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Tag: Gas

  • Russian gas exports to Europe via Ukraine cease as transit deal ends

    Russian gas exports to Europe via Ukraine cease as transit deal ends

    Canada Global (Web News) On New Year’s Day, Russia’s gas exports through Soviet-era pipelines via Ukraine to Europe were halted as a transit deal expired, with no agreement reached between Moscow and Kyiv to continue the flow.

    This marks the end of a decade-long strained relationship following Russia’s 2014 annexation of Crimea. Ukraine stopped buying Russian gas the following year and has refused to renew the transit deal due to ongoing conflict.

    Gazprom had anticipated the loss of this pipeline route, which accounted for about half of Russia’s gas exports to Europe. Despite the shutdown, Russia still supplies gas to Europe through the TurkStream pipeline. Meanwhile, European countries have sought alternative energy sources, and Moldova, heavily dependent on Russian gas, faces significant reductions in supply.

    Ukraine loses $800 million annually in transit fees, while Gazprom faces a $5 billion revenue loss. Other Russian gas routes, including the Yamal-Europe pipeline and Nord Stream, have also been disrupted. In 2023, Russia shipped 15 bcm of gas via Ukraine, a sharp drop from 65 bcm in 2020.

  • Russia begins fuel supplies to Iran by rail

    Russia begins fuel supplies to Iran by rail

    Canada Global (Web News) According to three industry insiders and exports statistics, Russia began shipping fuel to Iran by train for the first time this year after usual clients avoided doing business with Moscow.

    In order to bolster their economies and counter Western sanctions that both Moscow and Tehran view as unwarranted, Russia and Iran, both of whom are subject to Western sanctions, are becoming closer together.

    Global fuel markets have changed as a result of Western sanctions on Russian oil products related to what Moscow refers to as its “special military operation” in Ukraine. Tankers now travel longer routes and suppliers now favour exotic locations and modes of transportation.

    Iran has had limited access to international markets due to Western sanctions for many years.

    Requests for reaction from the Russian and Iranian oil ministries went unanswered.

    Aleksandr Novak, the deputy prime minister of Russia, declared in the autumn of 2017 that oil goods will begin to be exchanged with Iran; but, actual shipments didn’t begin until this year, according to sources with Reuters.

    According to two sources acquainted with the export data, Russia gave Iran up to 30,000 tonnes of petrol and diesel in February and March.

    A third source was able to validate the trade but not the quantities.

    All of the amounts were delivered by train via Turkmenistan and Kazakhstan from Russia. One of the sources claimed that some petrol shipments were made by truck from Iran to neighbouring countries like Iraq.

    Iran is an oil producer with its own refineries, but recently, especially in its northern provinces, domestic fuel use had outpaced domestic fuel production, according to a trader in the Central Asian oil products market.

    In 2018, Russia had delivered tiny amounts of fuel to Iran by tanker via the Caspian Sea, according to two businessmen with knowledge of the situation.

    As a result of high freight costs and a G7-imposed price restriction, Russian oil corporations are now interested in shipping fuel and petrol to Iran by train.

  • Oil rises on China optimism, market shrugs off US inventory build

    Oil rises on China optimism, market shrugs off US inventory build

    Canada Global (Web News) Oil prices increased on Thursday as expectations of a strong recovery in gasoline consumption in top oil consumer China outweighed losses due to a strengthening dollar and a significant increase in U.S. crude inventory.

    By 03:52 GMT, Brent crude futures had increased by 42 cents, or 0.5%, to $85.80 per barrel, while U.S. West Texas Intermediate (WTI) crude futures had increased by 48 cents, or 0.6%, to $79.07 per barrel.

    The International Energy Agency (IEA) estimates that China will contribute 900,000 barrels per day (bpd) of the increase in oil demand, which will increase by 2 million barrels per day (bpd) in 2023, up 100,000 barrels per day from the forecast made last month to a record 101.9 million bpd.

    According to the Paris-based organisation, China will account for more than half of the growth in global oil consumption in 2023 after lifting its COVID-19 restrictions. Read More

    The U.S. dollar, which frequently moves against crude prices, rose and held onto the majority of those gains on Thursday as a result of encouraging U.S. retail sales numbers.

    “OPEC and the IEA’s upbeat view on China were helpful. The enormous U.S. oil stock build was matched by the net upward thrust, but I don’t see much more headroom just yet “said Vandana Hari, the creator of Vanda Insights, a source of oil market information.

    The Energy Information Administration (EIA) said that U.S. crude oil reserves increased by 16.3 million barrels last week to reach 471.4 million barrels, the largest level since June 2021. A data correction, which analysts claimed had a reduced effect on oil prices, was mostly to blame for the larger-than-expected build.

    According to independent market researcher Sugandha Sachdeva, “Oil prices are projected to bounce in a narrow range, caught between the contrasting demand-supply dynamics.”

    The narrative of strong demand revival from China and prospects of Russia-linked output cuts is driving up oil prices, Sachdeva continued. “While the steadily rising U.S. production and swelling inventories combined with a broad recovery in the U.S. dollar are acting as a headwind for oil prices, nonetheless,” she said.

  • Govt hikes gas price by 113pc

    Govt hikes gas price by 113pc

    Canada Global (Web News) The Oil and Gas Regulatory Authority (OGRA) has announced an increase in the gas tariff for oil categories of 16.6% to 113pc for the period of January to June 2023.

    The change occurs soon after the coalition administration drastically raised the cost of fuel products.

    The authority claims in a statement that the Ministry of Energy’s Petroleum Division conveyed the federal cabinet-approved decision of the Economic Coordination Committee (ECC) about the pricing of gas sales, which would take effect on January 1, 2023.

    The OGRA informed the sale pricing for each category of retail natural gas users after receiving the aforementioned advise.

    Domestic gas use of up to 100 cubic metres has seen a 16.6% price hike from Rs300 to Rs350.

    Domestic gas use up to 100 cubic metres has seen a 16.6% price increase, going from Rs300 to Rs350 per MMBTU, or a rise of Rs50 per MMBTU. The price per MMBTU for domestic customers who use 200 cubic metres has increased by 32%, from 553 to Rs730.

    For consumers of up to 300 cubic metres of gas, a 69 percent increase in the pricing has been approved; they will now pay Rs. 1,250 per MMBTU, up from Rs. 738 per MMBTU. The price for home customers using up to 400 cubic metres of gas has increased by 99 percent, or from Rs. 1,107 to Rs. 2,200 per MMBTU.

  • Gas prices increased by more than 100 percent

    Gas prices increased by more than 100 percent

    Canada Global (Web News) Following the government’s negotiations with the International Monetary Fund, the Economic Coordination Committee (ECC) on Monday approved a rise in gas rates for residential, commercial, and exporter consumers of more than 100%. (IMF).

    According to the slabs, the price per metric million British thermal units (MMBtu) has increased for home consumers by Rs50 to Rs1810 and for commercial consumers by Rs1283 to Rs1650. The cost per MMbtu for consumers purchasing in bulk, however, has climbed from Rs780 to Rs1600, and the cost per MMbtu for K-Electric and SNPC power plants has increased from Rs857 to Rs1050.

    While the cement industry would pay Rs1500 per MMBtu instead of Rs1277, fertiliser prices have increased by Rs1275 per MMBtu. CNG will be available for Rs1805 per MMBtu, and exporters would be taxed Rs1100 per MMBtu. In addition, consumers in the protected group will pay fixed fees of Rs. 50 while consumers in the unprotected category would pay Rs. 500.

    The new price will be in place as of January 1, 2023. The ECC, however, also approved a grant of Rs. 40 billion for the Benazir Income Support Program (BISP). The hike in gas prices had already been proposed by the Oil and Gas Regulatory Authority (Ogra).

  • Competition Bureau is looking into Canadian Gas Association accusations.

    Competition Bureau is looking into Canadian Gas Association accusations.

    Canada Global (Web News) The Canadian Gas Association is being looked at by the federal Competition Bureau to see if it made false claims regarding the effects of natural gas on the environment.
    The agency announced on Thursday that it had opened an investigation into the industry lobby group’s “alleged misleading marketing activities.” Six members of the environmental advocacy group Canadian Association of Physicians for the Environment filed a complaint, which served as the impetus for the investigation (CAPE).

    The Canadian Gas Association, whose members include businesses like Enbridge Inc., FortisBC, and ATCO, is accused by the complainants of deceiving the public with its “Fueling Canada” marketing campaign.

    The initiative encourages the use of natural gas as a low-emission energy source. The lobby group claims that “Canada’s natural gas sector works 24/7 to deliver affordable, clean, and reliable energy for families and companies” on the campaign’s website.

    Natural gas is not, according to the Canadian Association of Physicians for the Environment, as “clean” as the advertising campaign makes it out to be. The organisation claims that natural gas is a fossil fuel that contributes to global warming in a news release.

    According to Dr. Melissa Lem, a member of CAPE and one of the complainants, “the extraction and manufacturing of gas also pollutes the air and contaminates water sources, while closer to home, gas appliances produce indoor air pollution and represent a major health risk for children’s respiratory health.”