Category Archives: Gas

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

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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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Rising energy bills put millions of UK households at risk of winter catastrophe

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Experts say 80% price cap increase will plunge people into destitution and cause avoidable deaths

Millions of households are bracing for a winter catastrophe of rising energy bills that experts say will plunge people into destitution and cause an increase in avoidable deaths without urgent government support.

After Britain’s energy industry regulator confirmed an 80% rise in the consumer price cap from October that will take a typical household’s gas and electricity bill to £3,549 a year, there were stark warnings about its potentially devastating effects.

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German ministers under pressure to scrap gas levy after anger over profits

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Government to review aid package as energy companies who seek share of surcharge post-billion-euro earnings

The German government is under pressure to radically revise or scrap a controversial new gas levy on already stretched consumers after it emerged that some energy companies seeking a share of the surcharge have posted billion-euro earnings.

Robert Habeck, the economy minister, said his ministry acknowledged the angry response to the surcharge and would urgently review the aid package in an attempt to prevent gas importers whose businesses have profited from recent energy inflation from benefiting from it.

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British Gas to donate 10% of profits to struggling customers

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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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Next PM could face £23bn autumn spend to cover £900 rise in energy bills

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Energy prices have soared above prediction and subsidies will require significant further spending

Ministers could face an additional £23bn price tag for covering extra household energy costs of £900 this autumn, rising to £90bn next year, a new paper by the Institute for Government has found.

The paper, looking at the options for Liz Truss or Rishi Sunak in No 10, also warned the government should plan for prolonged rises in energy bills by going a lot further in making public appeals to use less gas – for example by informing consumers about the cost savings from turning down thermostats – and in committing to building more energy efficient homes to help protect consumers.

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‘Too much to lose’ in Santos gas project off Tiwi Islands, marine ranger tells court

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Federal court hearing on the islands, north of Darwin, told a spill would mean ‘everything ends up dead’ in delicate marine ecosystem

A large gas project off the Tiwi Islands could threaten a vulnerable turtle species and disrupt a thriving ecosystem of fish, a marine ranger has told the federal court.

Tiwi Islander Dennis Tipakalippa is challenging the decision to allow Santos to drill eight wells in the Barossa gas field, 265km north-west of Darwin.

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Timor-Leste warns it will work with China if Australia insists on pumping Timor Sea gas to Darwin

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Exclusive: President José Ramos-Horta says his country’s leadership ‘has to make decisions … if necessary a trip to China’

Timor-Leste’s president, José Ramos-Horta, has warned his nation will seek Chinese support if Australia and Woodside Energy fail to back a gas pipeline between the resource-rich Timor Sea and his country’s southern shore, rather than Darwin.

Ramos-Horta has warned Timor-Leste – Australia’s neighbour and ally – would “absolutely” look to Chinese investment to secure what he says is the “national strategic goal” of piping gas from the Greater Sunrise fields to his nation’s coast. The comments are likely to heighten concerns about Chinese influence in the Indo-Pacific.

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

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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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Rinehart-backed joint venture pledges $1bn gas expansion but hurdles remain

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Senex Energy says extra fuel will be for domestic use but plans are yet to secure state or federal environmental approvals

Gas producer Senex, which is jointly owned by South Korea’s steel giant Posco and Australian billionaire Gina Rinehart, has planned a more than $1bn expansion to its Queensland gasfields with the bulk of the extra fuel apparently to be earmarked for domestic use.

The company, which is seeking federal and state approval for two sites adjacent to its Atlas and Roma North projects in the Surat Basin, made the announcement ahead of a speech by the resources minister, Madeleine King. It still has to clear some state regulatory hurdles, Senex said.

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Australian electricity companies not reducing emissions in line with Paris agreement goals, study finds

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AGL, EnergyAustralia and Origin among businesses study says not on track to meet global climate goals to limit heating to well below 2C

Nine out of 10 major Australian electricity companies are failing to reduce greenhouse gas emissions fast enough to meet the goals of the landmark Paris climate agreement, a study has found.

Businesses not acting in accordance with the 2015 Paris agreement goal of limiting global heating to well below 2C since pre-industrial times included the generators and retailers AGL, EnergyAustralia and Origin, according to the study led by University of Queensland researchers.

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Australia’s high gas prices could be here to stay if threats don’t turn into action

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The east coast faces a potential gas shortfall in 2023 amounting to 10% of demand and there are calls for exporters to fill the gap

Some time in the next couple of weeks, a well-known ASX-listed company could go to the wall if it can’t secure a new contract for gas.

That firm, for now at least, can’t go public without its share price cratering and its employees and suppliers being sent into a panic.

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

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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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African nations expected to make case for big rise in fossil fuel output

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Exclusive: leaders expected to say at Cop27 they need accesss to their oil and gas reserves despite effect on global heating

Leaders of African countries are likely to use the next UN climate summit in November to push for massive new investment in fossil fuels in Africa, according to documents seen by the Guardian.

New exploration for gas, and the exploitation of Africa’s vast reserves of oil, would make it close to impossible for the world to limit global heating to 1.5C above pre-industrial levels.

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Australian wholesale energy prices in June quarter tripled from last year, market operator says

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Aemo executive says need for renewables is ‘urgent’ as failing coal-fired power plants and global gas costs cause prices to surge

Wholesale electricity and gas prices tripled in Australia’s main grid in the June quarter compared with a year ago, as failing coal-fired power plants and soaring global gas costs combined to create “unprecedented” market disruptions, the Australian Energy Market Operator (Aemo) said.

Aemo’s quarterly market dynamics report found average spot prices for electricity in the national electricity market, which serves eastern Australia, averaged $264 per megawatt-hour across the quarter. That’s more than double the previous high of $130 in the first quarter of 2019 amid droughts and heatwaves, and a little more than three times the average price in the June quarter of 2021, which was $85.

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German cities impose cold showers and turn off lights amid Russian gas crisis

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Hanover is first large city to impose energy-saving measures and Berlin switches off monument spotlights

Cities in Germany are switching off spotlights on public monuments, turning off fountains, and imposing cold showers on municipal swimming pools and sports halls, as the country races to reduce its energy consumption in the face of a looming Russian gas crisis.

Hanover in north-west Germany on Wednesday became the first large city to announce energy-saving measures, including turning off hot water in the showers and bathrooms of city-run buildings and leisure centres.

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

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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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How does the EU plan to cut gas usage by 15% this winter?

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Industry to feel pinch first after all countries in bloc except Hungary agreed to voluntary reduction

The EU has agreed to cut its gas consumption by 15% in an attempt to stave off a winter crisis triggered by a sharp reduction or total shutdown of Russian gas supplies to the bloc.

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EU agrees plan to ration gas use over Russia supply fears

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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

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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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Natural gas prices rising in US, dampening hopes for lower inflation

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High price of natural gas increases costs for other products including steel, cement and glass

The price of natural gas in the US has risen by nearly half in the past month, as drought and the war in Ukraine continue to bite and millions of Americans turn up their air conditioners in a heatwave.

Natural-gas futures jumped 48% this month, including 10% on Wednesday, to $8.007 per million British thermal units (btu). The rise has come as other energy costs, including oil, have begun to drop from their June peaks.

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