Europe Imports Record Russian LNG in H1 2026

Data from Kpler suggests Europe has imported 9.89 million tons of LNG from Russia's Yamal LNG field in H1 2026.

Germany Banning Russian Oil Imports by End 2022

Germany has announced a ban on Russian oil imports, halving demand by summer and going to zero by winter.  

One quarter of Germany's oil imports currently come from Russia.  

Natural gas (40% of Germany's needs come from Russia) will be phased out post the oil ban. The 9.5 billion euro pipeline, Nord Stream 2, between Russia and Germany, will now no longer be used having been suspended 2 days before the Russian invastion of Ukraine on February 24th, by German Chancellor Olaf Scholz (successor of Angela Merkel). 

Importing LNG is one option but has been tricky due to the lack of regasification facilities in Germany. The leasing of FSRUs in the short term (Floating Storage and Regasification Units) is one option being explored, and Wilhelmshaven, coastal town facing the North Sea, has been identified as one location.

Employers and unions have resisted an immediate energy import ban due to loss of jobs. The UK will also phase out Russian oil imports by the end of 2022. 

Separately, the EU announced a ban on Russian coal imports on 7 April which will take effect in August (Russia is Europe's largest supplier of thermal coal - which is used in coal-fired power stations).

Shell BG Merger will create World's Largest Producer of LNG - Banks Pile into Bridge Financing

Shell shareholders have approved a merger with their smaller, Reading, Berkshire-based rival BG to create the largest producer of LNG in the world. The merger will take place on Feb 15, 2016. Van Beurden has promised £2.5bn in cost savings.

Barclays Bank is the facility agent for the bridge financing of the deal. Bridge financing is a way to close the gap in order to raise finance to close a deal - at least until such time that the borrower can arrange long-term financing.

Bankers involved with Barclays in financing the deal include:

Alastair Macdonald, Deutsche Bank
John-Paul Way HSBC
Michael Atherton RBC Capital Markets, part of Royal Bank of Canada
Thierry Muschs, Sumitomo Mitsui Banking Corporation

Wartsila to Build LNG Import Terminal Northern Finland

The terminal will be built close to the port of Tornio, in Lapland. Wartsila is a mechanical engineering company headquartered in Helsinki - it deals in power plants, ship power and services. Wartsila also used to manufacture ships including icebreakers which might prove crucial for Arctic oil exploration.

Shell and BP to Supply LNG to Kuwait

Kuwait's demand for LNG imports began in 2009 mainly to provide energy for air-conditioning during the summer months. The current deal is for Shell/BP to supply LNG for five to six summers hence, totalling around 2.5m tonnes a year. KPC has previously signed deals with Vitol as well.

Japan - World's Largest LNG Consumer - Reduces its Bid Price for Asian Cargoes

Asia:
Asian LNG has slipped below $13 per mmBtu as the stockpiling from Japan and Korea and mild weather (reducing air conditioning demand) has given East Asia more bargaining power in the market for seaborne cargoes. According to Reuters, Kogas is not paying more than $12.50 with Indian importers paying up to $2 less per mmBtu owing to lower transport costs.

Europe:
In the UK the price of wholesale gas went up due to summer maintenance schedules at North Sea fields.

US (Henry Hub):
Henry Hub spot is around $2.74 and future at $2.80. Another US benchmark is New York City Gate spot (the diff between Henry Hub price and another hub being known as "location differential"). Major pricing locations include "citygates" which are places where distribution companies receive gas from a pipeline. NYC Gate spot is commonly used for pricing gas in the north-eastern US. Other city gate locations include Boston, Baltimore, Pittsburgh and Buffalo (second most populous city in the State of New York, originally the "Village of Buffalo" with 25 residents).

Citygate prices include the premium paid for delivery to the "citygate" from the main market centre (Henry Hub in Louisiana, adjacent to Texas and Mississippi). The Henry Hub is where gas is channelled to smaller distribution lines.

What factors do you think influence the city gate prices most? Henry Hub spot, weather patterns or inventory levels?

A-shares versus H-shares and Australia's Biggest Ever Trade Deal

Asia's largest oil company, PetroChina (Energize, Harmonize. Realize.), did a deal worth AUD 50bn to buy LNG from Western Australia. Ossie PM Kevin Rudd said the deal would create up to 6,000 jobs.

PetroChina issued H-shares in April 2000. H-shares are shares of companies incorporated in mainland China but listed on HKSE or any other foreign exchange. A-shares are similar but trade on mainland Chinese exchanges e.g. Shanghai, Shenzhen. Generally, only mainland citizens can invest in A-shares.

Exxon Flush With Cash (Forty Billion Dollars)

Exxon Mobil has nearly $40bn in cash reserves, thanks to conservative investment and high oil prices in 2008. Add to this $225 billion in repurchased stock, and Exxon has enough resources to buy oil major Shell for a 60% premium. Shell India is currently importing LNG at a price of $9.06 per mmBtu (1 mmBtu == 1 GJ or 1 thousand million Joules of energy) from Australia's North West Shelf. The gas is destined for Hazira terminal, Gujarat (India West Coast), a joint venture between Shell and Total. Hazira was developed at a cost of Rs 3,000 crore (which is 30 billion rupees). Currently (Jan09) 1USD is about Rs 50, so the cost of the terminal is about $600m (at current x-rates). Shell owns 74% of the Hazira companies.

Exxon CEO Rex Tillerson from Wichita Falls, Texas has also spoken out about opening up US supplies of oil and natural gas which would boost jobs.

Need to brush up on SI Units? Check out this data sheet from Berlin.