Latest news with #liquefied
The Star
17-07-2025
- Business
- The Star
Prabowo and Trump have struck tariff deal – but at what cost to Indonesia?
SINGAPORE: The trade deal announced on Tuesday (July 15) lowering US tariffs on Indonesian goods is seen by some as a diplomatic win for President Prabowo Subianto, though others warn that he may have overpromised and burdened Indonesia with costly commitments. US President Donald Trump broke the news on his Truth Social platform, saying that he had struck a trade pact with Indonesia following negotiations with Prabowo to avoid steeper tariffs. 'They are going to pay 19 per cent and we are going to pay nothing... We will have full access into Indonesia, and we have a couple of those deals that are going to be announced,' he later told reporters. No details have been given about the deal, which comes after deals Trump has made with Vietnam and the UK. The US President had threatened Indonesia with a 32 per cent tariff rate starting on Aug 1 in a letter last week. Prabowo on July 16 said his conversation with Trump heralded 'a new era of mutual benefit' between both sides. As part of the deal, Indonesia has committed to purchasing US$15 billion in US energy, US$4.5 billion in American agricultural products, and 50 Boeing jets, many of them 777s. The sheer scale of Indonesia's purchase commitments, and the lack of clarity on how they will be financed and integrated with national strategies, has raised eyebrows, with experts warning that the deal could set a precedent for other trade partners to demand similar 'full access' terms. Associate Professor Yohanes Sulaiman of Jenderal Achmad Yani University in West Java highlighted the plan to buy the Boeing jets, noting that national carrier Garuda Indonesia is still struggling financially and unlikely to be in a position to take on large-scale purchases. In the first quarter of 2025 alone, the state-owned carrier recorded a net loss of US$75.9 million, surpassing its already-large net loss for the entire 2024 fiscal year. When asked about the planes on July 16, President Prabowo said that Indonesia needs to grow the national carrier's presence and, to do so, new aircraft are needed. There are also doubts about the energy component. While Indonesia does import liquefied petroleum gas and other fuels, analysts say a US$15 billion commitment would run counter to the government's ambitions to reduce fossil fuel dependency and boost renewables. The scale of the energy imports is not aligned with Indonesia's energy transition goals, and this could introduce fiscal strain and policy contradictions down the line, noted Dr Siwage Dharma Negara, a senior fellow at the ISEAS – Yusof Ishak Institute. 'The arrangement doesn't necessarily reflect a balanced, win-win outcome,' he said, warning that Indonesia has to keep in mind the longer-term costs. 'It remains unclear whether the economic benefits fully justify the scale of concessions offered by Jakarta.' Indonesia's goods trade with the US reached nearly US$40 billion in 2024, with a roughly US$18 billion surplus, and key exports including electronics, footwear, car tyres, palm oil and frozen shrimp. Indonesia's central bank on July 16 delivered its fourth interest rate cut since last September, trimming its benchmark rate by 25 basis points to 5.25 per cent in a bid to support the economy amid weakening global trade and sluggish domestic demand. Sluggish household spending had already weakened growth in the first quarter, while the outlook for subsequent quarters has been clouded by the impact of US tariffs on global trade. Some observers found the direct negotiation between the two leaders notable. This growing personal rapport was most visibly demonstrated in November 2024, when Prabowo posted a video of his congratulatory call to Trump after the US presidential election, in which he offered to fly over in person, and referenced his American military training. Bank Permata economist Josua Pardede said Trump singling out Prabowo and calling him 'highly respected' was more than symbolic, chalking it up as a win for the Indonesian leader and his foreign policy approach. 'Such direct acknowledgment from a global leader underscores President Prabowo's capability to manage complex international relations and signals strength and credibility to both domestic and international stakeholders,' he said. The agreement signals that Prabowo is willing to make bold economic moves to safeguard Indonesia's interests, said Dr Siwage. 'Trump's public acknowledgment of a direct deal with Prabowo suggests that Indonesia took an active role in shaping the outcome,' he said, adding that this highlights how both leaders prefer a personal, transactional style of diplomacy. Other experts, however, cautioned that the deal may carry ripple effects across Indonesia's wider network of economic relationships. Muhammad Habib Abiyan Dzakwan from the Centre for Strategic and International Studies warned that the nature of the arrangement, involving significant import concessions, could prompt demands from other economic partners. 'What I am concerned the most is the extent of this unusual arrangement would then affect Indonesia's relations with Asean neighbours and free trade agreement partners. More partners will likely demand the same concession from Indonesia,' he said. In particular, countries like China, the archipelago's largest trading partner and one of its top investors, may view Jakarta's increasing economic overtures to the US with suspicion, he added. He cautioned that the government must ensure it has sufficient budget and fiscal space not only to meet these obligations, but also to prepare for future uncertainties that may arise. While the figures in the deal appear large, Bank Permata's Josua said the commitments are likely to be staggered over time, and may align with Indonesia's long-term infrastructure and aviation ambitions. But whether they benefit Indonesia in the long run will depend on how they create jobs and drive productivity, and how Indonesia integrates these commitments with domestic policy objectives. 'Careful negotiation and execution will be critical to ensuring that benefits are maximised and commensurate with the substantial financial outlays involved,' Josua said. - The Straits Times/ANN
Business Wire
15-07-2025
- Business
- Business Wire
New Fortress Energy Executes 5-year Charter for Energos Winter
NEW YORK--(BUSINESS WIRE)--New Fortress Energy Inc. (NASDAQ: NFE) ('NFE' or the 'Company') via a subsidiary has executed a 5-year agreement for the deployment of the Energos Winter, a 138,250 m 3 floating storage and regasification unit ('FSRU'), with the Egyptian Natural Gas Holding Company ('EGAS'). The Winter will operate at EGAS' LNG import terminal located at Damietta, Egypt. This is NFE's second FSRU stationed in Egypt, and the Winter will join the Energos Eskimo in Egypt as early as August of this year. 'We are pleased to reinforce our relationship with EGAS by way of our deployment of a second FSRU to Egypt. This deal enhances NFE's goals of providing reliable and cost-effective energy across the globe,' said Chris Guinta, CFO of New Fortress Energy. 'EGAS is pleased to strengthen its long-standing partnership with New Fortress Energy through the execution of a second Regasification Service Agreement. Under this agreement, NFE's second FSRU, Energos Winter, will provide regasification services at the Damietta terminal, contributing to the security of natural gas supply for the Arab Republic of Egypt over the next five years,' said Yasseen Mohamed, Executive Managing Director of EGAS. About New Fortress Energy Inc. New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to address energy poverty and accelerate the world's transition to reliable, affordable, and clean energy. The Company owns and operates natural gas and liquefied natural gas (LNG) infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, the Company's assets and operations reinforce global energy security, enable economic growth, enhance environmental stewardship and transform local industries and communities around the world.
Hindustan Times
01-07-2025
- Automotive
- Hindustan Times
High-end cars in Maharashtra become costlier by up to ₹10 lakh from today, only EVs exempted
₹10 lakh from today, only EVs exempted data-item-target-url=/auto/news/ data-item-story-segment=Others> Under the revised tax structure, high-end cars with petrol and diesel engines will see a substantial price hike. Notify me High-end cars, CNG and LNG-powered vehicles and goods carriers have become more expensive in Maharashtra from July 1, owing to the state government's revised one-time tax structure. While the previous capping for one-time tax was ₹ 20 lakh, it is now ₹ 30 lakh, which makes the cars with an ex-showroom price of ₹ 20 lakh or more costlier by at least ₹ 10 lakh, taking the price to ₹ 30 lakh or higher. However, the electric vehicles (EVs) in the state will continue to enjoy tax exemptions. Although the state government had earlier proposed a six per cent tax on EVs priced above ₹ 30 lakh, the proposal was later withdrawn. PTI has reported that high-end petrol and diesel cars registered under an individual's name in the state, with prices around ₹ 1.54 crore and ₹ 1.33 crore, respectively, will now attract more than ₹ 20 lakh as one-time tax. The report further added that in Maharashtra, the one-time tax for petrol cars registered under an individual's name is 11 per cent for those priced below ₹ 10 lakh, 12 per cent for those priced between ₹ 10 lakh and ₹ 20 lakh, and 13 per cent for those priced above ₹ 20 lakh. For diesel cars, the one-time tax is 13 per cent for those cars priced below ₹ 10 lakh, 14 per cent for those priced between ₹ 10 lakh and ₹ 20 lakh, and 15 per cent for those priced above ₹ 20 lakh. If a vehicle is imported or registered under a company name, both petrol and diesel vehicles in the state attract a flat one-time tax of 20 per cent, regardless of their price. The report has quoted RTO officials saying that under the revised tax structure, cars running on compressed natural gas (CNG) or liquefied natural gas (LNG) will also become slightly more expensive, with a one per cent hike in one-time tax across all three price brackets. On the other hand, goods carriers such as pickup trucks, tempos with a gross vehicle weight of up to 7,500 kilograms, and construction vehicles like cranes, compressors, and projectors will now be taxed at seven per cent of their price. A senior RTO official reportedly explained that these vehicles will now be taxed based on their price rather than on their gross vehicle weight, which was the earlier basis. For example, earlier, a pickup vehicle costing around ₹ 10 lakh would attract a tax of about ₹ 20,000 based on weight, which under the revised structure will be around ₹ 70,000. According to the state transport department's website, the earlier one-time tax ranged from ₹ 8,400 to ₹ 37,800 for goods vehicles with gross weights between 750 kg and 7,500 kg. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 01 Jul 2025, 07:44 AM IST
New Straits Times
25-06-2025
- Business
- New Straits Times
Rising Middle East risks boost Malaysia's LNG appeal
KUALA LUMPUR: Malaysia can position its liquefied natural gas (LNG) sector as a reliable and stable energy hub following rising geopolitical risks in the Middle East, industry experts said. The country could also capitalise on the regional shift of vessel traffic toward Asia by enhancing its role as a bunkering hub, riding on the strengths of local ports such as Port Klang and Bintulu Port. They said Malaysia can leverage the escalating conflict in the Middle East to attract more global interest particularly to Petroliam Nasional Bhd's Pengerang Integrated Complex (PIC) in Johor. The ongoing instability in the Strait of Hormuz and the Red Sea - sparked by tensions involving Iran, Israel, and Yemeni Houthi factions - has prompted a reevaluation of global LNG supply chains, they added. Stability and Proximity The increased risk to maritime routes through the Middle East is pushing energy buyers to seek alternative, more secure sources, said Dr Azmi Hassan, a senior fellow at Nusantara Academy for Strategic Research. Malaysia, through Petronas, stands to benefit from this shift, he said, adding that the Pengerang facility offers stability and proximity to key markets, which the Middle East currently cannot guarantee. The PIC is a joint venture between Petronas and Saudi Aramco. It has already become a significant downstream asset, and Malaysia can ramp up efforts to promote the facility as a global LNG hub amid volatile market dynamics. The Israel-Iran conflict, in which both countries have been firing missiles at each other, has reportedly raised fears Tehran may close the Strait of Hormuz in further retaliation. As a result, shipowners are holding off chartering vessels, which is reducing tanker availability and pushing up prices, Reuters quoted a trade source. Around 20 per cent of global oil and gas demand flows through the Strait of Hormuz, situated between Iran and Oman. Qatar, one of the world's top LNG exporters, sends almost all of its supplies via the strait, Reuters said. While higher global LNG prices resulting from supply concerns could benefit Malaysia as a major LNG exporter, experts cautioned that volatility also carries risks. Nonetheless, Malaysia can turn uncertainty into opportunity by branding PIC as a "safe bet" for global investors and customers seeking long-term energy security, Azmi said. Riding on Traffic Diversion Maritime scholar and commentator Nazery Khalid said Malaysia can leverage the regional shift of vessel traffic toward Asia by expanding bunkering capacity and strengthening support services for ship refuelling activities at Port Klang. "Port Klang is the key entry port for crude oil coming in along the Straits of Melaka. They can look into beefing up their bunkering handling capacity," he told Business Times. Nazery said Malaysia can take advantage of its strategic location if similar disruptions occur in the future, which could help reduce the country's reliance on crude oil imports from Saudi Arabia. Currently, the three main sources of Malaysia's crude oil imports are Saudi Arabia, the United Arab Emirates (UAE) and Brazil. Malaysia, he said, is already well-equipped to handle LNG transhipment, thanks to its strong existing facilities. "However, at the same time, the order of movement of LNG is already well established. So it is not going to be challenged or it is not going to be recalibrated quickly anytime soon. Every time there is a crisis like this, when it's over, everything will go back to normal. "The Middle East will continue to be the key hub and key source of LNG. But in Malaysia, we also have the facilities. "We have Bintulu Port, one of the world's largest export terminals for LNG. We also have the regasification refinery in Melaka and the facilities in Pengerang," he said. Nazery said this demonstrates that Malaysia has both the infrastructure and capability to capture a share of the global LNG transhipment market. Impact of Rising Freight Rates On the surge in LNG freight rates, Nazery said it could potentially impact Malaysia's energy trade, although it is still early to gauge the full extent. He said the country remains heavily dependent on crude oil imports from the Middle East, especially from Saudi Arabia and the UAE. He said rising regional tensions, along with the Iranian parliament's move to close the Strait of Hormuz, will inevitably push up oil tanker freight rates. "Some of the shipments of crude from Saudi and the UAE will have an impact on us. This can already be seen in the increase in the spread rate of tanker ships. "During times like this, the spread of ocean rates for the transport of crude oil will widen because of the risk and uncertainty," he said. Nazery added that importers will be compelled to bring in crude oil as they are bound by contractual obligations to import a specific volume. As a result, they will have no choice but to bear the higher costs set by major oil tanker operators. "There will also be a surcharge and also an increased premium of insurance imposed by marine insurance underwriters because the Straits of Hormuz is already considered as a war risk zone. "I think what will happen is that Malaysian importers of crude from Saudi and the UAE will find themselves having to pay a more expensive freight rates." Nazery added that the timeline for shipping flows to return to normal will largely hinge on diplomatic developments. The announcement of a ceasefire by the Trump administration is a positive and encouraging sign, he said. "Hopefully things will go back to normal as early as possible because the world cannot afford this situation to prolong because the implications will be very horrifying. Especially when other major powers like Russia and China were to be involved and then the conflict spread to other countries. "We really cannot afford this because the world is still tentatively recovering from Covid-19. "Here in Malaysia, with the rising cost of living, when oil prices go up, traders will take the opportunity to increase the cost of goods and services. This will add to inflationary pressure," he added.
Euronews
22-06-2025
- Business
- Euronews
Energy in Europe is also at stake as Israel-Iran tension escalates
Rising European energy prices are among the many risks of the current geopolitical crisis, which threatens to block one of the world's most important fuel shipping routes. Coupled with the trade war sparked by US tariffs, there are fears that the crisis may also drag down the global economy. The World Bank is expecting 2.3% growth for this year, after a 2.8% reading in 2024. Since Israel launched airstrikes against Iran's military and nuclear infrastructure on 13 June, oil prices have surged by more than 10% globally. High prices and supply disruptions, coupled with the implications of the trade war, are threatening to lower production globally. Markets are pricing in risks to the global oil and liquefied natural gas (LNG) supply. Iran is controlling the highly strategic Strait of Hormuz, through which one-third of global seaborne oil and one-fifth of global LNG shipments travel. If that gets blocked, prices could skyrocket beyond $100. Currently, a barrel of crude oil is traded for more than $75, and international Brent is around $77. 'I do not expect that the strait is going to be closed,' Dr. Yousef Alshammari, President of the London College of Energy Economics, said to Euronews Business. He added: 'It is simply because Iran needs the Strait of Hormuz open for ships to go through for its clients, India and China.' However, even when it is not closed, the passage has already impacted prices due to the risks associated with the crisis. Some oil tankers have refused to go through. According to the FT, the world's largest publicly listed oil tanker company Frontline said it would turn down new contracts to sail through the Strait of Hormuz. Meanwhile, 'insurance companies are likely to charge more currently, while Qatar is trying to delay its LNG shipments going through the Strait,' added Alshammari. Natural gas fields in the region are also attracting attention. Iran shares the largest natural gas field in the world, the South Pars field, with Qatar. The liquefied natural gas (LNG) coming from this region is vital for the rest of the world, including Europe. Inflation and businesses: How Europe is impacted Though the EU has adequate supplies of LNG at the moment, the bloc's dependence on global LNG makes it vulnerable to geopolitical shocks as it is lowering its dependence on Russian gas. As the market weighed the recent risk of supply disruptions, European gas prices climbed significantly. The primary benchmark for European gas prices, the Dutch TTF (Title Transfer Facility) rose to a three-month high, nearing €41/MWh Friday at midday in Europe. Europe's imports from Qatar are providing nearly 10% of its LNG needs. Other countries in the region, including Egypt, also export LNG to Europe. However, after the 7 October 2023 Hamas attack, Israel closed down part of its own production, forcing Egypt to stop LNG shipments and prompting a spike in European natural-gas prices. Europe currently has a number of natural gas suppliers. Norway was the top supplier of gas to the EU in 2024, providing over 33% of all gas imports. Other suppliers included the United States, Algeria, Qatar, the UK, Azerbaijan and Russia. The largest LNG importing countries in the EU include France, Spain, Italy, the Netherlands and Belgium. If shipments from Qatar are impacted, Belgium, Italy and Poland are the most impacted, as the country supplies 38-45% of their LNG imports, according to the Institute for Energy Economics and Financial Analysis (IEEFA). The good news is that demand for gas is usually at its lowest level in Europe at this time of the year. Even so, the hotter-than-usual weather across the bloc is boosting demand for cooling, which could increase the need for energy in the coming weeks. 'Spikes in energy prices push up inflation, and can have a knock-on effect on the central bank's policy,' Alshammari said. Central banks, including the US Fed and the Bank of England, have stopped short on cutting interest rates as the uncertainty is rising. If they see that inflation is more persistent in the near term, and that — in the case of the ECB and the BoE — the 2% target is floating away, further monetary tightening could squeeze the economy with higher costs for borrowing and investment. "As a result of the Ukraine War, there was a pivot from the EU in particular to get their liquefied natural gas, their LNG gas, not from Russia but from producers including Qatar,' Marco Forgione, Director General of the Chartered Institute of Export and International Trade, told Euronews. He added that anything constraining the transit of liquefied natural gas will have a quick impact on the EU, 'particularly in the manufacturing sector'. Oil demand is the highest in summer, partially due to industrial activity. But current supply constraints and higher prices could further squeeze manufacturing. For European businesses, who are already facing heightened trade tensions linked to US tariffs, facing the current complications is "like playing four-dimensional chess', Forgione said. He predicted that sudden spikes in oil prices and depressed shipping rates may result in significant consumer price increases, supply shortages, and shrinkflation. This is where a product shrinks in size but the price remains the same. Global market implications Iran's energy infrastructure is in the crosshairs of the conflict. The country is the ninth-largest oil producer globally. At full capacity, the country produces 3.8 million barrels of oil a day, according to the US Energy Information Administration. But due to Western sanctions, Iran's oil exports are mainly shipped to China and India. Iran exports 1.5 million barrels per day, providing 10% of China's oil imports. If the world's second-largest economy, China, is deprived of this import, it could impact its economy as it is forced to source this from elsewhere, meaning prices could skyrocket. The potential geopolitical consequences of the Iran-Israel conflict are leaving markets on edge, and it seems volatility is here to stay. Meanwhile, Europe's role in the conflict remains to be seen. 'My biggest worry is that it turns out to be a wider conflict, involving European countries, UK and France. This is the scenario that nobody wants to see happen,' added Alshammari.
