announced plans to make its operations carbon-neutral by 2025 by using 100 percent renewable energy. The Danish energy company Ørsted agreed to deliver 17 million kWh of annual electricity to the airport, generated from wind power, in a three-year agreement. This was expected to decrease Bristol Airport's carbon emissions by 14,000 tonnes over three years. London Gatwick Airport has also transitioned to using wholly renewable electricity, while Heathrow Airport aims to achieve net-zero emissions by 2050.

In the U.S., in 2019, Chattanooga Metropolitan Airport in Tennessee became the country’s first airport to be powered by 100 percent solar energy. The airport's 2.64-MW solar farm was developed with around $5 million in funding from the Federal Aviation Administration. At the time of the announcement, Terry Hart, the former CEO of the Chattanooga Airport, stated, “This project has immediate benefits to our airport and community, and we’re proud to set an example in renewable energy for other airports, businesses and our region. While generating a local renewable resource, we are also increasing the economic efficiency of the airport.”

In November this year, Boise Airport in Idaho announced that it had also shifted to 100 percent renewable energy sources. The City of Boise signed an agreement to power its airport using energy from the Black Mesa Energy solar project. Indianapolis International Airport is now home to one of the biggest airport-based solar farms in the world, providing enough power to supply 10,000 homes annually. Meanwhile, Denver International Airport produces over 10 MW of power via its solar installations. According to a 2020 study by the University of Colorado, 20 percent of public airports in the U.S. had adopted solar panels in some capacity.

While several airports around the globe have already shifted to green, there is no comprehensive effort for airport developers to transition to wholly renewable energy sources to power facilities. Better international guidelines and stricter national regulations could encourage greater cooperation from airports and help decarbonize facilities.

By Felicity Bradstock for Oilprice.com

Sanctioned Russian LNG Cargo Ends Across-the-World Trip Without Finding Buyer

By Tsvetana Paraskova - Dec 26, 2024



Arctic LNG 2 continues its struggles to sell gas from Russia’s newest but heavily sanctioned LNG export project.

In one of the latest pieces of anecdotal evidence, a sanctioned LNG carrier, which had loaded liquefied natural gas in the Artic in August, traveled for four months around north Europe, the Mediterranean, the Suez Canal, the Indian Ocean, along China’s east coast and north to Russia’s Far East, without finding a buyer for the cargo, tanker-tracking data compiled by Bloomberg showed on Thursday.

The LNG vessel, Pioneer, is sanctioned by the United States and so is the Arctic LNG 2 project, which is now put on ice.

After the journey from Europe to Russia’s Far East, Pioneer was spotted in December offloading the cargo in a Russian floating storage unit near Kamchatka, according to the vessel-tracking data compiled by Bloomberg.

As early as this summer, Russia started shipping LNG from its flagship Arctic LNG 2 project—but not to customers.

The shipments have been made from the Arctic project to floating storage units either in Russia or in European waters, as potential customers are unwilling to buy LNG from the facility, which has seen tightened Western sanctions in the past months.

In August, the U.S. State Department intensified efforts to derail Arctic LNG 2 exports by targeting companies involved in the development of the project and vessels found to have loaded LNG from the facility.

Pioneer was one of three vessels – Pioneer, Asya Energy, and Everest Energy – targeted by the U.S. sanctions in August, as well as their registered owners Zara Shiphoding and Ocean Speedstar Solutions.

Since then, the U.S., the EU, and the UK have further tightened the screws on Russia’s LNG vessels and Arctic LNG 2 exports in a series of additional sanctions.

Located in the Gydan Peninsula in the Arctic, the Arctic LNG 2 project was considered key to Russia’s efforts to boost its global LNG market share from 8% to 20% by 2030-2035.

By Tsvetana Paraskova for Oilprice.com

Can U.S. LNG Exports Really Fill the Gap Left by Russian Gas in Europe?

By ZeroHedge - Dec 26, 2024

The US is already the largest LNG supplier to Europe, and could theoretically replace Russian LNG imports.

Replacing Russian LNG with US LNG could increase shipping costs and European prices.

Europe's decarbonization goals may limit its willingness to make long-term commitments to US LNG.


Samantha Dart, co-head of global commodities research at Goldman, published a note to clients outlining five key questions and answers about the US-EU liquefied natural gas trade. This comes just days after President-elect Donald Trump threatened the EU with a barrage of tariffs unless Brussels ramped up purchases of American LNG.

For context, last Friday, Trump wrote on Truth Social:

"I told the European Union that they must make up their tremendous deficit with the United States by the large-scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way!!!"

Dart told clients that the US is already Europe's largest LNG supplier and a key source of supply growth. She said replacing Russian LNG with US LNG imports could raise shipping costs and European prices to incentivize re-routing cargoes

Europe’s Natural Gas Prices Jump to 2024 High

She said such a shift would have minimal impact on US LNG export revenues, as total export capacity remains fixed, adding exporters with long-term contracts with proposed US LNG projects would benefit. However, Europe's decarbonization strategy may limit the willingness of European companies to make long-term NatGas commitments with US exporters.

Dart laid out key questions and answers about the US-EU LNG trade that help clients understand that US LNG Gulf exports can "theoretically" replace Russian NatGas flowing into the EU. How much US LNG is exported to Europe?

US LNG exports averaged 91 mt over the past year (Dec23-Nov24), of which 47 mt or 51% were delivered to Europe. US LNG exports to Europe have grown significantly in levels and as a share of total US LNG exports since the European energy crisis in 2022, peaking in 2023 (Exhibit 1).

Are US LNG volumes sold in the spot market or are they contracted?

The vast majority of US LNG sales are under contract. That said, US contracts typically have flexible destination ports, in that the buyer is not obligated to deliver to a particular location. This allows buyers of US LNG to re-sell or re-direct cargoes to higher-paying destinations. This was evident during the European energy crisis, when European gas prices increased sharply relative to the rest of the world. Even as total US LNG exports grew, this worked as an effective incentive for US LNG deliveries to non-European destinations to contract by 41%, while European deliveries increased by 197%[1], as seen in Exhibit 1.What portion of European LNG imports come from the US?

The US has become the single largest source of LNG to Europe, averaging 46% of imports into the region over the past 12 months (Exhibit 2). Most European LNG imports are sourced from Atlantic Basin suppliers to minimize shipping costs. Importantly, the US is also the primary source of likely European LNG import growth, based on long-term LNG contracts signed by European buyers since the start of the Ukraine war. US volumes contracted by European buyers in the period add to just under 16 mtpa, which is more than with any other single supplier globally (Exhibit 3).

Can US LNG replace Russian LNG imports into the EU?

Theoretically, yes. US LNG deliveries to non-EU countries are currently approximately 18 mtpa above the levels observed during the peak of the European energy crisis, suggesting there is enough flexibility in the market to replace Russia's current 17 mtpa of LNG exports to the region. However, such a reallocation of flows might offer little benefit, if any, to Europe or the US. Less optimal routes for LNG deliveries (for example, longer routes for Russian cargoes) would likely lead to higher freight costs. In addition, European import costs might go up in order to motivate the re-route of US cargoes that would have otherwise opted to deliver elsewhere.

Total US LNG exports would also not increase as a result of this reallocation, given that US LNG export capacity would not be impacted in the process.How could Europe support growing US LNG exports?

Additional long-term contracting by European buyers with proposed US LNG projects would be the most impactful measure the EU could take to support higher future US LNG exports, as this would increase the likelihood such contracted liquefaction projects reach a final investment decision (FID). As of now, the forward curve for European gas prices suggests new long-term US LNG export contracts are in the money through at least 2027 (Exhibit 4). That said, Europe's decarbonization goals might limit European companies' appetite for long-term commitments to grow natural gas use. In fact, when we look across all long-term LNG contracts signed since the start of the Ukraine war, European companies are far behind Portfolio player companies and Asia importers (Exhibit 5).




It appears that Goldman believes Trump's 'America First' policy of replacing Russian LNG to Europe with American LNG is "theoretically" possible.

By Zerohedge.com

BIDENOMICS

U.S. Oil Production Shattered Records Again in 2024

By Robert Rapier - Dec 26, 2024

The U.S. oil production reached a new record high in 2024, surpassing the previous record set in 2023.

Technological advancements, including precision fracking and enhanced recovery techniques, have played a significant role in increasing productivity.

The record-breaking production has contributed to job creation, economic growth, and strengthened national energy security, but environmental concerns remain.


Despite ongoing concerns about global economic volatility, energy transition policies, and fluctuating demand, the U.S. energy sector has demonstrated its unmatched resilience and innovation.

Building on the record-breaking momentum of 2023, 2024 has proven to be another landmark year for oil production, driven by technological advancements, strategic investments, and favorable market conditions.

A Second Consecutive Oil Production Record

In 2023, U.S. oil production reached a record high, surpassing 12.9 million barrels per day, solidifying the country’s position as the world’s top oil producer. One of my 2024 energy sector predictions was that the U.S. would set a second consecutive record this year.

According to preliminary data from the U.S. Energy Information Administration (EIA), production had averaged 13.249 million BPD year-to-date through December 13, 2024. Cumulative production for the year is estimated at 4.611 billion barrels by that date—just 110 million barrels shy of the previous annual record.

Given that producers have consistently exceeded 13 million BPD since January, the record likely fell by December 22, 2024. Even a conservative scenario of 12 million BPD would delay the milestone by under a day.

This achievement is a testament to the industry’s ability to adapt to shifting demand and market challenges while maintaining high levels of productivity.

The Driving Forces Behind the Production Record

The new record highlights the role of enhanced recovery techniques like precision fracking and improved drilling technologies, which have unlocked greater productivity from key oil fields. The Permian Basin continues to be the powerhouse of U.S. production, contributing a significant share of the growth through its cost-efficient operations.

High demand for U.S. crude oil, particularly from Europe and Asia, has spurred production. Geopolitical tensions and shifting trade dynamics have positioned U.S. oil as a reliable alternative for global markets. Robust pipeline infrastructure and export terminals have further supported this expansion, enabling seamless transportation to international buyers.

At home, steady consumer demand for refined products, supported by healthy refining capacity, has ensured domestic market stability. This dual focus on international and domestic needs highlights the versatility and reliability of the U.S. energy sector.

Economic Benefits and Future Challenges

The shale industry’s growth has provided numerous jobs, strengthened local economies in production hubs, and bolstered national energy security. The economic ripple effects extend from upstream exploration to downstream refining, reinforcing the energy sector’s importance to the broader U.S. economy.

While these achievements are commendable, challenges remain. Addressing environmental concerns and aligning production with long-term sustainability goals will require ongoing investment in emissions-reduction initiatives and cleaner technologies. Balancing these priorities with the need for short-term growth will be key for the sector’s future.

A Testament to Resilience and Innovation

The U.S. oil production record of 2024 is a triumph of adaptability, innovation, and global competitiveness. It underscores the energy sector’s pivotal role in meeting global and domestic energy needs while contributing to economic growth.

With its unparalleled ability to overcome challenges and seize opportunities, the U.S. energy sector has cemented its place at the forefront of the global market—proving once again that resilience and innovation are the hallmarks of its success story.

U.S. crude oil production has demonstrated the sector’s ability to balance growing domestic demand, export markets, and geopolitical uncertainties. This new record reflects not only improved drilling and extraction methods, such as precision fracking and enhanced recovery techniques, but also the continued productivity of key oil-producing regions.

By Robert Rapier

How Canada’s innovation minister is bracing for a US trade war

Story by Steven Overly
• POLITICO

Canada has a warning for President-elect Donald Trump as he looks to launch a trade war with the U.S.’s northern neighbor: Hurting us will help China.

“If you say no to Canada, you're basically saying yes to China when it comes to strategic supply chains,” François-Philippe Champagne, Canada’s minister of innovation, science and industry, said on today’s POLITICO Tech podcast. “I don't think that's what the American people would want.”

Champagne argues that the two nation’s fortunes are inextricably intertwined — after all, they are each other's largest trading partner — and that the U.S. relies heavily on Canada for economic essentials like critical minerals and oil. Plus, the countries have common ambitions in areas like artificial intelligence and nuclear energy where Champagne says they can better compete against China together.

But Champagne’s case has done little to sway Trump so far. Trump has threatened to impose a 25 percent tariff on imports from Canada and Mexico unless they do more to secure the U.S. border from immigrants and drugs. And recently, he has lobbed online insults at Prime Minister Justin Trudeau and at Canada itself, disparagingly referring to it as the 51st state.

“You have to take these comments with a grain of salt, I would say,” Champagne said. “The good thing that I see with [the] president-elect is he talks a lot about Canada, which is a good thing. That means that we matter.”

Related video: Canada: Trudeau Unveils High-Tech Border Plan Amid Trump's Tariff Threats | Firstpost America (Firstpost)

WGRZ-TV Buffalo  The trade issues between the U.S. and Canadian tariffs

2:15

cbc.ca  Premiers discuss tariff threat response in wake of Freeland’s resignation

2:04

Still, the tensions over Trump have caused waves in Ottawa. Earlier this week, Canada’s deputy prime minister and finance minister Chrystia Freeland resigned over a split with Trudeau on how to brace for the coming conflict.

POLITICO Tech host Steven Overly spoke with Champagne about the political fallout in Ottawa, whether he still supports Trudeau, and how Canada is bracing for Trump’s return. Listen to the full interview.

Chile files four environmental charges against Anglo American’s Los Bronces copper mine

Reuters | December 23, 2024 | 

Near the tailings facility for Los Bronces copper mine in Chile. (Image courtesy of Anglo American | Flickr.)

Chile’s environmental regulator has filed four charges against the major Los Bronces copper mine, controlled by Anglo American, for noncompliance with environmental permits, the agency said on Monday.


The charges could carry a fine of nearly 17 billion pesos ($17.17 million), according to the Superintendency of the Environment, or SMA.

Los Bronces is one of Chile’s biggest copper mines with output of 255,000 metric tons last year, as well as a key project for Anglo American, which has been a takeover target of larger rival BHP.

Anglo American said in a statement that it was analyzing the accusations to determine its next steps.

One of the charges was deemed “very serious,” the highest of three offense levels, for noncompliance dating back to a 2014 sanction.

At the time, the SMA found that Anglo American Sur, the local unit that operates Los Bronces, failed to resolve acid drainage at the Esteriles Donoso tailings deposit, designed to hold mine waste.


“The company has not implemented a definitive solution … it constitutes a repetition of acts previously sanctioned,” the SMA said.

The tailings deposit is not currently in use, Anglo American said, stating that in October it submitted a request for an environmental permit to fix the issue.

The regulator also filed two charges in the mid-level “serious” category. One was against Anglo American for not designing a mitigation system for acid waters collected downstream of the Esteriles deposit, and another for not taking measures to control seepage in Las Tortolas tailings dam.

The miner said it is “working to optimize the hydraulic barrier approved by the regulator to improve seepage control.”

The SMA also found that Anglo American had not reported to the agency complete data related to water and tailings, a violation it categorized as “minor.”

The miner has 15 days to present a mitigation program, and 22 days to contest the charges.

The SMA earlier this month also filed three charges against Anglo American for violations at its El Soldado copper mine in the Valparaiso region.

($1 = 989.9000 Chilean pesos)

(By Daina Beth Solomon and Fabian Cambero; Editing by Kylie Madry and Matthew Lewis)

CATL to seek Hong Kong listing

Reuters | December 26, 2024 | 

CATL headquarters (Image from CATL)

Chinese battery manufacturer CATL said on Thursday it plans to seek a listing in Hong Kong, a Shenzhen Stock Exchange filing showed.


CATL plans to issue offshore H-shares and apply for a listing on the main board of the Hong Kong Stock Exchange, it said in the filing.


CATL’s board has approved the plan, but the proposal is pending approval from regulators, including the China Securities Regulatory Commission, the company said.

Other details of the plan have yet to be finalized, it added.

The move is aimed at “further promoting the company’s global strategic layout” and improving its competitiveness, it said.

CATL, the world’s top battery maker, has a global market share of roughly 37% in electric vehicle batteries, according to battery market tracker SNE Research.

The company has been weathering the impact of an ongoing price war in China’s EV sector, with an increase in third-quarter profit growth.

(By Ethan Wang, Yukun Zhang, Zhang Yan and Brenda Goh; Editing by Louise Heavens)

Canada’s Seymour lithium project secures $69.5m in financing from EDC

ALL CAPITALI$M IS STATE CAPITALI$M

The non-binding letter of interest (LOI) could lead to a direct lending debt funding package of up to C$100m ($69.5m) 

Credit: BJP7images / Shutterstock. · Mining Technology · BJP7images / Shutterstock.

GlobalData
Mon, December 23, 2024 


Green Technology Metals (GTM) has received a non-binding letter of interest (LOI) from Export Development Canada (EDC) to finance the company’s Seymour lithium project in northwestern Ontario, Canada.

The LOI could lead to a direct lending debt funding package of up to C$100m ($69.5m), bolstering the project's development within Canada's critical minerals supply chain.


GTM has been in discussions with EDC since September 2024, providing key project details and preliminary financial models.

The project’s permitting approvals and final investment decision are expected to be completed in 2025.

The project is expected to start production in 2026 as Ontario’s first mine for battery metal.

Green Technology Metals managing director Cameron Henry said: “This marks the first step in our financing strategy for the Seymour project development and we’re pleased to have achieved this milestone in 2024. EDC’s support potentially increases sourcing flexibility, allows greater access to low-cost direct lending and is non-dilutive to GT1 shareholders.

“We continue to engage with global commercial lenders as part of our broader financing efforts, but the strong indication of interest from EDC validates the robustness of the Seymour Project and further reinforces our strategy to become Ontario’s first lithium producer.”

EDC's support is expected to offer flexible sourcing options and access to low-cost lending, and will not dilute the value for current shareholders.


The financing from EDC is subject to a thorough due diligence process, internal approvals, and standard project finance conditions, including an environmental and social review in line with EDC’s framework.

Following the appointment of financial adviser Endeavour Financial, the Seymour Project has attracted global commercial lenders, enhancing the project's financial structure.

As a financial Crown corporation, EDC focuses on financing solutions for Canadian exporters and has completed over 540 transactions across various sectors, including mining.

"Canada’s Seymour lithium project secures $69.5m in financing from EDC" was originally created and published by Mining Technology, a GlobalData owned brand.

Unlocking shared value for our global energy transition: 3 proven models for LSM-ASM collaboration

James McQuilken - Pact | December 26, 2024 | 

Artisanal miners in Sierra Leone. ( Credit: Pact/ Jorden de Haan.)

Our global energy transition is driving a surge in both large-scale (LSM) and artisanal and small-scale mining (ASM) to meet the soaring demand for critical materials like lithium, cobalt, copper and rare earths. By 2050, up to 6.5 billion tonnes of these resources will be needed — despite efforts to reduce reliance through recycling and innovation — to support technologies like wind turbines, solar panels and electric vehicle batteries.


An increase in mining these critical minerals is necessary to meet the Paris Agreement’s target to limit global warming to below 2oC and ideally 1.5oC and mitigate the most severe and disproportionate impacts on the most marginalized and poor in our society. And it is not just raw materials.

Achieving the Paris Agreement’s climate goals requires not only more mining but also a 175% increase in land use for bioenergy, wind, solar and mining. A 57% rise in water demand for non-fossil fuel energy systems such as nuclear power and hydrogen production, carbon capture and storage and cleaning solar panels is also needed.

As metal prices soar, mining expands into new frontiers, and climate-pressures on land and water use increase, more communities and Indigenous peoples will be impacted as people are attracted to ASM as a vital lifeline in times of economic turmoil. The recent crisis in South Africa highlights this.

In October, hundreds of informal miners, including undocumented migrants stating they had been forced into labor by criminal gangs, became trapped after entering a disused LSM tunnel in search of gold. They remained underground for over two months, fearing arrest or deportation, with police restricting food and water access, despite a court order. After a tense stand-off, more than 150 miners were eventually rescued and, tragically, three bodies recovered.

While ASM remains a largely informal activity driven by poverty, unsupported and vilified leading it open to capture by nefarious actors, these types of LSM-ASM crises are likely to continue. The need for positive, mutually beneficial community-mining relationships is more critical than ever. This is where the Voluntary Principles on Security and Human Rights and partnerships between LSM-ASM and communities come into their own.

Established in 2000, the Voluntary Principles provide a framework for how companies and governments should conduct their security operations at mining, oil and gas sites while respecting human rights. They also support wider industry sustainability aims as global stakeholders demand more tangible community-level impact from mining companies with community engagement shifting from corporate social responsibility “nice-to-haves” to a core business imperative.

To bridge this gap, below are three examples of proven LSM-ASM and community engagement and formalization models that can be utilized in the responsible pursuit of clean energy materials.

Model 1: Direct mining support

One of the most effective partnership models is direct mining support from LSM to ASM operations. This engagement often focuses on formalizing ASM activities and can take various forms—from ceding land, licenses and geological data to ASM miners to providing technical support for safer, more productive and environmentally sound mining practices. Financial partnerships, such as equipment loans and offtake agreements, can also ensure that ASM miners can operate sustainably.

In some partnerships, ASM miners are permitted to operate on LSM concessions. This requires a strong legal framework that allows for ASM’s participation, financial sustainability and supply chain due diligence to meet global responsible mining standards. In other cases, ASM operates outside of LSM concessions. For these partnerships to work, geological deposits must be available for long-term ASM activity with data made available to enable miners to target areas and obtain financing for operations. Existing ASM pre-financing relationships must also be understood as miners are often required to sell minerals back to investors at reduced prices in return for ongoing capital investment. This approach ensures miners can engage directly with LSM, avoiding conflicts and ensuring that they are not beholden to other buyers.

The Mutoshi Cobalt Pilot from 2018 to 2020 in the Democratic Republic of Congo (DRC) exemplifies the benefits of LSM-ASM partnerships. Trafigura and Chemaf collaborated with local ASM cooperative COMIAKOL, supported by international NGO Pact, to provide site access and technical support, improving working conditions and increasing production. Key outcomes included six million work hours with no fatalities, improved working conditions for 70% of participants and enhanced roles and safety for women miners. This pilot underscores the power of LSM-ASM partnerships when all stakeholders align around responsible mining goals.

Model 2: Complementary livelihoods

Complementary livelihood models focus on creating or enhancing non-mining job opportunities for local communities. These programs aim to reduce dependence on ASM while providing stable, complementary income sources. Livelihoods must be relevant to local communities, offer comparable financial returns to ASM or have better working conditions and social acceptance.

As local economies around LSM sites grow, new opportunities for ecosystem services — such as waste collection, land restoration and renewable energy — can emerge. These activities not only reduce informal ASM but also contribute to more sustainable post-mining communities.

At Tanzania’s Geita Gold Mine, security reforms rooted in Voluntary Principles best practices have created livelihoods for over 900 people while improving LSM-ASM relationships. The community policing program has recruited and trained 957 unarmed community police across 32 localities in and around Geita Mine. The mine, in conjunction with the Tanzania Police Force, has built skills, fostered career growth, and curbed collusion and corruption. The community police, working on 12-month terms as agreed with the local community leadership forums, not only benefits the respective communities economically, but also act as the first line of defense, protecting the Geita forest reserve and reducing crime incidents in the Geita Mine area like trespassing, burglary, assault and rape, among others. This innovative model demonstrates how inclusive security can benefit both communities and mining operations.

Model 3: Community development

Community development is a vital component of any successful LSM-ASM partnership. These initiatives can improve working conditions, health and safety standards, and gender equality within ASM communities. LSM can also support broader community development efforts, such as renewable energy access, environmental protection and education, which contribute to overall well-being and sustainability.

In Rwanda, Trinity Metals has placed community development at the core of its operations, doubling its workforce to 5,000 since consolidating three small-scale mines in 2022. With 99% of employees Rwandan and 75% in leadership roles, the company provides livelihoods while boosting tin, tungsten and tantalum production through mechanization and professionalization. Collaborating with local government, Trinity co-funds development projects, including building a bus station, providing medical insurance for 2,000 vulnerable households and supporting farmers’ cooperatives on the concession to improve nutrition and provide food to the mine’s canteen.

The company has also recruited 150 previously informal small-scale miners and unlicensed mineral traders that were operating unauthorized on their concession, integrating them into its workforce and fostering long-term community growth.
Conclusion

The collaboration between LSM and ASM has proven to be a powerful tool for fostering responsible mining practices and driving community-level impact. Practical partnership models, such as direct mining support, complementary livelihoods and community development, offer a path forward for companies looking to meet growing ESG demands while ensuring sustainable, inclusive growth.

As global demand for energy transition minerals and precious metals increases, the need for strong LSM-ASM partnerships will only become more pressing. By working together, LSM and ASM can contribute to local prosperity, national development and global sustainability, creating a mining sector that benefits everyone.

James McQuilken is director of responsible mining at Pact.

Congo frees most of Chinese men held for illegal mining

Reuters | December 26, 2024 | 

Stock image.

Democratic Republic of Congo has freed 14 of the 17 Chinese men arrested on suspicion of running an illegal gold mine in the country, authorities said late on Tuesday.


The men, who are travelling back to China, were detained last week along with others from Congo and neighbouring Burundi after failing to produce the required documents during a crackdown on unlicensed extraction of the minerals in the central African nation.

Jean-Jacques Purusi Sadiki, the governor of South Kivu, the province where the men were arrested, told reporters he was shocked to hear news of their release.

The Chinese miners owed $10 million in unpaid taxes and fines to the government, he added.

Around 60 Chinese nationals were at the site and officials detained the 17 who appeared to be in charge.

The Chinese embassy in Kinshasa has not responded to requests for comment. Burundi’s embassy said it was still waiting for details from its representative in Bukavu.

Bernard Muhindo, South Kivu’s finance minister and acting mines minister, said the intention was to improve the system.

“The idea is not to go on a manhunt, but rather to clean up the mining sector so that reliable partners can work properly and legally,” he told reporters.

The central African country says it has been struggling to stop unlicensed companies and in some cases armed groups from exploiting its rich reserves of cobalt, cooper, gold and other minerals.

Competition over mining operations has fuelled fighting in the region that borders Rwanda.

(By Yassin Kombi and Jessica Donati; Editing by Ed Osmond)

GOOD NEWS

CHART: EV battery metals bill sets new low as lithium, nickel, cobalt price slump continues

Frik Els | December 26, 2024 |

CAPITALI$M IS OVERPRODUCTION

While electric vehicle sales growth has certainly slowed down from the torrid pace of the last few years, the global passenger EV market, including plug-in and conventional hybrids, should easily top 20 million units this year.


In combined battery capacity deployed – a better indicator of battery materials demand than unit sales alone – the electric car market has expanded by a healthy 24% so far this year.

In total, 674.6 GWh of fresh battery power hit the globe’s roads from January through August, according to data from Toronto-based EV supply chain research firm Adamas Intelligence.

Hybrid approach

The rapid electrification of the global car parc comes despite a noticeable swing towards hybrid vehicles, which have inherently smaller batteries and therefore contained metal.

The combined battery capacity of plug-in hybrid vehicles steered onto roads globally for the first time this year is up 71% versus a more sedate pace for full electric passenger vehicles of 17%. At the same time the sales-weighted average battery capacity of plug-ins (PHEVs) is also rising, up 12% this year to 23kWh, more than a third of the average full electric vehicle.

A subset of the PHEV, the extended range EV or EREV where the combustion engine only acts as a charger for the battery, are even bigger users of installed metal. EREVs on average have 39kWh of battery capacity, more than most sub-compact and small cars.

EREV battery capacity and sales have more than doubled in 2024 and were it not for the PHEV market, the many news headlines saying the EV market is in a deep slump, may have carried more weight.
Law of averages

For miners supplying the EV battery industry, the news remain negative however: The latest data tracking sales, battery capacity and chemistry in over 110 countries paired with monthly prices show the weighted average monthly dollar value of the lithium, nickel, cobalt, manganese and graphite contained in the batteries​​ of the average EV is continuing its downward path.

As natural and synthetic graphite, lithium carbonate and hydroxide, and nickel, cobalt and manganese sulphate prices decline further, the raw materials bill for the average EV is now down to $510 compared to $918 in October 2023 and a monthly peak of more than $1,900 at the beginning of last year, according to Adamas Intelligence analysis.

The downtrend is led by lithium where the value per EV for the first ten months of the year is down 74% compared to the same period last year to $276. In October, the latest month with detailed data, the value of installed lithium set a new low of $212. In January of 2023 that figure was $1,444 per average EV.

Cobalt, at just under $42 is 34% below the value reached in October 2023. After a strong start to the year, manganese has now also succumbed to weakness in the battery raw material space, averaging just over $7 per EV battery.

For anode material, graphite loadings and values have held mostly steady at just under $26 per average EV, but the average for 2024 so far is 13% below that of 2023.
Iron phosphate vs nickel

The value of nickel in the average EV battery is down 25% as LFP battery chemistries continue to take global market share. LFP batteries represented 44% of the global total in terms of capacity deployed in GWh in October despite slow build out of LFP battery factories outside China.

That compares to a 33% share during the same month last year, more than offsetting the long-running trend towards high-nickel cathodes, and the growing popularity of NCM batteries for PHEVs where the energy density of nickel-based cathodes makes more sense given the weight of these vehicles.

For a fuller analysis of the battery metals market check out the December issue of the Northern Miner print and digital editions.

* Frik Els is Editor at Large for MINING.COM and Head of Adamas Inside, providing news and analysis based on Adamas Intelligence data.

Panama President sees no immediate risk from First Quantum mine

Bloomberg | December 26, 2024 | 

Copper shipments from Cobre Panama mine. (Image courtesy of Cobre Panama.)

Panama’s President Jose Raul Mulino said a government report shows there are no immediate environmental or safety risks from Cobre Panama, the First Quantum Minerals Ltd. copper mine that was shut in 2023.


Mulino cited a recent report conducted by the environment ministry, which examined minerals and other materials stored at the site. Mulino said the government will start to study a “conservation plan” for the mine in January.

“Right now, there is no irreversible contamination,” Mulino said Thursday. “Even though it doesn’t represent an imminent risk for the country at the moment, we can’t leave it abandoned perpetually so that it could eventually cause ecological damage.”

The $10 billion mine was shuttered in 2023 after Panama’s Supreme Court ruled that its operating contract was unconstitutional.

Mulino, who took office in July, ordered the environmental audit of the mine to help determine whether the facility can be reopened temporarily ahead of a possible permanent shutdown.

First Quantum is seeking damages from Panama via two ongoing arbitration cases.

 

Greek Companies and Tanker Engineers Pay U.S. Over $4.5M in MARPOL Fines

The tanker's owner and operator and two engineers each pleaded guilty to the offenses and attempting to hide it from USCG

Published Dec 24, 2024 1:42 PM by The Maritime Executive

 

 

The owner and operator of a Greek product tanker along with two engineers working on the vessel have each pleaded guilty in the latest U.S. Coast Guard MARPOL violation case. The fines totaled more than $4.5 million for offenses including discharging oily waste into the U.S. territorial waters and trying to conceal the crime including falsifying records.

The U.S. Justice Department reported that the chemical tanker Kriti Ruby committed the offenses during port calls in Jacksonville, Florida, and the Port of Newark, New Jersey, in May and September 2022. Built in 2008, the 48,000 dwt Kriti Ruby is registered in Greece.

The owners of the vessel, Avin International, and operator Kriti Ruby Special Maritime Enterprises entered their guilty pleas on December 23. Both companies pleaded guilty to pollution, falsification of records, and obstruction of justice. The owner was ordered to pay $3,375,000 and the operator an additional $1,125,000 with both companies also to serve five-year probation. They will be subject to compliance plans and monitors.

The vessel reportedly discharged oily waste into the sea through its sewage system bypassing the required pollution prevention equipment. In addition to not recording the discharges, the USCG said the crew concealed most of the pumps and hoses used to conduct the bypass operations in a sealed cofferdam.

Kriti Ruby’s former chief engineer and second engineer were also sentenced after having previously pleaded guilty. Former chief engineer Konstantinos Atsalis not only admitted to falsifying the vessel’s oil record book but he also acknowledged that the vessel’s crew had knowingly bypassed required pollution prevention equipment by discharging oily waste from the vessel’s engine room through its sewage system into the sea. Additionally, he admitted that he directed crew members to hide equipment used to conduct these transfers. He was sentenced to time served and a $5,000 fine. 

Sonny Bosito who had been the second engineer on the tanker also pleaded guilty to concealing the pollution by falsifying the records. He was sentenced to time served.

“Prioritizing profits over the environment by discharging oily waste into the sea and working to cover up that pollution is illegal,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “We are committed to enforcing the law and fighting against maritime pollution.”

The problems came to out during a USCG expanded Port State inspection in September 2022 in Newark. The tanker was cited for deficiencies including blockages in the oil discharge monitoring and control system and the oil filtering equipment. At the time, USCG also reported the oil record book as missing. The Kriti Ruby received a seven-day detention. The vessel was also cited for five additional deficiencies on a subsequent USCG inspection in November 2022 in Philadelphia.

 

Another Later-Stage Development U.S. Offshore Wind Farm Shelved

Vineyard Offshore shelved its proposed project after Connecticut decided not to select wind in its current alternative energy solicitation (iStock)

Published Dec 24, 2024 12:49 PM by The Maritime Executive

 

Vineyard Wind, an affiliate of Copenhagen Infrastructure Partners, confirmed in a brief statement that it is shelving the proposed Vineyard Wind 2 project in response to Connecticut’s decision not to proceed in awarding wind projects after the recent New England tri-state solicitation. The project had been selected by Massachusetts and is in a later stage of permitting at the federal level.

“With Connecticut’s decision today (December 20) not to purchase the remaining 400 MW, we are unable to contract the project’s full 1200 MW at this time. We look forward to advancing this project and participating in future solicitations,” Vineyard Offshore wrote in its response.

Connecticut along with Massachusetts and Rhode Island launched the first multi-state coordinated solicitation earlier this year saying it was in response to the changing market conditions and challenges faced by offshore developers. They provided the opportunity for projects to bid either multi-state or individually. 

Massachusetts and Rhode Island announced in September that they had selected three projects with a total projected capacity of 2.9 GW. The two states will share SouthCoast Wind (which received federal approvals last week) while Massachusetts also selected New England Wind 1 with 791 MW of capacity. It also said it would take 800 MW from the 1,200 MW Vineyard Wind 1 project. It implied it would be sharing the project with another state.

Governor Ned Lamont and Connecticut’s regulators announced Friday that they were proceeding with solar power but decided not to take up any offshore wind in the current round. Lamont generally referenced cost considerations for power while saying the state was not ruling out offshore wind power in the future.

CIP won the lease area which is approximately 29 miles south of Nantucket in a 2018 lease auction. The project has advanced with its Construction draft and Operations Plan on file at the Bureau of Ocean Energy Management. In March 2024, BOEM included Vineyard Wind 2 in its announcement for an environmental impact statement to advance New England’s offshore wind projects. The hearings have been completed and BOEM is working on its report and the EIS. 

Vineyard Offshore CEO Alicia Barton said in September 2024, “We look forward to Connecticut’s forthcoming decision on the remainder of the procurement so that we can begin to deliver important economic and climate benefits to the region.”

Vineyard Offshore is in a joint venture partnership to develop Vineyard Wind 1, which is under construction. It holds the Vineyard Northeast lease off the coast of Massachusetts which is where the second project would be located, as well as Vineyard Mid-Atlantic which includes Excelsior Wind in the New York Bight. It also has a lease area off the coast of Humboldt County in Northern California.

Japan Accelerates Offshore Wind Selecting Consortiums for Two Larger Farms

Japan is developing near-shore fixed bottom offshore wind projects before transition to floating wind (JERA)

Published Dec 25, 2024 2:11 PM by The Maritime Executive

 

Japan Accelerates Offshore Wind with Projects Involving BP, JERA, Marubeni, and Others

Japan selected two consortiums to develop offshore wind projects as it seeks to accelerate its renewable energy programs. Combined the two projects would provide over 1 GW of energy and one could be one of the largest offshore wind farms yet developed in Japan.

The country’s third round solicitation had run during the half of 2024 and was being closely followed in the industry. Previously, Japan attracted Iberdrola and RWE for projects. The winners of this round included BP and JERA, which separately have announced plans to combine their operations, as well as participation in the consortiums from Marubeni, Tokyo Gas, Kansai Electric Power, and others.

The winners were selected jointly by Japan’s Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport, and Tourism. The Ministries highlight the experience of the companies including JERA which has projects in Taiwan and Europe and partner Green Power Investment Co. which managed the entire process for the Ishikari Bay New Port Offshore Wind Farm which started operation in May 2024 with 112 MW and Wind Farm Tsugaru, which started operations in January 2024 with a capacity of 122 MW. The two projects are among the largest in the country currently.

Both the projects selected in this next round are for fixed-bottom wind farms which will be placed closer to shore. Japan’s offshore topography limits the opportunities for fixed-bottom wind farms with the expectation that it will need to deploy floating wind farms to reach its power goals.

One project will be located in the Sea of Japan offshore of Aomori Prefecture in the northern part of Japan’s main island of Honshu. It will consist of 41 turbines manufactured by Siemens Gamesa with a total capacity of 615 MW, making it one of the largest offshore wind power generation projects in Japan. The Tsugaru Offshore Energy Consortium consists of JERA, Green Power, and Tohoku Electric Power.

Slightly further to the south also on the Sea of Japan offshore of Yuza Town in Yamagata Prefecture the second project will consist of 30 Siemens Gamesa turbines for a total capacity of 450 MW. The Yamagata Yuza Offshore consortium consists of Marubeni, BP, Kansai Electric Power, Tokyo Gas, and Marutaka. 

The sites were selected by the government in October 2023. The ministries report the two projects will each start operations in June 2030. The country’s goal is for 10 GW by 2030 and 45 GW by 2040 from offshore wind.