UK rejects zonal energy pricing
The British government is not moving to a zoned system of wholesale energy prices, but will instead try to gain greater control over the planning process in order to determine where to build clean energy infrastructure. The UK, with some of the world's highest electricity prices, struggles to find a way to build wind and solar farms, as well as transport them to the various parts of the country. The government had looked at dividing the country into zones with a pricing system based on demand and supply…
German spot is up due to low wind, while French spot falls because of easing demand.
On Wednesday, European wholesale power prices were mixed. France saw lower spot trades while Germany's bid/ask indicators rose on the back of predictions that wind production would be halved. At 0815 GMT, the French baseload was down 19% at 46 euros ($53.85 per megawatt-hour). After closing at 93.8 Euros/MWh, the equivalent German contract did not trade in the indicated range of 94-97 euros. LSEG's research shows that on the supply side of things, Germany's wind power output is expected to drop from 12.7 GW to 6.2 GW per day.
India's MCX launches electricity futures to hedge against weather-driven demand changes
The Multi Commodity Exchange in India will launch India's first electricity contracts on Thursday. This tool allows power generators, distributors and large industrial users to manage their risk. MCX announced in a Tuesday statement that the exchange would initially offer cash-settled contract for the current three-month period and for the next three months. However, they will be made available thereafter for all twelve calendar months. Praveena Rai, the managing director of the exchange…
French and Spanish operators form joint venture to develop hydrogen pipe
It announced on Thursday that French gas grid operator Natran (a unit of utility Engie) has formed a joint-venture to develop a trans-border hydrogen pipe with French storage operator Terega, and Spain's Enagas. The Barcelona-to-Marseille underwater pipeline, or Barmar, is part of a larger 2.5 billion euro ($2.93 billion) project called H2Med that will link Portugal, Spain, France and Germany by 2030, as the European Union hopes to displace some natural gas use with hydrogen, which does not emit CO2 when combusted.
UK stock prices fall amid concerns about state finances following costly U-turns
British stocks dropped on Wednesday as part of a larger selloff of UK assets amid growing concerns about public finances. This was after Finance Minister Rachel Reeves, who appeared in tears before parliament, made a series costly U-turns regarding welfare reforms. The blue-chip FTSE 100 lost 0.1%, while the domestically-focussed midcap index declined 1.3%, widely underperforming European peers. Reeves's distressed appearance at Prime Minister's Question…
TotalEnergies UK Assets to Be Bought by Prax Remain Unsold
The TotalEnergies West of Shetland offshore assets it agreed to sell to Prax Group last year remain under the French oil major's ownership, it said on Wednesday, so will not be subject to disposals resulting from liquidation proceedings affecting the British company."The transaction to sell our West of Shetland asset to Prax has not yet completed and as such we remain the operator of the Shetland Gas Plant and related fields," TotalEnergies EP UK said in its statement.TotalEnergies had agreed to sell Prax a portfolio of mature offshore fields producing about 7…
Russian LNG exports dropped 4.4% year-on-year in January to June, according to data
LSEG's preliminary data on Wednesday showed that Russia's liquefied gas exports in the first six months of this year fell by 4.4% compared to a year ago, reaching 15.2 million metric tonnes. This was despite international sanctions over Ukraine. The United States, in particular, has imposed sanctions against companies and vessels connected to Russia's Arctic LNG 2 plant due to the conflict in Ukraine. This effectively freezes the project as Moscow is unable find buyers. U.S. president Donald Trump said that he wanted the European Union (EU) to buy more U.S.
Orlen LNG to sell 140 million cubic meters of US LNG to Ukraine's Naftogaz
Naftogaz, Ukraine's energy company of state, has signed a deal to purchase 140 million cubic meters (mcms) of U.S. Liquefied Natural Gas from Poland's Orlen. After Russian shelling, Ukraine's storage sites are almost empty and it needs to import large quantities of gas in order to meet its heating requirements for 2025/26. "Naftogaz diversifies its sources and routes for gas supply." "This increases Ukraine's energy resilience and security amid the ongoing full scale war with Russia," Naftogaz Chief Executive Officer Sergii Koretskyi stated in a press release.
Malaysian data centres face higher electricity costs and unclear pricing
The operators of energy-hungry data centres in Malaysia are scrambling to reassess costs after steeper-than-expected power tariffs kicked in on Tuesday, industry players said, clouding prospects for the Southeast Asian hub of digital investments. Malaysia's competitive electricity rates, which make up the majority of data centre operating costs, have made it a magnet for companies such as Microsoft and Google, who invest billions in Malaysia. An industry…
Equinor and partners approve $1.3 Billion Johan Sverdrup Oilfield Expansion
Equinor, a Norwegian oil company, and its partners approved an investment of 13 billion Norwegian crowns ($1.29 billion), for the expansion at Johan Sverdrup. This is the largest oilfield in western Europe. Equinor's partner Aker BP and Equinor said separately that the project will increase recoverable volume from the field between 40 and 50 millions barrels of oil-equivalent. They added that production from new subsea oil wells connected to existing infrastructure should begin in the fourth-quarter of 2027.
Orlen Will No Longer Purchase Russian Oil Starting July
Polish refiner Orlen will not buy Russian oil for its Czech refinery after June 30, Chief Executive Ireneusz Fafara said on Monday.The contract with Rosneft for Russian oil to be supplied to the Litvinov refinery in the Czech Republic was the last one linking Orlen to Russian oil, it said in a statement."We freed Central Europe from Russian oil today," Fafara told a news conference.The Czech Republic had said in April that it had become fully independent of Russian oil supplies for the first time in its history following the completion of capacity upgrades on the
Petroperu In Talks to Find Amazon Oil Block Partner
Peru's state-run oil company Petroperu is in talks with five firms, including Canada's PetroTal and U.S.-based Upland Oil and Gas, as it seeks a partner to reactivate a key Amazon oil block, a company executive said late Thursday.Tomas Diaz, manager of Petroperu's exploration and exploitation unit, told Reuters the company expects to reach an agreement for Lot 192 by mid-to-late July.The reactivation of Lot 192, located near the border with Ecuador, is crucial for supplying Petroperu's newly modernized Talara refinery.
German spot prices fall on increased wind and French nuclear supply
The wholesale price of German spot power dropped sharply on Friday, as Germany was expected to experience a 60% increase in wind generation in the coming day. In addition, the French nuclear sector increased its availability in the region. "We expect an overall bearish outlook for Germany", said LSEG Analyst Xiulan He. He also listed lower demand, improving brown coal supply and gas-derived supplies. At 0815 GMT, the German day-ahead power was trading at 76.3 Euros ($89.48 per megawatt (MWh), 19.3% lower than its previous close.
Energy Transfer to Supply Chevron With Additional LNG
Pipeline operator Energy Transfer said on Wednesday it will supply U.S. oil major Chevron with an additional 1 million tonnes per annum (mtpa) of liquefied natural gas from its Lake Charles LNG export facility.The 20-year agreement brings the total volume of LNG supply contracted by Chevron to 3 mtpa, following the initial 2 mtpa agreement signed last year.Commercial activity within the sector has gained momentum in the U.S., the world's largest LNG exporter…
Prices of prompts spike as demand increases in hot weather
The European wholesale electricity prices rose sharply Tuesday as hotter weather is expected to increase demand for air conditioners, while German wind energy output dropped sharply. LSEG analyst Riccardo Paraviero highlighted the impact of a lower German wind energy supply at night. He said that this would lead to an increase in the use of gas-fired electricity. By 8am GMT, the French contract for baseload power was up by 34.5% to 74 euros ($85.76). The German contract rose 73.7% at 76 euros/MWh.
Crude Output to Halt at Russia's Sakhalin-1 in August Due to Maintenance
Russia's largest oil producer Rosneft will suspend output of its export-oriented Sokol crude grade at its far eastern Sakhalin-1 project in August because of maintenance, three industry sources told Reuters.According to one of them, the maintenance will last between 20 and 25 days. Another source said the work is planned to start in late July and will be completed by the end of August, without specifying dates.In July, oil production at Sakhalin-1 is expected to fall slightly to 135…
In Germany, solar power can offset the falling wind speed
In France, the baseload electricity prices were flat in comparison to the previous week. The lower wind supply that was expected across the region on Tuesday should be offset by a higher solar supply in Germany. LSEG data shows that the French baseload electricity price for Tuesday at 0855 GMT was 47 euros ($53.97 per megawatt-hour (MWh), the same as it was on Monday. Data showed that the equivalent German contract had not been traded. On Friday, both Monday contracts were not traded.
Wind supply surges to surpass demand
Early on Friday morning, spot electricity contracts for German and French power were not yet being traded. However, a significant increase in German wind energy supply is expected to eliminate any price pressure caused by rising German demand. LSEG data shows that the German and French baseload power contracts for Monday were not traded by 0948 GMT. LSEG analyst Riccardo Paraviero stated that the German residual load on Monday is expected to drop significantly compared to last week, as wind energy supply is on a surge.
TotalEnergies plan to restart LNG project is a positive for the energy minister of Mozambique
Mozambique’s energy minister stated on Friday that the government had not received a formal request from TotalEnergies for the lifting of a declaration of force majeure on the $20 billion liquefied gas (LNG), project in the country. However, he was optimistic about TotalEnergies' plan to restart its development during the summer. After meeting with Japan's Industry Minister, Muto Yoji, Estevao Palae, the Minister of Mineral Resources and Energy, told reporters that force majeure would be lifted once conditions were in place for the project to resume operation.
Prices drop in advance of partial holidays
The European spot electricity price fell on Wednesday due to pressure on wholesale markets in advance of Corpus Christi, a holiday that will be celebrated on Thursday. This also affected usage the following Friday. The LSEG analysis pointed out that the solar and wind power outputs, as well as hard coal generation, were also higher. At 0745 GMT, the German day-ahead contract for baseload power dropped by 25.1% and now costs 58 euros (66.79 dollars) per megawatt hour. The French baseload for the day ahead was down 1% at 52 euros.
