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Energy firms on alert after flooding in Europe: Update

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

Adds details throughout

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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25/05/15

Grids key to boosting SE Asia’s renewable power: Ember

Grids key to boosting SE Asia’s renewable power: Ember

Singapore, 15 May (Argus) — Up to 30GW of solar and wind power could be unlocked along planned grid routes in southeast Asia, which would help meet growing power demand in the region, according to a report released today by think-tank Ember. The Asean group of nations is still heavily reliant on fossil fuels, but solar and wind power are expected to constitute 23pc of the energy mix by 2030, up from 4pc currently, according to Ember. Asean as a region targets a 51GW increase in solar, and a 109GW increase in wind, hydro, geothermal and bioenergy combined by 2040. Electricity demand is rising in the region, because of economic growth as well as greater demand from data centres and transport electrification. Expanding and modernising the region's grid infrastructure would help to allow for the development of more clean energy, improve system flexibility and support regional power sharing. Up to 24GW of potential solar power and 5.6GW of wind power are situated in Indonesia's Riau islands and Sumatra, Malaysia's Sarawak, Cambodia and Brunei, where there are existing and planned grid projects. But the electricity generated from these projects needs transmission lines to be transported to demand centres. Indonesia, Vietnam, the Philippines and Thailand collectively plan to add 45,078km of transmission lines between 2023-30. But this is slightly less than half of IEA's projections that indicate southeast Asia needs to expand transmission lines by 100,000km between 2021-30 to meet its clean energy targets. Regional variance There is significant disparity between Asean countries in their clean energy potential, with some having abundant wind and solar capacity, and others having hydropower and geothermal resources. These resources also tend to be subject to seasonal variations. Regional grid interconnection is hence "key to using these resources in combination, boosting renewables use and economic growth" states the report. The Asean Power Grid has seen some progress through the Lao PDR-Thailand-Malaysia-Singapore (LTMS-PIP) project and the Brunei Darussalam, Indonesia, Malaysia and the Philippines Power Integration Project (BIMP-PIP). But grid development plans still vary significantly across the region. Only Cambodia, Malaysia and Singapore have signed the UN's Global Energy Storage and Grids Pledge, which aims to deploy 1,500GW of energy storage and 25mn km of grid infrastructure globally by 2030. Additionally, investment required to expand electricity grids, including regional interconnections, could reach $22bn/yr by 2035, the IEA said. Asean's clean energy future hence depends on cross-border data sharing, addressing infrastructure requirements, momentum in policymaking for regional co-operation, and aligning investments with future energy demand, says Ember. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New Zealand approves rules to raise jet fuel storage


25/05/15
25/05/15

New Zealand approves rules to raise jet fuel storage

Sydney, 15 May (Argus) — New Zealand has approved regulations to increase jet fuel storage in or around Auckland Airport before November next year to stop fuel supply disruptions. The regulations approved by New Zealand's government mean that fuel companies have until 1 November 2026 to invest in sufficient fuel storage, allowing them to have 10 days' worth of cover at 80pc operations , a measure introduced in a 2019 inquiry. New Zealand imported an average of around 22,000 b/d of jet fuel in the three months to 12 May, according to trade analytics platform Kpler data. Fuel companies have also agreed to invest in a new storage tank near Auckland Airport, according to New Zealand's associate energy minister Shane Jones. Auckland Airport had a pipeline rupture in 2017 that impacted almost 300 flights and resulted in an inquiry in 2019. The recommendation from the inquiry has not been met by fuel companies, said Jones, leaving New Zealand at risk of fuel supply disruptions. The government also updated the rules regarding fuel companies giving government visibility on the amount of jet fuel they hold near Auckland Airport. Jet fuel importers in Australia must have a baseline stock level of 27 days since July 2024, up from 24 days previously. By Susannah Cornford Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Refinery maintenance to limit Bahrain's bitumen exports


25/05/15
25/05/15

Refinery maintenance to limit Bahrain's bitumen exports

Mumbai, 15 May (Argus) — Bitumen export supply from Bahrain state-controlled refiner Bapco's 267,000 b/d Sitra refinery is expected to fall in May-June because of upcoming planned maintenance work and subsequent upgrading work at the plant, international bitumen traders and importers told Argus . The planned maintenance is scheduled to start around the end of May and will limit bitumen output as a vacuum distillation unit (VDU) will be taken off line, market participants close to the refinery said, but further details on the turnaround was unavailable. Some international traders and importers told Argus that Bapco will not offer waterborne cargoes during the turnaround, which is expected to last through June, and available inventories will be reserved for domestic consumption. Listed seaborne bitumen prices are at $370/t fob Sitra, unchanged since mid-April. Earlier this month, the 3,394 deadweight tonne Sidra Al Wakra vessel loaded a 3,100t cargo from Sitra for discharge in Qatar, shiptracking data from global trade and analytics firm Kpler show. The same vessel is scheduled to load a similar-sized cargo in the coming week, the data showed, but it was unclear if this would be the last bitumen tanker loading schedule ahead of the turnaround. Import demand for Bahraini cargoes has been lacklustre since 2024 because of competitive offers from neighbouring Iran, and only those with special requirements were enquiring for Bahraini cargoes. Import demand was mostly from Qatar, the UAE, and South Africa's Durban. The weekly fob Iran bulk price was assessed by Argus at $342.50/t on 9 May, at a discount of $27.50/t to Bahrain's listed seaborne prices. The Argus -assessed fob Iran bulk prices were at a discount of $109.90/t on average to Bahrain's listed seaborne prices in 2024. The discounts widened to as high as $201/t at the end of May last year. Meanwhile, the Sitra refinery is undergoing upgrading as part of the $7bn flagship Bapco Modernisation Project (BMP), which will increase the refinery's capacity to 380,000 b/d from 267,000 b/d. The project was inaugurated towards the end of last year and currently the refinery is likely starting up secondary units, but further details on the progress of this were not available. The upgraded refinery will primarily increase output of middle distillates, indicating that output of heavier products such as bitumen will be reduced, especially with the start-up of the secondary units. By Sathya Narayanan, Ieva Paldaviciute and Keyvan Hedvat Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Shale unable to absorb price decline: Continental


25/05/14
25/05/14

Shale unable to absorb price decline: Continental

New York, 14 May (Argus) — Shale output growth plans are being sidelined for the time being as this year's decline in oil prices curtails investment into the sector, according to the chief executive officer of Continental Resources. "There's nothing that we can use in the industry to absorb a $10/bl drop in price from a technology standpoint," chief executive officer Doug Lawler said at the Super DUG Conference & Expo 2025 in Fort Worth, Texas, today. "There are not capital efficiencies that can be captured that makes up $10/bl." The pullback in capital that is starting to be seen across the industry as a result of the price rout caused by uncertainty around President Donald Trump's tariffs and surging Opec+ supply will continue as the year progresses, Lawler said. Top shale company executives have warned in recent weeks that shale is in for a rough ride given the price drop, which has since stabilized following a US-China trade truce agreed last weekend. US onshore crude production has likely peaked , according to leading independent Diamondback Energy, while Occidental Petroleum chief executive Vicki Hollub warned the peak could come sooner than expected . "I would maybe caveat it just a little bit different, and not call it a peak, necessarily, but I think we're in for a period of a plateau," Lawler said today. Earlier this year, Continental announced a joint venture with Turkey's national oil company and US-based TransAtlantic Petroleum to develop oil and gas resources in southeast and northwest Turkey. "We don't see it necessarily as an international strategy," Lawler said. "We really see it more as a continuation of the history and heritage of the company, of being exploration-focused." It also should not be viewed as the company seeing a lack of domestic opportunities, given 5-10pc of its overall annual capital budget will be directed at exploration over the next few years. Continental, which was founded by shale billionaire and leading Trump donor Harold Hamm in 1967, is the largest leaseholder and producer in the Bakken basin. It also has positions in the Scoop and Stack plays of the Anadarko basin of Oklahoma, and is also active in the Powder River Basin of Wyoming and Permian basin of Texas. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Bolivian president bypasses reelection


25/05/14
25/05/14

Bolivian president bypasses reelection

Montevideo, 14 May (Argus) — Bolivian president Luis Arce will not run for a second five-year term and instead backed a united front to elect another leftist candidate. Arce's decision on Tuesday came on the eve of the filing deadline for the 17 August election. He called on former president Evo Morales to also step aside from the race to improve the chances of another left-wing contender. Morales is fighting a court ruling that he is ineligible to run after already having multiple terms. Arce said the Movement to Socialism (MAS) party should rally behind senate president Andronico Rodriguez, 36. Rodriguez announced his candidacy on 3 May as a third way, but remains closely aligned with Morales. He has led the senate since 2020. Four center-right candidates are expected to compete in the race. The MAS has governed Bolivia for most of the past 20 years. Arce and Morales, allies turned enemies, blame each other for Bolivia's economic turmoil, including its dwindling oil and natural gas production. Inflation through April was 5.5pc, up from 1.3pc in the same period last year. Inflation was 9.9pc last year, the highest since 2008. The World Bank forecasts GDP growth at 1.4pc for the year. The oil and gas sector is at the heart of the crisis. Bolivia has gone from fuel independence to importing 54pc of gasoline and 86pc of diesel, both of which are heavily subsidized. The government forecast $2.9bn on fuel subsidies this year. Crude production was close to 21,000 b/d in 2024, according to the statistics agency. It was approximately 51,000 b/d in 2014. Natural gas output, the cornerstone of Bolivia's economic growth for most of this century, has fallen. Output was approximately 33mn m³/d in 2024, down from a peak of 56mn m³/d in 2006. Proven reserves were at 4.5 trillion cf in 2023, less than half of the 10.7 trillion reported in 2017, according to the state-owned YPFB. YPFB in early May announced a new tender to certify reserves by the end of this year. Bolivia stopped daily piped gas exports to Argentina in September and has a contract to export up to 20mn m³/d to Brazil. Domestic demand for gas is close to 14mn m³/d, stated YPFB. On 1 April Argentina began using Bolivia's pipeline infrastructure to ship natural gas to Brazil. Three companies — Argentina's Pluspetrol and Tecpetrol, and France's TotalEnergies — have so far sent gas to Brazil. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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