Greek tragedy in the Italian refinery
The largest refinery in Italy, 3 years after the Russian Łukoil sale, is in crisis. The current Greek billionaire is arguing with Trafigur about oil supply conditions - reports "Financial Times".
The case concerns the ISAB plant in the Sicilian city of Priolo, owned by GOI Energy, owned by Italian billionaire George Economou. In the takeover of the refinery from the Russian concern Łukoil he was assisted by Trafibra Trade Company, as well as Franco-Israeli mining mogul Beny Steinmetz.
However, the relation between the partners active in this venture has worsened over time, and 1 of the reasons is the terms of the 10-year oil supply contract with Trafigure. Economou identifies this agreement as the main reason for the refinery's problems, and the blame is on Trafigure, which is to profit at the expense of the loss-making refinery.
Traders from Trafigure deny these allegations and claim that the terms of the contract are marketable and consistent with akin contracts concluded worldwide. The company besides points out that in the hard realities facing the refinery industry, the plant in Priolo needs modernization to be more efficient. Trafigure besides assured that she had offered assistance to ISAB and the Italian government.
"Financial Times" emphasises that the company has applied for restructuring and George Economou hopes to usage this process to enforce renegotiation or cancel the contract with Trafigure. The Greek billionaire besides considered selling problematic business, but the main obstacle to talks with possible buyers was the question of the oil supply agreement.
The diary besides notes that the increase in costs, including oil prices and CO2 emanation allowances, is simply a problem for refineries across Europe and only the most efficient plants are able to make decent margins.
The ISAB in Priolo employs about 1,000 people and besides provides another 8,500 jobs in its surroundings. The uncertain destiny of the plant besides brought criticism on the Italian government, which allowed the takeover of the refinery by an investor who has no experience in the industry.
Alan Gelder of the consulting company Wood Mackenzie, quoted by the "Financial Times", pointed out that refinery companies require large investments and gotta deal with a changing environment. Therefore, the financial stableness of the purchaser of the refinery should be a key condition for the sale of the plant, which in retrospect shows that the Italian government should choose an ISAB buyer another than GOI Energy.
Donald Trump melts the offshore wind farm
Ordering Equinor to halt work on a offshore wind farm off the coast of fresh York is an alarming signal that president Donald Trump's administration sends RES task developers - comments Liam Denning, "Bloomberg's publicist".
The decision concerns the 810 MW Empire Wind 1 project, which, according to the present administration, was agreed by officials inactive in Joe Biden's time, which is why further investment control is needed.
Denning points out that preparations for the task go back to Trump's first term, as the lease agreement for the farm site was concluded in 2017 and the first site assessment was approved a year later. Further procedures followed, including in 2021 on the environmental impact of the project.
It was not until the end of 2023 that national construction permits were issued. Even later, in December 2024, the project's $3 billion financing was secured, which allowed the investment to begin, including preparing the seabed for turbine planting.
Bloomberg's publicist emphasizes that Trump and the people around him never hid their reluctance to RES, including offshore wind energy. Therefore, it was expected that the manufacture would be hard to make fresh projects after Trump's return to the White House. However, it was not assumed that projects that were already advanced or were already under construction - as in the case of Empire Wind 1.
Liam Denning estimates that the substance of this investment may have a second bottom that concerns the deficiency of approval from the politician of fresh York to build a fresh pipeline. He adds that Trump is known for his transactional approach to politics, so he is prone to concessions erstwhile he can play something. As he resisted in this case, the consequences hit a marine wind farm built by Equinor.
Denning points out that besides in another U.S. states Trump uses akin practices, trying to force action in various areas. In the case of fresh York City and offshore wind energy, the consequences are serious adequate that the sector has so far been underdeveloped in the US. In addition, fresh years have been hard for the industry, as inflation, advanced interest rates and supply chains have made it hard to prepare projects and find backing for them.
Therefore, the decision taken by Trump's administration can make RES developers start bypassing the U.S. with a wide arch. Moreover, it will be even more hard to convince banks to want to finance specified projects.
British politicians want to proceed with the coke
The British authorities search to nationalise the last primary steel maker in the Islands, citing national safety considerations. At the same time, they do not indicate how to make a profitable business, which has been struggling for years with problems due to energy costs and low productivity - evaluates "The Economist".
It is simply a British Steel company that produces primary steel in large-scale furnace technology at Scunthorpe. The company has owned the Chinese Jingye Group since the beginning of this decade. However, the Chinese failed to find a way to improve the company's performance.
It is besides mostly due to the situation on the global steel market, for which more than half of the production is due to the steelworks in China. These plants can trust on low energy costs and state support, making their products more price competitive. This advantage besides leads to higher levels of Chinese steel emissions than in Western countries.
Jingye Group has been talking to the government about saving British Steel for 2 years. The situation flared in March of that year erstwhile the Chinese company rejected the proposal of £500 million of support for upgrading the steelworks in Scunthorpe. Jingye claimed that large-scale steel production is no longer profitable there and brings 700 1000 pounds a day - even though £1.2 billion has already been invested in the plant in fresh years.
Politicians did not accept these translations and began accusing the Chinese company of deliberately pursuing the fall of British Steel, among others by failing to safe the stocks of key natural materials for the steel plant in Scunthorpe, i.e. iron and coke. As a result, with the general agreement of all political forces, the parliament passed a bill allowing the government to take operational control of the steel company, although it will stay formally owned by Jingye.
At the same time, the authorities do not exclude that British Steel will yet be full nationalised. The main argument is the issue of national security, namely the safeguarding of steel supply to the arms industry. At the same time, request from another sectors of the economy is besides identified.
"The Economist" points out, however, that the armory already supplies mostly imported steel. In turn, primary steel production in the UK must besides be based on imported iron ore and coke.
At the same time, the weekly stresses that the government's commitment to supporting home steel industry, which has problems with efficient production, will not translate into the competitiveness of the British economy and, at most, into higher steel prices and, consequently, investment costs in energy infrastructure. Especially if nationalization is followed by "buy British" actions.
Scottish oilers are reproving a fair transformation
The British government is announcing a consistent energy transformation, which will consequence in a shift from oil and gas extraction to the usage of RES. However, workers associated with the mining manufacture fear for their future and point to a deficiency of interest in their future from the government," Politico writes.
According to government assumptions, by 2030 the UK is expected to reduce CO2 emissions by 68% (relative to 1990 levels). In 2050, however, it should accomplish climate neutrality. Scotland, in turn, adopted the ambitious nonsubjective of achieving neutrality in 2045. specified plans require the mass construction of wind and photovoltaic farms, as well as the simplification of oil and gas consumption.
However, it is Scotland that can be most affected by the effects of the transformation, as the mining platforms are primarily located off its coast in the North Sea.
According to Offshore Energies UK, the negative effects of the energy transition may affect 120 000 people working in the oil and gas sector and its surroundings. Environmental organizations question these estimates, but admit that the scale will be calculated in tens of thousands.
However, Ed Miliband, the Energy Secretary of the Labour Party's ruling since mid last year, ensures that those who lose their jobs in the mining manufacture will find employment in energy transition industries. If necessary, the government is besides to aid them retraining and training for fresh professions.
On the another hand, Prime Minister Keir Starmer promises that there will be no repetition of events that occurred in the 1970s and 1980s erstwhile the wave of unemployment swept through industrial cities in northern and central England. According to the Labour Party, it is erstwhile workers in the mining manufacture that are to be staffed for the transformation of British energy.
Politico, however, stresses that the Scottish trade unions uncertainty these promises, according to which transformational industries will not be able to absorb all fossil fuel workers so far. Also, politicians there, including those belonging to the Labour Party, are not as optimistic as government representatives. In particular, if limiting the extraction of its own oil and gas resources would consequence in increased imports from another sources.
In turn, energy transition experts point out that the authorities are not taking adequate action to prepare workers for the forthcoming change. This creates a communication gap that increases social unrest. These sentiments are trying to usage political forces that negate any transformation - including the UK improvement Nigel Farage, whose political engine in the past was the UK's exit from the European Union.
