Energy assets affected due to sanctions and standoff between Russia and the West
On Tuesday, the United States and Russia reached separate agreements to stop attacks on energy and maritime targets. Washington also agreed to press for the lifting of some sanctions against Moscow. In the event that a peace agreement is reached between Russia and Ukraine, the potential for a relaxation of U.S. sanctions and EU sanctions has led to the question of what will happen to the disputed assets which were affected by international sanctions. This includes both Russian assets located in Europe as well as assets owned by foreign companies in Russia.
Terna, Italy's grid operator, will invest 23 billion Euros over 10 years
Terna, the state-owned power grid operator in Italy, announced on Friday that it will invest over 25 billion euros (23 billion euros) in network upgrades within the next 10 year to support the energy transition of the country. The group announced that it would increase by 10% its funds for the development of the country's power network between 2025-2034. Last year, the group had pledged to invest 16.5 billion euro through 2028. She said that the goal of the group was to "ensure the country has an efficient, reliable and sustainable system".
Egypt leases German gas liquefaction units to boost production
The Egyptian Petroleum Ministry announced in a Tuesday statement that Egypt plans to lease an German floating gas-liquefaction unit. Egypt, the largest Arab country by population, is seeking to increase production of its offshore giant Zohr gas field in order to meet the rising demand for domestic gas during the summer heat. Eni, the operator of Zohr, resumed drilling in late October after the output in the largest Mediterranean gas field dropped to 1.9 billion cubic foot per day by early 2024. This is well below the maximum reached in 2019.
UK electricity capacity auction for 2028/29 clears at 60 pound per kW/yr
The National Energy System Operator (NESO) announced on Tuesday the auction for Britain to secure enough electricity capacity in 2028/29 was cleared at 60 pounds each kilowatt per year. In 2014, Britain launched a market for power capacity in which it offered to pay suppliers to make capacity available so that the country had enough power. Auctions are held four years before the date of delivery. A smaller auction is held one year prior to delivery. The most recent capacity auction resulted to the procurement of 43.055.07MW across 669 Units of Capacity Market.
CERAWEEK - Small nuclear power struggles on the cusp of US electric demand boom
Small modular nuclear reactors are touted by everyone from the U.S. Energy Secretary to Big Tech as the answer to the booming demand for power. However, the technology has struggled to reach commercialization due to cost and regulatory obstacles. The artificial intelligence industry, which is powered by energy-hungry data centres, will likely increase electricity consumption in the United States. Small modular reactors supporters say that the technology would eventually be cheaper…
Spot prices rise due to lower German solar power
The European spot electricity prices for Wednesday increased on Tuesday, as the German solar power shortage was expected to be greater than gains from wind power and lower demand. German day-ahead electricity gained 1.2% at 0912 GMT to 125.75 Euros per Megawatt Hour. LSEG data shows that the French baseload rate for the day to come was up 10.4%, at 109.60 Euro/MWh. Ricardo Parviero, LSEG analyst, said: "German outlook is bullish once again. He added that a slight drop in demand…
Andy Home: Export ban on cobalt from Congo is not enough to eliminate the glut
The Democratic Republic of Congo has suspended cobalt exports for four months, a sign of how even the largest producer in the world is feeling the effects of historically low prices. This news has given cobalt a boost and its impact is already spreading through the supply chain. One Congolese operator Eurasian Resources Group, (ERG), declared force majeure for deliveries of the metal used in electric vehicle batteries. Will it be sufficient to solve the structural problems that a market oversupplied? History does not support this.
The price of gas in Europe has recovered from a new 5-month low
The European wholesale gas price at the TTF hub has rebounded after dropping to its lowest level in 5 months early in trade, amid protests against gas infrastructure in Ukraine. LSEG data shows that the benchmark front-month contract for the Dutch TTF Hub rose to 39.94 Euros per megawatt hour or MWh, or $12.71/mmBtu at 09:39 GMT. It traded at 36.45 Euros/MWh earlier on Friday. This was its lowest price since September 27, 2024. The British front-month contracts also hit a low of five months and traded at 91 pence a therm, 3.04 pence less.
Ukraine's gas imports are still low despite Russian attacks on gas production
The operator of the state-run transmission system for gas reported that despite the massive Russian missile strike on Ukrainian gas production over night, Ukrainian gas imports remained relatively low on Friday. Naftogaz, the Ukrainian state gas company, said that Russian forces have targeted Ukraine's infrastructure for energy production and damaged its natural gas production facilities. After a series Russian missile attacks on Ukraine's gas installations, the volume of Ukrainian gas imports increased by almost tenfold.
Africa Oil Corp. bullish on Nigerian growth and Namibia long-term game
A senior executive at the company said that Canada's Africa Oil Corporation would double its Nigerian production and its reserves once it completed its deal to acquire Prime Oil on Tuesday. Africa Oil will acquire the entire shareholding of Dutch company Prime Oil & Gas Cooperatief. Its main assets are indirect stakes in Nigerian deep-water fields operated by TotalEnergies or Chevron. Oliver Quinn is the chief commercial officer of Africa Oil. He said: "We will dramatically change the scale and scope of our business when we close that deal.
Trump's tariffs against Canada could increase US electricity bills
According to grid operators and energy experts, the rising U.S. electricity prices could rise even more in certain parts of the nation if the 10% tariffs on energy imposed this week by the Trump Administration hit Canadian supplies and triggered retaliation. According to government statistics, the U.S. imports only 1% of all its power, but New York State and other regions, such as New England, rely on Canadian electricity much more. This could mean that utility bills will soon increase for customers.
Trump's tariffs threaten Canada's oil and natural gas drillers
Canada's oilfield services and drilling sector has already begun to show signs of slowing down due to the threatened tariffs by U.S. president Donald Trump. This has sparked fears that a rebound in this industry could be halted if these levies are implemented. The Canadian drilling industry lost thousands of jobs between 2014 and 2020 as a result of low oil prices, and the COVID-19 pandemic. Industry representatives say that activity has increased since 2020.
France's demand for more goods and services is driving up prices, while Germany's falls.
On Wednesday, the wholesale market in Europe saw mixed reactions in terms of European prompt power prices. Prices in France rose due to a higher demand while Germany experienced a drop following forecasts for stronger wind speeds. LSEG's analysis cited the French consumption forecasts as a positive factor. However, it also noted that the availability of brown coal and German gas was a negative influence. As of 0835 GMT, the price for French baseload was 12% higher than yesterday's rate at 117 Euros ($122.91) per megawatt-hour (MWh).
After the Russian attacks, Ukraine plans to import 800 million cubic meters of gas by April.
Ukraine will import 800 million cubic meters (mcms) of gas in February and march to compensate for the sometimes 40% decrease in production following Russian missile attacks on the sector. A senior industry source said on Friday. Since its invasion in 2022, Russia has launched many missiles and drones at Ukraine's electric sector. However, it has intensified attacks on gasfields over the past few weeks. The Ukrainian state gas company Naftogaz, and the major private energy firm DTEK…
FERC wants more guidance on colocated data centers
The U.S. Energy regulators directed the largest grid operator in the country to clarify how it deals with co-location. This arrangement is becoming increasingly popular for AI data centers, allowing them to be connected directly to power plants. Co-location is a faster way to get large amounts of energy, rather than spending years waiting in line to connect to the grid. Federal Energy Regulatory Commission stated in an order that the current guidance provided by grid operator PJM Interconnection on co-location appears to be inadequate.
Sources say that RPT-Australian Woodside is in talks with three partners about Louisiana LNG.
Multiple sources have confirmed that Woodside Energy is in talks with several potential investors to buy stakes in the Louisiana liquefied gas plant. These include Tokyo Gas, Japan’s JERA, and Saudi Aramco-backed MidOcean Energy. This sale of stakes is a test of market expectations for LNG following Donald Trump's return to the U.S. Presidency. Trump said that trade partners should purchase more U.S. Energy and has issued several executive order in his first week in office to boost domestic oil and natural gas production.
German wind volume to rise - a warning
The European spot price for Wednesday dropped on Tuesday, as German wind production volumes are expected to double. France is also set for a significant fall in consumption. The LSEG analyst Naser Hahemi wrote that "residual loads are down in Germany due to the increase in wind energy production." This is an indicator which shows how much conventional power plants can supply after variable renewable volumes have been fed into grids. LSEG data shows that German day-ahead electricity was 16.1% lower at 112.8 Euros ($117.98 per megawatt hour (MWh) as of 0930 GMT.
Sources: Woodside Australia is in talks with three partners about Louisiana LNG.
Multiple sources have confirmed that Woodside Energy is in talks with several potential investors to buy stakes in the Louisiana liquefied gas plant. These include Tokyo Gas, Japan’s JERA, and Saudi Aramco’s MidOcean Energy. This sale of stakes is a test of market expectations for LNG following Donald Trump's return to the U.S. Presidency. Trump said that trade partners should purchase more U.S. Energy and has issued several executive order in his first week in office to boost domestic oil and natural gas production.
Cyprus and Chevron led group agree on updated offshore field plan
Cyprus and the Chevron-led group have reached an agreement on a new development plan for an offshore gas field near Cyprus. The two parties released a joint press release on Friday. Chevron tried to change a field development plan for 2019 and this led to protracted discussions on the future of the Aphrodite field, south-east from Cyprus. This plan was agreed upon between Cyprus and Noble, a former license holder and independent energy operator Chevron purchased in 2020.
Data shows that Ukraine gas imports will increase by 10% on Thursday.
Data provided by the operator for gas transmission systems shows that Ukraine will increase its gas imports by 10% to 25 million cubic metres on Thursday, following Russian missile attacks which damaged Ukrainian gas production plants earlier in the week. Ukraine's Naftogaz, the state-owned oil and gas company in Ukraine, and DTEK, a private energy firm said that gas production facilities had been damaged by a Russian air attack on central Poltava on Tuesday.
