Iraq Seals Major Oil Deal with Chinese Company

By Irina Slav - May 22, 2025

Iraq’s government has signed a deal with Chinese Geo-Jade Petroleum to expand production at the Tuba oil field, build a refinery and two power plants.

Per an AFP report, the deal will also involve the construction of a petrochemicals facility and a fertilizer plant. The refinery that Geo-Jade Petroleum will build will have a capacity of 200,000 barrels daily. One of the power plants will have a capacity of 650 MW and the other, a solar power facility, will have a capacity of 400 MW.

“These projects with Geo-Jade represent a big leap in the development of Iraq’s oil wealth and supporting of the national economy,” Iraq’s oil minister, Hayan Abdel Ghani, said, adding that the deal would create thousands of jobs.

Geo-Jade Petroleum already operates in Iraq – it is in charge of the Khana field, which is slated to begin expanded production in 2026.

Chinese companies as a whole have built a solid presence in OPC’s number-two, driven by Beijing’s strategy to expand supply availability through both domestic and international investments. To date, more than a third of Iraq’s proven oil and gas reserves and as much as 66% of production are under the management of Chinese firms, Simon Watkins reported earlier this year.

The Iraqi government’s ambition to boost production significantly, to as much as 7 million bpd, Chinese companies are among the best placed to take advantage of the opportunity. Currently, Iraq produces around 4 million barrels daily—above its OPEC+ production quota, which has created tensions with OPEC’s number-one, Saudi Arabia.

Chinese companies’ entry into Iraq’s oil and gas sector is a result of an agreement inked back in 2019 and dubbed “Oil for Reconstruction and Investment”, under which Chinese companies are granted entry into Iraq’s energy infrastructure sector as investors in return for oil supplies.

By Irina Slav for Oilprice.com

Africa's Largest Refinery Expands Petrochemical Exports

By Tsvetana Paraskova - May 22, 2025

The petrochemical plant next to Africa’s largest refinery, Dangote, will export polypropylene to the global markets under an exclusive partnership with petrochemicals distributor Vinmar International. 

Polypropylene (PP) – a common, versatile thermoplastic polymer – is used in many applications, including plastics, fibers, packaging, and automotive components. 

“This collaboration marks an important step in expanding the reach of high-quality polypropylene produced at Dangote’s new refinery and petrochemical complex in Lekki, Nigeria,” Vinmar International said. 

Dangote’s $2 billion Petrochemical Plant is designed to produce 77 different high-performance grades of polypropylene in the country.

The Dangote Petrochemical plant has a 900,000 metric tonnes per annum capacity and is situated alongside the Dangote Refinery. Once fully operational, the plant will be Africa’s biggest petrochemicals facility. 

The petrochemical plant launched polypropylene production in March for the local market. Now the petrochemical unit of the Dangote Group is looking to not only meet domestic demand but become an exporter of polypropylene. 

“We’re pleased to partner Vinmar to introduce Dangote Polypropylene to the global markets,” Fatima Aliko Dangote, an executive director at Dangote Group, said at the launch of the petrochemical plant, as carried by Reuters.

Nigeria imports 90% of its annual polypropylene needs, which are at around 250,000 metric tons. The Dangote plant will cover the domestic requirement and export the rest of the polypropylene produced at the site. 

The Dangote oil refinery, Africa’s largest crude processing facility, began fuel production in 2024. The refinery started up in January last year with the launch of diesel and naphtha production and began producing gasoline in September. 

The refinery, built by Africa’s richest person, Aliko Dangote, has total processing capacity of 650,000 barrels per day (bpd), which makes it Africa’s biggest and one of the world’s largest crude processing sites. 

The refinery is expected to meet 100% of Nigeria’s demand for all refined petroleum products and will also have a surplus of each of the products for export. 

By Tsvetana Paraskova for Oilprice.com

India LNG Terminal Expansion Faces Delay

By Tsvetana Paraskova - May 22, 2025

Petronet LNG, the Indian state-owned terminals operator, has delayed the launch of expanded import capacity at the Dahej facility due to logistics challenges and security concerns following the flare-up in India-Pakistan relations. 

Petronet LNG was initially expected to commission additional import capacity of 5 million tons per year at Dahej in March. The launch has now been pushed back to September, the company’s chief executive officer Akshay Kumar Singh said this week, as carried by Argus.

Petronet LNG is on track to raise the capacity at the Dahej import terminal to 22.5 million tons per year. The timing has been delayed also due to the security concerns after the cross-border attacks which nuclear powers India and Pakistan exchanged at the end of April and early May. 

Indian companies are looking to raise LNG import capacity as the country’s natural gas demand is set to surge in the coming decades. 

The latest Indian LNG import terminal, owned by state-owned Hindustan Petroleum Corporation Limited (HPCL), received its first cargo of the super-chilled fuel in January. 

India plans to ramp up LNG imports and the use of natural gas as a fuel cleaner than coal and needed in many industrial processes.

Natural gas demand in India is set to surge by 60% by 2030, supported by upcoming global LNG supply wave, the International Energy Agency (IEA) said earlier this year. 

India’s gas consumption is set to reach 103 billion cubic meters (bcm) annually by the end of the decade, the agency reckons. 

“India's gas market is entering a new phase of growth, supported by significant infrastructure development and clear policy direction,” IEA Director of Energy Markets and Security, Keisuke Sadamori, said in a statement. 

“The prospect of higher gas demand in India coincides with an expected wave of new global LNG supply. However, it will require careful planning and market coordination to ensure supply security and to help gas to compete in a price-sensitive market,” Sadamori added.  

By Tsvetana Paraskova for Oilprice.com

Study: 

Expanding Renewable Energy Does Not Lower Fossil Fuel Production

By Alex Kimani - May 21, 2025

• A study has found that increased renewable energy production may not lead to lower fossil fuel production in the U.S.
• 
  
• Study: additional policies may be required if the United States is to lower its reliance on fossil fuels.
• 
  
• GHG emissions have fallen in Europe, but demand for hydrocarbons remains firm.

A new study has found that increasing renewable energy may not necessarily reduce fossil fuel production in the United States. Published in the Journal of Environmental Studies and Sciences, the study found no correlation between the production of fossil fuels and renewable energy, suggesting that producing more renewable energy does not automatically mean that fossil fuel production will decline. 

Ryan Thombs, the author of the study, analyzed data spanning 1997 to 2020 from the 33 American states that produce fossil fuels. Thombs, however, found that more than 96% of the variation in fossil fuel production trends across the states depended on factors such as available deposits in each state.

According to Thombs, additional policies may be required if the United States is to lower its reliance on fossil fuels, with the ongoing myth that ramping up renewable energy investments naturally leads to less fossil fuel production debunked.

"Policies could include ones that directly limit fossil fuel production through carbon taxes, setting production caps on fossil fuels and keeping fossil fuel reserves in the ground," he said. "Future research could consider other geographical contexts to see if the findings from this study are generalizable elsewhere and should also consider the effectiveness of specific policies that have been implemented."

According to the United Nations, fossil fuels account for almost 90% of carbon dioxide emissions and more than 75% of greenhouse gas emissions. Transitioning away from fossil fuels to renewable energy  fossil fuels is frequently touted as the best way to mitigate climate change

Thombs might have a valid point.

Favorable policies in Europe have accelerated the transition to renewable energy, with fossil fuels gradually phasing out fossil fuel power generation. In 2022, Europe suffered its biggest energy crisis, with the weaponization of natural gas supplies by Russia aggravating its energy security, leading to a massive spike in gas prices. Consequently, the European Commission launched the REPowerEU Plan in a bid to produce more clean energy, diversify energy supplies and phase out Russian fossil fuel imports.

The implementation of the REPowerEU Plan has been a success, allowing the continent to drastically phase down Russian fossil fuel imports and diversify supplies. Europe has cut Russian gas from 45% of total imports before the invasion to just 15% currently. Meanwhile, Europe has ramped up LNG imports from the United States to ~100 billion cubic feet per month, up less than 50 billion cubic feet per month before the invasion.

But here’s the kicker: Fossil fuels are losing their place in Europe’s energy mix. Last year, renewables accounted for 48% of the EU power generation mix, with nuclear coming in second at 24%. Meanwhile, Oil and Gas contributed a combined 28%--their lowest share ever. Nuclear remains Europe’s single leading power source; however, wind power now leads over natural gas while Europe’s solar generation surpassed coal for the first time ever in 2024.

Not surprisingly, Europe is now enjoying cleaner air, with greenhouse gas emissions dropping 13% Y/Y in 2024.

This trend actually predates Russia's war in Ukraine, with wind and solar gradually pushing coal to the margins, including forcing natural gas into a structural decline, since the enactment of the European Green Deal in 2019. However, Russia’s war has only added momentum to Europe’s green energy transition.

The European Union has also implemented several measures to significantly cut the permit-granting process for clean energy projects. Some of these include designating specific regions as "Renewable Energy Acceleration Areas" thus allowing for simplified and faster permitting procedures for solar and wind power projects and facilitating power purchase agreements. across the bloc.

That said, Europe is highly unlikely to ditch natural gas and fossil fuels any time soon. European natural gas futures have been rallying again, climbing towards the highest level in over six weeks, driven by supply concerns. Previously, Europe’s gas prices declined on optimism around a potential Ukraine peace deal. Unfortunately, little progress has been made on that front, with a two-hour call between Trump and Putin failing to deliver anything.

Russia has repeatedly refused an immediate cease-fire despite both sides agreeing to resume talks, cutting the likelihood of Russian gas returning to Europe. Further, gas flows from Norway are projected to tighten further due to maintenance work at the Kollsnes gas plant. Meanwhile, whereas LNG cargoes are increasingly being diverted from Asia due to weakening demand, new uncontracted buyers such as Vietnam, Thailand and the Philippines are emerging, boosting overall global LNG demand.

By Alex Kimani for Oilprice.com

TotalEnergies Launches Largest Solar Project in Europe Near Seville

By Editorial Dept - May 22, 2025,

TotalEnergies (EPA:TTE) has inaugurated its largest solar power installation in Europe, a 263-megawatt (MW) solar cluster located near Seville, Spain. The project, comprising five solar fields, will generate 515 gigawatt-hours (GWh) of electricity annually—enough to power more than 150,000 Spanish households. The project is a key step in Spain’s push toward 80% renewables by 2030.

Strategic Context and Regional Impact

The solar complex, which includes 400,000 bifacial panels equipped with sun-tracking systems, has been declared a project of “strategic interest” by the regional government of Andalucía. Its construction injected a significant economic boost into the local economy by involving 14 Spanish firms—over half of them Sevillian—and creating 800 direct and indirect jobs.

Electricity from the facility will be primarily sold through long-term power purchase agreements (PPAs), with the remaining supply traded on the wholesale market. This aligns with Spain’s broader energy policy goals, which prioritize both decarbonization and energy security.

Company Strategy and Future Outlook

Olivier Jouny, Senior Vice President for Renewables at TotalEnergies, emphasized the company's commitment to delivering “clean firm power” by integrating renewables with flexible gas-fired generation. TotalEnergies currently ranks as Spain’s fourth-largest provider of electricity, gas, and related services, serving over two million customers across residential and professional sectors.

This new project supports the company’s broader ambition to reach 35 GW of gross installed renewable capacity by the end of 2025 and more than 100 TWh of net electricity production by 2030. As of March 2025, TotalEnergies had already achieved 28 GW in installed renewable capacity globally.

Broader Implications

The Seville project underscores TotalEnergies’ pivot toward a more diversified and sustainable energy portfolio. By combining solar, wind, and flexible generation assets like CCGTs and storage, the company is executing a differentiated Integrated Power strategy designed to deliver reliable, low-carbon electricity across its global markets.

Spain, with its abundant solar resources and aggressive renewables targets, remains a key battleground for European energy giants competing to dominate the green transition. TotalEnergies’ investment not only strengthens its market position but also illustrates how strategic public-private partnerships can accelerate regional decarbonization.

TotalEnergies Launches Major Solar Project in Spain

By Tsvetana Paraskova - May 22, 2025

France’s supermajor TotalEnergies is launching its biggest solar project cluster in Europe—five solar projects with a total installed capacity of 263 MW near Seville, Spain. 

The solar field will produce 515 GWh per year of renewable electricity, equivalent to the consumption of over 150,000 Spanish households, and will avoid 245,000 tons of CO2 emissions per year, TotalEnergies said on Thursday.   

Most of the electricity produced will be sold through long-term power purchase agreements (PPAs) and the rest will be sold on the wholesale market, said the French supermajor, which hasn’t scaled down its ambitions in renewable energy generation despite a general drive among Europe’s Big Oil firms to reduce investments in green energy solutions. 

As of the end of March 2025, TotalEnergies had 28 gigawatts (GW) of installed gross renewable electricity generation capacity and aims to reach 35 GW by the end of 2025. The company also targets more than 100 TWh of net electricity production by 2030. 

Apart from oil and gas production and trading, TotalEnergies is building an Integrated Power portfolio that combines renewables and flexible gas-fired power plants to deliver clean firm power to customers. 

TotalEnergies is currently the 4th largest provider of electricity, gas, and related services in Spain, where it has more than 2 million residential and professional customers. 

The Seville solar project contributes to Spain’s ambition of 80% of renewables in its mix by 2030, said Olivier Jouny, Senior Vice President Renewables at TotalEnergies. 

While the majors aren’t abandoning all the renewable projects they embarked on in 2020 and 2021, they have started to scale back investments and are streamlining these on developments and energy solutions that they see as profitable. 

France’s TotalEnergies is the outlier in the group, as it has continued to focus on growing renewable energy capacity and power generation through acquisitions and joint ventures globally. 

By Tsvetana Paraskova for Oilprice.com