France unveils €109 billion AI investment plan

Energy News Beat

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President Macron said France will attract €109 billion in data centres and AI projects “in the coming years,” making it the first European country with AI infrastructure on par with the US and China.

Ahead of the Artificial Intelligence Action Summit starting today in Paris, France is going all in to address Europe’s irrelevance in AI, reaching an investment scale unseen in the region.

On Friday, Elysée Palace announced that the United Arab Emirates would invest €30 to €50 billion to build a huge data centre in the country.

This was followed up by Canada’s Brookfield Corporation announcing a €20 billion investment in AI infrastructure, while Macron said during an interview with France 2 TV on Sunday that France will reach a total of €109 billion for AI, with expected investments from French companies Iliad SA, Orange SA and Thales SA .

“The key message we want to send is: France and Europe are credible on AI, and we believe in it,” Macron said.

‪Théo Bourgery-Gonse‬ contributed to this reporting.“}]] 

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Baltic states cut energy ties with Russia as Poland strengthens cooperation

Energy News Beat

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WARSAW – As the Baltic states finalized their transition from Russia’s electricity grid to the EU system on Sunday, cutting a decades-old Soviet-era connection, the LitPol link between Lithuania and Poland became operational.

At 1:05pm local time, Lithuania’s electricity transmission system operator, Litgrid, announced that the Baltic states had successfully synchronised their power grids through the LitPol Link, as the Polish electricity operator (PSE) confirmed.

“Preparations for synchronisation have been going on for several years and PSE has been involved from the very beginning. This is a historic event, but our cooperation does not end there,” said PSE President Grzegorz Onichimowski.

He noted that preparations are already underway for the construction of a new Poland-Lithuania interconnection, Harmony Link, which Onichimowski said “will further strengthen security in the region.”

In December 2024, PSE approved the investment to build the Harmony Link power connection. The total cost of the project amounts to around €923 million.

On the Lithuanian side, the maximum budget for the project will be €220 million, of which €147.2 million will be financed by the EU. In Poland, investment is expected to reach around €703 million, including €368 million from the EU budget.

In September, Litgrid’s shareholders decided that Harmony Link would be built over land instead of under the sea. This may help to avoid incidents involving damaged cables in the Baltic Sea, like the ones witnessed in recent months.

The Lithuanian part of the connection will include both an overhead line and an underground cable. There are also plans to use the Rail Baltica and Via Baltica infrastructure between Poland and Lithuania.

Sunday’s ceremony in Vilnius that marked the Baltic countries’ connection to the European electricity grid was attended by Polish president Andrzej Duda.

“What we are witnessing today is the immense work of almost 18 years of tireless efforts,” he said, adding that the Baltic countries’ move is “a final emancipation from the Soviet sphere of dependence, this time in the sphere of energy.”

“For any nation in central Europe, especially after the renewal of Russian neo-imperialism, cutting all ties with Russia is a moral imperative and a necessity,” the Polish president said.

“Connected,” Edgars Rinkēvičs, Latvian President, posted on X a picture of himself standing alongside the other Baltic leaders, Duda, and European Commission President Ursula von der Leyen.

(Aleksandra Krzysztoszek | Euractiv.pl)

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BP, partners achieve first LNG at Tortue project

Energy News Beat

Dallas-based Kosmos announced on Monday that first LNG production has been achieved at the BP-operated GTA LNG project.

Last month, BP and its partners started flowing gas from wells at the GTA Phase 1 LNG project to its floating production storage and offloading (FPSO) vessel for the next stage of commissioning.

At the FPSO, gas is being processed to remove any condensate, water, and impurities ahead of delivery to the floating LNG vessel for liquefaction.

“Gas has now been delivered to the floating LNG vessel and liquefaction has commenced,” Kosmos said.

The first phase of the delayed project features Golar LNG’s FLNG Gimi and the Tortue FPSO.

In February last year, the 2.5 mtpa FLNG, which was converted from a 1975-built Moss LNG carrier with a storage capacity of 125,000 cbm, arrived at the GTA hub.

After that, the project’s FPSO unit also arrived at the GTA project off the coasts of Mauritania and Senegal in May.

BP operates GTA with a 56 percent working interest alongside Kosmos Energy (27 percent), Petrosen (10 percent), and SMH (7 percent). 

In 2020, the partners signed a sales and purchase agreement under which BP Gas Marketing will offtake 2.45 million tonnes per annum of LNG from the first phase of the GTA project for an initial term of up to 20 years.

BP’s unit is the sole offtaker of the project’s volumes.

Kosmos said on Monday that BP has given notice to BP Gas Marketing for an LNG carrier to arrive “later this quarter to export the first LNG cargo.”

“Lifting of the first LNG cargo is when Kosmos starts to recognize revenue and generate cash flow from the project,” the firm said.

Besides the first phase, the partners are also planning a second phase of the project.

In February 2023, the partners confirmed the development concept for the second phase of the GTA LNG project, which they will take forward to the next evaluation stage.

The partnership will evaluate a gravity-based structure (GBS) as the basis for the GTA Phase 2 expansion project (GTA2) with total capacity of between 2.5-3 million tonnes per annum.

GBS LNG developments have a static connection to the seabed with the structure providing LNG storage and a foundation for liquefication facilities.

The concept design will also include new wells and subsea equipment, integrating with and expanding on existing GTA infrastructure.

 

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Trump threatens sweeping tariffs on key metal imports

Energy News Beat

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The US president says he will slap additional 25% levies on all steel and aluminum purchases

Trump threatens sweeping tariffs on key metal importsTrump threatens sweeping tariffs on key metal imports

US President Donald Trump has threatened to hike tariffs on key metals imports. Speaking to reporters on board Air Force One on Sunday, Trump said he planned to place new 25% levies on all steel and aluminum brought into the country, with more details to be revealed on Monday.

“Any steel coming into the US is going to have a 25% tariff,” the US president stated, adding that the new measure would affect “everybody.” When asked about aluminum, Trump replied that this would also be subject to the new levies. The new tariffs would come on top of US existing metals duties, Trump indicated.

The US is one of the largest consumers of steel and the second biggest steel importer in the world. It sources the metal globally, although its largest sources of steel imports are Canada, Brazil, and Mexico, followed by South Korea and Vietnam, according to data from the American Iron and Steel Institute. Canada is also the largest supplier of US aluminum, roughly half of which is imported. Mexico is among key US suppliers of aluminum scrap and aluminum alloy. During Trump’s first term in office, he introduced 25% tariffs on US steel imports and 10% on aluminum, although he later granted tariff-free quotas to key trading partners, including Canada, Mexico, and Brazil.

Trump’s metals tariffs announcement has already been met with outrage in Canada, where Ontario Prime Minister Doug Ford accused the US president of “shifting goalposts and constant chaos” and putting Canada’s economy at risk.

Trump has been on a tariff spree since his inauguration last month, placing 25% levies on all imports from Mexico and Canada and 10% on imports from China, citing concerns over illegal immigration and drug trafficking. Following discussions with Mexican and Canadian leaders, Trump later postponed the levies for 30 days while the countries work on enhancing border protections. On Friday, he also halted a key part of his tariffs on China, temporarily keeping in place the longstanding duty-free status of small-value packages after his tariff move sparked chaos with deliveries.

Speaking to reporters on Sunday, Trump warned the tariffs could soon become much more widespread. He reaffirmed his earlier pledge to place “reciprocal tariffs” on American trade partners, which will apply to all countries the US trades with to match the tariff rates levied by each nation.


READ MORE:
China condemns US tariffs

“If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump stated, adding that he will unveil more details “probably Tuesday or Wednesday,” with the new duties to be imposed “almost immediately.”

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EU nations aim to seize alleged ‘Russian shadow fleet’ vessels – Politico

Energy News Beat

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Cargo ships could reportedly be impounded on grounds of supposed piracy and the threat of environmental incidents

EU nations aim to seize alleged ‘Russian shadow fleet’ vessels – PoliticoEU nations aim to seize alleged ‘Russian shadow fleet’ vessels – Politico

Several EU members are considering strengthening the legal framework for seizing ships in the Baltic Sea with the aim of undermining Russian trade, Politico reported on Monday, citing insiders. Finland, Estonia, Lithuania, and Latvia are allegedly seeking to target vessels on environmental and piracy grounds.

Western nations, which have been seeking to find ways to curb Russian energy exports, have accused Moscow of employing a “shadow fleet” to evade sanctions. In recent months, officials have also accused Moscow of sabotaging undersea cables in the Baltic, though no evidence has been provided to substantiate these allegations.

According to Politico’s sources, the four states intend to seize suspected shadow fleet ships based on the alleged threat they pose to the environment and to infrastructure, and are seeking EU backing for the initiative. They could amend national legislation to “make it easier to grab ships further out at sea,” including by mandating a list of insurers for maritime operations in the Baltic. Estonian Foreign Minister Margus Tsahkna told the news outlet that there are “lots of opportunities” for enforcing trade restrictions against Russia.

Last December, Finland seized the tanker ‘Eagle S’ amid an investigation into the damage to the Estlink 2 power cable. The vessel remains impounded despite the Finnish authorities reportedly finding no evidence of wrongdoing.

Conversely, a Norwegian cargo ship with an all-Russian crew was released in late January after Norwegian police concluded there were no grounds to continue its detention. The Latvian authorities had requested the seizure of the Silver Dania over an incident involving an optic cable owned by the national broadcaster LVRTC earlier the same month.

Moscow has accused Western nations of peddling a false narrative that frames routine accidents as evidence of a Russian sabotage campaign. Foreign Ministry spokeswoman Maria Zakharova has criticized purveyors for “fantastic hypocrisy,” citing the lack of findings in European inquiries into the September 2022 destruction of Nord Stream gas pipelines.

The “non-investigation” of that incident suggests that EU nations deem Joe Biden’s threat against Russian-German infrastructure “proper,” Zakharova said last month, referring to remarks made by the then-US president months before the attack.


READ MORE:
NATO claims Russia plotted to kill EU weapons giant boss

President Vladimir Putin has characterized Western sanctions as tools of non-economic pressure wielded by countries unable to compete with Russia on an equal footing. He views them as a challenge to make the national economy better.

“No blackmail or attempts to impose anything on us will ever yield results. Russia is confident in its rightness and strength,” he said in a recent speech.

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Deutsche ReGas terminates FSRU charter deal

Energy News Beat

Deutsche ReGas announced the termination of the contract with the German Federal Ministry for Economic Affairs and Climate Protection in a statement on Monday.

The vessel is one of two floating storage and regasification units (FSRUs) currently operating at the “Deutsche Ostsee” LNG import terminal in Mukran.

Since December 2024, state-owned LNG terminal operator DET has been systematically marketing its capacities for the regulated LNG terminals at prices “significantly below” the cost-covering fees approved by the German Federal Network Agency, Deutsche ReGas said.

This has led and continues to lead to “significant market distortion” in Germany, according to the firm.

“DET’s ruinous pricing policy since December 2024 is one of several reasons for terminating
the sub-charter contract. Deutsche ReGas regrets being forced to take this step,“ said Ingo
Wagner
, managing partner of Deutsche ReGas.

“We continue to closely consult with the German government in this regard. In the event of a supply shortage, an immediate solution can be found at any time from ReGas’s perspective,” he said.

In June 2023, Deutsche ReGas signed a deal with the German government to sub-charter the vessel delivered in 2021 by Hudong-Zhonghua.

The firm took over the charter of the unit in October of the same year, while the FSRU arrived in Mukran in February 2024.

This FSRU is owned by US-based Energos Infrastructure, controlled by asset manager Apollo.

Besides this unit, the Mukran LNG terminal consists of the 2009-built 145,000-cbm, FSRU Neptune.

This unit is 50 percent owned by Hoegh Evi and sub-chartered by Deutsche ReGas from French energy giant TotalEnergies, who also holds capacity rights at the Mukran facility along with trader MET.

In September 2024, Deutsche ReGas launched commercial operations at its Mukran LNG terminal, which can handle up to 13.5 cbm per year and is the largest such facility in Germany.

DET currently operates the Brunsbüttel and Wilhelmshaven 1 FSRU-based terminals and is working to launch two further FSRU-based facilities in Stade and Wilhelmshaven.

The state-owned company recently said it had allocated all of the offered 2025 regasification slots at two of its FSRU-based terminals.

“The average price achieved in the December auction was EUR 0.11/MMBtu, while the average price in the February auction was EUR 0.30/MMBtu,” DET said.

 

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The battle for 5% that will shape Germany’s next government

Energy News Beat

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BERLIN/POTSDAM – The lack of spring in Christian Lindner’s step heralds the murky electoral prospects of Germany’s liberal Free Democratic Party (FDP). 

Just a few months ago, the FDP leader was Germany’s finance minister, revelling in the role as Europe’s primary austerity advocate, who had the French begging for mercy just by mentioning that he was worried about their budget deficit. 

Yet, since the FDP exited Olaf Scholz’s three-party coalition government, Lindner has been relegated to the opposition benches, fighting for his party’s political survival.

Framed as the troublemaker in an unpopular coalition, the FDP is mostly polling below Germany’s electoral threshold of 5%. If it stays there, Germany’s long-standing kingmaker party would fail to enter parliament in the upcoming national elections for only the second time since 1949.

“Those who want to preserve the potential of a liberal party in Germany’s parliament must come to the flag now,” Lindner pleaded on Sunday at the FDP party conference in Potsdam.

His party is not the only influential actor caught in limbo, struggling to stay relevant. The list of those hovering around 5% includes the controversial left-populist Alliance Sahra Wagenknecht (BSW) and Die Linke, Germany’s main far-left party.

Who makes it to the cut remains unpredictable until before election day, given that the decisions could come down to 1% of the vote in each case and a special constitutional clause.

Should they pass the threshold, they would significantly impact the formation of Germany’s future government by shifting majorities.

One poll, published by pollster Forsa two weeks ago, predicted that all three smaller parties would miss the mark, reducing the number of groups in the Bundestag from seven to four – the lowest value since 2017.

That would be a gift for the frontrunners, the Christian Democrats (CDU/CSU), who are polling at around 30%. That vote share translates into some 37% of the seats in parliament when shared among fewer parties, allowing the CDU/CSU to obtain a government majority with just one additional coalition partner.

Just a few days before, another pollster, YouGov, saw both FDP (5%) and BSW (7%) above the threshold, however.

If Die Linke (4%) also jumps the hurdle, the CDU/CSU’s seat share would shrink to 30% and require a three-party coalition, which many dread after Scholz’s experiment ended in infighting.

CDU’s lead candidate, Friedrich Merz, has repeatedly stressed that only an action-oriented government that isn’t constantly fighting can turn around Germany’s ailing economy.

Wagenknecht’s woes

The stakes are high and the means desperate. 

Die Linke, which emerged from the ruling party of socialist East Germany, abandoned the 5% race early on and instead launched ‘Mission Silver Hair’ – a plan to exploit a loophole in Germany’s electoral system.

Germans cast two votes in the elections, one for an MP in their local constituency and one for a party. The latter determines how many seats all parties that reach 5% get. But there is an exception: if a party that falls below 5% wins at least three constituencies, it still gets the share of seats it would get if there was no threshold.

Die Linke is not only close to winning three constituencies, for which it fielded three popular, retirement-age party grandees. Ironically, it is also enjoying momentum that could see it reach 5% in the final ballot.

It benefits from the centrist shift of the Green Party, a direct competitor, noted Jan-Philipp Thomeczek, a political scientist at the University of Potsdam.

That is also a blow to Sahra Wagenknecht, the shooting star of German politics, who had abandoned Die Linke last year to launch BSW – a socially conservative left-wing party that strikes a conciliatory tone on Russia.

Intermittently, her new party was flying high in the polls, riding a wave of concerns over an escalation of Russia’s war in Ukraine. Some of that support, however, may have been distorted by early successes in regional elections and has waned as the war has not featured prominently in the campaign, said Thomeczek, adding that the current race was too close to call.

It could eventually become a fight to the death.

“At the national level, it will be difficult for both parties to stay above 5% at the same time because they have a larger overlap in potential voters,” Thomeczek said.

To motivate her supporters, Wagenknecht has tied the election to her political future. “Anyone who isn’t in the Bundestag is no longer relevant in German politics,” she said.

Milei with hedge clippers

Meanwhile, Lindner has embraced his new pariah status, playing to an image as the coalition’s fiscally hawkish paymaster and to revelations that his party secretly plotted the breakdown of Scholz’s dysfunctional coalition.

He has notably cited tech billionaire Elon Musk and Argentinian President Javier Milei as role models for Germany, who are both controversially cutting back on state spending and institutions. After backlash, he backpedalled and recommended using metaphorical hedge clippers for slashing regulation instead of Milei’s infamous chainsaw.

In Potsdam, Lindner promised to save Germany’s ailing economy with similarly “disruptive ideas”, slamming “new government spending, new subsidies, new constraints, new social standards, new social programmes.”

FDP officials put on a confident front, with many briefing that 5% is possible. Unlike in the CDU/CSU camp, the prospect of a three-party coalition was welcomed, as it would potentially allow the FDP to join a government with the CDU/CSU and the Social Democrats (SPD).

Europe’s profligate spenders should not cheer too soon. Paymaster Lindner might come back.

[MM]

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TGS adds to 4D streamer backlog offshore Norway

Energy News Beat

EuropeOffshore

Oslo-listed surveyor and seismic data specialist TGS has won two new contracts offshore Norway.

The work scope covers 4D streamer acquisition projects, one in the North Sea and one in the Norwegian Sea, the company said Monday.

The projects are scheduled to be acquired back-to-back, starting in June this year. They are estimated to last about 80 days.

The client and financial details of the new contracts that take TGS’ 4D streamer summer backlog to six have not been disclosed.

In mid-January, the company secured four 4D streamer contracts, three in the North Sea and one in the Barents Sea, with a combined duration of about 180 days. This was followed by two offshore wind site survey contracts offshore the UK.

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Crew evacuate laden suezmax in Russia after engine room explosions

Energy News Beat

EuropeTankers

A series of explosions yesterday in the engine room of a 22-year-old suezmax at the Russian Baltic port of Ust-Luga has put neighbour Finland on alert. 

The Turkish-owned Koala tanker, laden with 130,000 tonnes of heavy fuel oil, was about to set off from Ust-Luga when three explosions ripped through the engine room, forcing the crew to evacuate. 

As the engine room flooded, the vessel’s stern sank to rest on the seabed.

Russian officials maintained there has been no oil spill to date, but Finland put its oil spill response capabilities on alert as a precautionary measure. 

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South Africa cracks down on polluting ships

Energy News Beat

AfricaRegulatory

Following a series of casualties off its coast, South Africa’s president Cyril Ramaphosa has signed the Marine Pollution (Prevention of Pollution from Ships) Amendment Bill into law, strengthening South Africa’s ability to combat ship-related pollution. 

Polluting ships now face stricter laws with fines of up to R10m ($541,000) for ships in contravention of air and sewage pollution laws.

The Red Sea shipping crisis has seen marine traffic leap around the South African coastline over the past year as vessels avoid the Houthis of Yemen and opt to sail around Africa on voyages between Asia and Europe. 

Salvors spent much of last week cleaning up oil leaks from the wreck of the Ultra Galaxy general cargo vessel (pictured) that ran aground and broke apart off the western coast of South Africa in July last year.

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