Millions of Britons will see their energy bills drop as the price cap drops 7%
After Ofgem announced that its domestic price cap will fall by 7% in July to reflect lower wholesale prices, millions of British households can expect lower energy bills. The government is under pressure to ease the cost of living squeeze and this reduction comes as welcome news. Global wholesale energy prices have fallen. "While this is the primary cause, changes in supplier business costs also had an impact on falling energy prices," Ofgem stated in a press release. The regulator's formula for calculating the price cap includes wholesale gas and electricity prices.
Deutsche ReGas Receives EU Funding for Baltic Sea Coast Hydrogen Project
Deutsche ReGas on Wednesday said it will receive 112 million euros ($126.97 million) worth of public grants from the European Union's Hydrogen Bank for a renewable hydrogen project at Lubmin on Germany's Baltic Sea coast.The grant comes under EU funding schemes to promote electrolysis processes that use carbon-free electricity to kick-start a local economy producing hydrogen as an alternative to fossil fuels.ReGas said the hydrogen production at Lubmin, for which the funding will be spread over 10 years, can cut 1.6 million metric tons of carbon dioxide.The EU subsidy is designed to help to close price differences between green hydrogen production
Cornwall Insight reports that Britain's energy cap will fall by 7% in July.
Analysts at Cornwall Insight predicted that Britain's energy price cap would fall by 7% this July, due to lower wholesale prices. The government would welcome a drop in energy prices, as it is under pressure to keep its promise to reduce household costs. However, analysts predicted a larger fall, of 9%, last month. Craig Lowrey said that this was due to "an increase in energy wholesale markets, and updated assessments of various cost inputs, including policy costs, and network costs". Since the end April, wholesale gas prices in Britain have increased by around 10%.
How can the EU ban Russian Gas?
Next month, the European Commission will propose legal measures that will phase out EU gas imports from Russia by 2027 and prohibit spot contracts with Russia before the end this year. This is how it could work. How will the EU ban Russian gas? Legally, sanctions are the easiest way for the EU's to prohibit Russian gas and liquefied imports. They require the unanimous approval of all 27 EU member states. Hungary and Slovakia have pledged to block any gas sanctions, as they want to keep close political ties to Russia. Both countries import gas via the Turkstream pipe and claim that switching to alternative sources would raise energy prices.
Germany proposes grid fees overhaul to better fit renewables
The German network regulator started Monday a formal procedure to rethink electricity grid fees, with the goal of a system that is better suited for renewable energy. The use of the electricity network accounts for around 20% in Germany's consumer bills. This contributes to the high energy prices in Europe that hurt the economy and industry. Reform is needed to increase revenue and include more stakeholders in the costs of network expansion. Industry experts claim that the current system lacks incentives to encourage flexible users to reduce peak demands and does not guide energy infrastructure planning through clear price signals.
The EU Parliament supports the relaxation of gas storage regulations
The European Parliament voted Thursday to loosen the EU's regulations on gas storage. It agreed with member states who were concerned that the targets could lead to an increase in energy prices. In 2022, the EU introduced its gas storage regulations to ensure that EU countries have a buffer during winter. This was after Russia had cut off gas deliveries in response to its invasion of Ukraine. The resultant spike in gas prices across Europe was largely due. Last month, governments supported plans to relax the rules in order to avoid a price spike caused by the requirement that storage be filled to 90% by November 1.
TurkStream gas pipeline may slow down EU-Russia decoupling
May 7 - While the European Commission has announced a revised plan to wean Europe off Russian energy completely by 2027, some parts of Europe have taken the opposite approach. The TurkStream pipeline is not only still operating, but has expanded its gas supply. Since the beginning of the conflict in Ukraine, Russian gas exports have dropped dramatically. They went from more than 155 billion cubic meters (bcm), in 2021, to less than 40 bcm by 2024. In the same time period, Russian LNG exports to the EU almost doubled, reaching around 25 bcm. France, Belgium Spain and the Netherlands bought over 90% of these volumes.
REFILE-ConocoPhillips plans layoffs as part of broad restructuring
ConocoPhillips plans to reduce staff. The company announced this on Tuesday. This is part of a broader effort to control costs and streamline operations following its $23 billion purchase of Marathon Oil. Job cuts are a sign of the pain that the oil and gas sector is experiencing as it faces higher costs and lower revenue due to prices hovering around $63 per barrel. Many companies claim they can't drill profitably at oil prices below $65 per barrel. Chevron, SLB and other oil giants announced their own layoffs in the first half of this year.
The wind generation is increasing, lowering spot prices
The European immediate power prices dropped on Tuesday, primarily due to the bearish impact of forecasts that German wind power production would more than triple in the next day. By 0745 GMT, the German baseload electricity for Wednesday had fallen by 13.7% to 89.5 euros (97.93 dollars) per megawatt-hour (MWH). The same French contract, which closed at 68 Euros, was not traded in the range of 38-43 euro bid-ask. LSEG data indicated that German wind generation is expected to increase by 3.0 GW to 5.2 GW on Wednesday. The French nuclear production capacity increased by one percentage point, to 72%.
Palm extends its losses as soyoil and crude oil prices fall
Malaysian palm futures dropped to a 10-week-low on Monday. Pressured by lower soyoil prices and crude oil, fears of a trade war arose from China's retaliatory duties on U.S. products. The benchmark contract for palm oil delivery in June on Bursa Derivatives exchange fell 146 ringgit or 3.37% to close at $4,182 Ringgit ($934.32) per metric ton. Earlier in the session, the contract reached a low of 4163 ringgit. This was its lowest level since 24 January. The contract has fallen 6.84% in three sessions. Anilkumar bagani, head of commodity research at Mumbai-based Sunvin Group…
Thyssenkrupp Steel unit to terminate supply contract with HKM - union
The IG Metall union, which represents the largest German steelmaker T hyssenkrupp Steel Europe, announced on Thursday that it intends to end a contract of supply with HKM. This has fueled uncertainty about the future of this joint venture. HKM, a joint venture of TKSE, Salzgitter, and Vallourec that is a 50-30-20, faces closure following a recent failure to find a buyer. This would be a huge blow for the approximately 3,000 employees. The union stated in a document seen by that TKSE supervisory board would meet on Friday. HKM workers will also protest at TKSE headquarters the same day.
Palm oil climbs as Chicago soyoil and crude oil prices firm up
The market for Malaysian palm oils futures rose on Wednesday, marking the fourth session in a row. This was due to gains in Chicago soyoil prices and energy. The benchmark contract for palm oil delivery in June on the Bursa Derivatives exchange gained 99 ringgit or 2.24% to 4,518 Ringgit ($1,015.05) per metric ton. Anilkumar bagani, head of commodity research at Mumbai-based Sunvin Group, said that the price of crude palm oil was higher following the Malaysian holidays, due to a rally on Chicago soyoil and energy prices. Bagani stated that U.S. soybean oil prices increased after news of oil and biofuels groups meeting with the U.S.
Palm oil rises as Chicago soyoil and crude oil prices strengthen
Malaysian palm futures were up for the fourth consecutive session on Wednesday, supported by gains in Chicago soyoil as well as energy. At midday, the benchmark palm oil contract on Bursa Derivatives Exchange for June delivery gained 119 Ringgit or 2.69% to 4,538 Ringgit ($1,020.46) per metric ton. Anilkumar bagani, head of commodity research at Mumbai-based Sunvin Group, said that the price of crude palm oil was higher following the Malaysian holidays, due to a rally on Chicago soyoil and energy prices. Bagani stated that U.S. soybean oil prices increased after news of oil and biofuels groups meeting with the U.S.
Finland's final active coal-fired heat and power plant closes
The last coal-fired heat and power plant in Finland will be permanently shut down on Tuesday. This will allow the Helsinki energy group Helen, which is based in Helsinki, to reduce its emissions, and end rising energy prices for its customers. The capacity of Finland to produce renewable energy and heat, including wind and solar power, has grown rapidly over the last few years. This has led to a dramatic decline in coal use after the previous government passed a coal ban law in 2019. Helen CEO Olli Sikka said: "Ofcourse, we can't say that no coal will ever be burned again in Finland, as there are many crisis solutions.
EnQuest pays its first dividend after a swing to an annual profit
EnQuest, a North Sea oil producer, declared its first ever final dividend of 15 million dollars on Thursday. The higher oil prices helped to boost the company's annual profit after tax. The shares of the London listed energy group rose by 3.4% at 13.8 pence as of 0830 GMT after it announced that it would pay its first dividend of 0.616 penny per share in June. It reported a profit after tax of $93.8 millions for 2024. This follows a loss of $30.8 million the year before. EnQuest has declined to provide an update about the discussions ahead of EnQuest's deadline to submit an offer on April 4.
German energy transition could cost 300 billion euros less with greater efficiency, according to a study
According to a report released by the Boston Consulting Group on Thursday, Germany could save over 300 billion euros (326.49 billion dollars) by 2035 if it implements the energy transition in a more efficient manner. Germany will spend hundreds of millions of euros in the next few years to transition towards cleaner energy sources, with a goal of being carbon neutral by 2045. Berlin is also under pressure from the industry to reduce energy costs that are stubbornly high. The BDI report calculated the savings based upon current plans.
Trump hosts top US oil executives as trade wars threaten
Donald Trump, the U.S. president, will be hosting top oil executives in the White House this Wednesday to discuss plans for boosting domestic energy production amid falling crude prices and trade wars. This will be Trump's first meeting with oil and gas executives since he returned to the White House in January for his second term. According to a source familiar with planning the event, it will include members of American Petroleum Institute (API)'s executive committee. According to public bios, ExxonMobil's CEO Darren Woods is on the executive committee of the trade group…
Polish Minister sees the energy price cap expiring this year
According to Polish Climate Minister Paulina Hnnig-Kloska, the government should be able to lift the cap on energy prices in the final quarter of this year due the falling wholesale prices. Since 2022, Poland has capped power bills to protect vulnerable consumers from the rising costs of energy. It also pays compensation to utilities to offset these costs. The cap has been extended multiple times and is now in place until September. Poland's central banks has repeatedly stated that energy prices are a risk to policy, and that lifting the cap on price could lead to an increase in inflation.
Aramco CEO: More likely Elvis will speak than energy transition plans to succeed
Saudi Aramco's CEO said Monday that policymakers and energy executives should rethink their energy transition plans. They must stop investing in elements of the energy transition which have failed and instead rethink the entire energy transition. The remarks from the head the world's biggest oil company comes as the administration under President Donald Trump pushes for maximum oil and gas production. This is a dramatic U turn in U.S. Energy Policy after former President Joe Biden passed legislation to accelerate the shift away from fossil fuels.
RWE and TotalEnergies sign long-term agreement for green hydrogen supply
RWE, Germany's largest utility, announced on Wednesday that it had agreed to supply French oil giant TotalEnergies, with approximately 30,000 tonnes green hydrogen per year, starting in 2030. This is one of the biggest deals ever made by this sector. RWE stated that the agreement would last until 2044. It also said it was the largest amount of carbon neutral hydrogen ever purchased from a German facility. RWE will supply TotalEnergies Leuna refinery in eastern Germany via its 300 megawatt electrolysis plant located in Lingen, west of Berlin, that is expected to begin operation in 2027. No financial terms have been disclosed.
