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Europe plans to end long-term gas import contracts as prices soar
The European Union is planning a hard deadline to end long-term contracts to import natural gas as part of its green shift, a setback for top supplier Russia.
The bloc’s executive arm wants to prevent such contracts from being extended beyond 2049 in a sweeping overhaul of its energy markets, according to documents seen by Bloomberg News. The European Commission will also propose measures to strengthen security of supply as the bloc faces record prices and acute shortages this winter.
The plan set to be published on Wednesday will run counter to calls by Russia, which supplies about a third of Europe’s gas needs. The nation which is building up troops on the border with Ukraine has long argued in favor of long-term contracts and has repeatedly asked the EU to sign more such deals as a condition to extend an agreement to flow the fuel via its former Soviet Union partner after 2024.
Read more on: https://www.worldoil.com/news/2021/12/14/europe-plans-to-end-long-term-gas-import-contracts-as-prices-soar
Mahathi Uganda’s lakeside oil complex to open January 2022
Mahathi Infra Uganda’s $270-million lakeside logistics complex, a strategic addition to the East African nation’s oil infrastructure, is set to start operations in January.
The project is expected to help halve freight costs by moving most of the transportation of petroleum products between Kenya and Uganda from the roads to the lake, according the company’s board chairman, Michael Mukula. Shareholders in the venture include Mahathi Infra Services Pvt of India, Nairobi-based Siginon Group, an engineering firm and local company Fortune Energy.
The 14 tanks at the facility will more than double the nation’s petroleum-storage capacity to 70 million liters of gasoline, diesel, aviation fuel and kerosene, Mukula said in a separate interview. Uganda consumes about 185 million liters of petroleum products monthly.
Read more on: https://www.worldoil.com/news/2021/12/16/mahathi-uganda-s-lakeside-oil-complex-to-open-january-2022
OPEC increases global oil demand forecast for Q1 2022
OPEC increased its forecast for global oil demand in the first quarter substantially, as some of this year’s recovery is delayed by Omicron but the overall risk from the new virus strain remains limited.
The Organization of Petroleum Exporting Countries boosted estimates for consumption in the period by 1.1 million barrels a day equivalent to annual world consumption growth in a typical year before the pandemic according to a monthly report from the group’s research department.
Oil prices have nonetheless largely held up, with crude trading near $75 a barrel in London, as initial signs show that demand hasn’t yet suffered from the latest virus outbreak. OPEC’s decision to technically keep its meeting in session -- leaving the door open to reversing the supply increase at short notice if needed -- is also shoring up sentiment.
Read more on: https://www.worldoil.com/news/2021/12/13/opec-increases-global-oil-demand-forecast-for-q1-2022
