Category Archives: Energy industry

Israel risks crossing Hezbollah ‘red line’ as it prepares to connect to disputed gas field

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The Karish maritime reservoir, part of which is claimed by Lebanon, is estimated to hold 2-3tn cubic feet of natural gas

Israel is preparing to connect a disputed Mediterranean gas field to its national gas network, a development helping the country cement its new role as a supplier to Europe at the risk of inflaming tensions with Lebanon’s Hezbollah.

The Israeli energy ministry said last week that it would conduct tests on the rig and natural transmission system in the Karish maritime reservoir, part of which is claimed by neighbouring Lebanon. The work is expected to begin on Tuesday, and London-listed company Energean, which has licensed the field, has said that it is “on track to deliver [the] first gas from the Karish development project within weeks.”

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Biggest interest rate rise for 25 years could spell showdown at the Bank

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This week’s decision could pit Bank of England governor Andrew Bailey against an expansionary PM and chancellor

A lightning strike from the Bank of England awaits. Having delayed its decision until after the period of national mourning for the death of the Queen, Threadneedle Street could this week launch the biggest rise in borrowing costs for at least 25 years.

Announcing its plans a day before Kwasi Kwarteng’s mini-budget on Friday, the central bank is widely expected to use a fast and forceful rate increase to show its commitment to tackling soaring borrowing costs – despite the gathering storm clouds for the British economy.

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Germany takes subsidiary of Russian oil giant Rosneft under state control

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Three refineries put into trusteeship ahead of partial European embargo on Russian oil later this year

Germany has taken the German subsidiary of the Russian oil giant Rosneft under state control, putting three refineries into a trusteeship ahead of a partial European embargo on Russian oil at the end of the year.

The federal network regulator will become the temporary trust manager of Rosneft Germany and its share of refineries in Schwedt, near Berlin, in Karlsruhe and in Vohburg, Bavaria, Germany’s ministry for economic affairs announced on Friday.

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Luis Vuitton reduces thermostat and light use in shops to save energy

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LVMH announced measures after Emmanuel Macron urged France to reduce power consumption

LVMH, the owner of Louis Vuitton, plans to lower the thermostat at its stores around the world as part energy-saving measures this winter.

The French conglomerate will also turn off the lights at its stores earlier, starting in France in October before being deployed worldwide.

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British firms warned of delay in energy bills support, reports say

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Businesses may have to wait until November, although package could still be activated next month

British businesses have been warned by government officials that they will have to wait longer than households for financial support with their energy bills amid delays in launching the £150bn scheme, according to reports.

Company bosses are increasingly worried about the prospect of delays to the arrival of support because fixed energy contracts come to an end in October for hundreds of thousands of firms.

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European gas prices likely to fall sharply this winter, says Goldman Sachs

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EU countries’ efforts to avoid big shortages likely to ‘successfully solve’ Russian cuts, says bank

European countries can withstand Russia’s gas cuts this winter as supply headaches may have been “successfully solved”, according to analysis by a leading US bank.

Goldman Sachs said the price of gas was likely to more than halve this winter as efforts by EU countries’ to avoid big shortages this winter prove effective.

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‘Nothing is decided’: EU energy ministers clash over price cap on Russian gas

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Countries that import large volumes fear Kremlin would respond by halting all gas flows, plunging them into recession

EU energy ministers have clashed over a plan to put a price cap on Russian gas, casting doubt on whether the measure will go ahead.

Speaking after emergency talks in Brussels in response to surging gas and electricity prices, the EU’s energy commissioner, Kadri Simson, said “nothing is decided” on proposals to curb Russia’s income.

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Energy ministers to gather to thrash out EU approach to gas and electricity price crisis

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Talks expected to be complex, with some member states strongly against proposed price cap on Russian gas

EU energy ministers will gather for emergency talks in Brussels on Friday to thrash out common measures in an effort to counter a gas and electricity price crisis that threatens to make energy bills unaffordable for households and businesses and tip Europe into recession.

The European Commission president, Ursula von der Leyen, has set out a five-point plan, which includes a price cap on Russian gas that is likely to draw strong opposition from some member states.

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Bank of England to lend UK energy companies as much as £40bn

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Bailout fund provided amid soaring market prices and fears of another wave of collapses

The Bank of England will lend UK energy companies as much as £40bn to deal with soaring market prices amid fears of another wave of energy company collapses.

Prime minister Liz Truss, on her third day in office, said she wanted to make sure energy companies have the cash they need to buy energy if prices jump. Reports this week said British Gas owner Centrica was in talks with banks to secure extra cash as Vladimir Putin continues to choke off Europe’s supply of gas.

A review of the UK’s energy regulation that promises to deliver “fundamental reforms to the structure and regulation”

An energy supply taskforce, led by Madelaine McTernan, who currently heads the government’s vaccines taskforce, that will seek to agree long-term contracts for energy supply at steady prices

A review of the UK’s 2050 net zero target to ensure it is “not placing undue burdens on businesses or consumers”

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Germany to extend energy subsidies to smaller firms amid closure fears

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Economy minister says ‘demand shock’ must be addressed, as economists raise fears of recession

Germany plans to extend a scheme subsidising energy costs for big businesses that are heavily dependent on energy to all small and medium-sized businesses, as part of a package of measures designed to avoid a wave of insolvencies.

Robert Habeck, the economy minister, said he anticipated that the subsidies would be in place for a limited time, until efforts on the national and European level to bring down high electricity and gas prices take effect.

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Cost of living crisis: what governments around the world are doing to help

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From cancelling student loan debt to raising minimum wage, different strategies aim to reduce effects of soaring prices

The Covid pandemic, soaring food and fuel prices, and Russia’s invasion of Ukraine have dealt a triple blow to people around the world. Here is a look at what governments are doing to try to help citizens and companies weather the cost of living crisis.

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Gas prices likely to hit new highs as Russia shuts pipeline indefinitely

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More UK manufacturers are cutting production or making job cuts as result of ‘out of control’ energy bills

Analysts are expecting gas prices to surge to record highs this week after Russia shut down a key pipeline to Europe.

At the same time, a growing number of UK manufacturers have said they are already cutting production or making job cuts as a direct result of “out of control” energy bills.

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EU must act now on ‘catastrophic’ energy price spike, says European Council chief

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Charles Michel says bloc must address price caps and has been too late in putting ‘concrete proposals on the table’

The EU must “make up for lost time” in finding urgent answers to an energy price spike that is a “catastrophe” for households and businesses, the head of the European Council, Charles Michel, has said.

Michel, who chairs EU leader summits, said the bloc needed to address the question of price caps, an idea backed by many EU member states.

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South African court bans offshore oil and gas exploration by Shell

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Judgment is huge victory for campaigners concerned about effect of seismic waves on marine life

A South African court has upheld a ban imposed on the energy giant Shell from using seismic waves to explore for oil and gas off the Indian Ocean coast.

The judgment delivered in Makhanda on Thursday marks a monumental victory for environmentalists concerned about the impact the exploration would have on whales and other marine life.

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Johnson takes jibe at Truss plans for fracking and North Sea drilling

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Outgoing leader hails £700m funding for Sizewell C nuclear plant in penultimate speech

• Boris Johnson says ‘madness’ not to build Sizewell C – UK politics live

Boris Johnson has vowed to give his total support to the next prime minister, but could not resist using his penultimate speech to take a potshot at Liz Truss’s energy plans.

In an attempt to shore up his legacy just days before he leaves No 10, the outgoing Conservative leader hailed the government’s “accelerated, long-overdue reforms” to make the UK more energy independent and announced £700m for the Sizewell C nuclear plant.

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No one should be cut off if they can’t afford energy bills, says Zahawi

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UK chancellor says more help will be provided to heat homes this winter but does not explain how

The chancellor, Nadhim Zahawi, has said households should not be cut off if they cannot afford their energy bills, as the Treasury examines a range of options to help consumers cope with the cost of living crisis.

Zahawi promised that the government would expand on the £37bn package of aid announced earlier this year to help households tackle soaring energy costs. He told Sky News: “No one should be cut off because they can’t afford their bills.

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Energy price inflation: how the UK and EU could fight it

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What can be done about rising prices – and would nationalising gas and electricity firms help?

Governments across Europe have been funding relief measures to help people with energy and petrol bills. The UK announced a £15bn package in May, largely in the form of cash payments to households, while EU member states are estimated to have spent €280bn (£243m) over the past year on everything from subsidies and price caps to one-off payments. But bills for households and businesses are reaching unsustainable levels, with further increases expected next year, sharpening the debate over whether ministers should be intervening directly in energy markets to help bring prices down.

As Russia threatens to further reduce gas supplies, politicians in Italy, Spain, Greece and the Czech Republic are among those pushing for coordinated action. The European Commission president, Ursula von der Leyen, said on Monday Brussels was considering measures to be adopted by the 27 member states. What are the options?

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

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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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Gypsies and Travellers fear missing out on energy bills support

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Government urged to ensure thousands living in park homes in Great Britain receive £400 payments

Gypsy and Traveller groups are calling on the government to ensure thousands of households living in park homes are not excluded from its energy bills support scheme this winter as bills soar.

The scheme will pay out a total of £400 to all households in Great Britain with a domestic electricity connection between October and March, with monthly payments administered by their energy supplier.

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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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