Wholesale gas prices tumble as Europe prepares to intervene in energy markets

European Commission says it is working ‘flat out’ on emergency intervention and on longer-term structural reform

The wholesale price of gas has dropped sharply in a rare respite from recent highs on signs that Europe is preparing to intervene directly in energy markets.

The European Commission said it was working “flat out” on an emergency package, and on a longer-term “structural reform of the electricity market” to combat soaring prices while efforts to fill gas storage facilities appear to be ahead of schedule.

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European gas shortages likely to last several winters, says Shell chief

Warning raises prospect of continued rationing, as Total boss says Europe has to plan for future without Russian supplies

Gas shortages across Europe are likely to last for several winters to come, the chief executive of Shell has said, raising the prospect of continued energy rationing as governments across the continent push to develop alternative supplies.

Cuts to the supply of Russian gas since the invasion of Ukraine have plunged European countries into a devastating energy crisis, driving up wholesale prices to leave consumers facing huge bills and the highest rates of inflation since the 1980s.

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British Gas to donate 10% of profits to struggling customers

Company’s owner, Centrica, says extra support will begin in autumn and last for the ‘duration of the energy crisis’

British Gas has announced it will donate 10% of its profits to help its poorer customers manage rising gas and electricity bills for the “duration of the energy crisis”.

Ahead of an expected rise in the price cap on energy on Friday, the company’s owner, Centrica, said it would donate £12m this autumn into an existing support fund. Grants of £250 to £750 would be given to poorer customers, and the pledge to donate 10% of profits every six months would last for the duration of the energy crisis “backdated to the start of 2022”, it added.

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Power station owner Uniper posts £10bn loss as gas shortages bite

German energy firm, which operates many UK power stations, has been bailed out by federal government

The owner of the Ratcliffe-on-Soar power station in Nottinghamshire has posted a €12bn (£10bn) loss weeks after agreeing a bailout package with the German government, in a set of results that signal the deepening energy crisis across Europe.

Uniper received a €15bn lifeline from the German state in return for a 30% equity stake in a deal agreed in July.

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Oil prices hit lowest level since Ukraine invasion on China growth fears

Chinese recovery from lockdowns shows signs of fizzling out as central bank cuts interest rates

Global oil prices have dropped amid concerns over weaker growth in the Chinese economy caused by repeated Covid lockdowns and a downturn in the property sector.

A barrel of Brent crude fell by about 5% to below $94 (£78) on Monday, hitting the joint lowest levels since the Russian invasion of Ukraine as traders reacted to weaker figures from the world’s second-largest economy.

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Saudi Aramco profits soar by 90% as energy prices rise

The $48bn figure from world’s biggest oil firm is thought to be one of largest quarterly profits in history

Saudi Arabia’s largely state-owned energy firm has highlighted the colossal profits made by gas and oil-rich nations during the energy crisis by revealing profits in the three months to the end of June up 90% to $48bn (£40bn).

Saudi Aramco recorded what is believed to be one of the largest quarterly profits in history to easily beat the near $26bn it made a year earlier.

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UK energy bills ‘to top £4,200’ amid warning of ‘serious hardship on a massive scale’ – business live

Joseph Rowntree Foundation, consumer champion Martin Lewis and CBI chief urge PM to act urgently to help people with soaring energy bills

More on the new forecast for UK energy bills from Cornwall Insight, which spells more misery for millions of families across the UK.

The consultancy’s principal consultant, Dr Craig Lowrey, said:

It is essential that the government use our predictions to spur on a review of the support package being offered to consumers.

If the £400 was not enough to make a dent in the impact of our previous forecast, it most certainly is not enough now.

The government must make introducing more support over the first two quarters of 2023 a number one priority. In the longer term, a social tariff or other support mechanism to target support at the most vulnerable in society are options that we at Cornwall Insight have proposed previously. Right now, the current price cap is not working for consumers, suppliers, or the economy.

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Gazprom daily gas output in July lowest since 2008, analysis suggests

Output last month of Russian firm was down 14% on June, sharpening fears Moscow could provoke energy crisis in Europe

The daily gas production of Russia’s Gazprom dropped in July to its lowest level since 2008, figures suggest, amid continued fears that Moscow could cause an energy crisis in Europe by shutting off the supply.

The state-owned energy firm pumped 774 million cubic metres a day last month – 14% less than in June – according to analysis by Bloomberg of data released on Monday.

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Germany accuses Russia of ‘power play’ as gas pipeline supply drops by half

State-run Gazprom reduces flow through Nord Stream 1 to around 20% of its capacity

Germany has accused Moscow of engaging in “power play” over energy exports, as Russian state-run Gazprom further throttled gas supplies into Europe.

As announced two days earlier, the energy giant on Wednesday reduced the gas flow through Nord Stream 1 to 33m cubic metres a day – about 20% of the pipeline’s total capacity and half the amount it has been delivering since resuming service last week after 10 days of maintenance work.

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EU agrees plan to ration gas use over Russia supply fears

Despite most energy ministers backing the scheme the EU was forced to water down proposals

The EU has been forced to water down its plan to ration gas this winter in an attempt to avoid an energy crisis generated by further Russian cuts to supply.

Energy ministers from the 27 member states, except Hungary, backed a voluntary 15% reduction in gas usage over the winter, a target that could become mandatory if the Kremlin ordered a complete shutdown of gas to Europe.

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Russia’s Gazprom to make drastic cut to Europe’s gas supply from Wednesday

State-controlled energy company says it is halting a turbine due to the ‘technical condition of the engine’

The Russian state-controlled energy company Gazprom has announced a drastic cut to gas deliveries through its main pipeline to Europe from Wednesday.

The Russian gas export monopoly said it was halting the operation of one of the last two operating turbines due to the “technical condition of the engine”, cutting daily gas deliveries via the Nord Stream pipeline to 33m cubic metres a day – about 20% of the pipeline’s capacity.

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Ukraine and Russia sign UN-backed deal to restart grain exports

Shipping of millions of tonnes from blockaded Black Sea ports could avert global food crisis

Ukraine and Russia have signed a UN-backed deal to allow the export of millions of tonnes of grain from blockaded Black Sea ports, potentially averting the threat of a catastrophic global food crisis.

A signing ceremony at Dolmabahçe Palace in Istanbul was attended by the UN secretary general, António Guterres, and Recep Tayyip Erdoğan, Turkey’s president, who had played a key role during months of tense negotiations.

A coalition of Turkish, Ukrainian and UN staff will monitor the loading of grain on to vessels in Ukrainian ports before navigating a pre-planned route through the Black Sea, which remains heavily mined by Ukrainian and Russian forces.

Ukrainian pilot vessels will guide commercial vessels transporting the grain in order to navigate the mined areas around the coastline using a map of safe channels provided by the Ukrainian side.

The vessels will then cross the Black Sea towards Turkey’s Bosphorus strait while being closely monitored by a joint coordination centre in Istanbul, containing representatives from the UN, Ukraine, Russia and Turkey.

Ships entering Ukraine will be inspected under the supervision of the same joint coordination centre to ensure they are not carrying weapons or items that could be used to attack the Ukrainian side.

The Russian and Ukrainian sides have agreed to withhold attacks on any of the commercial vessels or ports engaged in the initiative to transport vital grain, while UN and Turkish monitors will be present in Ukrainian ports in order to demarcate areas protected by the accord.

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EU urges member states to slash gas use by 15% to counter ‘Russian blackmail’

Call for voluntary cut until March 2023 with binding reduction targets possible when Moscow ‘likely’ halts supplies

The European Union’s executive body has urged member states to slash their gas consumption by 15%, as it warned that a complete shutdown of Russian supplies was “likely”.

The EU has been scrambling to wean itself off Russian gas since the invasion of Ukraine, but is alarmed about a potential energy crisis this winter.

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Russia’s Gazprom tells European buyers it cannot guarantee gas supplies

Force majeure declared in letter to customers concerns supplies via Nord Stream 1 pipeline, says source

Russia’s Gazprom has told customers in Europe it cannot guarantee gas supplies because of “extraordinary” circumstances, according to a letter seen by Reuters, upping the ante in an economic tit-for-tat with the west over Moscow’s invasion of Ukraine.

Dated 14 July, the letter from the Russian state gas monopoly said it was declaring force majeure on supplies, starting from 14 June.

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Europe could face energy rationing as ‘really tough winter’ looms, Shell boss warns

Ben van Beurden says Ukraine war fallout means big rise in bills and possible need to ration supplies

European consumers could face the prospect of energy rationing this winter as costs continue to soar amid the risk of Russia cutting off gas supplies, Shell’s chief executive has said.

“It will be a really tough winter in Europe,” said Ben van Beurden, speaking at the Aurora spring conference in Oxford on Thursday. “We will all face very significant escalation in energy prices. In the worst case, Europe will need to ration its energy consumption.”

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More than 130 grain ships stuck in Black Sea as talks start in Istanbul

Negotiators from Russia, Ukraine, the UN and Turkey seek deal to enable exports to pass on to the Danube

A traffic jam of more than 130 cargo ships loaded with Ukrainian grain is waiting in the Black Sea to pass into the Danube as negotiators from Moscow, Kyiv, the UN and Turkey hailed progress at talks in Istanbul on easing Ukrainian agricultural exports.

The ships are waiting to access exit routes through the Sulina and Bystre estuary canals to reach a series of ports and terminals in Romania from where the grain can be transported on around the world, amid mounting global concern about the Russian blockade on Ukrainian exports through the Black Sea.

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Germany braces for ‘nightmare’ of Russia turning off gas for good

Ministers fear flow may never restart as annual maintenance work soon begins on Nord Stream 1 pipeline

Germany is bracing itself for a potentially permanent halt to the flow of Russian gas from Monday when maintenance work begins on the Nord Stream 1 pipeline that brings the fuel to Europe’s largest economy via the Baltic Sea.

The work on the 759-mile (1,220km) pipeline is an annual event and requires the gas taps to be closed for 10 to 14 days. But never before in the pipeline’s decade-long history has Germany seriously been asking whether the flow will begin again.

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Norway halts strike that threatened gas supplies to Britain

Norwegian government intervenes in pay row because of ‘great social consequences for whole of Europe’

The Norwegian government has stepped in to end a strike that had threatened supplies of gas to Britain.

The labour dispute had shut down oil and gasfields and was expected to cut Norway’s gas supplies by almost 60% by the weekend.

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Zimbabwe to introduce gold coins as local currency tumbles

Soaring inflation piling pressure on country already struggling with shortages and stirring memories of Mugabe chaos

Zimbabwe will start issuing gold coins as legal tender in late July, its central bank has said, as the country battles to control runaway inflation that has considerably weakened the local currency.

The inflation rate more than doubled last month to 191%, stoking memories of the hyperinflation of the 2000s that saw the Zimbabwean dollar redenominated three times before being effectively abandoned in 2009.

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The Nigerian gas deal, the Irish impresario and the £8bn ruling amid claims of bribery

Officials allege contract was corruptly procured by business duo behind P&ID as saga of energy project and secretive tribunal heads for high court

It has been described as one of the most extraordinary cases ever to come before the high court, involving an Irish impresario, an alleged $50,000 bribe stuffed into a bag and potentially one of the biggest payouts in legal history.

The saga of two Irish businessmen, Michael Quinn and Brendan Cahill, who promised to revolutionise Nigeria’s energy sector, will be at the centre of a high court trial early next year.

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