Mercuria Energy Group is expected to enter LNG trading after deliberating whether to invest in the market after several years. In other news, independent commodity traders are expected to face complications when it comes to adapting to the industry’s new economics; the LNG boom is set to grow over the next six years as the number of projects rise; Gregory Heckman is named as the new chief executive officer of Bunge Ltd and GFG Alliance have been reported to be spending up to $100 million on Australian copper and iron ore developers.
Here is a selection of our top news stories this week:
Mercuria Energy Group to enter LNG trading: Mercuria which was initially focused on the oil trade, is looking diversity into other commodities such as LNG. In 2018, its non-oil portfolio was successful in reaping almost 50% of its yearly trade in comparison to just 35% in 2017. Mercuria is one of a number of companies to switch to LNG to cut down on the world’s reliance for oil and coal. Click here to read more
Energy traders prepare for the battle with shrinking margins: The energy market and specifically commodity traders are worried about what the future will hold. Margins have fallen by more than 20% in 2015 and is at risk of falling another 15% ($30 billion) by 2025. Oliver Wyman said: “This cutthroat environment will weed out the players that continue to follow the tactics of the past from those pioneering new trading strategies”. Click here to read more
The LNG industry is about to face a major boom: It has been tipped by energy forecasters that the LNG industry capital expenditure is set to reach $200 billion between the years of 2019 and 2025; most of which will be spent in Canada, Mozambique, Qatar and the USA. In accordance with Wood Mackenzie’s latest gas report, 90 million tonnes of LNG development projects will begin in the next two years. Click here to read more
Bunge confirms Gregory Heckman as new CEO: After just three months of stepping in as acting CEO back in January to replace CEO Soren Schroder, Bunge Ltd have made the decision that Gregory Heckman will be the company’s new permanent chief executive officer. Click here to read more
GFG alliance to plunge $100 million in copper and iron ore: GFG alliance stated they would be spending up to $100 million for copper and iron or developers to supply materials to its Australian copper and steel business. The deal will need the approval of Havilah shareholders, but GFG will have first refusal to any copper and iron ore supplied by the developer. Click here to read more