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☆ The EU agreed to limit gas prices, but some analysts are skeptical
▼ + stars: | 2022-12-20 | by ( Jenni Reid | ) www.cnbc.com time to read: +6 min

Pipes run along a technical facility for compressing natural gas on the site of astora GmbH's Rehden natural gas storage facility, the largest in Western Europe. He flagged that it could disrupt the European energy market, risk security of supply and have wider financial implications. Analysts told CNBC that these conditions called into question the ability of the mechanism to limit energy price rises. Around 70% of liquefied natural gas (LNG) is tied up in long-term contracts, leaving 30% available on a spot basis. "As it stands, about 20% of Europe's electricity comes from natural gas, 10% comes from coal.

The aim is to shield European households and businesses from the kind of gas price spikes experienced since Russia's invasion of Ukraine. WHY CAP GAS PRICES? Gas prices have eased in recent months as the EU agreed some emergency measures, including obligations to fill gas storage, but they remain high. The EU price cap would not drop below 180 eur/MWh, even if the LNG price fell to far lower levels. The EU price cap is designed to be a temporary fix that would apply for one year.

☆ European Energy Ministers Push for Natural-Gas Price Cap
▼ + stars: | 2022-12-19 | by ( Kim Mackrael | ) www.wsj.com time to read: 1 min

BRUSSELS—European energy ministers gathered Monday for the second time in one week, attempting to strike a deal on an emergency limit for natural-gas prices, which have been sent soaring by Russia’s invasion of Ukraine. The debate over how and whether to intervene in the continent’s natural-gas market has emerged as one of the most divisive elements of the European Union’s response to Moscow’s war and its squeeze on the continent’s energy supplies. Some countries say a price cap is needed to ease the burden of high prices on consumers and businesses, while others worry such a move could inadvertently lead to shortages.

☆ European Energy Ministers Agree to Emergency Natural-Gas Price Cap
▼ + stars: | 2022-12-19 | by ( Kim Mackrael | Joe Wallace | ) www.wsj.com time to read: 1 min

BRUSSELS—European energy ministers reached a political agreement Monday to impose an emergency limit for natural-gas prices, which have been sent soaring by Russia’s invasion of Ukraine. The ministers agreed to impose a price cap if month-ahead prices remain above 180 euros a megawatt hour, equivalent to $191, on the European Union’s main trading hub for three consecutive days. Prices must also be at least €35 higher than a reference level for global liquefied natural gas during the same period.

☆ Natural gas sinks after EU energy ministers agree to cap prices as Russia's war in Ukraine throttles markets
▼ + stars: | 2022-12-19 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

European and US natural gas prices fell on Monday after EU energy ministers agreed to a price cap. Dutch TTF natural gas futures, the European benchmark, sank 7% to 106.95 euros per megawatt-hour. And in the US, which has emerged as top gas supplier since Moscow began cutting flows to Europe, natural gas prices plunged 12% to $5.805 per million British thermal units. European energy ministers are also poised for a showdown with Intercontinental Exchange, which is behind the largest market in Amsterdam. ICE threatened last week to move its market outside of the European Union if the plan to cap prices goes forward, according to the Wall Street Journal.

☆ EU clears Germany's planned takeover of gas giant Uniper
▼ + stars: | 2022-12-16 | by ( ) www.cnbc.com time to read: +1 min

The European Commission said on Friday that it had approved the acquisition of struggling gas trader Uniper by the German government. The European Commission approved the acquisition of struggling gas trader Uniper SE by the German government, it said on Friday, paving the way for the nationalisation of the firm which nearly collapsed after Russia stopped supplying gas. The acquisition was approved under the EU merger regulation after the Commission concluded that the proposed acquisition would raise no competition concerns. The Commission also still needs to approve Uniper's bailout under state aid rules. "The transaction was prompted by the ongoing European energy crisis, in particular the cessation of Russian gas deliveries and the sharp rise in gas prices, which resulted in Uniper, Germany's largest importer of Russian gas, requiring significant capital injections to prevent its insolvency," the Commission said.

☆ EU clears Germany's plan to take over gas giant Uniper
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: +1 min

Companies Uniper SE FollowGazprom PAO FollowBRUSSELS/FRANKFURT, Dec 16 (Reuters) - The European Commission has approved the acquisition of Uniper SE (UN01.DE) by the German government, it said on Friday, paving the way for nationalising the gas trading firm which nearly collapsed after Russia stopped supplying gas. The acquisition was approved under the EU merger regulation after the Commission concluded it would raise no competition concerns. "The transaction was prompted by the ongoing European energy crisis, in particular the cessation of Russian gas deliveries and the sharp rise in gas prices, which resulted in Uniper, Germany's largest importer of Russian gas, requiring significant capital injections to prevent its insolvency," the Commission said. Gazprom (GAZP.MM) used to be Uniper's biggest gas supplier, but deliveries were reduced in the summer and fully halted at the end of August, forcing Uniper to buy gas elsewhere at much higher prices to meet existing contracts. "This is an important step in the proceedings," a spokesperson for Germany's Economy Ministry, which was key in negotiating the nationalisation, said.

☆ European energy firms dominate landmark California offshore wind auction
▼ + stars: | 2022-12-07 | by ( Nichola Groom | ) www.reuters.com time to read: +3 min

The auction began on Tuesday and ended Wednesday, the offshore wind industry's first chance to snag leases in waters off the U.S. West Coast. "Today’s lease sale is further proof that industry momentum -- including for floating offshore wind development -- is undeniable," U.S. Winners of the five leases were mainly divisions of European energy companies already developing projects in the U.S. offshore wind market. "The macroeconomic environment has hardened significantly over the last six to 12 months," said Alon Carmel, a partner at consultancy PA Consulting who advises offshore wind companies. About 100 megawatts of floating wind capacity is currently installed in the world compared with 50 gigawatts (GW) for conventional offshore wind.

☆ European energy firms capture most leases in California offshore wind auction
▼ + stars: | 2022-12-07 | by ( Nichola Groom | ) www.reuters.com time to read: +1 min

Dec 7 (Reuters) - The Biden administration's sale of offshore wind development rights off the coast of California drew $757.1 million in high bids, mainly from European developers seeking a foothold in the domestic industry's expansion to the Pacific Ocean. Winners of the five leases were primarily divisions of European energy companies that are already developing projects in the U.S. offshore wind market. The winners included Norway's Equinor ASA (EQNR.OL), Denmark's Copenhagen Infrastructure Partners, Germany's RWE AG (RWEG.DE), Ocean Winds, which is a joint venture between France's Engie (ENGIE.PA) and Portugal's EDP Renewables (EDPR.LS), and U.S. developer Invenergy LLC. The auction, which began on Tuesday and stretched into Wednesday, is part of the administration's plan to put wind turbines along every U.S. coastline to tackle climate change and create jobs. Reporting by Nichola Groom; Editing by Alexander Smith, Aurora Ellis and Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.

☆ ICE warns EU gas price cap could see prices rise
▼ + stars: | 2022-12-06 | by ( Kate Abnett | ) www.reuters.com time to read: +3 min

Companies Intercontinental Exchange Inc FollowBRUSSELS, Dec 6 (Reuters) - An exchanges operator has warned the European Union that its proposal to cap gas prices would make it more likely that prices rise to hit the cap, according to a document seen by Reuters. In a memo sent to the Commission, the Intercontinental Exchange (ICE) - which hosts TTF trading - said that proposal could in fact drive prices higher, despite it being designed to cushion EU countries' economies from gas price spikes. The resulting shortage of sellers in the TTF market would drive up prices, it said. "The EU Commission hears the concerns and arguments expressed by the representatives of the European Gas Exchanges. The safeguards include that the Commission could immediately suspend the price cap if it caused negative consequences, including risks to financial stability or gas flows within Europe.

☆ U.S. kicks off first California coast offshore wind auction
▼ + stars: | 2022-12-06 | by ( Nichola Groom | ) www.reuters.com time to read: +2 min

Dec 6 (Reuters) - The United States on Tuesday is set to kick off the first sale of offshore wind development rights for waters off the coast of California, expanding the nascent domestic industry to the Pacific Ocean. "It puts California on a path to be a global hub for offshore wind technology," JC Sandberg, interim chief executive of the American Clean Power Association, said on a call with reporters. Previous federal offshore wind auctions have all been for leases in shallower waters of the Atlantic Ocean. The California sale is viewed as a test of industry appetite for investing in floating offshore wind technology, which to date has been limited to small pilot projects in places including Norway and Portugal. Companies approved to bid at the auction include established offshore wind players like Avangrid Inc (AGR.N), Orsted (ORSTED.CO) and Equinor (EQNR.OL), which are all developing projects on the U.S. East Coast.

☆ RBC: It will be even harder for European countries to refill natural gas storage in 2023 than it was this year
▼ + stars: | 2022-12-06 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailRBC: It will be even harder for European countries to refill natural gas storage in 2023 than it was this yearBiraj Borkhataria, head of European energy research at RBC Capital Markets, discusses the outlook for natural gas and LNG storage for the region, and whether countries will need to scramble again in 2023 to refill supplies.

☆ Worst is over for gas supply security issues, portfolio manager says
▼ + stars: | 2022-12-06 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWorst is over for gas supply security issues, portfolio manager saysPer Lekander, managing partner and portfolio manager at Clean Energy Transition, discusses his outlook for European energy.

☆ Russian oil is still flowing in huge volumes even as EU sanctions and a price cap are less than a week away.
▼ + stars: | 2022-11-30 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

European governments still can't agree on a price cap for Russian oil even as the December 5 deadline is less than a week away. Poland, for example, is committed to a $30 price cap. Even with a price cap of, say, $65, it's unclear whether that can really make an impact, given that Russia's flagship crude oil — Urals grade crude — is trading 20% below that level already. Despite the West's repeated condemnation of Russia and President Vladimir Putin, Russia remains Europe's largest single refined oil products supplier. A) The West agrees to a price cap above $40B) The West agrees to a price cap below $40C) The West does not agree to any price capLet me know on Twitter (@philrosenn) or email me (prosen@insider.com).

☆ "We're still early days in this downturn": A portfolio manager at Lazard reveals the 3 asset classes that will provide investors with the steadiest returns as recession fears mount — and shares 3 high
▼ + stars: | 2022-11-28 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +6 min

But in a year like 2022 when stocks are down, real assets can suddenly look a lot more attractive to investors. On the other hand, real estate has been a relatively weak performer this year due to its inverse correlation with interest rates. Year-to-date the Lazard Real Assets fund is beating 85% of its peers, down 5.7% versus its category average of a negative 12% return. "It's gone from a second-class in the real estate space to now an integral part of the supply chain," he explained. Finally, in the infrastructure space McGoey highlighted Targa Resources (TRGP) as a key midstream player.

☆ 'Heated' and 'really ugly': Europe fails to thrash out details on gas price cap as talks turn sour
▼ + stars: | 2022-11-25 | by ( Silvia Amaro | ) www.cnbc.com time to read: +1 min

EU energy ministers fail to agree on a cap for natural gas prices. BRUSSELS — European energy ministers failed to reach a compromise over a cap on natural gas prices after "heated," "ugly" and "tough" discussions. However, the divergences are so acute in Brussels that energy ministers have not managed to find a compromise and instead have convened a new emergency meeting for mid-December. The same official said the conversations were "very tough" because of a "fake price cap." The cap would also only kick in when prices are 58 euros ($60.46) higher than a global LNG (liquefied natural gas) reference price for 10 consecutive trading days within a two-week period.

☆ European Energy Ministers Set to Clash Over Proposed Gas-Price Cap
▼ + stars: | 2022-11-24 | by ( Kim Mackrael | ) www.wsj.com time to read: 1 min

Pipes at facilities of the Nord Stream 2 gas pipeline in Lubmin, northern Germany. European Union countries earlier this year agreed to voluntary plans to reduce their gas consumption. BRUSSELS—European Union energy ministers are gathering to haggle Thursday over details of a new proposal from the bloc’s executive body for an emergency cap on the price of natural gas. The meeting convenes as EU diplomats struggle to agree on a separate, international plan to cap prices paid for Russian oil around the world.

☆ European Energy Ministers Clash Over Proposed Gas-Price Cap
▼ + stars: | 2022-11-24 | by ( Kim Mackrael | ) www.wsj.com time to read: 1 min

Pipes at facilities of the Nord Stream 2 gas pipeline in Lubmin, northern Germany. European Union countries earlier this year agreed to voluntary plans to reduce their gas consumption. BRUSSELS—European Union energy ministers failed to reach an agreement Thursday on a plan to put an emergency cap on the price of natural gas, saying they would resume their debate next month. EU diplomats are also struggling to agree on a separate, international plan to cap prices paid for Russian oil around the world.

The price cap idea has led to persistent disagreements between the EU's 27 member states. Belgium, Greece, Italy and Poland are among the countries most vocal in calling for a gas price cap to be implemented, while the bloc's largest economy Germany has led the opposition. Historically, the gas price at the TTF hub has been used as a benchmark for LNG deliveries into Europe. PRICE CAP ON RUSSIAN GASThe Commission suggested a Russian gas price cap in September, but dropped the idea after resistance from central and eastern European countries worried Moscow would retaliate by cutting off the gas it still sends to them. Given that fall, some EU diplomats said a price cap would do little to reduce European gas prices, and would function as more of a geopolitical move to cut revenues to Moscow.

☆ TotalEnergies leads Shell, BP in renewables race, but shares sag
▼ + stars: | 2022-11-07 | by ( Ron Bousso | ) www.reuters.com time to read: +3 min

REUTERS/Stephane MaheSummarySummary Companies TotalEnergies has largest renewables operationsBut European energy giants' shares trail U.S. rivalsLONDON, Nov 7 (Reuters) - French energy giant TotalEnergies (TTEF.PA) has pulled ahead of rivals Shell (SHEL.L) and BP in the race to build up a renewables business, data collected by Reuters shows. BP, Shell and TotalEnergies have all set out ambitious plans to shift towards low-carbon and renewable energies in the coming decades in an effort to slash greenhouse emissions to net zero. BP, by comparison, has so far built 2GW of operating renewables capacity, partly through its 50% stake in Lightsource BP, one of the world's top solar producers. Shell's net capacity is slightly higher at 2.2GW, with acquisitions including U.S. producer Savion and Indian renewables platform Sprng Energy earlier this year. TotalEnergies aims to have 100GW of gross renewables capacity by 2030 while BP targets 50GW of net renewables.

☆ COP27 Climate talks must wrench attention from competing crises
▼ + stars: | 2022-11-07 | by ( Kate Abnett | ) www.reuters.com time to read: +3 min

"The attention of many leaders has been going to other issues," said Espinosa, who led the U.N. climate change body - called the U.N. Framework Convention on Climate Change, or UNFCCC - from 2016 until July this year. "This is a very important conference in order to really get again the issue of addressing climate change very, very high up on the agenda," she told Reuters. Countries' national climate pledges put the world on track to warm by 2.5 degrees Celsius above pre-industrial levels, overshooting the 1.5C threshhold beyond which scientists say climate change impacts will significantly worsen. Executive Secretary of the United Nations Framework Convention on Climate Change Patricia Espinosa speaks during an interview with Reuters at a United Nations Information Center offices in Washington, U.S., December 7, 2021.

BP said it expects to pay around $2.5 billion in taxes for its British North Sea business this year, including $800 million in a windfall tax. BP, which increased its dividend by 10% in the quarter, will buy back $2.5 billion of shares after repurchasing $7.6 billion so far this year. Reuters Graphics Reuters GraphicsGAS TRADINGBP's third-quarter underlying replacement cost profit of $8.15 billion, the company's definition of net income, compared with forecasts of a $6 billion profit in a company-provided survey of analysts. BP made a profit of $3.3 billion a year earlier and a 14-year high profit of $8.45 billion in the second quarter of 2022. Refining margins are also expected to remain high due to sanctions on Russian crude oil and refined products, BP said.

☆ Europe's militaries have been working together for years to keep an eye on what Russia is up to at sea
▼ + stars: | 2022-10-31 | by ( Constantine Atlamazoglou | ) www.businessinsider.com time to read: +6 min

The Nord Stream pipeline sabotage in September drew new attention to maritime threats in Europe. European militaries have already been working on new ways to protect undersea infrastructure. Although the pipelines were not in use— Nord Stream 1 was shut down in March by EU sanctions against Russia, and Nord Stream 2 wasn't yet operational—the incident highlights the risks to underwater infrastructure. Even before the war in Ukraine, Western officials had grown worried about increasing activity by Russian ships and submarines around underwater cables crossing the Atlantic. "Russia is clearly taking an interest in NATO and NATO nations' undersea infrastructure," the admiral said at the time.

☆ OMV bets on more LNG from ADNOC, Q3 profit soars
▼ + stars: | 2022-10-28 | by ( ) www.reuters.com time to read: +2 min

Like other European energy companies, OMV, which until the Ukraine war depended heavily on Russian oil and gas, is striving to diversify its supplies. "For us, it is important that we diversify the gas supply for Austria and this is a building block." High energy prices meant OMV (OMVV.VI), in which the Austrian state holds 31.5%, nearly doubled its core profit in the third quarter. For some years, OMV has been shifting its growth focus towards high-quality plastics such as polyethylene, polypropylene and PVC, from oil and gas. Mubadala, which also holds 24.9% in OMV, agreed to sell a remaining 25% stake in Borealis to ADNOC in April.

☆ Oil volatility could get more intense as Europe's December deadline approaches
▼ + stars: | 2022-10-26 | by ( Patti Domm | In | ) www.cnbc.com time to read: +9 min

Singh notes there could be a significant drop in Russian oil in coming months as European restrictions on imports of oil and refined products, like diesel, take hold. Barclays expects about 1 million barrels of Russian oil to come off the market, but Singh said his estimate is low compared with others. He noted that China and India have increased their purchases of Russian oil, but so have other countries, like Turkey. We also believed the government in the U.S. was going to put a floor under oil prices by refilling the SPR," said Blanch. There's going to be a very large spread between European energy prices and U.S. energy prices."

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