Rio Tinto launches farming trial in Australia to explore renewable diesel production
Rio Tinto, the mining giant, announced on Wednesday that it would develop seed farms to investigate the potential of Pongamia oil as a source for renewable diesel. The miner and Midway, a local manager of a woodfiber processor, have partnered to manage the farming operations. Pongamia, a native Australian tree, can have its seeds processed into renewable diesel. This alternative emits much less carbon than fossil fuel. Rio Tinto has cleared about 3,000 acres of land in Queensland to test the feasibility of a pilot project that will determine whether Pongamia seed oils can be used as a renewable fuel source for the company.
Australian shares rise as energy stocks and banks shine
Investors digested and assessed the impact of the latest U.S. Inflation print on global interest rate outlooks. As of 1236 GMT, the S&P/ASX 200 was up 0.6% to 8,035.1 points. The benchmark closed Wednesday's session 0.3% lower. Market watchers have ruled out a Federal Reserve rate cut of 50 basis points (bp) next week and instead bet on a reduction of 25 bp. Most sub-indices in Sydney traded in positive territory. The "Big Four" banks saw a 0.8% increase in their rate-sensitive financials. Energy stocks are trading near 1% higher, with major sector players Woodside Energy and Paladin Energy both up nearly 1%.
Financials drag Australia's shares down; US inflation data is in focus
Australian shares finished marginally lower on Tuesday, as losses among financial stocks outweighed gains by miners. Investors were cautious in advance of an important U.S. inflation report that could affect the Federal Reserve's next interest rate decision. The S&P/ASX 200 ended 0.4% lower, at 7978.7. The markets are weighing up whether the Fed will opt for a 25 basis point rate cut or a 50 basis point reduction during its policy meeting on September 17-18. Mathan Somasundaram is the CEO of DeepData Analytics. He said that Australian markets are closely correlated with the U.S., and are particularly influenced by U.S.
Woodside raises $ 2 billion in bonds amid growing investor concerns over capital expenditure plans
Woodside Energy, an Australian oil and gas company, raised $2 billion on the U.S. Bond Market, the company announced on Friday. This news caused its shares to fall on concerns about the company's capital spending plans. The bond issue consisted of two tranches: $1.25 billion in 10-year bonds at a coupon rate of 5.1%, and $750 millions through 30-year bonds at a 5.7% coupon. Woodside, Australia's largest gas producer, stated that the funds would be used for general corporate purposes without disclosing details. Standard & Poor's, a ratings agency, believes the company can use the money for two recent acquisitions totaling more than $3 billion.
Santos' new CFO shines spotlight on succession in top jobs
The Australian energy giant Santos announced on Thursday that Sherry Duhe, a former Woodside and Newcrest executive, has been appointed as its chief financial officer. This announcement comes amid heightened market speculation regarding a possible change in the top position. Duhe will replace Anthea McKinnell as chief financial officers. McKinnell leaves Santos after more than half a century. Kevin Gallagher, CEO of Santos in 2021, signed a controversial A$6 Million incentive package which forced him to stay at the oil-and-gas firm until 2025. Citi analysts stated that if CEO Gallagher retired, Duhe could step up to the CEO role without any difficulty.
Santos LNG from Australia to Glencore Singapore
Santos, an Australian company, announced on Wednesday that it had signed a contract for a midterm supply of liquefied gas with Glencore Singapore. Glencore Singapore is a subsidiary of the London-listed Glencore. Santos has agreed to supply 19 LNG cargoes or approximately 0.5million tonnes of LNG annually over the course of three years plus a quarter. The contract will begin in the fourth fiscal quarter of 2025, with LNG coming from the company's global portfolio. Santos signed an agreement in May to supply 400,000 tons of LNG per year to Japanese energy company Hokkaido Gas for the next decade, starting in 2027.
Timor Gap and Timor-Leste JV Gas Project Majority owned by Santos
Santos, the majority joint venture owner in Timor-Leste, announced on Monday that Timor Gap, a state-owned Timor-Leste oil company has acquired a 16 percent interest in Bayu-Undan's gas project. Timor Gap is now a member of the Bayu-Undan JV which includes SK E&S, INPEX, Eni, and Tokyo Timor Sea Resources. The joint venture partners manage jointly the Bayu-Undan Upstream Gas Project, which includes an offshore oil field and offshore production facilities and processing in Timor-Leste. After the inclusion of Timor Gap, Australian oil and natural gas giant Santos has a 36.5% stake. Santos didn't immediately respond to an'inquiry for comment.
Woodside Energy's earnings to drop as investors focus on strategic deals
Woodside Energy is Australia's largest independent gas producer and on course to report a decline in its interim earnings on February 2, with investors focused on the company's deal-making strategies after a failed $52 billion merger between Santos. According to Jarden's Visible Alpha consensus, Woodside, based in Perth, is expected to report a underlying net loss after tax of $1.11billion for the six-month period ended June. This compares to $1.90billion reported a year earlier. Woodside's portfolio has a high concentration in the Scarborough field, which is yet to be started.
BHP's return in Argentina is a new sign of hope for copper mines that are still untapped
More than half a dozen officials from the mining industry said that a new incentive program for mining in Argentina has attracted major players like BHP. They are now looking to the South American nation as the next frontier for the copper market. BHP's investment in Argentina last month was the first time in 20 years that BHP had invested in mining. The company teamed up in the $3.25billion buyout of Filo Corp with Canada's Lundin Mining with the goal of developing two mines of copper along the Andes Mountains bordering Chile.
Santos Australia misses out on profit due to production costs and lower prices
Santos, an Australian oil and natural gas exploration company, posted a larger-than-expected drop in its first-half profits on Wednesday. This was due to lower realized prices and higher production cost amid a weak demand from China, the top consumer. The shares of Santos fell as a result. Price fluctuations are unpredictable due to supply chain disruptions caused by geopolitical issues and a weakening of demand in China as a result of weakened economic recovery. Santos, Australia’s second largest independent gas producer, posted a underlying profit for the six-month period ended June 30 of $654 millions, down from $801million last year.
China's coal production rises, but the share of electricity falls: Russell
China's coal production is increasing while its share in electricity generation is decreasing. This apparent contradiction will result in a lower volume of imports and lower prices. The National Bureau of Statistics released data on August 15 showing that the coal output in July was 2.8% higher than the same month one year ago, reaching 390,37 million metric tonnes. The output in July was lower than June's, which was 405,38 million tons. This was the highest monthly production so far this season. July's production was the third highest monthly output so far in 2024. The trend has been higher since April.
China's Coal Production Rises, but the Share of Electricity Falls: Russell
China's coal production is increasing while its share in electricity generation is decreasing. This apparent contradiction will result in lower import volumes and cheaper prices.The National Bureau of Statistics released data on August 15 showing that the coal output in July was 2.8% higher than the same month one year ago, reaching 390,37 million metric tonnes.The output in July was lower than June's, which was 405,38 million tons. This was the highest monthly production so far in this year. July's production was the third highest monthly output so far in 2024.
Top Australian banks restrict lending to carbon intensive projects
By slowing down lending for carbon-intensive projects, leading Australian banks are increasing their efforts to reduce carbon emissions and align themselves with global climate goals. Commonwealth Bank of Australia, the country's largest lender, announced on Wednesday that it plans to reduce carbon emissions associated with loans and investments for thermal coal mine customers to zero by 2030. National Australia Bank (NAB), the top business lender in Australia, announced on Wednesday that it would not finance thermal coal mining clients or projects. The Labor Party, which is in power in Australia, aims to increase renewable energy to 82% by 2030.
Beach Energy's profit drops to a 2-1/2-year low due to a downgrade of reserves
Beach Energy, an Australian oil and natural gas company backed by billionaire Kerry Stokes fell to its lowest level in more than two-and-a half years on Monday, after reporting a drop in profits and downgrading reserves for a major gas field in Victoria. The shares of the company closed at A$1.245 on Friday, a 12.6% decline. This was their lowest closing price since December 29, 2021. It was also its worst session since April 1. The stock fell by as much as 132% in the morning. The stock was the biggest loser on the benchmark ASX 200 benchmark. Beach reported an 11% drop in net profit year-over-year to A$341million ($224.3million).
Shell and PetroChina expand Surat coal-seam gas project in Australia
Shell and PetroChina announced on Monday that they have decided to expand their Surat coal-seam gas project in Queensland. This comes amid calls from the British oil giant for increased investment to boost the local energy supply. The decision was made at a moment when executives in the industry have been pressing for government action to bring investments back that were halted by state interventions to reduce energy prices and increase domestic supply. The Australian energy market operator, as well as the competition watchdog, have asked oil and gas firms to invest more in order to increase supply on a market that is becoming increasingly constrained.
Australian regulator: No decision on Woodside Browse Gas Project yet
Western Australia's environmental regulator announced on Monday that it will release recommendations in 2025 on Woodside Energy’s Browse gas project. A newspaper had reported earlier this week that the large project could be rejected. This $20.5 billion gas project off the coast of Western Australia, the largest in the country but still untapped resource has been on the drawing boards for years. The Sydney Morning Herald reported on Monday that the Western Australian Environmental Protection Authority (EPA) sent preliminary comments to the company, in February, calling the proposed terms "unacceptable".
Petronas Clean Energy Arm Sees India, Australia as Key in Rapid Growth Plans
Gentari, the clean energy arm of Malaysia's state oil firm Petronas, sees India and Australia as its key markets for growth and expects to tap more financing to meet its ambitious targets, its chief executive told Reuters.Petronas launched Gentari as a separate entity in June, aiming to build renewable energy capacity of 30-40 gigawatts and produce up to 1.2 million tonnes per year of hydrogen by 2030 in Asia Pacific.It also plans to establish 25,000 public charging points for electric vehicles.In an interview on Wednesday…
MTR100: For USVs and AUVs, is it a Hydrogen Future?
Hydrogen has been making big headlines in the energy world. It’s one of the potential routes to deliver high density energy to transport and heavy industry – but also to marine applications, as well as a way to move and store renewable energy. Various uncrewed surface vessel (USV) developers, autonomous underwater vehicle (AUV) builders and even subsea power delivery system providers are taking a serious look – and even trialing – hydrogen as an option.SEA-KITThe Maxlimer hydrogen configuration. Image courtesy SEA-KIT InternationalTwo UK firms, SEA-KIT and ACUA Ocean are working on hydrogen power systems for their USVs.
Price is the Elephant in Australia's LNG, Domestic Gas Conundrum
Australia's threat to curb exports of liquefied natural gas (LNG) in order to ensure domestic supplies is another unwelcome pressure on a tight global market for the super-chilled fuel.But it's not an immediate threat, and it may also not materialize at all, depending on how the various players in Australia react to the government's planned action.What needs to be addressed effectively is the elephant in the room, namely the price at which natural gas is made available to domestic consumers relative to the price the gas companies can receive for their LNG on the global market.Australia vies with the United States and Qatar as the largest exporter of LN
Britain to Receive Rare LNG Cargo from Australia
Britain is set to receive a rare shipment of liquefied natural gas (LNG) from Australia later this month, as countries across Europe strive to secure enough supplies ahead of winter.European nations are seeking to diversify energy supplies following Russia's invasion of Ukraine and a sharp drop in Russian gas flows to the continent.LNG tanker Attalos, with a capacity of 174,000 cubic meters, is set to arrive at Britain's Isle of Grain terminal on Aug. 22, according to data and analytics firm Kpler."The (LNG tanker) Patris was the original vessel that loaded at the North West Shelf liquefaction plant in Australia.
