Mike Dolan: ECB hawks want a rematch in 2021/22 after the Iran oil shock
Hawks at the European Central Bank are eager to change history. The energy price shock this month may not be as severe as the fallout of Russia's invasion in Ukraine, but officials seem to be wary of repeating their'slow' post-pandemic tightening policy that left them scrambling back in 2022. There will be intense debate in the ECB Governing Council about how and when to react to this potential inflationary spike in oil and gas prices. Few will be able to make a decision as soon as the next policy meeting due to the uncertainty surrounding the Iran conflict. The financial markets don't wait to see who will win.
RWE's US expansion plan of $20 billion includes gas-fired power stations
RWE, Germany’s largest power producer, announced on Thursday that it would invest in new gas-fired plants to expand more aggressively in the United States, a market where data centres are a major factor in power demand. The move is a major push from Germany's largest utility into a market where rapid construction of data centers,?as?well as the need for modernising ageing power infrastructure, has fueled a boom in the generation assets and network equipment. The 'hyperscalers', or big tech companies, are primarily responsible for this trend. They plan to spend $600 billion on artificial intelligence in 2018, a technology which requires a lot of power.
As the Middle East conflict increases costs, Bangladesh secures LNG spot cargoes
Energy officials reported that Bangladesh purchased three LNG cargoes at higher prices on the spot markets, as it scrambled to maintain supplies in the face of disruptions caused by the escalating conflict between Iran and Israel. Energy officials in South Asia said that Petrobangla, the state-run energy company, has increasingly turned to the volatile market to fill the gap after certain suppliers had to stop shipments. An anonymous official from the energy ministry said that if the disruption continues, we will have to rely more on expensive spot?LNG. This will increase our import burden, and tighten supply for power and industry.
TGS, a subsidiary of Argentina's TGS, to invest $3 billion in a natural gas liquids project
The Argentine energy company Transportadora de Gaz del Sur (TGS), announced on Wednesday that it 'will invest $3 billion 'in a new natural-gas liquids project within the Vaca Muerta shale. Exports of approximately $1.2 billion per year are expected from the project over a period of almost four years. The company intends to submit 'the project to a large scale investment incentive scheme known as RIGI. This was introduced by the administration of President Javier Milei. Marcelo Mindlin said, "The project is crucial; it's essential if Vaca Muerta is to reach its target of 1.5m barrels per day by 2031-2032," at a New York press conference.
India is ready to support the oil markets after IEA releases record-breaking release
India announced 'on Wednesday that it is ready to support the global oil'markets, in line with the International Energy Agency releasing a record 400,000,000 barrels - of oil in an effort to tame the prices which have risen following the U.S./Israeli war against Iran. India has not provided any details about how it will support the IEA. An official source said on Monday that India has no plans to join IEA's initiative before a G7 summit to discuss possible releases of strategic oil reserves. Since the U.S./Israeli war against Iran, crude prices have increased by 25% as a result of supply shocks. The IEA released the oil to prevent a further increase in oil prices.
Enverus reports that global dealmaking for oil and gas upstream in 2025 was muted.
Enverus, a firm that provides analytics, said Wednesday that the upstream oil and natural gas market in the world will remain?subdued' for the second consecutive year, with only $18 billion in deals. The firm stated in a recent report that fewer 'high-quality resources' and lower oil prices have limited the value of mergers and acquisitions well below the historical norm of $60 billion. Andrew Dittmar is the principal analyst of Enverus. He said that international M&A deals are shaped by availability, not appetite. Majors have retreated from the M&A sector and are focusing on organic growth.
BP and Chevron top the list of bidders at a small US Gulf of Mexico gas and oil auction
According to a U.S. government livestreamed auction, BP's single bid accounted for almost half of the total. The U.S. Bureau of Ocean Energy Management conducted the sale. It was a far less successful one than the previous auction three months earlier. Donald Trump's administration prioritizes regular lease sales and plans to have 30 in the area by 2040. The auction was won by a $21 million bid from BP on a block located in Green Canyon. Chevron was also a high bidder, as were Shell, LLOG Exploration, Anadarko, Woodside Energy and Anadarko. Chevron won the high bid for three blocks at $11.5 million. Livestreaming was available on BOEM's website.
India warns its consumers to conserve energy and not panic about gas shortages
India, the second largest importer of LPG in the world, asked its consumers to conserve energy and not panic over gas supplies. The 'federal government' has used emergency powers to order refiners that they increase production of LPG, and reduce sales to industry in order to prevent a shortage. Sujata sharma, joint secretary at the federal oil minister, stated that government measures had increased LPG production locally by 25%. Restaurants, hotels and other industries are feeling the pressure from a tightening supply of LPG. LPG is primarily used for cooking. Sharma stated that "misinformation" has been the cause of panic booking and hoarding.
Gazprom claims that TurkStream pumping stations and other facilities were attacked
Gazprom reported Wednesday aerial attacks against its southern Russian facilities, including the Russkaya Pumping Station that exports natural gases via the 'TurkStream' subsea gas pipeline to Europe. However, the company added that the attacks were all foiled. The facilities, 'linked to the TurkStream or Blue Stream pipelines', were attacked 12 times in the last two weeks. In an attempt to reduce Russia's military capability, Ukraine has intensified its attacks on Russian energy infrastructure including oil refineries. Andrei Proshunin said that on Wednesday, the mayor of Black Sea resort Sochi had been subjected to unprecedented drone attacks lasting for over 24 hours.
India's kitchens are forced to stop cooking hot food because of a shortage of cooking gas
As a result of the Middle East conflict, cooking gas is in short supply across the country. To make LPG (liquefied Petroleum Gas) last longer, cooks are switching to simpler meals that require less fuel. As a result of Iran's war on terror, shipping through the Strait of Hormuz has been effectively halted. This has led to an increase in energy and transportation costs. It also affects the output of oil and gas producers in the Middle East. India, the second-largest LPG importer in the world, has ordered refiners to increase output. However, canteens and hostels say that supply is still tight, forcing them to make rapid menu changes.
S&P warns that the surge in energy prices could affect Hungary's credit rating
S&P's top analyst warned on Wednesday that Hungary's investment grade credit rating may be threatened if energy prices continue to rise. Frank Gill, S&P’s lead sovereign analyst for EMEA, said that if gas prices were to rise as they did after Russia invaded Ukraine in 2022, it would cause a severe deterioration of Hungary’s current account, increase inflation, and damage its currency. Gill stated that the "extremely generous "?subsidies are in place to prepare for its April 12th election. S&P has rated Hungary at 'BBB+', which is one notch higher than junk?territory. The outlook is negative and a downgrade in the future seems more likely.
EU considers gas price cap as a way to control rising energy costs
The European Union is considering measures to?reduce energy prices. This includes capping gas price, said European Commission President Ursula von der Leyen on Wednesday. Before the Iran War caused oil and gas to surge, Brussels was drafting proposals for industries who claim that high energy costs make it impossible to compete with their rivals in China or the United States. The EU's electric system is set up so that the price of electricity is determined by the last power station needed to meet the total demand. Gas plants are often the last power plant needed to meet total demand.
US Energy Department blames its staff for an errant Navy escort Post
A spokesperson for the U.S. Department of Energy allegedly posted a message on Energy Secretary Chris Wright’s official X page on Tuesday, which incorrectly stated that the U.S. Navy escorted a tanker through the Strait of Hormuz. The post was deleted quickly, but it had raised expectations in the global oil industry that oil and gas would be able to flow again through this vital 'waterway', which is effectively closed after the Israeli and U.S. strike on Iran began Feb. 28. The narrow strait between Iran and Oman is normally the route for a fifth or more of the world's oil &?gas. Its closure has caused a surge in energy prices.
SLB warns that Middle East disruptions will impact first-quarter earnings
SLB, an oilfield services firm, said that escalating tensions in the Middle East would affect its first-quarter earnings and revenue by 6 to 9 cents. Energy companies are moving to protect their personnel and facilities throughout the region. SLB's share price fell 2.3% during premarket trading. The disruption is a sign of escalating geopolitical tensions that are beginning to affect the global oil and gas supply chain. This has forced?energy companies? and?service provider?s to reduce operations and evacuate their staff from parts of the Middle East.
Uniper CEO: We are protected from the latest Middle East energy crisis
Michael Lewis, CEO of the German utility, told analysts that Uniper does not purchase liquefied gas from the Middle East, where the 'U.S. and Israeli attacks against Iran' have caused price spikes in oil and gas. Lewis, speaking after the group's annual results were published, said that, while higher prices might bring back memories of the energy crisis in Europe 2022, which led to the nationalisation of Uniper, today the company is much more resilient. Lewis said that the forward price for gas and electricity reflected market expectations of a'short-term conflict' in the Middle East.
EUROPE GAS - European gas prices increase on fear of LNG shortage
LONDON - Benchmark European wholesale gas prices increased on Wednesday morning after reports that Iran had laid mines along the 'Strait of Hormuz' raised concerns about liquefied gas supply. The conflict in the Middle East would also last a lot longer than expected. ICE data shows that the Dutch front-month contract, which is the benchmark price in Europe, increased 5.7%, to 50.09 Euro per megawatt hour at 0918 GMT. ICE data shows that the British April contract increased 6.03%, to 127.90 cents per therm. Ulrich Weber, LSEG analyst, said: "The news that Iranians are?starting to mine Strait of Hormuz" would create further obstacles to the resumption of ship traffic. U.S.
Aramco requests dual loading nominations from buyers amid the Hormuz Crisis, sources claim
Multiple sources have confirmed that Saudi 'Aramco asked buyers to provide a crude loading plan for its main 'export terminal in Ras Tanura and Yanbu at the Red Sea for shipments scheduled for April, as the U.S. Iran conflict has disrupted exports out of the Middle East. The U.S. and Israeli war against Iran has largely stopped shipping through the Strait of Hormuz, disrupting the supply from the Gulf. This has forced regional producers, including Saudi Arabia, to adjust their export logistics and oil production. Sources said that Aramco requested Asian buyers to submit two nomination plans for April-loading cargoes - one for loading in Ras Tanura…
Sakhalin-1, a Russian oil refinery, will reduce output by 10% by 2025
The U.S. abandoned the 'Sakhalin-1' project in Russia, which was a major oil production facility. ExxonMobil's major ExxonMobil continued to decline last year. It fell by 10.3% due to planned maintenance. The production volume, which is expected to fall 9.8% by 2024, was not provided. Exxon had to take a $4.6bn impairment charge in April 2022 on its 30% operator?share in the project offshore Russia's Pacific?coast. This was due to the fact that Exxon left the Russian market after the start of the conflict with Ukraine in February 2022. The project is also a collaboration between India's ONGC Videh and Japan's SODECO.
Japan's weakness on energy is brought to the forefront as Middle East crisis worsens, says REI chair
The chair of the Renewable Energy Institute stated that Japan must do more to reduce their reliance on fossil fuels after the Middle East conflict escalated and halted the tanker traffic through the Strait of Hormuz. This highlighted Japan's vulnerability to?geopolitical risk. Japan imports 95% of its crude oils and 11% of liquefied gas through the Strait. About 70% of the latter and 6% of the former are shipped via the Strait. The closure of the channel has caused sharp increases in fuel prices. This is particularly hard on energy-importing countries like Japan.
French and Benelux stocks: Factors to watch
Here are some company news and stories that could impact the markets or stocks in France and Benelux. The French electric utility company,?EDF, has set up an advisory board to help finance global nuclear projects. This was announced on Tuesday at the World Nuclear Energy Summit 2026 in Paris. Garuda Technologies, a subsidiary of the European planemaker Airbus Helicopters, has won a contract to supply up to 18 Flexrotor Uncrewed Aerial System (UAS). French train manufacturer announced on Tuesday that it will provide 36 additional trains to Comboios De Portugal under a 1.03 billion euros ($1.20 billion), and create a manufacturing facility for close to 300 jobs in Portugal.