Oil Daily | Czech Republic Ends 60-Year Russian Oil Reliance, BP Exports LNG from West Africa

【Global Oil Supply and Demand】

China has halted LNG imports from the U.S. since February due to tariffs from the trade war, affecting U.S. LNG export contracts. Chinese importers are reselling U.S. LNG cargoes due to increased costs, with a projected decline in annual Chinese LNG imports. Chinese buyers seek long-term deals with Middle Eastern and Asia Pacific gas producers.

BP has successfully exported the first LNG cargo from the Greater Tortue Ahmeyim project offshore Mauritania and Senegal. This marks both countries as LNG exporters, contributing significantly to global supply. The project is set to produce 2.3 million tons of LNG annually for over two decades as part of BP's strategy to increase its global oil and gas production.

The Czech Republic has ended its 60-year reliance on Russian oil by upgrading pipeline capacity from the west. The move comes after plans to expand the Trans Alpine TAL pipeline, allowing oil supply from Italy. This marks a historic shift to non-Russian oil supply for the Czech Republic.

【Oil-Producing Countries Dynamics】

Amid trade tensions, Indonesia plans to boost U.S. imports by $19 billion, including energy products, to avoid high tariffs on its exports. The country will increase imports of agricultural products and capital goods, potentially reducing LPG imports from the Middle East by up to 30% to meet the commitment.

Colombia's Bicentenario oil pipeline was shut down due to a guerrilla attack by the National Liberation Army. Colombia is striving to increase oil production while pursuing renewable energy growth. The current government has ambitious plans for reducing dependence on hydrocarbons and has halted new oil and gas licenses.

South Korea plans to leverage LNG purchases and shipbuilding in talks to mitigate U.S. tariffs. The 25% tariff on South Korea, suspended for 90 days, prompts discussions to increase U.S. energy imports to avoid high tariffs. South Korea is among several Asian countries negotiating reduced tariffs by pledging increased U.S. energy imports.

【Latest Oil Policies】

China's central economic planner announced reductions in gasoline and diesel prices following a drop in international crude oil prices. State-owned oil majors and smaller refineries are instructed to ensure adequate fuel supplies. Hopes for trade deals are rising as countries negotiate to boost imports from the U.S. to avoid tariffs.

The U.S. Energy Department may cut nearly $10 billion in clean-energy funding, affecting hydrogen and carbon capture projects. This potential policy shift raises concerns among energy giants relying on consistent clean energy policies. Companies may need to secure their own funding amid uncertainty about federal support.

【Company News】

Adani Ports plans a $2.4-billion non-cash deal to acquire the North Queensland Export Terminal in Australia, aiming to expand globally. The terminal, a major coal export facility, aligns with Adani's strategy to enhance its international presence. The deal awaits regulatory approvals and is expected to complete within two quarters.

Motiva Enterprises has restarted the gasoline-producing unit at its Port Arthur refinery, Texas, after multiple attempts post-overhaul. The refinery, the second largest in the U.S., produces various fuels and resumed operations at 86% capacity. The Gulf Coast hosts a significant portion of U.S. refining and natural gas processing capacities.

Valero Energy plans to idle or restructure operations at its Benicia Refinery in California by April 2026, amid strategic evaluations. The decision follows other refinery closures in California, which seeks stringent emission regulations. Valero took a $1.1 billion impairment charge for its California operations.

【Others】

The Bicentenario pipeline in Colombia was shut due to a guerrilla attack. Ecopetrol, the state oil company, reported increased attacks on pipelines, with government support to protect infrastructure. Colombia aims to boost oil production, while the government seeks a transition to renewable energy, despite dependence on hydrocarbons for revenue.