Japanese power producer Jera said this week that it has signed multiple long-term LNG supply agreements with US partners over the past two months, to procure up to 5.5mn t/yr over 20 years. This includes 2mn t/yr from NextDecade and 1mn t/yr from Commonwealth LNG. It also signed non-binding interim agreements with Sempra Infrastructure for 1.5mn t/yr and with developer Cheniere for 1mn t/yr. The deals offer competitive pricing and flexible contract terms. All supply will be delivered on a fob basis priced against the US' Henry Hub, allowing Jera to optimise shipping routes and respond flexibly to domestic demand and market conditions, the company said.
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US will retaliate after Iran downs chopper: Trump
US will retaliate after Iran downs chopper: Trump
Washington, 9 June (Argus) — President Donald Trump said on Tuesday the US will retaliate after Iran shot down a US military helicopter patrolling the strait of Hormuz. "The United States must, of necessity, respond to this attack," Trump said in a social media post. The Pentagon said earlier that a US Army Apache helicopter went down near the coast of Oman in the early hours Tuesday, local time, and that the two crew members were safe. Trump was the first to confirm that it was an Iranian attack that brought down the US helicopter. Low-intensity fighting between US and Iranian forces has flared up repeatedly since late May. The US has targeted Iranian military infrastructure around the strait of Hormuz and Iran responded with missile and drone attacks against vessels passing through the strait and US bases in Kuwait and Bahrain. The incident on Tuesday marks the first loss of a US military aircraft since the US and Iran declared a ceasefire on 8 April. Despite fighting underway, Trump since 22 May has repeatedly described a US-Iran peace deal as practically finalized. "We have ongoing negotiations in Iran and with Iran, that hasn't stopped," Trump said late on Monday. "And we could have at least an idea by one or two days from now, but I think it's going well." By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
BP confirms shift to two‑segment structure
BP confirms shift to two‑segment structure
London, 9 June (Argus) — BP confirmed today that it will reorganise its business into two segments — Upstream and Downstream — from 1 July. The Upstream segment will combine BP's oil and gas regions, covering exploration, development and production. It will also include upstream joint ventures, alongside the company's renewable natural gas and carbon capture and storage businesses. The Downstream segment will include refining, terminals and pipelines, as well as BP's mobility and convenience retail operations. It will also cover biofuels, aviation and hydrogen, and include the company's remaining 35pc stake in its Castrol lubricants business. BP's Supply, Trading & Shipping function will operate across both segments, supporting "delivery and value creation across the integrated system", the company said. Its renewable power businesses — including solar and offshore wind, where BP is pursuing an asset-light model — will sit within the Technology function. The reorganisation was trailed shortly after new chief executive Meg O'Neill joined the company in April . Focusing BP around two distinct segments "is an important step in accelerating delivery" and will "reduce complexity and strengthen execution", O'Neill said today. The move brings BP's structure closer to that of US peers Chevron and ExxonMobil. O'Neill previously spent more than two decades at ExxonMobil. BP is currently organised into three main segments — Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products — alongside an Other Businesses and Corporate segment. The company said the new structure will clarify accountabilities and enable "faster, more effective" decision-making. O'Neill has previously said that moving BP's refining into a dedicated downstream segment, from the largely upstream Production & Operations business, would allow leadership to better "maximise value from the front of the refinery all the way to the end-customer". BP said Gordon Birrell, currently executive vice-president of Production & Operations, will lead the new Upstream segment. Customers & Products head Richard Harding will serve as interim head of Downstream until a permanent executive vice-president is appointed. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
South Korea’s fundamental fuel economics and policy
South Korea’s fundamental fuel economics and policy
London, 8 June (Argus) — The dynamic between thermal coal and LNG in South Korea's energy mix is more relevant than ever in the wake of the Mideast Gulf war, with surging prices, supply disruptions and evolving government policy all dictating the shape of South Korea's electricity generation. Generation margin advantage Coal has maintained substantial cost advantages over gas-fired generation since the US/Israel-Iran war began. On 6 March, thermal coal generation costs in South Korea were estimated at 75.83 won/kWh, compared with W216.22/kWh for LNG. Argus' NAR 5,800 kcal/kg thermal coal assessment rose by $19/t to $115.63/t cfr South Korea on 6 March, while northeast Asia (ANEA) front-month spot LNG prices more than doubled over the same period to $23.665/mn Btu from $10.715/mn Btu . April: Full switching to coal In April, South Korea demonstrated substantial fuel switching away from gas to coal. South Korean coal burn averaged 15GW in April, up by 42pc from around 10.6GW in 2025. Gas generation was down by 6.2pc, equivalent to an LNG demand cut of approximately 110,000t. This marked the first full month without any Qatari LNG deliveries following the outbreak of the Middle East war. May-June: Persistent coal support, constrained gas burn Despite ongoing government efforts to preserve LNG stocks, coal's dominance continued. Gas-fired output fell to 15.9GW for the rolling four-week average over 27 April–24 May 2026, down by 4.4pc on the year, while coal-fired output rose by 16.5pc to about 15GW over the same period. However, at least six LNG cargoes were diverted to South Korea in May, signalling spot demand driven by summer temperatures. Structural constraints on fuel switching South Korea's ability to fuel-switch away from gas is constrained by persistent grid bottlenecks. New renewable, nuclear and coal-fired power plants in coastal areas lack sufficient grid capacity to transfer power to urban demand centres. This structural constraint has kept a higher floor for gas-fired output, particularly during off-peak hours. Coal's balancing role During the spring shoulder season (typically March–June), South Korea implements countermeasures forcing generators to run coal-fired units at minimum levels to maintain grid stability. Coal-fired plants require higher minimum stable output than gas-fired units, making them far less flexible when solar output spikes in the middle of the day. As a result, gas-fired plants have been relied on as the main balancing power source during peak renewable generation hours. Policy and energy transition The South Korean government previously pledged to phase out coal entirely by 2040 but shifted to a more flexible stance following Middle East energy disruptions. By 14 April, the government signalled the possibility of delaying its coal exit plan in response to the war in the Middle East, although it simultaneously reaffirmed its commitment to expand renewables to 100GW by 2030. Near-term outlook and summer 2026 demand South Korea is forecast to experience a hotter-than-normal summer in June–August, with its meteorological agency indicating over a 50pc chance of above-average temperatures. This could increase power demand and LNG requirements. But the country faces tighter structural supply dynamics. Nuclear availability is scheduled to fall to 19.4GW in June–August from 20.1GW a year earlier, assuming the Wolsong reactors under maintenance stay off line. Coal-fired capacity will gradually return from maintenance, with 4.7GW set to have returned by the end of May, but this will only partially offset the government's ability to switch away from gas. Gas tariff and electricity price pressures are likely to persist, encouraging continued reliance on coal where operationally feasible. S Korea 40% coal switching price S Korea 44, 40% DS, 58% SS Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Iran says suspends military operation against Israel
Iran says suspends military operation against Israel
London, 8 June (Argus) — Iran has suspended its attacks on Israel, state media said today citing the Islamic Revolutionary Guard Corps (IRGC). Crude prices pared some earlier gains. The IRGC said it has suspended military operations that saw ballistic missiles fired at targets in northern Israel. This was Iran's first attack on Israel since 8 April, and promoted retaliatory airstrikes by Israel on what it said were military targets in western and central Iran. "Any continuation of [Israeli] hostilities and wrongdoing — particularly in southern Lebanon — will be met with far harsher and more devastating actions than those previously taken," the IRGC said according to state news agency IRNA. Tehran deems Israeli military action in Lebanon as a part of the wider war involving the two countries and the US, and has said it wants an end to Jerusalem's incursions as part of any deal that could reopen the strait of Hormuz. Israel and Lebanon's central government have reached several ceasefire agreements, with the US facilitating those talks. But Lebanon's central government has little control over Hezbollah, the Iran-backed militant group that has been attacking civilian and military targets in northern Israel. Earlier on Monday, US president Donald Trump appealed for calm. "Israel and Iran must immediately stop "shooting"," he wrote on his Truth Social account. He again said a peace deal is close, "subject to ignorance or stupidity getting in its way", and said the US naval blockade of Iranian shipping in the Gulf of Oman "will remain in place and in full force and effect", until a deal is reached. The front-month August Ice Brent contract fell back from earlier highs after the Iranian announcement, to trade up by around 1pc on the day at $94.13/bl as of 11:50 GMT. It hit an intraday high of above $98/bl earlier in the day. By Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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