Latest news with #Mitsui
Forbes
22-07-2025
- Business
- Forbes
Leaders May Step Up Pressure On Russian Gas Sales To End Ukrainian War
Russia's resumed activity at Arctic LNG 2 represents an effort to reach Asian markets and fuel the ... More Kremlin's ongoing war effort. (Photo by Konstantin ZAVRAZHIN / SPUTNIK / AFP) (Photo by KONSTANTIN ZAVRAZHIN/SPUTNIK/AFP via Getty Images) SPUTNIK/AFP via Getty Images Telling the BBC that he is 'disappointed but not done with Vladimir Putin,' President Donald Trump has threatened 100% tariffs against Russia, including secondary tariffs against countries that help dodge sanctions on the Kremlin's energy exports., The U.S. Senate is considering a bill to give the president the ability to impose additional 'sledgehammer' measures with up to 500 percent secondary sanctions. Under pressure, Moscow is expanding its hydrocarbon exports by boosting LNG shipments to the Asian markets from Siberia's Yamal Peninsula. On June 26th, the Russian tanker Iris docked at Arctic LNG 2 terminal, a joint venture between Russia's Novatek, Chinese CNPC and CNOOC, and Mitsui and JOGMEC, marking the first departure from the sanctioned facility since October 2024. The Iris is part of Moscow's shadow fleet, which exports Russian energy abroad, dodging Western sanctions through a convoluted web of false registries, deactivated transponders, covert offloading, waived insurance, shell games, and confusing ownership schemes. Arctic LNG 2 raised outputs to record levels, averaging 14 million cubic meters/day in the last days of June, compared to 8.9 million cubic meters/day for most of the month. That's enough in a single day to power approximately 13,461 American households for a year. It appears that Russia plans to exploit the Northern Sea Route to dodge sanctions. Running through the Arctic Ocean and around the northern shores of Eurasia, it is only navigable from late June/July to October/November and provides Moscow with direct access to Asia. As ice in the Arctic Ocean melts, Russia is focused on tripling LNG exports by 2030. It is up to the U.S. and the EU to tighten sanctions to help force the issue of peace negotiations with Ukraine. The Northern Sea Route allows for Russia to export LNG to Asia, utilizing an alternative to European ... More customers to bolster its war effort. Nikkei Asia From August to October of 2024, eight shipments left Arctic 2 LNG and were moved to floating storage units as sales fell. According to traders, personnel affiliated with the facility have called on potential buyers in India and China, attempting to sell this fuel. On the day the Iris docked, the JKM benchmark price for spot LNG deliveries to Northeast Asia was at $12.86/MMBtu, high for the season. Incentivized by discounts, Asian buyers have been induced to purchase Russian gas product in the past, as Western sanctions have primarily targeted firms specifically associated with shipping. This year to date, Japan and China are Russia's second and third biggest customers globally, importing 3.1 million mt and 3 million mt of gas, respectively. JKM Prices are at a higher level this year than in 2024, likely due to tensions in the Middle East. The biggest buyer for LNG is the EU, which has a proposed plan to phase out Russian gas and oil imports by the end of 2027. EU purchases, of course, are not supplied by the shadow fleet. While Moscow's known fossil fuel export revenue has trended down compared with 2022, in addition to Japan and China, it has several other Asian customers, including South Korea, India, Taiwan, and Singapore. In April, China halted U.S. LNG purchases due to tariffs. According to China's Ambassador to Russia, Zhang Hanhui, Chinese buyers are looking to increase their Russian imports. Putin is pushing for Power of Siberia 2 pipeline agreements amidst these changes, as China's imports of piped Russian gas have increased since the hold on American gas. Mitsui OSK Lines, a Japanese shipping company, has disregarded sanctions and continued business as usual. In May, the EU sanctioned three of its vessels. Do Conflicts in the Middle East Make Russian LNG More Attractive? Following the 12-day war between Iran and Israel, Asian buyers may increase imports of Russian LNG to derisk portfolios, decreasing reliance on Middle Eastern exports. The recent conflict caused Brent Crude oil and JKM LNG prices to jump 18% and 14% respectively for a short time. Iran's threat to close the Strait of Hormuz spooked investors and buyers. Any closure would disrupt shipping through the Persian Gulf. Notably, Qatar exports roughly 77 million mt of LNG per year, 20% of global supply. A closure of the Strait would disproportionally affect Asian buyers, as over 80% of crude oil and LNG transported through the Strait is consumed in China, India, Japan, and South Korea. Following President Trump's announcement of a ceasefire between Israel and Iran, European benchmark TTF gas prices fell by 14% and began stabilizing in the pre-conflict price range. In late June, analysts warned that oil prices would remain volatile for the coming weeks and OPEC+ would likely be cautious about increasing production. As fears over regional stability linger, Russian LNG imports may be a tariff-free option to avoid critical chokepoints like the Strait of Hormuz and the Suez Canal. However, buyers must consider the moral hazard and the potential of escalating sanctions. Can Russia Overcome Setbacks this Summer? While Arctic LNG 2 activity suggests Russia is preparing to increase LNG sales, Moscow will have to overcome challenges to further penetrating the Asian markets. The facility's first train has remained shut with full storage tanks, while the second train produced its first LNG in May 2025. Shipments that left in late 2024 are in floating storage, as Russia has struggled to find buyers. Sanctions remain a constant problem, although Moscow has found ways to circumvent them with varying degrees of success. In March 2025, the EU's ban on transshipment of Russian LNG in its ports became effective, severely limiting options. Overland routes are no panacea. China has the most developed gas infrastructure linked directly to Russia, buts its increasing clout with Gazprom presents the Kremlin with strategic headaches; and Beijing is unwilling to facilitate transit of piped gas to other customers in Southeast Asia. Other possible vectors south through Central Asia to India are either underdeveloped, incomplete, involve transshipment through Afghanistan or ports in Iran, which would merely increase risk. The seasonal opening of the Northern Sea Route and tension in the Middle East create an opportunity for Russian LNG to refill the Kremlin's war chest. This makes it imperative for the United States and Europe to expand sanctions on Russian energy with a focus on transit, shipping, insurance, and middlemen in Asia.
ABC News
20-07-2025
- Business
- ABC News
Waitsia gas project delays leave Kerry Stokes-backed firm exporting reserved WA supplies
A gas development backed by media mogul Kerry Stokes has been tapping into Western Australia's domestic gas market to supply overseas customers amid long delays in the delivery of the plant. At the time, the project was supposed to cost $700 million and be operational by late 2023. Mr McGowan said unless Waitsia was exempted from the ban, "the project might not happen" and the gas may have stayed in the ground. But almost two years after that deadline and with a construction bill running at almost double the original estimate, the project is still not ready. In the meantime, the ABC can reveal the project's owners have been taking gas from the domestic market to supply their customers overseas. Waitsia's owners are Beach Energy — the ASX-listed gas producer backed by Seven Group, the conglomerate controlled by Mr Stokes — and Mitsui, a Japanese trading firm. Filings by Beach and public reporting of supplies to and from the Dampier to Bunbury gas pipeline — WA's main energy artery — suggest the partners have sent more than a dozen liquefied natural gas (LNG) cargoes since late 2023. As much as 180 terajoules a day — or roughly 15 per cent of the gas used in the local WA market — has been diverted for export at times during that period, according to the Australian Energy Market Operator's gas bulletin board. In its filings, Beach said the gas has been sourced via so-called swap arrangements, in which the company takes existing supplies from the domestic market on the promise it will return an equivalent amount later when Waitsia is up and running. The gas is processed into LNG at the North West Shelf, a giant plant in the Pilbara where supplies have been dwindling for years. While neither company would comment, Waitsia's backers have pointed out that prices for gas in WA's domestic market have been falling in recent times. From as much as $11.60 a gigajoule in late 2023, according to Perth-based firm Gas Trading Australia, prices on the spot market had fallen to just $6 a gigajoule. On the east coast, by contrast, prices were trading between $10 and $15 a gigajoule. Peter Strachan, a veteran resources analyst, said the fact prices had been falling while Waitsia's partners were exporting domestic gas was nothing more than luck. Mr Strachan said while there was nothing unlawful about what the partners were doing, it raised questions about the integrity of WA's domestic gas market. "It's serendipity," Mr Strachan said. "It might be good business operations, but I think it goes against the whole idea that the gas in Western Australia is for West Australians to consume. "And that's whether it's today or tomorrow or in 10 or 20 years' time." Under WA's laws, the market is supplied courtesy of a 15 per cent reservation policy on offshore fields. It is also supplied by onshore fields. Up until the exemption awarded to Waitsia, onshore projects had exclusively supplied the local market. After years of chopping and changing policy, the WA government last year said it would allow onshore developers to export up to 20 per cent of their reserves but only until 2030. By that time, the Australian Energy Market Operator has forecast that WA will enter a structural deficit of gas, sparking warnings that some users could be pushed to the wall. Mr Strachan said some of the problems that had bedevilled Waitsia were beyond the control of its owners. Chief among them was the collapse of construction company Clough in late 2022. But he queried why Beach and Mitsui were being allowed to take relatively cheap gas from the domestic market to cover their position with buyers overseas. "They had to find some gas from somewhere to meet those obligations they couldn't meet because their project was basically two years delayed," he said. "You would have thought if they were stuck and had to find gas, they could have … bought that gas on the open market from the North West Shelf or from Gorgon or from somewhere in Kuwait. "But they might have made a loss doing that. The DomGas Alliance, which represents some of Australia's biggest gas users such as Wesfarmers, Alcoa and Yara, was equally sceptical. DomGas Alliance spokesman Richard Harris said taking gas from the local market to sell internationally flew in the face of WA's domestic policies. "Domestic gas, when it's in the market in WA, is for WA use, not for export," Mr Harris said. Mr Harris said it was true domestic users were currently enjoying a period of relatively subdued pricing. But he said that reprieve was likely to be temporary. What's more, he said it had been largely caused by the loss of some major gas customers, such as mining giant BHP's Nickel West division and an alumina refinery owned by Alcoa. There had also been, he noted, a short-term bump in extra supplies from Woodside's Pluto project following scrutiny from a state parliamentary inquiry. "All forecasts say that is just a short-term phenomenon," he said. "Within a couple of years, we're going to be heading for a shortfall, and that's certainly what all the forecasts say by 2028, we're in for a significant shortfall of gas." The WA government declined a request to be interviewed about the exports. Instead, it issued a statement in which a spokesperson said Waitsia's export approval also came with a commitment to supply domestic gas. The spokesperson also insisted swap arrangements pursued by Waitsia's partners would have little effect on the domestic gas market. "No further swap arrangements are anticipated once the Waitsia gas plant is operational," they said. "The export of these LNG cargoes does not impact the delivery of Waitsia's domestic gas commitment." Shadow Energy Minister Steve Thomas was not as charitable. Dr Thomas said the export of domestic supplies was clearly never intended by those who designed the state's domestic gas policy. "I don't think the architects of the domestic gas policy ever expected that onshore domestic gas would have to be substituted into the offshore market to meet existing contracts," Dr Thomas said. He argued the government had been so inconsistent in its management of domestic gas policies that they had been turned into a mess. "So the domestic gas policy either stands up or it doesn't," he said. Under the terms of the deal in 2020, the Waitsia partners were allowed until the end of 2028 to export 7.5 million tonnes of LNG. Mr Harris from the DomGas Alliance noted that the project partners were fast running out of time in which to meet their export quotas. Given the lucrative nature of the overseas LNG market, where gas can fetch far higher prices than from domestic buyers, he anticipated a push to extend the export approvals. But he stressed it was something the alliance would oppose. And he warned a failure to do so would risk higher gas prices and "mean the projects that we want to happen like critical minerals won't be able to find gas". "They [Waitsia] were always given a timeline when they had to deliver their bargain to the state, which was to deliver gas into the domestic market in 2029," Mr Harris said. "And that timeline should stick." Peter Strachan agreed but wondered whether Waitsia would still have the reserves to supply the WA market after 2028, noting the project's partners had been progressively writing down their estimates of the gas contained in the field. "Where they thought there would be gas they've drilled and 'oh, there's no gas'," Mr Strachan said. "They're lucky now that they've actually got enough gas to meet their commitments. But where does that leave the local consumer?"
Forbes
15-07-2025
- Business
- Forbes
For Peace With Ukraine, Increase Pressure On Russian LNG Sales To Asia
Russia's resumed activity at Arctic LNG 2 represents an effort to reach Asian markets and fuel the ... More Kremlin's ongoing war effort. (Photo by Konstantin ZAVRAZHIN / SPUTNIK / AFP) (Photo by KONSTANTIN ZAVRAZHIN/SPUTNIK/AFP via Getty Images) Telling the BBC that he is 'disappointed but not done with Vladimir Putin,' President Donald Trump has threatened 100% tariffs against Russia, including secondary tariffs against countries that help dodge sanctions on the Kremlin's energy exports., The U.S. Senate is considering a bill to give the president the ability to impose additional 'sledgehammer' measures with up to 500 percent secondary sanctions. Under pressure, Moscow is expanding its hydrocarbon exports by boosting LNG shipments to the Asian markets from Siberia's Yamal Peninsula. On June 26th, the Russian tanker Iris docked at Arctic LNG 2 terminal, a joint venture between Russia's Novatek, Chinese CNPC and CNOOC, and Mitsui and JOGMEC, marking the first departure from the sanctioned facility since October 2024. The Iris is part of Moscow's shadow fleet, which exports Russian energy abroad, dodging Western sanctions through a convoluted web of false registries, deactivated transponders, covert offloading, waived insurance, shell games, and confusing ownership schemes. Arctic LNG 2 raised outputs to record levels, averaging 14 million cubic meters/day in the last days of June, compared to 8.9 million cubic meters/day for most of the month. That's enough in a single day to power approximately 13,461 American households for a year. It appears that Russia plans to exploit the Northern Sea Route to dodge sanctions. Running through the Arctic Ocean and around the northern shores of Eurasia, it is only navigable from late June/July to October/November and provides Moscow with direct access to Asia. As ice in the Arctic Ocean melts, Russia is focused on tripling LNG exports by 2030. It is up to the U.S. and the EU to tighten sanctions to help force the issue of peace negotiations with Ukraine. The Northern Sea Route allows for Russia to export LNG to Asia, utilizing an alternative to European ... More customers to bolster its war effort. Opportunity in Asia for Russian LNG From August to October of 2024, eight shipments left Arctic 2 LNG and were moved to floating storage units as sales fell. According to traders, personnel affiliated with the facility have called on potential buyers in India and China, attempting to sell this fuel. On the day the Iris docked, the JKM benchmark price for spot LNG deliveries to Northeast Asia was at $12.86/MMBtu, high for the season. Incentivized by discounts, Asian buyers have been induced to purchase Russian gas product in the past, as Western sanctions have primarily targeted firms specifically associated with shipping. This year to date, Japan and China are Russia's second and third biggest customers globally, importing 3.1 million mt and 3 million mt of gas, respectively. JKM Prices are at a higher level this year than in 2024, likely due to tensions in the Middle East. The biggest buyer for LNG is the EU, which has a proposed plan to phase out Russian gas and oil imports by the end of 2027. EU purchases, of course, are not supplied by the shadow fleet. While Moscow's known fossil fuel export revenue has trended down compared with 2022, in addition to Japan and China, it has several other Asian customers, including South Korea, India, Taiwan, and Singapore. In April, China halted U.S. LNG purchases due to tariffs. According to China's Ambassador to Russia, Zhang Hanhui, Chinese buyers are looking to increase their Russian imports. Putin is pushing for Power of Siberia 2 pipeline agreements amidst these changes, as China's imports of piped Russian gas have increased since the hold on American gas. Mitsui OSK Lines, a Japanese shipping company, has disregarded sanctions and continued business as usual. In May, the EU sanctioned three of its vessels. Do Conflicts in the Middle East Make Russian LNG More Attractive? Following the 12-day war between Iran and Israel, Asian buyers may increase imports of Russian LNG to derisk portfolios, decreasing reliance on Middle Eastern exports. The recent conflict caused Brent Crude oil and JKM LNG prices to jump 18% and 14% respectively for a short time. Iran's threat to close the Strait of Hormuz spooked investors and buyers. Any closure would disrupt shipping through the Persian Gulf. Notably, Qatar exports roughly 77 million mt of LNG per year, 20% of global supply. A closure of the Strait would disproportionally affect Asian buyers, as over 80% of crude oil and LNG transported through the Strait is consumed in China, India, Japan, and South Korea. Following President Trump's announcement of a ceasefire between Israel and Iran, European benchmark TTF gas prices fell by 14% and began stabilizing in the pre-conflict price range. In late June, analysts warned that oil prices would remain volatile for the coming weeks and OPEC+ would likely be cautious about increasing production. As fears over regional stability linger, Russian LNG imports may be a tariff-free option to avoid critical chokepoints like the Strait of Hormuz and the Suez Canal. However, buyers must consider the moral hazard and the potential of escalating sanctions. Can Russia Overcome Setbacks this Summer? While Arctic LNG 2 activity suggests Russia is preparing to increase LNG sales, Moscow will have to overcome challenges to further penetrating the Asian markets. The facility's first train has remained shut with full storage tanks, while the second train produced its first LNG in May 2025. Shipments that left in late 2024 are in floating storage, as Russia has struggled to find buyers. Sanctions remain a constant problem, although Moscow has found ways to circumvent them with varying degrees of success. In March 2025, the EU's ban on transshipment of Russian LNG in its ports became effective, severely limiting options. Overland routes are no panacea. China has the most developed gas infrastructure linked directly to Russia, buts its increasing clout with Gazprom presents the Kremlin with strategic headaches; and Beijing is unwilling to facilitate transit of piped gas to other customers in Southeast Asia. Other possible vectors south through Central Asia to India are either underdeveloped, incomplete, involve transshipment through Afghanistan or ports in Iran, which would merely increase risk. The seasonal opening of the Northern Sea Route and tension in the Middle East create an opportunity for Russian LNG to refill the Kremlin's war chest. This makes it imperative for the United States and Europe to expand sanctions on Russian energy with a focus on transit, shipping, insurance, and middlemen in Asia.
Yomiuri Shimbun
06-07-2025
- Entertainment
- Yomiuri Shimbun
Botanical Garden Hosts Nighttime Immersive Event in Kyoto
Old & New video KYOTO — The Kyoto Botanical Gardens in Sakyo Ward, Kyoto, which celebrated its 100th anniversary last year, is holding an event called 'Light Cycles Kyoto,' in which its Conservatory greenhouse is filled with sound and dynamic lights at night. The immersive event allows visitors to experience the fascination of plants at night. This is the second time the facility has held such an event. When it held a similar event from October to December last year to celebrate its 100th anniversary, the number of annual visitors in the fiscal year exceeded 900,000 for the first time in 30 years. The current event will continue for a much longer period, from May to the end of March next Ryuzo Suzuki / Yomiuri Shimbun Senior PhotographerThe lighting in the greenhouse makes it look like people are either standing in the light of the rising sun or the setting facility is the oldest public botanical gardens in Japan. The greenhouse has existed since its opening, but the current one, which opened in 1992, is the third generation. The greenhouse has a distinctive shape that evokes the silhouette of Kinkakuji temple reflected on a pond and the Kitayama mountain range. About 25,000 plants of about 4,500 species are displayed indoors. As the pathway is a circuit with no steps, the scenery changes in succession, allowing visitors to appreciate various forms of vegetation as they make their rounds. With biodiversity as the keyword for the event, the greenhouse is divided into four zones and suffused with light and sound. Visitors can enjoy the fantastic sights and smells of a wide variety of plants at Ryuzo Suzuki / Yomiuri Shimbun Senior PhotographerThe Orchids & Bromeliads Garden room creates a mysterious atmosphere with sound and event is cosponsored by Kyoto Prefecture, the organizing committee and Mitsui Fudosan Co. The gardens opened a century ago thanks to donations from the Mitsui family, a wealthy merchant family. The company still has links with the family and strongly supports the significance of the current event, which aims to pass on the attraction of the botanical gardens to future Ryuzo Suzuki / Yomiuri Shimbun Senior PhotographerThe Dry Tropics Garden room is illuminated at to organizers, the event is an attempt to show respect for nature and to examine the relationship between people and nature. Moment Factory, a company headquartered in Canada, took charge of the event's planning and production. The organizers say it intends to 'visualize the voices' of plants at night, which are different from during the daytime, and create an opportunity for the next generation to develop a deeper connection with Ryuzo Suzuki / Yomiuri Shimbun Senior PhotographerThe Conservatory greenhouse of the Kyoto Botanical Gardens is illuminated at night.'I came here for the first time in about 10 years, and it felt like a fresh experience. The combination of light, sound and plants was impressive,' said a female university student in her 20s from Kita Ward, Kyoto, who attended the event with her boyfriend. Advance tickets, which can be purchased until the day before admission, cost ¥2,300 for high school students and older, and ¥1,100 for elementary and junior high school students. Same-day tickets are available at the venue but may be sold out.
Time of India
03-07-2025
- Business
- Time of India
ONGC signs pact with Japan's Mitsui for ethane carriers
State-owned Oil and Natural Gas Corporation (ONGC) has signed an agreement with Japan's Mitsui OSK Lines to enter into a partnership to build two very large ethane carriers that will be used to import petrochemical feedstock for its subsidiary. In a regulatory filing, ONGC said it signed a Heads of Agreement on Thursday with Mitsui "to enter into a partnership to build, own and operate two very large ethane carriers (VLECs). It, however, did not give financial details of the partnership, including the equity stake the two firms would hold. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 Most Beautiful Female Athletes in the World Click Here Undo "The VLECs shall be shipping imported ethane to ONGC Petro Additions Limited (OPaL), a subsidiary of ONGC, for captive use as feedstock," the filing said. "This arrangement is subject to Board approval and further details shall be shared after signing of the partnership agreement. ONGC plans to import ethane starting in mid-2028 to compensate for the altered composition of liquefied natural gas (LNG) sourced from Qatar, according to a tender that the state-owned firm floated in March this year for selecting a partner for building the VLECs. Live Events India imports 7.5 million tonnes per annum of LNG from Qatar. Under the deal, QatarEnergy supplies 5 million tonnes a year of LNG that contains methane (used to produce electricity, make fertiliser, converted into CNG or used as cooking fuel) as well as ethane and propane -- feedstock to make LPG and petrochemicals -- on a firm basis and the rest on best endeavour basis. This contract is coming to an end in 2028 and the revised contract signed last year envisages QatarEnergy supplying 'lean' gas (one that is stripped of ethane and propane). ONGC had spent about Rs 1,500 crore in setting up a C2 (ethane) and C3 (propane) extraction plant at Dahej in Gujarat. The C2/C3 so extracted was used as a feedstock in its petrochemical subsidiary, OPaL. With the changed composition of LNG, the company is now looking at importing ethane. OPaL "is having a mega grassroot petrochemical complex and having the largest standalone dual feed cracker in Southeast Asia. Plant is having a dual feed cracker i.e. a mix of Naphtha and C2 (Ethane), C3 (Propane) & C4 (Butane) as feedstock," the tender document had said. "ONGC plans to source and supply 800,000 tonnes per annum of ethane to secure the feedstock for OPaL, from May 2028 onwards. And to ship this ethane, it has formed a joint venture with Mitsui to build VLECs that could ship the feedstock. ONGC will be responsible for sourcing ethane. It will hire the VLECs from the joint venture for the shipping of ethane. ONGC built the C2/C3 extraction unit at Dahej in Bharuch district of Gujarat in 2008-09. However, its subsidiary OPaL could build the petrochemical plant only in 2017. It sold the C2-C3 compounds extracted from the imported LNG from Qatar, to Reliance Industries-owned IPCL till its plant to convert them into polymers came up. C2-C3 plant has a handling capacity of 4.9 million tonnes per annum of LNG. OPaL plant comprises 1.1 million tonnes a year of ethylene capacity dual feed cracker, along with associated units and polymer plants, to manufacture HDPE, LLDPE, PP and Styrene Butadiene Rubber.
