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Energy firms on alert after flooding in Europe: Update

  • Spanish Market: Electricity, Natural gas, Oil products
  • 16/09/24

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Torrential rain has led to major flooding across large swathes of central and eastern Europe, causing power outages and significant damage to transport infrastructure in southwest Poland and the Czech Republic. Parts of Austria, Germany, Hungary, Slovakia and Romania are also affected.

In Poland, most of the affected areas so far are in the southwest of the country close to the border with the Czech Republic including the towns of Jelenia Gora, Klodzko, Nysa and Glucholazy. Urban areas further down the Odra river are also at risk including the cities of Wroclaw and Opole, where elevated water levels are expected in the coming days.

The Polish government held an emergency meeting earlier today and a state of emergency has since been declared in the affected areas.

Polish utility company Tauron, which operates the electricity distribution network in the worst affected area, said some of its infrastructure was disconnected in several towns including Klodzko and Glucholazy. But Poland's power grid operator PSE said there has been no damage to transmission infrastructure. Likewise, Polish gas pipeline operator Gaz-System said it has not suffered any damage but remains in crisis mode.

Polish train operator PKP Intercity suspended passenger rail traffic to and from the Czech Republic on 15 September until further notice, while local TV showed images of damaged road and waterways infrastructure, including bridges and dams as well as retail fuel stations.

Poland's wholesale coal market, which is usually busy in the autumn, could stall in flood-hit areas for a few weeks as priority is given to the clean-up operation and repairing transport infrastructure, according to traders in the country. But Polish biofuel firm Bioagra, which operates a bioethanol plant near the flood-hit town of Nysa, told Argus that the facility continues to operate normally.

In the Czech Republic, Orlen Unipetrol — operator of 108,000 b/d Litvinov and 66,000 b/d Kralupy refineries — said all its production sites continue to operate although the company has shut 11 of its service stations in the country. The firm said its crisis management team at each production site is monitoring the situation and it is in contact with authorities. Elsewhere in the Czech Republic, utility Veolia has had to shut plants in Ostrava and Krnov.

Hungarian oil firm Mol — which operates service stations in Poland, the Czech Republic and Slovakia, as well as refineries in Hungary and Slovakia — told Argus that preparatory flood prevention works are underway. It is in contact with authorities and there is currently no threat to security of fuel supply, it said.

Hungarian authorities expect water levels on the river Danube at Budapest to continue rising until the weekend, which could affect Veolia's 428MW gas-fired power plant at Gonyu upstream from the capital and potentially power firm MVM's 2GW Paks nuclear plant downstream from Budapest. Floods on smaller rivers Lajta and Raba in northwest Hungary are also yet to peak.

Austrian refiner OMV said it has put in place precautionary safety and mitigation measures at its 193,700 b/d Schwechat refinery and two other sites at Gansendorf and Lobau in the federal state of Lower Austria, which was declared a disaster region on 15 September. No damage to property or people has been reported so far but OMV has closed four retail stations temporarily in the state as a precaution, it said.


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19/11/25

Cop: Some 'reluctant' on shift from fossil fuels

Cop: Some 'reluctant' on shift from fossil fuels

Belem, 19 November (Argus) — Some countries are still "very reluctant" to accept including a roadmap to transition away from fossil fuels in the UN Cop 30 climate summit's final documents, the event presidency said. A roadmap to phase down fossil fuels has become a key issue at Cop 30. An initial draft about issues not on the main agenda published by the presidency on Tuesday morning mentioned it, but over 80 countries asked the presidency to put it on formal negotiating tables . There are two categories of countries on roadmap negotiations: those that are "very favorable" or have "very negatives" views on it, Cop 30 president Andre Correa do Lago told reporters. "Some groups [that have negative views on the roadmap] don't want that type of language on fossil fuels, while some developing countries don't want any more obligations, independently on which topic," Cop 30 chief executive Ana Toni said. Still, it is up to developed countries to take the lead on those negotiations, Correa do Lago said. One of the main hurdles to negotiating the roadmap has been how to implement it with solutions that are appropriate for each country, Correa do Lago said. "We really need to see the economic and social implications of the transitioning away [from fossil fuels] for each country and for different regions in each country." Additionally, there are many different interpretations on what needs to enter formal documents, he said. It has been hard to decide between what has to be negotiated and what can be implemented without a formal text, he added. The wording regarding the roadmap on the presidency's initial draft was considered weak by some delegates, according to Tina Stege, the climate envoy of the Marshall Islands, speaking for negotiating bloc the alliance of small island states. The presidency's draft "reflects something that opens the door" for negotiations between favorable and reluctant countries, Correa Lago said. So it is "natural" that the more favorable countries would expect something more ambitious. But Toni said that no group of countries has explicitly told the presidency that the initial draft's wording was "weak". Finance for adaptation One of the topics in which delegates have differed the most during negotiations is finance for adaptation, Brazil's chief climate negotiator Lilian Chagas said. Adaptation covers efforts to adjust to climate change where possible. The presidency's initial drafts included a proposal to triple adaptation finance from wealthier nations to developing countries. "The [global goal on adaptation"] is absolutely central and obviously the push for an increase in adaptation resources is significant", Correa Lago said. "And we want this to be an adaptation Cop". By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cop: 80 nations back roadmap on shift from fossil fuels


18/11/25
18/11/25

Cop: 80 nations back roadmap on shift from fossil fuels

Belem, 18 November (Argus) — Around 80 countries are asking the UN Cop 30 climate summit's Brazilian presidency to put a roadmap to transition away from fossil fuels on the negotiating table, after an initial draft text released today included only "weak" mentions. The current reference to the roadmap in the text is "weak" and only presented as an option in the main text released today , climate envoy for the Marshall Islands Tina Stege said, speaking for negotiating bloc the alliance of small island states (Aosis). Developing and developed nations as well as island states are supporting the call. The text follows consultations on four topics sitting outside the official conference agenda and sets out options — with various degrees of strength — on the phase-out of fossil fuels and climate finance, including options for no text at all. UK climate envoy Rachel Kyte said that the objective of a meeting today is to make clear to the Brazilian presidency that this coalition of countries is not going to go home without clarity about a roadmap on implementing the outcome from Cop 28 in 2023. Parties at Cop 28 agreed to a call "to transition away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science". German environment minister Carsten Schneider called on other countries to join the coalition. "We want a [Cop 30] outcome that addresses the transition away from fossil fuels in a just and inclusive way," he said, adding that so do "most of [his] European friends", without naming specific countries. "We are saying with one voice that this is an issue that cannot be ignored, cannot be swept under the carpet, and this is where the momentum is", the UK's energy minister Ed Miliband said. He called for the roadmap to be at "the heart of Cop 30". Supporting the call should "also emphasise the importance of providing access to energy for those who don't have it", Kenya's special envoy for climate change Ali Mohamed said. The issue is also economical, Sierra Leone's environment minister Jiwoh Abdulai said. "The cost of adaptation is increasing much faster than we can afford. Insurance markets are going to collapse, even in the developed countries, because insurance companies are not going to want to underwrite a lot of these risks", he said. It is in all countries' interest, including those with economies dependent on fossil fuels, to strengthen co-operation to transition away from fossil fuels, Sweden's lead negotiator Matthias Frumerie said. Individual countries' roadmaps should include the phase out of fossil fuel subsidies, Colombia's environment minister Irene Velez-Torres. Allocating some of these subsidies to the roadmap against deforestation would be a major step, she added. Colombia was an early champion of a roadmap to phase out fossil fuels. Another key issue is figuring out how to replace extractive economies in producing countries and financing, she said. Colombia is calling for the language in the text to be more definite. "What we have so far is that draft that has room for improvement, but it can end up like an onion: you peel back the layers and in the end you find nothing," Velez-Torres said. One negotiator suggested that the text released by the presidency was weighted and that calls for a roadmap were ignored. By Lucas Parolin and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cop: Presidency tackles key issues in first draft text


18/11/25
18/11/25

Cop: Presidency tackles key issues in first draft text

Belem, 18 November (Argus) — The Brazilian presidency of the UN Cop 30 summit has released a first draft text focused on the controversial issues that were left out of the conference's main agenda. The text represents a significant step forward in negotiations, but multiple options are offered for the main sticking points, suggesting that consensus is still lacking. The issues tackled include climate finance from developed to developing nations, unilateral trade measures, and moving away from fossil fuels. The presidency released a package of texts today, aiming to reach conclusion on several elements tomorrow. It included the first presidency draft text, following discussions on unilateral trade measures, climate finance, responses to countries' climate plans and emissions reporting — the four topics sitting outside the official conference agenda. The text sets out options — with various degrees of strength — on fossil fuels and climate finance, including options for no text at all. A menu of multiple options is normal at this stage of the talks. It is now up to delegations to find compromise, with another round of consultations scheduled today. One paragraph mentions the sharing of "domestic opportunities and success stories on the just, orderly and equitable transition towards low carbon solutions". There is also an option recalling the central paragraph of the global stocktake agreed in Dubai , which called for a move away from fossil fuels. This option suggests "convening" a high-level ministerial round table on different pathways and approaches "with a view to supporting countries to developed just, orderly and equitable transition roadmaps, including to progressively overcome their dependency on fossil fuels and towards halting and reversing deforestation". The option echoes previous calls for a roadmap to transition away from fossil fuels, made in the early days of Cop 30. The text also touches on a potential response to the latest round of countries' climate plans, and their alignment with the Paris Agreement. One option calls on countries to accelerate action on the Dubai call, which is reiterated in full in the text. Others mention a "Global Implementation Accelerator" report and a "Belem Roadmap to 1.5[°C]". The latter refers to the Paris Agreement's most ambitious goal of holding the global rise in temperature to 1.5°C above pre-industrial levels, and appears a softer option than a specific roadmap on moving away from fossil fuels. The texts are a "credible package capable of delivering meaningful Cop 30 outcomes" and represent "a substantial starting point", associate director at energy think-tank E3G Kaysie Brown said. A key sticking point in negotiations overall could be on finance for adaptation — adjusting to climate change where possible — according to director of international climate action at non-profit WRI David Waskow. Developing countries are calling for adaptation finance provided by developed nations to reach $120bn/yr by 2030 — up from a goal of $40bn this year. The draft text's elements on unilateral trade measures are "positive", as they invite more consideration, Waskow said. Developed countries seem opposed to going beyond the climate finance deal struck at Cop 29 , but are mostly supportive of language on shifting away from fossil fuels, global policy lead at civil society organisation Oil Change International Romain Ioualalen said. "Parties eyeing an outcome on fossil fuels will not succeed if they don't send strong signals on finance, adaptation, and the just transition", he said. By Caroline Varin and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

DNO reshuffles N Sea assets to generate quick returns


18/11/25
18/11/25

DNO reshuffles N Sea assets to generate quick returns

London, 18 November (Argus) — Norway-based upstream producer DNO has agreed to sell its stake in a redevelopment project in the Ekofisk region of the North Sea, while boosting its interest in Norway's Verdande oil and gas discovery and taking a share of a new exploration prospect. The company will divest its 7.6pc stake in the Ekofisk Previously Produced Fields project to Polish refiner Orlen. It will also acquire from Orlen a 20pc interest in a licence that contains the Cassio prospect, and an additional 0.8pc interest in the Verdande discovery. The deals are part of DNO's strategy to focus on short-cycle and less capital-intensive assets. "Our focus is on increasing near-term cash flow with less spend and more barrels more quickly," said DNO executive chairman Bijan Mossavar-Rahmani. Verdande, located in the Norne area of the Norwegian Sea, is scheduled to come online before the end of 2025, while exploration drilling on Cassio in the North Sea is expected to start in late 2026. The Ekofisk redevelopment programme, on the other hand, is not due to start up until 2029. "We have chosen to deploy our share of the significant capital expenditure necessary [for the Ekofisk project] in ways that play to our strengths, namely exploration and rapid-fire development of our existing discoveries," said Mossavar-Rahmani. Cassio sits directly north of a DNO-operated licence containing the Othello discovery, which the company is considering developing as a tie-back to nearby infrastructure. The transactions follow DNO's $450mn deal to buy Norway's Sval Energi earlier this year , which made the North Sea the biggest contributor to the company's production. DNO's production in July-September increased by 50pc from a year earlier, helping to more than double its revenues. Profits, however, remained broadly flat on the year during the same period, owing to extra production costs in the North Sea. By Lauren Hadeed Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tokyo Gas sells Louisiana gas interest to Grayrock


18/11/25
18/11/25

Tokyo Gas sells Louisiana gas interest to Grayrock

Tokyo, 18 November (Argus) — Japan's gas distributor Tokyo Gas's US subsidiary TG Natural Resources (TGNR) sold its gas exploration and production business in Louisiana to Texas based E&P firm Grayrock Energy. Tokyo Gas said on 17 November that it signed an agreement to sell TGNR's subsidiary called TGNR TVL to Grayrock Energy on 14 November. TGNR TVL is a gas field interest in Louisiana which was acquired from US natural gas producer Range Resources in August 2020. The divestment is part of a portfolio review aimed at improving asset efficiency, Tokyo Gas said. Grayrock paid $255mn to acquire the Louisiana gas asset and transaction is planned to complete on 31 December 2025. Tokyo Gas sold 25pc stake of another subsidiary in Texas to Japanese gas distributor Shizuoka Gas in February. It explained the reason of the sale to also be a part of a review of its portfolio aimed at improving asset efficiency. Tokyo Gas plans to focus on the business of its assets in east Texas and north Louisiana . By Reina Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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