This week, the European Commission has signed some legislative proposals to decarbonise the EU gas market by facilitating the uptake of renewable and low carbon gases, including hydrogen, and to ensure energy security for all citizens in Europe. The Commission is also following up on the EU Methane Strategy and its international commitments with proposals to reduce methane emissions in the energy sector in Europe and in our global supply chain.

The European Union needs to decarbonise the energy it consumes to reduce greenhouse gas emissions by at least 55% by 2030 and become climate-neutral by 2050, and these proposals will help to deliver that goal. According to Commissioner for Energy, Kadri Simson: “We are creating the conditions for the green transition in our gas sector, boosting the use of clean gases. A key element of this transition is establishing a competitive hydrogen market with dedicated infrastructure. We want Europe to lead the way and be the first in the world to lay down the market rules for this important source of energy and storage. We are also proposing strict rules on methane emissions from gas, oil and coal, to reduce emissions in these sectors by 80% by 2030 and to trigger action on methane outside the EU. Our proposals also strengthen the security of gas supply and enhance solidarity between Member States, to counteract price shocks and make our energy system more resilient. As requested by Member States, we improve the EU’s gas storage coordination and create the option for voluntary joint purchase of gas reserves”.

Enagás (Spain), Snam (Italy) and Grtgaz (France) have decided to explore opportunities for collaboration in the hydrogen sector, which will be crucial in the energy transition and have signed an agreement to launch joint investment initiatives aimed at boosting the clean hydrogen market.

This new initiative underlines the crucial role that European gas Tsos can play in the development of the European hydrogen ecosystem, sharing their experiences in the management of strategic infrastructures. As a first joint action, Enagás, Snam and Grtgaz will each invest € 33 million in the Clean H2 Infra Fund, with an anchor role, for a total of approximately € 100 million. Clean H2 Infra Fund is an impact fund managed by Hy24, a joint venture between Ardian and Fivet Hydrogen, which aims to support the development of clean hydrogen infrastructure with a budget of 1,500-1,800
million euros, in partnership with industrial and financial investors. It is the largest global investment platform in clean hydrogen infrastructure. Hy24 combines Ardian’s experience in infrastructure management and asset management and Fivet’s know-how in the hydrogen value chain, along with the role and experience of the three Tsos in energy grid management and hydrogen technologies.

By investing in the Clean H2 Infra Fund, the three companies aim to promote the clean hydrogen industry with a positive impact on the use and development of transmission networks.

The Russian government, Rosneft and the gas giant Gazprom would find an agreement to implement a “pilot project” with which Rosneft will provide 10 billion cubic meters of Russian gas to Europe. The news of this project has been widely circulated, but the timing of the operations has not yet been announced. Neither Rosneft, nor Gazprom, nor the Minister of Energy responded to the request for a comment that arrived yesterday. However, following the October meeting, officials, including Russian Vice President Alexander Novak, stated that details of how the project would work would be communicated. On 14 October, Rosneft announced that he was considering supplying gas to Europe through an export agreement with British Petroleum.
“The implementation of a pilot project for the export of 10 billion cubic meters of gas from Rosneft’s resources, through a contract with BP, could help in the future to provide additional stocks to the European gas market” Rosneft’s CEO, Igor Sechin, said on that occasion. BP – which holds a 19.75% stake in Rosneft – a few years ago signed an agreement with the Russian company for a potential gas supply in Europe for the year 2017.

Many South American countries are on the brink of socio-economic shock. The still massive use of fossil fuels, delays in the energy transition and a radical devaluation of oil and gas trafficking are among the most determining factors.
In particular, Venezuela, Ecuador and Colombia depend on oil exports and revenues. Bolivia and Trinidad are heavily dependent on natural gas. Guyana, on the other hand, is ready to become the largest per capita oil producer in the world, thanks to the oil discoveries made by Exxonmobil and its partners. Argentina, Brazil and Mexico, are not very dependent on fossil fuels. However, oil and gas are still the largest national industrial arteries for tax revenue, exports and investment. South American oil production is expected to fall below 4 million barrels per day in 2035. This would entail the loss of around USD 3 trillion in royalties for crude oil exporters. But there are encouraging exceptions, however. Peru and Chile, for example with the commitment in solar or Brazil with an important hydroelectric capacity. In Colombia, instead, President Ivan Duque pushed companies to drastically reduce CO2 emissions while expanding unconventional renewable energies.

Azerbaijan has exported 4.6 billion cubic metres of natural gas to Europe (1.4 billion dollars) from January to October 2021. Italy is on top of the list representing 3,9 billion cubic metres of gas for a value of 1,2 billion dollars. About 501.7 million cubic meters of natural gas worth 163.7 million dollars were exported to Greece and 166 million cubic meters worth 25.5 million dollars in Bulgaria. Turkey accounted for 7.8 billion cubic meters of the total volume exported, with a value of 1.2 billion dollars. Another 2.2 billion cubic meters of natural gas worth US$280.9 million were exported to Georgia and 169.3 million cubic meters of natural gas worth US$6.4 million to Iran in January-October 2021. During the reporting period, Azerbaijan exported a total of 14,9 billion cubic metres of fuel worth USD 2,9 billion. In addition, Azerbaijan has begun commercial supplies to Europe via the Trans-Adriatic Pipeline (TAP) on 31 December 2020.

According to a research by Brunel and Oilandgasjobsearch.com, 43% of workers want to leave the energy industry within the next five years. The oil and gas industry is facing a huge shortage of labour in the coming years due to renewables. More than half of the workers in the sector, in fact, are trying to enter the renewable energy industry. Energy companies ranging from Royal Dutch Shell and BP to smaller exploration companies had to cut tens of thousands of jobs in the wake of the coronavirus pandemic while cutting budgets. Now, with the strong recovery in energy demand and prices around the world, many companies have difficulty recruiting again. The report also states that “With more workers gravitating towards the renewable energy sector, it is likely that industry will continue to see an exit from those in traditional sectors. The higher salaries offered by the renewable energy and mining sectors are making the roles in these areas more attractive, adding to the pressure faced by recruiters in the oil and gas sector”.

Octopus Energy has acquired retailer SATO Luce e Gas and has entered the Italian energy market. Octopus Energy Italy will target a million Italian energy accounts – or roughly 5% of the market – by 2025, using an initial investment of €60 million (£50.6 million) from Octopus Energy to expand its operations. Greg Jackson, CEO and founder of Octopus Energy has said: “We have high ambitions for Italy, and we’ve found an amazing team to grow our business and lead the green energy revolution in Italy from the front. We know that the Octopus way works – our teams in the US and Germany have seen their customer bases grow by a factor of five and six respectively over the last year. We’re now taking our approach to Italy, and we can’t wait to see what we can achieve there.”
SATO Luce e Gas was set up in 2003 in Ascoli Piceno, and has since grown to operate in 11 Italian regions and to have thousands of supply customers.

The multinational energy corporation Lukoil has announced a discovery of an oil field within the Yoti West structure at Block 12 offshore Mexico. The field was discovered after drilling the first exploration well. According to preliminary estimates, the initial oil in place reaches 250 million barrels, Lukoil said. A spokesman of Lukoil has stated that “The well penetrated a sand reservoir in Upper Miocene sediments with high permeability and effective oil-saturated thickness of about 25 meters. An assessment plan for the Yoti West field is planned to be developed based on drilling results.”. In 2017, Lukoil obtained the right for exploration and production of hydrocarbons at Block 12 in the Gulf of Mexico. The Block measures approximately 521 sqm. The partners are Italy’s Eni with a 40% stake.

Italy could become the European hub of green hydrogen produced in Africa and Saudi Arabia. This according to John Kerry, US President Biden’s Special Environmental Adviser. The statement came during a meeting organized by the Gedi group a few days ago. Hydrogen would help to solve the problem of renewables that having non-programmable production peak (think of the windy or very cloudy days), today they need traditional plants ready for use that are, among other things, expensive to maintain. The energy transition remains a dream if at least two elements of the equation are not resolved: the storage of energy produced from renewable sources and, alternatively, a clean energy source that is scalable and always ready for use. Green hydrogen therefore plays a key role in any serious talk of decarbonisation. For Italy, Snam has identified the same role as Kerry: a hub with both import and export potential. In this sense, Snam’s effort to create an Italian supply chain in the sector is also part of the effort to discharge all the economic and employment potential of this revolution on the territory. Snam’s investment in De Nora, which produces electrolysers, is a part of this project.

The price of the WTI, the reference US barrel, is under pressure on rumors that Washington has proposed to other oil consuming countries such as China and Japan to consider a coordinated release of strategic oil reserves, as a solution to lower prices. The lease sale is a major reversal of Biden’s commitment to shut down new oil and natural gas leases on public lands and waters and comes just days after the president’s pledge to slash emissions during the United Nations climate summit in Glasgow, Scotland. The lease sale has the potential to emit more than 516 million metric tons of greenhouse gas emissions into the atmosphere — the equivalent to annual emissions of 130 coal-fired power plants or 112 million cars, according to the Center of Biological Diversity. To increase the supply, Washington suggests a coordinated global action. Brent returns to 80 dollars per barrel.