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Grupo Cox Closes $4.2-Billion Iberdrola Mexico Asset Acquisition

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Grupo Cox, a Spanish multinational water and energy company, has closed its $4.2 billion acquisition of Iberdrola's Mexico assets, adviser DLA Piper said Thursday.

The acquisition includes 2.6 gigawatts of installed operating capacity, 12 GW of renewable projects pipeline, and a private power supplier in Mexico with 20 terawatt-hours of commercialized capacity and more than 500 large corporate customers.

Cox funded the transaction through a $2.65 billion in bank financing, capital outlay, and additional funds from institutional investors, according to the statement.

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Commodities

Update: Woodside Energy Gas Plants Face Industrial Action; Supply Risks Emerge

(Updates with Woodside Energy's comments in sixth paragraph.)Workers at Woodside Energy's (WDS) maintenance contractor UGL will take industrial action from May 20 at Karratha and Pluto gas facilities in Australia over a wage and working conditions dispute, the Offshore Alliance union said on Friday.Inpex's Ichthys LNG facility is also facing the prospect of industrial action, with labor unions considering issuing a strike notice if an agreement is not reached at some point on Friday, according to multiple media outlets.Exports of liquefied natural gas from these facilities could be affected, triggering a wider supply disruption, particularly as shipments through the Strait of Hormuz remain largely restricted, Bloomberg said.Australian LNG producers are already running close to operational limits to increase supply, the news agency reported, as Asian buyers seek alternative cargoes in response to the disruption to energy flows resulting from the Middle East conflict.Woodside's Karratha gas plant has an export capacity of 14.3 million tons per annum. Pluto LNG currently exports about 5 mtpa, which could double to around 10 mtpa once the second train becomes operational. Inpex's Ichthys LNG plant adds another 9.3 mtpa to global supply.Woodside toldthat its "priority remains the performance of its operations in a safe and reliable manner," while it "respects the rights of contractor employees to engage in protected industrial action under the Fair Work Act."Inpex, meanwhile, did not immediately respond to' request for comment.In 2023, strikes at Chevron's (CVX) facilities in Australia had resulted in LNG price spikes in Europe and Asia, due to the prospect of reduced gas exports, Bloomberg reported.Price: $22.46, Change: $+0.15, Percent Change: +0.65%

$CVX$WDS
Commodities

Biofuels Update: Lack of US-China Deal Drags Soybean Complex Lower

The Chicago soybean complex inched down on Friday as the market reacted negatively to the lack of concrete deal details following the Trump-Xi summit.In early trade, the July soybean contract on the Chicago Board of Trade fell 1.03% to $11.80 per bushel and was on track for a 2.3% weekly decline.The July soybean oil contract dropped 0.11% to 73.58 cents per pound and was set to lose 1% over the week.US Trade Representative Jamieson Greer reportedly said China may buy up to "double-digit billions" worth of US agricultural products over the next three years, but did not identify the farm goods and did not stipulate a commitment to any volume.A European trader cited by Reuters said a $10 billion deal for all agricultural products would be "disappointing," but a $20 billion trade would be a different matter.Some analysts believed that Greer was merely referring to the earlier agreement made in October that China would buy 25 million metric tons of US soybeans in the next three years.US Treasury Secretary Scott Bessent told CNBC in an interview that soybeans are "all taken care of," dampening hopes for additional Chinese buying.Also pressuring prices were expectations that the US soybean crush in April would be low due to seasonal plant maintenance. Analysts cited by ADM Investor Services estimated April figures to have dropped to 214 million bushels, versus March levels of 226 million bushels.In Asia, Malaysian palm oil diverged from Chicago soybean oil, as stronger crude oil prices and a softer local currency lifted prices.Crude palm oil futures on the Bursa Malaysia Derivatives exchange recovered from two-month lows. The June contract gained 0.64% to 4,390 Malaysian ringgit ($1,115.91) per metric ton, and the July contract rose 0.61% to 4,420 ringgit/mt.However, weak fundamentals capped gains, with palm oil futures recording their third weekly loss of around 1.9% on Friday.In April, Malaysian exports slumped 14.3% versus March shipments to 1.3 million metric tons, industry data showed. For the first 10 days of May, AmSpec Agri reportedly estimated a 10.8% month-over-month drop in shipments, while Intertek assessed growth of 8.5%.On the supply front, April domestic palm oil output surged 18.4% to 1.6 mmt. Against the backdrop of higher supplies and lower exports, stocks rose 1.7% to 2.3 mmt, to approach a level much higher than the previous year's 1.9 mmt.Among vegetable oils, palm oil led market declines this week, according to price reporting agency MySteel. This reversed a recent sharp uptrend in palm oil prices, largely due to crude oil strengthening and expanded biofuel programs in key Southeast Asian producers.Once Malaysia and Indonesia implement higher biodiesel blend mandates in June and July, respectively, increased domestic consumption may lend support to palm oil prices.Supply risks from the potential development of an El Nino weather phenomenon could also serve as a tailwind in the coming months.In the US, June ethanol prices on the NYMEX ended a two-session rally, losing 1.64% to around $1.95 per gallon on Thursday.The lack of a firm agricultural trade deal, particularly for corn, between China and the US weighed on prices, tempering positive demand sentiment from the potential implementation of E15, a gasoline grade containing 15% ethanol.The US House on Wednesday approved HR 1346 bill, or the Nationwide Consumer and Fuel Retailer Choice Act, to allow fuel retailers to sell E15 year round.The bill requires a Senate vote and approval by US President Donald Trump before enactment.

Commodities

Caturus to Proceed With 9.5 Mtpa Commonwealth LNG Export Project

Caturus has made a positive final investment decision for its Commonwealth LNG project which includes the successful closing of $9.75 billion in project financing to build a 9.5 million tonne-per-annum liquefied natural gas export facility in Cameron Parish, Louisiana.The decision was revealed on Friday by Abu Dhabi-based Mubadala Energy which holds a 24% stake in Caturus.The full investment decision markets the start of full construction of what will be one of the most cost-competitive LNG projects in the US, Mubadala said. The decision has drawn strong interest from equity and debt investors with total commitments of $21.25 billion."This landmark occasion, in parallel with continued growth of Caturus' upstream platform, is the culmination of years of strategic planning, strong partnerships and commitment to delivering a fully integrated 'wellhead-to-water' project," said Ben Dell, managing partner of Kimmeridge and chairman of Commonwealth LNG.The project has secured long term offtake agreements with a diversified group of global energy and industrial counterparties, including EQT (EQT), Glencore, Mercuria, Petronas, and Aramco Trading, the statement said.Operations of the project's Phase 1 development are expected to start in 2030, Mubadala's statement said. Mubadala is also an equity participant in the financing of the project, it said."This FID announcement is a major milestone for Commonwealth LNG and is a critical step in realizing its strategy for a fully integrated 'wellhead-to-water' operation," said Mubadala CEO Mansoor Mohamed Al Hamed.Canada Pension Plan Investment Board or CPP Investments will contribute $1.2 billion in financing, increasing its stake in the Caturus platform to 31%, including previous investments.