Ukraine and Poland nearly double the capacity of their gas link
The Ukrainian Energy Ministry announced on Friday that the gas transmission system operators in Poland and Ukraine would double the capacity of the interconnector from 6.4 million cubic metres of gas per day to 12.4 mcm. After Russian shelling, Ukraine wants to import large quantities of U.S. Liquefied Natural Gas via Germany, Greece and Lithuania in order to prepare for the heating season. The Polish route is the main gas import destination for Ukraine. The role of Poland's gas distribution system will continue to grow as it provides access worldwide to natural gas sources, including liquefied gases.
The power demand forecasts are lower than expected on Mondays
German and French spot rates were not traded on Friday morning, but the demand for wind power is expected to be reduced due to the dual holidays. LSEG data shows that the German and French Monday basisload power contracts had not been traded by 847 GMT. LSEG analyst Florine Engl stated that residual load in Germany should decrease on Monday compared to last Friday. However, it will increase on Tuesday. LSEG data indicated that German wind output would fall by 12.2 GW Monday to 19.7 GW. French wind production was also expected to drop by 5.5 GW down to 1.9 GW.
Norway's oil-drilling unions are seeking wage mediation in order to avoid a strike
Employers and three unions reported that wage talks with 7,500 oil drilling employees in Norway failed on Wednesday. This could lead to a strike later this year. The Norwegian Shipowners' Association's (NSA) talks with the Safe, Styrke, and DSO unions are to resume at a future date, which is yet to be determined, under the mediation of a state appointed mediator. Geir Sjoeberg, the NSA's lead negotiator, said in a press release that "unfortunately" it wasn't possible to reach an accord. In Norway's highly regulated system of collective bargaining, workers can only go on strike when the mediation fails.
Germany and France have different spot prices
German wholesale electricity prices fell on Friday due to a strong wind in Germany, while they rose in France, though only from a level that was just half of the price in the larger market next door. Riccardo Paraviero, LSEG analyst, said that the signal for tomorrow was bearish. He added that consumption in the region had decreased. French baseload was up by 25.9% to 35.3 euros ($38.87), a megawatt-hour (MWh) as of 0745 GMT, while German baseload was not traded with a price of 61.5 euro/MWh. This was compared to the previous close which was 82.9 euros.
US to develop AI on Energy Department Lands
On Thursday, the administration of Donald Trump announced that it had identified 16 sites in the U.S. Department of Energy where data centers and energy plants to support artificial intelligence could be built. The rapid growth of AI has led to a boom in the demand for power in the United States, which is unprecedented in 20 years. Big Tech companies and utilities are scrambling to build data centers and new power plants. The DOE stated that the potential sites were positioned to allow rapid construction of data centers, with in-place infrastructure and the ability for fast-tracking permits for new energy production such as nuclear reactors.
Iraq plans to increase oil production above 6 million barrels per day by 2029
Iraq plans to increase oil production to 6 million barrels per days (bpds) or more by 2029. This was announced on Sunday by the Iraqi oil ministry, according to Iraq's state news agency. Bassem Mohammed Khodeir, the undersecretary of the Oil Ministry, told Reuters that Iraq aims at achieving its target by oil exploration and drilling activities across the country. He cited a recent agreement with oil giant BP for redevelopment of four Kirkuk oil fields and gas fields. Officials from the oil ministry say that Iraq's current production of oil is around 4 million barrels per day. Last month, it reaffirmed its commitment to the output agreement of the OPEC+ Group.
Kazakhstan will quickly adjust to OPEC+ quota
The Energy Ministry announced on Wednesday that Kazakhstan would quickly adjust its output to bring it back into line with the OPEC+ quota, after exceeding its limit in February. OPEC had said that Kazakhstan contributed the most to a significant increase in crude production by OPEC+ for February. In February, Kazakhstan produced 1.767 millions barrels of crude oil per day. This is up from 1.570 in January. Its OPEC+ quota amounts to 1.468 millions bpd. "The Republic of Kazakhstan took the necessary steps to compensate for the temporary rise in production.
Data shows that Portovaya, Kryogaz-Vysotsk and other Russian LNG exporters have stopped LNG exports due to sanctions.
LSEG data on Thursday showed that two small-scale Russian LNG producers located along the Baltic Sea shores, Portovaya LNG, and Kryogaz Vysotsk have stopped LNG deliveries. This is due to the U.S. sanctions. Washington introduced new sanctions last month against Russia for the conflict in Ukraine. These included the two nuclear plants. There was a grace period up until the 27th of February. LSEG data show that Kryogaz-Vysotsk (controlled by Novatek and Gazprombank) last shipped a cargo in February, with delivery at the Zeebrugge terminal in Belgium on February 22. LSEG data shows that Portovaya LNG delivered its last cargo to customers around mid-January.
Anglo writes off De Beers and continues with business overhaul
Anglo American reported a $3.1billion loss on Thursday, after writing down its De Beers business. The company is continuing to shed unwanted assets. Anglo wants to concentrate on iron ore and copper assets following BHP's failed attempt at a takeover last year. This means that Anglo will spin off its diamond and platinum businesses following the sale of its nickel and coal mines. Duncan Wanblad, CEO of Codelco, said that the company is also exploring the possibility of running its Los Bronces mine in Chile jointly with Codelco. Analysts said the plan would reduce costs and increase production at two mines adjacent to each other. This helped investors cheer.
On Monday, temperatures and wind supply are expected to increase.
On Friday, European prompt power rates for Monday were not traded due to the expectation of a higher wind power supply in France and a lower demand throughout the region. LSEG data shows that the German and French baseload contracts for Monday did not trade by 0948 GMT. LSEG data indicated that German wind output is expected to increase by 10.4 gigawatts to 46.5 GW on Monday, while French output should gain 14.3 GW up to 16.6 GW. According to LSEG analyst Naser Hachemi, the increased wind power production will reduce the residual load in France and Germany (which is the electricity demand that can't be met by renewable energy) on Monday.
Cuba's electrical grid is back online but generation still lagged
Cuba announced late Wednesday that it had reconnected the national electrical grid. However, production remained well below demand a day after an outage caused by a power plant knocked millions of people off their electricity. Cuba's Energy and Mines minister Vicente de la O Levy announced on X on Wednesday that the grid had been restored just before midnight. The National Electric Union (UNE), however, announced on social media that it was "serving in" 880 MW to the system. This is a fraction of typical peak demand, which is 3,200 MW. This suggests that a significant portion of the Caribbean Island remained without power.
Ghana's oil production increases for the first time in five years
Ghana's crude output increased 10.7% on an annual basis in the first half of 2024. This reversed a five-year-old decline in production. Ghana, Africa's largest gold producer, started producing crude oil in 2010. However, output dropped to a 5-year low by 2023, due to declines in production from existing fields. This effectively erased gains made by new wells. PIAC, a government body tasked to monitor the oil sector, reported that the production of crude oil had risen to 24,86 million barrels in June 2024. This is compared with a decline of 13.2% over the same time period in 2023.
Nvidia must get EU approval before it can buy AI startup, Run:ai.
The European Commission announced on Thursday that the proposed acquisition by Nvidia of AI startup Run:ai, which threatens the competition in the markets the companies operate in, will require EU antitrust clearance because it poses a threat to the competition. Nvidia may be required to make concessions in order to get the EU's approval. Recently, regulators on both sides have increased their scrutiny over tech deals. Nvidia acquired the Israeli company in April for $700 million, according to Tech Crunch. The technology of Run:ai allows teams and developers to optimize and manage their artificial intelligence infrastructure.
Gas and Carbon Forward Contracts are on the Rise
The European power contracts for the year ahead rose on Friday as did gas and carbon contracts. LSEG data show that the German 2025 baseload price rose by 1.1% at 1041 GMT to 91.45 Euros ($98.99) for a megawatt-hour. Earlier, the price had been.05 euros short of the highest recorded in a month and a quarter on Thursday. The equivalent French position increased 0.2% to 75.35 Euro/MWh. The European CO2 allowances expiring in December 2024 rose by 0.1%, to 66.65 Euros per metric ton. Analysts at Energi Danmark said that the European carbon market has reached its highest level for around two months…
Sources say that India's Adani Group is planning 10 GW of overseas hydroelectric projects
Four sources familiar with Adani Group's plans said that the group plans to build ten gigawatts worth of hydroelectric projects overseas in the next few years. This will help the conglomerate achieve its goal of achieving net zero carbon emission by 2050. The billionaire Gautam Adani announced that his group, which includes businesses ranging from rice to concrete, would invest $100 Billion over the next decade in developing green energy capabilities, including the establishment of the largest solar energy park on the planet in western India.
Ithaca Energy joins Eni's North Sea Business
Ithaca Energy announced on Thursday that it had completed a deal worth 754 million pounds ($993 millions) to purchase nearly all the UK oil and natural gas assets of Eni. This was a 100% share transaction, which created one of the largest independent energy companies operating in the North Sea. Luciano Vasques was the former Eni UK Managing Director and CEO of the combined company. This move is part Eni's'satellite strategy', through which the company has spun off businesses that are focused on certain geographical areas to attract investors.
TotalEnergies begins early production of Fenix gas in Argentina
TotalEnergies, a French oil company, said that natural gas production had begun earlier than expected at Argentina's Fenix off-shore field. The $700-million project was originally scheduled to start operating in November. It has a daily production capacity of 10,000,000 cubic meters of gas, which represents 8% of Argentina’s total production. Gas from the Fenix Field off Argentina's southern coast will be used for domestic consumption. Argentina is trying to reduce imports and deregulate prices locally, encourage energy investment, and become a LNG exporter.
OPEC+ to Weigh Modest Output Boost, Sources Say
OPEC+ oil producers will discuss a modest easing of oil supply curbs from April given a recovery in prices, OPEC+ sources said, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, cut output by a record 9.7 million bpd last year as demand collapsed due to the pandemic. As of February, it is still withholding 7.125 million bpd, about 7% of world demand.In January OPEC+ slowed the pace of a planned output increase to match weaker-than-expected demand due to continued coronavirus lockdowns.
EU Hydrogen Plan Splits Supporters Down Color-coded Lines
Energy industry lobbyists and advocates of renewable hydrogen are divided over whether the bloc should support low-carbon hydrogen produced by fossil fuels ahead of a new EU strategy next month.The EU's executive Commission plans to publish its hydrogen strategy on July 8, which will form the basis for EU regulation and funding to scale up production of the fuel to replace fossil fuels in sectors including chemicals and transport.More than 30 industry groups and energy firms including ExxonMobil, Equinor and Uniper wrote to EU leaders…
Trafigura Takes a Bet with North Sea Oil
Commodities trader Trafigura has seized the moment and taken a rare dominant position in the North Sea crude market over the past two weeks as oil demand jumped, trading sources said.A combination of OPEC-led global production cuts, cheap freight rates, and oil stuck in floating storage sent crude markets into overdrive starting at the end of April as fuel demand looked set to pick up with easing lockdown.Differentials to benchmark dated Brent for grades around the world have shot up $6 a barrel in many cases, returning to trade at levels not seen since March before the peak lockdown period in April.In the last two weeks…
