Oil Daily | U.S. Sanctions Target Iran's Oil Trade; ADNOC Restores Crude Supply; Germany Boosts LNG Imports

【Latest Oil Policies】

Australia is backing the Hunter Valley Hydrogen Hub with a grant of $283 million through the Hydrogen Headstart Program, aiming to produce renewable hydrogen to decarbonize ammonia production. This project is part of Australia’s plan to develop a domestic green hydrogen industry amid market challenges.

The U.S. Treasury Department imposed new sanctions targeting Iran's covert oil trade and Hezbollah-linked financial activity, focusing on a smuggling network disguising Iranian oil as Iraqi, despite China continuing to import Iranian crude at high volumes.

【Industry News】

AI data centers are significantly increasing power consumption, causing grid volatility, according to Hitachi Energy. The demand spikes, reaching up to tenfold the normal usage, are straining electricity supply, with AI data center consumption expected to double by 2030.

The Mukran LNG import terminal in Germany achieved record-high gas deliveries in Q2, reversing earlier low capacity operations. This turnaround highlights Germany's efforts to become independent of Russian gas, planning substantial LNG import capacity by 2030.

【Company News】

Exxon and Hess Corp. are involved in a dispute over Hess's stake in the Stabroek Block, following Chevron's acquisition offer for Hess. The decision by the International Chamber of Commerce could affect Chevron's plans, as Hess’s Guyana assets are crucial.

A U.S. court officer recommended awarding a $7.38-billion bid to Dalinar Energy and Gold Reserve for PDV Holding, parent of Citgo Petroleum, potentially changing ownership of the U.S. refiner. The bid surpasses the initial floor price, marking a significant attempted takeover.

Shell reported breaking audit rules after EY's lead partner exceeded SEC audit rotation limits. EY advised Shell to amend its filings without altering financial statements. This follows similar audit issues with KPMG UK last month.

ADNOC restored most Murban crude supply to partners after cuts. Despite planned export reductions, ADNOC maintained uninterrupted supply, focusing on higher domestic processing, reducing export volumes amid plant optimization.

Libya's AGOCO completed repairs on a crude oil pipeline after a leak, resuming flow to the Zawiya refinery. Libya aims to boost oil production amid aging infrastructure and renewed interest from international majors in exploration.

【Others】

China avoided U.S. crude imports for three months amid trade tensions, impacting struggling American shale producers. However, ethane export restrictions to China were lifted, potentially boosting U.S. export volumes.