EU Parliament Endorses Eased Natural Gas Storage Targets

By Charles Kennedy - Jul 08, 2025

The European Parliament approved on Tuesday eased rules and targets for natural gas storage refills in the EU in a move aimed at preventing price spikes.

Earlier this year, the EU member states agreed to ease the bloc’s natural gas storage targets by allowing a 10 percentage point deviation in the 90% full storage goal.

The greater flexibility comes in response to the fears of several large gas-consuming nations in Europe that they would have to either subsidize storage filling when it’s uneconomical or miss the targets.

The new targets and greater flexibility to achieve them needed to be endorsed by both the EU member states and the European Parliament.

The Parliament approved today the eased targets with 542 votes to 109, with 30 abstentions.

Under the softened rules, the EU member states should reach the target of 90% full storage anytime between October 1 and December 1, instead of an unmoving target by November 1, as it was the case in previous years.

The EU countries are also given the possibility to deviate by up to 10 percentage points from the filling target in the event of difficult market conditions, such as indications of speculation hindering cost-effective storage filling.

“The Commission may further increase this deviation by a further five percentage points by means of a delegated act, for one filling season, if these market conditions persist,” the European Parliament said.

The 90% storage filling obligation was extended by two years, until the end of 2027.

“This revision will provide for more flexibility and less bureaucracy but, above all, it will bring Europe’s gas prices down, while we continue advancing towards energy independence from unreliable suppliers,” said rapporteur Borys Budka of the Christian Democrat European People’s Party (EPP).

Following the approval by the European Parliament, the eased targets must now be formally approved by the EU member states, with this step expected to pass without amendments.

By Charles Kennedy for Oilprice.com

 

Nissan to Curb Production of New EV Amid China’s Rare Earths Export Controls

By Charles Kennedy - Jul 08, 2025

Japanese car manufacturing giant Nissan Motor is revising down production plans for its new Leaf series electric vehicle as the Chinese controls on exports of rare earth elements have created a shortage of car parts, Kyodo News reported on Tuesday.

The setback for Nissan’s new EV is the latest in a series of hurdles that carmakers globally have faced since China announced export controls of rare earths in early April.

Suzuki Motor, another Japanese giant, has reportedly halted production of its flagship Swift subcompact because of supply chain shortages, sources with knowledge of the matter told Reuters last month.

At the beginning of April, China announced it would curb its exports of dysprosium, gadolinium, scandium, terbium, samarium, yttrium, and lutetium. These so-called “heavy” and “medium” rare earth elements are mostly used in automotive applications, including rotors and motors and transmission in electric vehicles and hybrids, as well as in the defense industry in parts of jets, missiles, and drones.

The Chinese export restrictions reverberated through global supply chains and were initially felt in the automotive industry, where major car manufacturing associations warned that production and assembly lines are being idled due to a bottleneck in magnet and rare earth supply.

Germany’s automotive industry group VDA joined other carmakers to sound the alarm that the curbs and controls on China’s exports of rare earth elements and magnets could disrupt and even idle manufacturing lines.

In May, the Alliance for Automotive Innovation – which represents GM, Toyota, Volkswagen, and other major car manufacturers – warned of production reductions and even shutdowns of assembly lines without access to magnets and to rare earths.

China has eased some of its restrictions on exports of rare earth elements by approving “a certain number” of export licenses. However, global supply chains continue to feel the shortage of magnets and other rare earth-derived parts.

Charles Kennedy for Oilprice.com

 

JinkoSolar Boosts Massachusetts Clean Energy Goals

By Michael Kern - Jul 08, 2025 

JinkoSolar Holding Co., one of the world’s leading solar module manufacturers, has successfully commissioned 21.6 megawatt-hours of energy storage systems in Massachusetts, a move that bolsters the state’s ambitious clean energy goals under its Solar Massachusetts Renewable Target (SMART) program. The three systems, developed by Distributed Energy Infrastructure (DEI), are now operational, enhancing grid reliability and supporting the state’s transition to a cleaner energy future.

The newly deployed systems, which use both DC and AC-coupled configurations for maximum flexibility, provide critical grid services while improving the performance of solar assets. JinkoSolar’s U.S.-based engineering team collaborated closely with DEI, offering system design expertise and ensuring seamless integration with power conditioning and energy management platforms. DEI managed the projects’ full execution, from development to commissioning, minimizing delays and risks.

“This is a significant step toward a more resilient and sustainable grid in Massachusetts,” said Jeff Juger, deputy general manager and head of energy storage systems at JinkoSolar (U.S.) Inc. “Our collaboration with DEI highlights our ability to deliver tailored, high-performance solutions.”

Massachusetts’ SMART program, recently updated to stabilize solar markets amid federal policy shifts, incentivizes solar and storage projects to meet the state’s goal of 5,000 megawatts of storage by 2030. The state’s push comes as federal clean energy tax credits face uncertainty, with recent Senate proposals ending subsidies for renewables, according to The New York Times. Massachusetts’ proactive policies aim to fill this gap, ensuring solar remains viable.

Sean Harrington, CEO of DEI, praised JinkoSolar’s robust technology and local support. “Their U.S. team streamlined integration, helping us deliver these projects efficiently,” he said. The systems align with Massachusetts’ broader efforts to modernize its grid, reduce carbon emissions, and protect natural landscapes through innovative land-use policies tied to the SMART program.

The deployment reflects a growing trend in U.S. energy storage adoption. Reuters reported that startups like Lyten are expanding storage capacity to meet rising demand, while states like Massachusetts lead with mandates to curb reliance on fossil fuels. JinkoSolar’s project underscores the role of private-sector innovation in achieving these goals, especially as global clean energy investments surge, driven by national security and economic priorities, per The New York Times.

For Massachusetts, these systems are more than infrastructure—they’re a lifeline for clean energy progress. As the state works to reclaim its position as a solar leader, projects like this signal a commitment to resilience and sustainability, even in a shifting policy landscape.

By Michael Kern for Oilprice.com

 

Chesapeake Utilities to Power New Data Center with Natural Gas

By Michael Kern - Jul 08, 2025,

Chesapeake Utilities Corporation announced Tuesday that its Ohio subsidiary, Aspire Energy Express, LLC, will construct a $10 million intrastate natural gas pipeline in central Ohio to supply a new fuel-cell facility powering a data center. The project, in partnership with American Electric Power (AEP), is set to deliver reliable natural gas by the first half of 2027, addressing the surging energy demands of the data center industry.

The pipeline will support a fuel-cell facility providing on-site electricity to a data center, reflecting a broader trend of utilities adapting to the power-intensive needs of data infrastructure driven by artificial intelligence and cloud computing. The U.S. Energy Information Administration projects U.S. electricity consumption will hit record highs in 2025 and 2026, largely due to data centers, with natural gas playing a key role in meeting this demand despite its declining share in power generation, expected to drop from 42% in 2024 to 40% in 2025.

Chesapeake’s investment aligns with its growth strategy, leveraging its expertise in natural gas transmission to serve high-growth regions. “This project is a clear example of how Chesapeake Utilities continues to execute on our growth strategy by leveraging our core capabilities,” said Jeff Sylvester, senior vice president and chief operating officer. The company, with a market cap of $2.84 billion, reported a 20.34% revenue increase over the past year, driven by strong natural gas demand and infrastructure investments.

AEP, a major utility serving 5.6 million customers across 11 states, is also positioning itself to meet rising commercial load growth, which hit 12.3% in the first quarter of 2025. Its collaboration with Chesapeake underscores efforts to provide innovative power solutions, including low-carbon options like fuel cells, as seen in AEP’s recent 100-megawatt Bloom Energy fuel cell project in Ohio.

The project comes amid concerns about the risks of overbuilding gas infrastructure. Environmental groups, like the Sierra Club, warn that speculative data center demand could lead to stranded assets, burdening ratepayers if projects fail to materialize. AEP Ohio has introduced tariffs requiring data centers to cover most of their projected energy costs to mitigate such risks.

This pipeline, operated by Aspire Energy Express, founded in 2020, adds to Chesapeake’s 2,300 miles of natural gas pipelines across 40 Ohio counties. As data centers reshape energy landscapes, this initiative highlights the critical role of natural gas in balancing reliability and growth, even as utilities navigate a complex transition toward cleaner energy sources.

By Michael Kern for Oilprice.com 

 

Hess Exits Suriname's Block 59 as Deepwater Exploration Proves Too Costly

By Editorial Dept - Jul 08, 2025

U.S. oil producer Hess Corp has announced its decision to exit Suriname’s offshore Block?59, returning operations to the national oil firm Staatsolie. Hess fulfilled its minimum exploration obligations but opted not to advance to the next phase when the deadline passed on July?8,?2025. Earlier, ExxonMobil and Equinor abandoned their stakes in the block, citing high drilling risks in the deepwater wildcat zone, and Hess was unable to secure new partners.

Located in northwest Suriname, Block?59 spans approximately 4,400?km² with water depths between 2,700 and 3,500?m. Initial seismic studies were conducted by the previous partners, but costly drilling challenges have stalled progress. With the block returned, Staatsolie intends to incorporate the area back into its offshore contracting strategy, which already covers nearly 50% of Suriname’s maritime territory.

Hess’s engagement with Suriname traces back to 2016, viewing the offshore acreage as a geological extension of its highly successful Guyana play. The company actively sought partners through 2024 but failed to reach a deal. According to Hess’s 2024 annual report, it plans to relinquish 94% of its undeveloped acreage in Guyana and Suriname by 2028, reflecting a strategic recalibration.

With deepwater offshore projects in Suriname proving too risky and unpartnerable, Staatsolie is now poised to reclaim Block?59 and explore further developments with international firms. The decision comes amid growing activity in Suriname's oil sector, including an offshore bond-backed venture, major investments in Blocks 52 and 58 with partners TotalEnergies, APA Corp, and QatarEnergy, and progress toward future exploration and production sharing contracts.

 

Oil and Gas Consolidation Reshapes African Market

By Rystad Energy - Jul 08, 2025

• Africa's upstream oil and gas sector is undergoing a significant transformation as major international companies reduce their exposure to mature assets, creating opportunities for new regional and international players.
• 
  
• Angola and Nigeria are at the forefront of this consolidation wave, with new independent and indigenous companies acquiring assets and focusing on increasing production by investing in contingent resources.
• 
  
• The entry of diverse players, including traders and non-African NOCs, along with evolving regulatory frameworks in African countries, is setting the stage for a new cycle of production growth in the continent's upstream sector.

Africa’s upstream oil and gas sector is undergoing a transformative shift. In recent years, majors have scaled back their exposure to mature, non-core assets across the continent, opening the door for a new wave of regional independents, traders, and non-African national oil companies (NOCs) to step in as consolidators and value creators.

Angola and Nigeria have been the epicenters of this consolidation wave. Angola saw the formation of Azule Energy through the BP-Eni portfolio merger, where the new independent has already created value by reversing the declining production trend by investing more actively in the portfolio. The emergence of nimble, focused companies like Afentra, Tende Energy, and Etu Energias in Angola reflects a broader trend. These budding players are committed to tapping into incremental contingent resources, thereby extending field life.

Nigeria on the other hand has witnessed the exits of Shell, Eni, and TotalEnergies from their onshore positions, and Equinor’s divesture of its offshore assets. This led to indigenous companies such as Seplat Energy, Renaissance Energy and Chappal Energies growing their footprints extensively. These companies’ focused efforts to invest further in the portfolios and unlock the contingent resources could be a game changer for Nigeria at a time when it has set ambitions to surpass its oil production beyond 2 million barrels per day (bpd) in the short term and 3 million bpd in the long term.

One key change in Nigeria’s upstream player landscape has been the indigenous companies taking on the operatorship of key producing blocks. If the short-term production growth targets are met, this will be a great turnaround for the country and will place confidence in the operational execution for the new entrants. 

Pranav Josi, Vice President, Africa Oil & Gas

Beyond traditional exploration and production (E&P) firms, traders and non-African NOCs are also stepping up their Africa game. ADNOC’s XRG, through its Arcius Energy joint venture with BP, is now active in Egypt and has also entered Mozambique through the acquisition of Galp’s stake in the Area 4 development. Brazil’s Petrobras is also actively looking at opportunities in the Atlantic margin after picking up an exploration block in South Africa. Malaysia’s Petronas took a stake in Angola’s Kaminho cluster in 2023, while Houston-based Vitol bagged 2025’s first major trader-led upstream acquisition involving assets in Côte d’Ivoire and Congo-Brazzaville.

We have already started seeing announcements such as Renaissance’s investment in Nigeria of $15 billion over the next few years. At a time when countries such as Nigeria and Angola are evolving their regulatory and fiscal frameworks to attract investment, the exchange of hands from majors to regional players that understand the local communities better could not have come at a better time. The timely execution and clear development of roadmaps will be critical to trigger a new cycle of production growth. For Africa’s upstream sector, the table is set—what follows will depend on decisive action by its newest custodians.

By Pranav Joshi, Vice President, Africa Oil & Gas at Rystad Energy

 

U.S. Energy Giants Set to Sign $34 Billion Worth of Deals With Indonesia

By Charles Kennedy - Jul 07, 2025

U.S. supermajors ExxonMobil and Chevron, Indonesia’s state energy firm Pertamina, and other companies from the two countries are expected to sign later on Monday a memorandum of understanding for commodity purchases by Indonesia for a massive $34 billion, an Indonesian official told Reuters.

Apart from energy deals and investments, the memorandum will include Indonesian pledges to buy U.S. soybeans, corn, and cotton, Pujo Setio, a senior official at Indonesia’s Ministry for Economic Affairs, told Reuters.

ExxonMobil, which has more than 125 years of presence in the Indonesia archipelago, has recently ramped up oil production from its operated Cepu oil block, adding 30,000 barrels per day (bpd) to national output. This brings total lifting from Cepu to 180,000 bpd, which accounts for 25% of Indonesia’s current oil production.

The new $34-billion deal set to be signed on Monday comes days ahead of the July 9 deadline the U.S. Administration has given to countries to negotiate trade deals and avoid steep tariffs on their products imported into America.

In early April, Indonesia was slapped with one of the highest tariffs - 32% - in the “liberation day” tariffs announced by U.S. President Donald Trump.

These tariffs were suspended until July 9, during which the Trump Administration expects most countries to come pleading their cases and promising to boost their imports of U.S. goods to reduce their trade surplus with the U.S. and avoid high tariffs.

Indonesia, Southeast Asia’s biggest economy, has signaled it would offer to buy an additional $10 billion worth of American oil and liquefied petroleum gas (LPG).

Indonesia also plans to slash its fuel imports from Singapore and source more refined products from the United States as the country looks to negotiate lower tariffs with the U.S.

Also in May, Argus reported that Pertamina is considering importing oil products from the United States.

By Charles Kennedy for Oilprice.com