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Norway grants 57 gas and oil licences in mature areas
Norway grants 57 gas and oil licences in mature areas
London, 13 January (Argus) — The Norwegian authorities have awarded ownership interests in 57 production licences on the Norwegian continental shelf to 19 companies. All of the permissions are part of an annual licensing round known as the awards in predefined areas (APA), which began in 2003. This procedure offers companies licences in mature areas with known geology, a smaller number of technical challenges and developed or planned infrastructure. Of the 57 licences awarded, 31 are in the North Sea, 21 in the Norwegian Sea and five in the Barents Sea, and 20 of them have been offered as additional acreage at existing production licences. The Norwegian Offshore Directorate — formerly the Norwegian Petroleum Directorate — offered 62 new offshore oil and gas licences in the 2024 APA round . "In a few years, production will start to fall. Therefore, we need new projects that can slow down the fall and provide as much production as possible," energy minister Terje Aasland said. State-owned Equinor was awarded 35 of the licences in the latest round, the company said on Tuesday. Most — 21 — are in the North Sea, 10 are in the Norwegian Sea and four are in the Barents Sea. Equinor will operate 17 of the licences. Equinor plans to drill 20-30 exploration wells a year, 80pc of them near existing infrastructure and 20pc in lesser-known areas, the firm said. This builds on Equinor's announcement of further investment in infrastructure to maintain high production until 2035 on 8 January. New blocks proposed for next round The Norwegian Offshore Directorate has submitted a proposal to add 70 new blocks to the 2026 APA licensing round. The ministry has submitted a proposal to expand the APA area for public consultation. Of the 70 new blocks, 22 would be in the North Sea, 10 in the Norwegian Sea and 38 in the Barents Sea. The APA area was expanded by 76 blocks last year . The 26th licensing round will be announced in the first half of the year. The deadline for applications will be in the third quarter and licences will be awarded in January 2027. Giving companies access to new and attractive acreage is a pillar of the government's policy to further develop the industry and ensure future production, Aasland said. By Lucas Waelbroeck Boix Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Finnish and Baltic gas demand declines in 2025
Finnish and Baltic gas demand declines in 2025
London, 13 January (Argus) — Combined Finnish and Baltic gas consumption was down by 9pc on the year in 2025, with demand lower in all four countries. Consumption across Lithuania, Latvia, Estonia and Finland totalled 39.7TWh in 2025, down from 43.6TWh in 2024 and continuing its downward trend that began in 2022 in response to the energy crisis ( see combined consumption graph, data and download ). Gas demand in the region is down by 41pc since 2021 or by 27TWh. The region is now almost entirely dependent on LNG imports, with only limited volumes of pipeline gas delivered from Poland. Combine sendout from the Inkoo, Hamina and Klaipeda LNG terminals totalled 40.2TWh last year, down from 43.4TWh in 2024 and substantially above 32.4TWh in 2022, when the region still received some Russian pipeline deliveries. Russian pipeline flows stopped in 2022, while Russian LNG was last received in July 2024. Russia's Gazprom suspended deliveries to Finland's largest gas importer, Gasum in May 2022, following the refusal to transition to payments in roubles. And Lithuania was the first EU country that halted Russian supply in April 2022, in response to Moscow's war in Ukraine. That said, some volumes of Russian gas continue to go through Lithuania as transit volumes to meet the needs of Russia's Kaliningrad. The Latvian Incukalns is the only storage facility in the region, with a technical capacity of 24.9TWh. Stocks totalled 10.5TWh on 12 January, a 4.7TWh year-on-year deficit, according to GIE transparency platform data. The available infrastructure was used also for deliveries to the region including Ukraine . Ukrainian private-sector firm DTEK received its first cargo at Klaipeda for delivery to Ukraine, and other central and eastern European markets in November. Lithuania was a net exporter to Poland of 4.4TWh in 2025, up from 1.1TWh a year before. Users move away from gas Milder weather — combined with European climate policy and rising environmental levies — encouraged users to reduce gas consumption. Milder weather in the region may have weighed on gas needs, as minimum temperatures averaged 2.7°C in 2025 in Helsinki,Tallinn, Riga and Vilnius, up from 2.5°C a year earlier. The EU emissions trading system (ETS) daily index averaged €74.92/t of CO₂ equivalent (CO₂e) in 2025 and stood at €89.46/t on 12 January, sharply above the €66.44/t CO₂e average in 2024. Gas-fired generation still plays a limited role in the region, but its share in the power mix edged up on the year to 11pc from 10pc in 2024. Combined gas-fired output across the three Baltic states rose to 3.04TWh in 2025 from 2.45TWh a year earlier, while Finnish gas-fired generation fell to 870GWh from 1.23TWh, according to data from Fraunhofer ISE ( see gas-fired power graph ). Baltic countries had a 68pc share of renewables in their generation mix in 2025, while Finland had a 55pc share. And the European Commission approved a €2.3bn financial scheme to support Finland's transition to net zero emissions. The scheme includes support for investment renewable energy production, and has been provided as a tax credit. This is likely to weigh on gas demand from industrial users, which may be required to reduce fossil fuel use to access the financial support. Lithuania's largest gas consumer, fertilizer producer Achema, restarted one ammonia unit at its Jonava plant in August, supporting regional industrial gas demand. The site operates two ammonia units, each capable of consuming up to 21 GWh/d. But Achema faces the same pressures as the wider European fertilizer sector, including low-cost imports, high environmental levies and uneven competition. The company has posted losses for the past two years and suspended ammonia production for three months this year on the back of high gas prices and weak margins. By Victoria Dovgal Baltics gas consumption 2025 TWh Baltics gas generation 2025 TWh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
CEE, SEE gas-fired output up on year in 2025
CEE, SEE gas-fired output up on year in 2025
London, 5 January (Argus) — Gas-fired power generation stepped up on the year in 2025 in central and southeast Europe, as gas-fired power plants replaced coal-fired generation and balance the grid as the renewable buildout continues. Power-sector gas demand has been playing an important role in the transition from carbon-intensive coal generation in the region. Combined gas-fired generation in central and southeast Europe — Austria, the Czech Republic, Slovakia, Hungary, Poland and Greece — stepped up to 72.8TWh in 2025 from 64.5TWh a year earlier, data from research institute Fraunhofer ISE show ( see graph ). Romania and Bulgaria were the only countries in the region where gas-fired power generation edged down year on year, having fallen to 9.6TWh and 1.9TWh, respectively, from 10.3TWh and 2.1TWh a year earlier. Polish gas output rose the most on the year in 2025, to 21TWh from 16.7TWh, followed by Hungary at 7.4TWh last year against 6.4TWh. Tighter environmental policies and rising emissions allowance costs are reducing the competitiveness of coal-fired generation relative to gas output. The EU emissions trading systems (ETS) daily index has averaged €74.92/t of CO2 equivalent (CO2e) in 2025 and was €88.49/t on 2 January, substantially above the €66.44/t CO2e in 2024 ( see CO2 index graph ). And developers have been prioritising flexible, gas-fired capacity to manage intermittency from the expanding and highly volatile output of solar and wind generation. Renewables accounted for 42.2pc of the regional power mix last year, up on the year from 41.1pc (see renewable output graph ). Austria recorded the highest share last year at 84pc, while the Czech Republic had the lowest at 17.7pc. Regional coal-to-gas switch is ongoing Several gas-fired power plants are scheduled to come on line this year in Poland, Romania and Greece, replacing coal capacity and supporting power-sector gas demand. Polish gas demand from the power sector is set to rise further in the coming years because of the planned coal phase-out. Poland's largest electricity producer, PGE, started operations at its 1.4GW Gryfino gas-fired power plant in 2024, which allowed for 450GW of capacity at the Dolna Odra coal-fired station to be taken off line in 2025. The remaining 450MW of capacity at the plant is scheduled for closure in August. PGE also aims to shut its 920MW Rybnik coal-fired plant in 2027, planned to coincide with the commissioning of an 880MW combined-cycle gas turbine (CCGT). Poland's power system operator PSE plans to upgrade the grid to allow safe system operation without fossil-fuel generation by 2035. Renewable fuels made up 47pc of the Polish power mix last year, one percentage point higher than in 2024 (see graph ). Romania plans to replace all its coal-fired power plants with new CCGT plants and cogeneration units, which may support domestic gas needs in the next few years. But Romania has renegotiated with the EU to postpone the coal phase-out until the end of 2029 because of slow progress building gas-fired plants . Romanian gas generation capacity is set to grow, because several CCGT units are scheduled to be commissioned this year. The 430MW Lernut CCGT start-up is expected in the second quarter of 2026. The 1.75GW Mintia CCGT is due to come on line by the end of year, while an 850MW CCGT plant is also planned at Isalnita. And a 53MW gas-fired combined heat and power plant is scheduled to begin operations by June. Romania's reliance on gas for power generation is likely to increase further in the coming years because the 700MW unit at the Cernavoda nuclear plant is scheduled to shut down for modernisation in 2027-29. Greek gas power output was the highest in the region, having increased to 22.9TWh in 2025 from 21.1TWh in 2024. The country aims to phase out lignite-fired generation by the end of this year and has already started replacing its last lignite-fired plant — the 660MW Ptolemaida 5 — to an open-cycle gas turbine. The 810MW Komotini CCGT is undergoing testing and should start commercial operations this year. By Victoria Dovgal Gas-fired power generation by country TWh CO2 EU daily index €/t Renewable 2025 vs 2024 % Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Viewpoint: Brazil’s biomethane at a crossroads
Viewpoint: Brazil’s biomethane at a crossroads
Sao Paulo, 2 January (Argus) — Brazil's biomethane sector is approaching a pivotal juncture in 2026, with the start of the biomethane mandate and the creation of the biomethane certificate of guarantee of origin (CGOB), which will establish renewable attribute pricing and shape the sector's future. The government's proposal to set the 2026 biomethane mandate at 0.25pc — equivalent to 238,500 m³/d of biomethane — has introduced new uncertainty into pricing expectations under the biomethane certificate of guarantee of origin (CGOB) rules. While some market participants anticipate CGOB values slipping below suppliers' R1/m³ (19¢) floor, key regulatory elements such as certificate rules, delivery models and contract requirements remain undefined. Producers argue that R1/m³ is the minimum price needed to support new projects, considering combined revenue from CGOB rules, decarbonization credits (Cbios) and gas sales, but the ministry's cautious target suggests limited initial demand. Suppliers stress that multi-year targets will be essential to give investors the confidence needed to expand supply in coming years. In contrast, buyers broadly welcomed the modest 0.25pc target as a soft launch that avoids sudden price shocks. The sector's trajectory relies on effectively distinguishing between the energy and renewable components of biomethane, a separation that is essential for Brazil to enhance its position as a provider of renewable attributes. The main challenge lies in establishing a system compatible with both voluntary and obligated buyers, aligned with international standards, and capable of delivering clear price signals to promote investment. Public hearings on CGOB rules and the proposed targets are scheduled for January, leaving final decisions to later in the year. Developing a transparent framework for recognizing and pricing renewable attributes remains central, and consensus on these matters has yet to be reached. The groundwork for these developments was laid during 2025 with rigorous regulatory discussions, increased investments, and a deeper engagement between producers and consumers. In addition, seven new biomethane facilities started operations in Brazil, which expanded national production capacity by 439,827 m³/d to 1.1mn m³/d. Recent debates surrounding regulatory mandates have played an instrumental role in informing market development, particularly with respect to the valuation of biomethane's renewable attribute. This focus accelerated market growth and strengthened alignment among stakeholders on pricing issues. Although differences in perspective persist, consensus has grown on the definition of the renewable premium, while several aspects of the mandate remain unresolved as the new year approaches. According to Argus , the Brazilian biomethane fob plant price is currently reported at R3.28/m³ as of 1 January 2026 . In early 2025, Petrobras initiated an open call for biomethane supply, a significant milestone as the Brazilian oil company will be the largest obligated entity under the new mandate, despite negotiations still ongoing. The open call resulted in 20 proposals advancing to the negotiation stage, according to Petrobras. The state-owned company accepted all proposals for biomethane and CGOB supply in 2026. The progress seen in 2025 has paved the way for possible changes in 2026, though important steps still lie ahead. Public hearings regarding the CGOB rules and the proposed targets still need to take place, and the final decisions on the mandate are likely to come in early 2026. The development of a clear, transparent framework for recognizing and pricing renewable attributes remains a central topic of discussion, and there is not yet a definitive consensus on these matters. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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