Oil Daily | Kurdistan Resumes Oil Exports, India Hits Diesel Export Record, Congo Eyes Gas Investments

【Oil-Producing Countries Dynamics】

The U.S. Administration aims to sustain oil exports from Kurdistan via Turkey, benefiting the Iraqi economy and U.S. companies. Kurdistan resumed oil exports after a two-and-a-half-year halt due to a dispute. This agreement involves the Kurdistan Regional Government and Federal Government of Iraq, allowing the export of around 190,000 barrels per day.

Iraq plans to increase crude oil exports by 250,000 barrels daily by reducing local consumption through solar power projects. This strategy would enhance Iraq's revenue without abandoning fossil fuels. Currently, solar power is a minor electricity source, but ambitious plans could expand it significantly by 2030.

Gazprom recorded a high domestic gas supply on September 30 due to a cold snap in Russia. The rise in consumption coincides with challenges in European sales, as the EU considers expedited sanctions on Russian LNG. Meanwhile, Russia eyes China for future gas exports, though pricing and financing remain issues.

India exported record diesel volumes to Europe in September due to competitive pricing and reduced European refining capacity. Despite potential domestic demand spikes due to festivals, Indian refiners may continue exporting due to high margins. The EU's sanctions on Russian oil could impact future Indian diesel exports to Europe.

【Latest Oil Policies】

The Republic of Congo anticipates passing a new natural gas code to attract foreign investments. As a strategy to diversify its energy resources, the Congo focuses on gas, with projects like Eni's Congo LNG, which has seen recent successes in development and aims to increase production capacity significantly by 2025.

【Industry News】

Shell is set to commence LNG production from the second train at its British Columbia facility, enhancing output by 6.5 million tons. Despite technical issues with the first train, LNG Canada aims to redirect Canadian gas exports to global markets, backed by a consortium including Shell and others.

Greenpeace activists blockaded Belgium's Zeebrugge LNG terminal, affecting tanker access but not internal operations. Protesters demand a halt to Russian and U.S. LNG flows. While Europe's Russian gas dependency decreases, LNG imports rise, driven by new infrastructure and a growing market.

Fuel oil imports into the U.S. Gulf Coast reached their highest in 25 years, due to sanctions affecting Venezuelan and Russian crude exports. Refiners are turning to alternative feedstocks, with Middle Eastern producers redirecting cargoes to the U.S. amid increased global fuel oil demand.

Global LNG demand is rising, driven by shipping industry's need to replace oil-based fuels. LNG bunkering demand could double by 2030 due to new regulations and infrastructure. LNG is currently favored over renewable alternatives like ammonia and methanol.

【Company News】

None.