Oil Daily | OPEC Mulls Output Postponement Amid Russia-Ukraine Tensions; BP Faces LNG Outage in Indonesia

【Oil-Producing Countries Dynamics】

Kenya's President William Ruto has canceled energy and airport expansion deals with India's Adani Group following the indictment of founder Gautam Adani in the U.S. for alleged bribery and fraud. The decision was influenced by new information from investigative agencies and partner nations. The Adani Group had planned significant investments in the U.S., but the future of these ventures is uncertain due to the indictment.

ExxonMobil plans to drill a natural gas well off Cyprus in January, following an extensive seismic data collection period. The move comes as Cyprus deals with halted progress on its first natural gas import terminal due to contractual and financial issues involving a China-based consortium.

Russian natural gas flows to Europe via Ukraine remain stable despite Gazprom cutting supply to Austria's OMV. The European gas market is tense due to potential supply disruptions amidst contract disputes and the looming expiration of the Russia-Ukraine transit deal.

【Latest Oil Policies】

OPEC is considering postponing planned output hikes due to potential supply disruptions from the Russia-Ukraine conflict. China's new policies aim to boost trade and energy imports, adding another dimension to the global oil market dynamics. Meanwhile, U.S. crude inventories have risen, affecting demand and supply calculations.

【Industry News】

Alterra, the UAE's $30 billion climate investment fund, has struggled to find viable clean energy projects despite its ambitious goals. The fund aims to mobilize significant global investments by 2030, but complexities in financing energy transition projects and risk aversion from private investors have hindered progress.

BP's Tangguh LNG project in Indonesia faces an outage at one of its processing trains amid rising LNG demand. The disruption occurs as Europe and Asia ramp up LNG supplies for winter, with several cargoes being redirected to higher premium markets in Europe.

【Company News】

BP has entered into a $7 billion deal to develop a natural gas field in Indonesia, incorporating carbon capture technology. The project aims to capture 15 million tons of CO2 in its first phase. BP's partners include CNOOC and several Japanese energy companies.

Northvolt has filed for bankruptcy in the U.S. due to financial struggles and unmet sales expectations in the electric vehicle market. Despite securing a $100 million restructuring loan, the company faces significant challenges, including a failed $2 billion contract with BMW and high operational costs.

【Others】

China is set to import its highest crude oil volumes since August, driven by low oil prices in September and amid ongoing concerns about demand recovery. Despite higher imports, China's oil demand has been underwhelming, affecting refinery run rates and overall refining output.

The European gas market is reacting to higher prices, resulting in increased U.S. LNG exports to Europe. The price premium in Europe is incentivizing exporters to redirect LNG cargoes from Asia to Europe. The market remains tense due to disputes and seasonal demand increases.