Oil Daily | Ukraine's First U.S. LNG Cargo Reduces Russian Gas Dependence Amid Market Shifts

【Global Oil Supply and Demand】

Ukraine received its first U.S. LNG cargo at a Greek terminal, marking a significant step in reducing dependence on Russian gas and bolstering energy security in Europe. DTEK's subsidiary purchased the cargo, emphasizing the strategic contribution of the U.S. in enhancing regional energy security.

Europe is facing a potential disruption in Russian gas supplies as the existing transit deal through Ukraine nears expiration with little hope of renewal. This has been blamed on Ukraine's refusal to negotiate, potentially affecting gas flows to Austria, the Czech Republic, and Slovakia.

India's Bharat Petroleum plans to invest $11 billion in a refining and petrochemical complex in Andhra Pradesh, reflecting India's increasing energy demand. With India now the top driver of global oil demand growth, this expansion aligns with the country's economic growth trajectory.

【Oil-Producing Countries Dynamics】

Mongolia and Orano Mining from France have agreed on a preliminary plan to develop a $1.6 billion uranium mining project. This project aims to boost Mongolia's investment and employment, with the first production expected in 2028 and peak production by 2044.

【Industry News】

Shell has shut down an oil processing unit at its Singapore refinery due to a suspected leak. Despite the leak, maritime traffic remains unaffected, and cleanup efforts are underway. Shell's recent sale of interest in the refinery to CAPGC and increased activity from Glencore are part of strategic market adjustments.

【Others】

Estonia is deploying its navy to secure the Estlink 1 power link with Finland after recent cable disruptions. Investigations involve the Eagle S oil tanker under Russia's shadow fleet, amid concerns over potential deliberate damage to critical submarine infrastructure.