Oil Daily | Indonesia's Domestic LNG Focus May Tighten Global Supply Amid European Demand Surge
Friday, Jan 24, 2025 7:01 am ET
1min read 【Company News】
Venture Global went public, raising $1.75 billion with a valuation of $60 billion. The share offering was priced at $25, lower than initially planned due to investor skepticism about a $110 billion market cap. Venture Global's practice of selling LNG on the spot market has created controversy.
【Oil-Producing Countries Dynamics】
Indonesia, the sixth-largest LNG exporter, is focusing on meeting domestic demand, leading to potential export delays. The country plans to enhance gas production for domestic use. An outage at BP's Tangguh LNG project also impacted shipments. Reduced exports could tighten the market as Europe needs more LNG for winter and summer demands.
【Latest Oil Policies】
President Trump assured European LNG supplies despite potential domestic price hikes. The U.S. has become the largest LNG exporter globally, with increased shipments to Europe, replacing Russian supplies. Trump urged the EU to buy more U.S. LNG, threatening tariffs if they don't. Trump's approach links energy trade to political negotiations.
The EU's sanctions against Russia face potential debate as Hungary calls for reconsideration. Trump's presidency brings new dynamics, impacting EU-Russia relations. The EU considers phasing out Russian LNG imports, balancing sanctions with energy needs. A gradual reduction could involve sanctions or a strategic roadmap.
Italy plans to refill its gas storage by February to prevent summer price spikes. The country is concerned about geopolitical tensions and potential speculation. Italy also urges a lower gas price cap within the EU to avoid energy bill shocks. The current EU cap mechanism triggers at 180 euros/MWh.
The EU may extend gas storage targets beyond 2025, maintaining 90% fill levels by November 1 each year. This preparedness strategy follows the halt of Russian pipeline gas and aims to secure winter supplies. EU storage was 95% full by the November deadline but is depleting rapidly due to colder weather.
【Industry News】
Italy aims to return to nuclear power by 2027 with small modular reactors (SMRs), after decades of abstinence. The government sees nuclear energy as complementary to renewables for decarbonization and supply security. Italy is consulting with international companies for nuclear cooperation, emphasizing the need for collaboration in this sector.
Venture Global went public, raising $1.75 billion with a valuation of $60 billion. The share offering was priced at $25, lower than initially planned due to investor skepticism about a $110 billion market cap. Venture Global's practice of selling LNG on the spot market has created controversy.
【Oil-Producing Countries Dynamics】
Indonesia, the sixth-largest LNG exporter, is focusing on meeting domestic demand, leading to potential export delays. The country plans to enhance gas production for domestic use. An outage at BP's Tangguh LNG project also impacted shipments. Reduced exports could tighten the market as Europe needs more LNG for winter and summer demands.
【Latest Oil Policies】
President Trump assured European LNG supplies despite potential domestic price hikes. The U.S. has become the largest LNG exporter globally, with increased shipments to Europe, replacing Russian supplies. Trump urged the EU to buy more U.S. LNG, threatening tariffs if they don't. Trump's approach links energy trade to political negotiations.
The EU's sanctions against Russia face potential debate as Hungary calls for reconsideration. Trump's presidency brings new dynamics, impacting EU-Russia relations. The EU considers phasing out Russian LNG imports, balancing sanctions with energy needs. A gradual reduction could involve sanctions or a strategic roadmap.
Italy plans to refill its gas storage by February to prevent summer price spikes. The country is concerned about geopolitical tensions and potential speculation. Italy also urges a lower gas price cap within the EU to avoid energy bill shocks. The current EU cap mechanism triggers at 180 euros/MWh.
The EU may extend gas storage targets beyond 2025, maintaining 90% fill levels by November 1 each year. This preparedness strategy follows the halt of Russian pipeline gas and aims to secure winter supplies. EU storage was 95% full by the November deadline but is depleting rapidly due to colder weather.
【Industry News】
Italy aims to return to nuclear power by 2027 with small modular reactors (SMRs), after decades of abstinence. The government sees nuclear energy as complementary to renewables for decarbonization and supply security. Italy is consulting with international companies for nuclear cooperation, emphasizing the need for collaboration in this sector.
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