Source: Statistical Review of World Energy 2025 & Hydrocarbon Engineering
Unlike the 1970s oil shocks, which were largely limited to a single commodity - oil - the 2022 and 2026 energy crises were simultaneous shocks across coal, oil, and natural gas and that too at a time when the global economy was far more interconnected and therefore more vulnerable. The 2026 energy crisis, which is threatening economies with sharp price increases and volume shortages, is also raising questions over some of the accepted narratives in the energy sector. The idea that hydrocarbons and hydrocarbon-producing nations are no longer central to energy security was one of the accepted narratives. The rationale was that the world was awash with surplus oil and gas and that supply disruptions would be compensated immediately. A subsidiary narrative was that shale oil production in the US would make up for any loss in global oil supply, as the United States (US), the world’s largest oil producer, had taken the role of Saudi Arabia as swing producer. The blockage of the Strait of Hormuz, through which 25 percent of seaborne oil trade, 20 percent of petroleum products and 20 percent of LNG (liquefied natural gas) trade passes, has shown that hydrocarbon producers in West Asia and the hydrocarbons they produce and export remain central to energy security. The US role as swing producer has not materialised. The private shale oil producers in the US are more attuned to private profit generation through capital discipline than to the production of public goods such as energy security.
Fossil fuels supplied approximately 86.5 percent of global primary energy in 2024 and continue to dominate electricity generation, transport, and heavy industry. When Russian pipeline gas deliveries to Europe fell after the crisis in Ukraine, Europe replaced pipeline gas with LNG. Natural gas prices in Europe reached their highest point in September 2022 at roughly twenty-five times the price two years ago. Coal acted as the residual balancing plant when natural gas became prohibitively expensive. Oil, natural gas and coal were fungible enough to allow rapid, if imperfect, substitution among themselves when supply was constrained.
Pipeline natural gas and LNG are chemically the same, primarily methane—but differ in logistics and marginal cost. Pipeline gas is cheap to transport once the infrastructure is built, but the geography of intercontinental pipelines exposes them to geopolitical changes. LNG requires liquefaction, which is energy and cost-intensive, with an internal energy penalty of about 10 percent; it requires specialised tankers and regasification terminals, which carry energy and cost penalties. In the three years ending in 2025, Europe built more than 50 billion cubic meters (bcm) of additional LNG import capacity, converting what was a regional market into a globally contestable one. Dual-fuel boilers and power-generating capacity improved energy security. Many European facilities can switch between gas and oil distillates within hours; some Asian utilities can switch between LNG and coal.
Inter-fuel substitution is clearly visible in the ongoing crisis over Iran. With LNG supply from Qatar reduced, Asian economies South Korea, Bangladesh and Indonesia are increasing coal-fired power generation. Oil is harder to substitute in transport without investment in assets such as electric vehicles (EVs), but the supply shock is reinforcing the case for diesel and residual-fuel-oil stockpiles at strategic hubs.
Fundamental engineering realities underpin the versatility of fossil fuels. A barrel of oil or a tonne of coal has higher volumetric and gravimetric energy density than lithium-ion batteries or hydrogen. Natural-gas combined-cycle plants can ramp from zero to full load in minutes and provide the inertia and frequency response to the grid that inverter-based renewables struggle to replicate without massive overbuild and storage. Coal-fired stations increase emissions but offer months of on-site stockpiling—insurance that intermittent solar and wind cannot provide against geopolitical or weather shocks.
These substitutions are not costless. They increase emissions, strain supply chains, and introduce price volatility that is transmitted through marginal-cost electricity pricing. This means the most expensive fossil fuel unit often sets the clearing price. Yet inter-fuel substitution will prevent far worse outcomes such as industrial shutdowns, widespread blackouts, and social unrest. The fungibility of fossil fuel infrastructure, including but not limited to ports, rail systems, pipelines, tankers and refineries, allows markets to reoptimize faster than alternatives.
For India, along with other economies, energy security now ranks alongside decarbonization as a policy priority. Strategic reserves, diversified import portfolios, and dual-fuel capability are viewed as national-defence investments. Substitution capacity within fossil fuels is offering indispensable time. LNG terminals are serving as flexible assets now, and they can eventually carry bio-LNG or synthetic methane. As proposed in the Indian budget for 2026-27, coal plants can be retrofitted with carbon capture if economics become favourable. The premature retirement of these energy assets risks stranding operational flexibility when shocks occur.
The Indian government allocated INR58.76 billion in the 2025–26 Union Budget for the construction and filling of SPRs (strategic petroleum reserves). Spending on construction and operations of the SPR is estimated to be about 14-15 percent of the allocated budget. At full capacity of about 5.33 million metric tonnes, the SPRs can provide about 9.5 days of net import cover. However, due to incomplete filling of SPRs, the effective strategic buffer is estimated to be lower. With the price of the Indian basket of crude at about US$125/barrel in March 2026 and increased subsidy commitments, India is likely to face macroeconomic challenges.
The call to accelerate the energy transition to insulate India from fossil fuel supply and price shocks is repeated in every energy forum. But fossil fuel supply shocks influence the pace of the energy transition. The correlation between fossil fuel prices and renewable energy costs, driven by the energy-intensive nature of industrial manufacturing and global logistics, is a reality. While renewables provide zero marginal cost energy (free solar and wind), their upfront capital expenditure is highly sensitive to the cost of oil, gas, and coal. The production of "green" infrastructure relies on three primary fossil-fuel-dependent channels. The production of steel for wind turbine towers, aluminium for solar frames, and polysilicon for solar cells requires large quantities of heat and electricity. Steel production typically relies on coking coal, while aluminium and polysilicon refining are often powered by natural gas or coal-fired grids. When these fuel prices spike, as they are now, the cost of these raw materials rises proportionally. Energy can account for up to 40 percent of the total production cost for base metals. Carbon fibre and epoxy resins used in wind turbine blades, as well as the plastic back sheets and ethylene-vinyl acetate (EVA) encapsulants used to protect solar panels, are directly derived from petrochemicals. As crude oil prices increase, the cost of these specialised polymers also increases.
In addition, global supply chains for renewables are incredibly transport-heavy. Moving large wind blades or thousands of solar modules requires significant maritime and heavy-truck transport, both of which are dependent on diesel and bunker fuel prices. Additionally, the heavy machinery used for onsite construction—such as cranes and excavators—operates almost exclusively on liquid petroleum fuels, adding a hidden energy premium to every new megawatt of capacity. The scramble for molecules, if replaced by the electrons from renewables, could potentially increase not only the scramble for materials but also the scramble for fossil fuel molecules.
LPG
The government is planning to change how the LPG (liquefied petroleum gas) subsidies are calculated after India increased its oil imports from the US (United States). The move came after oil companies signed year-long LPG supply deals with US exporters. The subsidy is currently decided using the Saudi Contract Price, which is the main reference for LPG coming from the Middle East. However, oil companies have highlighted that this method no longer works. The oil companies are seeking to include US LPG prices and the much higher shipping costs from the US. LPG from the US is economical for India only when it is sold at a big discount, because shipping it costs almost four times more than bringing LPG from Saudi Arabia. IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) agreed to import about 2.2 MT of LPG from the US for one year starting in 2026. This is nearly 10 percent of India’s total LPG imports. Earlier, Indian firms bought US LPG only when prices were attractive on the spot market. This is the first time they have signed a long-term contract with the US.
Domestic consumers of LPG cylinders from HPCL are facing a shortage in supply across Punjab, parts of Himachal Pradesh, and Jammu and Kashmir, with deliveries that would take a day or two now taking up 10 days and more. It is learnt that the shortage has been caused by the shutdown of the Guru Gobind Singh Refinery in Bathinda for repairs, and HPCL was getting supplies from Kandla. As the refinery has been shut down during the peak season of demand for LPG cylinders, the gap between demand and supply appears larger. Distributors are facing pressure from consumers.
Imports
Reliance Industries Ltd (RIL), operator of the world’s largest refining complex, would consider buying Venezuelan oil if it is permitted for sale to non-US buyers. Indian Oil Corporation (IOC) and HPCL will consider buying Venezuelan oil if sales are allowed to non-US companies. RIL stopped buying Venezuelan oil from March 2025 as US President Donald Trump announced a 25 percent tariff on nations buying crude from the South American producer. RIL’s two refinery complexes in western Gujarat state, with a combined capacity of about 1.4 million barrels per day (bpd) of crude oil, allow it to process cheaper and heavier crudes such as Venezuela’s Merey. India has faced pressure from Western nations to curb Russian oil purchases after Moscow’s invasion of Ukraine on concern that oil revenue may be financing Russia's war effort.
India’s imports of Russian crude oil are set to register a sharp pullback in December, but the decline reflects short-term disruptions rather than a structural shift in sourcing patterns. Russian crude imports into India are expected to fall to around 1.2 million bpd in December, down from 1.84 million bpd in November, marking the lowest level since December 2022. Indian refiners continue to buy Russian crude from non-sanctioned entities.
Demand
India’s fuel consumption hit 21.75 million metric tonnes (MT) in December, up 5.3 percent year-on-year and the highest monthly number recorded in oil ministry data going back to April 1998. India is the world’s third-largest consumer and importer of oil and the largest buyer of Russian seaborne crude, taking advantage of discounts on Russian oil as Europe and the US shun those barrels over Russia's invasion of Ukraine. The oil ministry’s Petroleum Planning and Analysis Cell (PPAC) data showed sales of gasoline, or petrol, stood at 3.56 MT in December, up 1.1 percent from November and 7.1 percent from a year earlier. Diesel consumption was at 8.46 MT, up 5 percent from a year earlier but down 1.1 percent month-on-month. LPG consumption rose 11.2 percent from a year earlier to 3.08 MT.
Storage
IOC has inaugurated a state-of-the-art bulk petroleum storage facility in Ladakh, designed to bolster fuel security and logistics in high-altitude and forward areas. This facility, developed with the support of the Indian Army, aims to ensure uninterrupted fuel availability in harsh conditions, especially during the winter months. This facility will not only support the Indian Army’s operations but also meet the energy needs of the local population in one of the most challenging terrains in the world. IOC has had a strong presence in Ladakh since the 1970s, with several key energy infrastructures already in operation.
IOC has completed its highest-ever winter stocking operation in Ladakh, supplying over one lakh kilolitres of petroleum products ahead of the region's annual winter shutdown. Every year, access to Ladakh is cut off from December to April due to heavy snowfall at high mountain passes like Zojila and Rohtang. To ensure uninterrupted fuel supply during this period, Indian Oil undertakes advance stocking. These supplies are vital for both civilians and the strategic needs of the Indian Army. Indian Oil’s tanker drivers and field teams operate on some of the toughest fuel supply routes in the world, covering 1,600-2,000 km over seven to eight days.
Retail
Oil marketing companies (OMCs) reduced aviation turbine fuel (ATF) prices by 7.3 percent as part of their monthly revision aligned with global fuel benchmarks. Meanwhile, the price of commercial LPG cylinder was raised by INR111. The reduction follows three consecutive monthly increases. On 1 December, the ATF prices were raised by 5.4 percent after similar such hikes in November and October. The latest cut offsets more than two-thirds of the increase recorded since 1 October. ATF price in Delhi was cut by INR7,353.75 per kilolitre, or 7.3 percent, to INR92,323.02 per kl. The price cut is expected to ease cost pressures on airlines, for whom fuel accounts for nearly 40 percent of total operating expenses. ATF prices were also revised downward in other metro cities. In Mumbai, the new rate is INR86,352.19 per kl. Chennai and Kolkata recorded revised prices of INR95,770 per kl and INR95,378.02 per kl, respectively. Rates vary across cities due to differences in local taxes. Alongside the ATF revision, oil companies increased the price of a 19-kg commercial LPG cylinder by INR111. In Delhi, the cylinder costs INR1,691.50.
India’s network of petrol pumps has expanded beyond 100,000 outlets, almost doubling over the past decade as oil companies ramped up expansion to meet rising vehicle demand and extend fuel access into rural regions. India ranks third globally in fuel retail network size, behind the US and China, which operate about 110,000–120,000 pumps each across far larger land areas. As per IOC, the rapid expansion has largely eased access constraints in rural and remote areas and improved customer service by intensifying competition. Rural outlets account for 29 percent of India’s total petrol pumps, up from 22 percent a decade ago. The fuel retail network has also evolved, with outlets no longer limited to petrol and diesel. Nearly one-third of fuel stations reportedly offer alternative options such as compressed natural gas and electric-vehicle charging, reflecting a gradual diversification of services. Despite policy reforms over the past decade, private companies account for less than 10 percent of India’s petrol pumps. RIL reportedly operates about 2,100 outlets, while Nayara Energy runs around 6,900.
World
Oil prices are likely to drift lower this year as a wave of supply creates a market surplus, although geopolitical risks tied to Russia, Venezuela and Iran will continue to drive volatility, Goldman Sachs said. The investment bank maintained its 2026 average price forecasts of US$56/US$52 per barrel for Brent/WTI (West Texas Intermediate), and expects Brent/WTI prices to bottom at $54/50 in the last quarter as OECD (Organization for Economic Cooperation and Development) inventories build up. US policymakers' focus on strong energy supply and relatively low oil prices will keep sustained oil price upside in check ahead of the midterms, analysts at the bank noted. Prices are expected to gradually start recovering in 2027, with the market returning to a deficit as non-OPEC (Organization of the Petroleum Exporting Countries) supply slows down and solid demand growth continues, Goldman analysts said in a note.
Oil prices settled more than 2 percent lower as investors weighed a looming global supply glut, while also keeping an eye on a potential Ukraine peace deal ahead of talks this weekend between Ukrainian President Volodymyr Zelenskiy and US President Donald Trump. While supply disruptions have helped oil prices rebound in recent sessions from their near five-year low on 16 December, they are on track for their steepest annual decline since 2020. Brent and WTI (West Texas Intermediate) are down 19 percent and 21 percent respectively on the year, as rising crude output caused concerns of an oil glut heading into next year. The global oil supply next year will exceed demand by 3.84 million bpd, according to the Paris-based IEA (International Energy Agency). Investors are watching for developments in the Russia-Ukraine peace process and the possible impact on future oil prices, as a peace agreement could lead to the removal of international sanctions against Russia’s oil sector.
Oil prices slumped below US$60 a barrel as investors try to make sense of US President Donald Trump’s push to end the war in Ukraine and force out Venezuelan President Nicolas Maduro. Global benchmark Brent crude oil futures plunged by nearly 3 percent to below US$59, their lowest since early 2021, amid growing optimism that a peace deal was in sight nearly four years after Russian President Vladimir Putin’s full-scale invasion of his western neighbour. Oil is a reliable barometer of geopolitical stress, so it’s no surprise to see prices react to events. But the impact of either a Ukraine peace deal or a Venezuela blockade on physical supply is likely to be limited. That is the largest volume since April 2020, when oil consumption cratered due to COVID-19 lockdowns, and about 30 percent higher than August levels. Meanwhile, the volume of oil stored on tankers for at least 20 days has reached 51 million barrels, the highest since June 2023, according to Kpler.
Africa & Middle East/ OPEC+
OPEC’s oil output fell in December due to lower supply from Iran and Venezuela, which offset an OPEC+ agreement to raise production for the month. The OPEC pumped 28.40 million bpd last month, down 100,000 bpd from November's revised total, with Iran posting the largest decline. OPEC+, comprising OPEC and allies including Russia, has slowed the pace of its monthly output increases amid concerns of a supply glut. Many members are running close to capacity limits and some are tasked with extra cuts to compensate for earlier overproduction, limiting the impact of further increases. Iranian crude supply dropped by 100,000 bpd in December.
OPEC+ will likely maintain steady oil output at its meeting, three OPEC+ delegates said, despite political tensions running high between key members Saudi Arabia and the UAE over Yemen. Meeting of eight members of OPEC+, which pumps about half the world's oil, comes after oil prices fell more than 18 percent in 2025 — their steepest drop since 2020 — amid growing oversupply concerns. The eight - Saudi Arabia, Russia, UAE, Kazakhstan, Kuwait, Iraq, Algeria and Oman - raised oil output targets by around 2.9 million bpd from April to December 2025, equal to almost 3 percent of world oil demand. The UAE said it would withdraw its remaining forces from Yemen after Saudi Arabia supported a call for Emirati troops to leave within 24 hours, one of the most serious public disagreements between the two Gulf oil producers.
Baghdad, the Kurdish government and international companies have agreed to extend an oil export deal through 31 March, Iraq’s state oil company SOMO said. The renewal extends a three-month deal agreed in September, allowing Iraq to restart the export of oil from its Kurdish region to Turkey. Supplies had been halted for more than two years.
Russia/Central Asia
Russia has almost doubled exports of LPG in the January - November period to ex-Soviet republics in Central Asia and Afghanistan to 1.016 MT. Moscow has had to divert supplies of LPG, or propane and butane, from Europe, which introduced restrictions on LPG imports from Russia in December 2024 over the war in Ukraine. Traders said supplies to Afghanistan, as well as to Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan account for around 36 percent of Russia’s total LPG exports, up from 19 percent in 2024. Supplies of Russia’s LPG to the country, including from Kazrosgaz, a joint venture with Kazakhstan, have jumped 1.5 times in the first 11 months of the year to 418,000 tonnes. Traders said that Russia’s LPG supplies to Afghanistan have increased partially at the expense of declining supplies from Iran, which has been sanctioned by the US.
North & South America
US oil major Exxon Mobil said that lower crude oil prices could cut its fourth-quarter upstream earnings by about US$800 million to US$1.2 billion. Oil prices declined 9.2 percent during the three months ended 31 December, as concerns about oversupply and tariffs outweighed geopolitical risks. Brent crude futures shed about 19 percent in 2025, the most substantial annual percentage decline since 2020 and their third straight year of losses, the longest such streak on record. US West Texas Intermediate crude logged an annual decline of almost 20 percent. The company said that changes in gas prices could affect its quarterly upstream earnings from a negative US$300 million to as much as a positive US$100 million. Exxon said restructuring charges could negatively impact overall earnings by about US$200 million. Late last year, the company had flagged that its corporate plan focused on cutting costs and boosting profit even through periods of oil price volatility.
US President Donald Trump is giving US energy companies the opportunity to revive Venezuela’s massive, derelict oil industry. After the US military’s ouster of Venezuelan President Nicolas Maduro, representatives of the Trump administration plan to meet with oil executives to discuss boosting Venezuelan oil production. Tapping Venezuela’s vast oil reserves - the world's largest at over 300 billion barrels, or roughly one-fifth of the global stock – may be a tempting prospect for Exxon Mobil, Chevron and ConocoPhillips. The potential to increase Venezuela’s oil production is enormous. Following years of mismanagement and US sanctions, the Latin American country’s production has slumped from a record of over 3.5 million bpd in the 1970s, when it made up around 8 percent of global supplies, to below 1 million bpd last year, less than 1 percent of today’s supply.
Asia Pacific
Conventional wisdom in the crude oil market is that producers such as OPEC+ largely determine the price by altering output levels to achieve a desired outcome. That shibboleth was challenged in 2025 by China, which used its status as the world’s biggest oil importer to provide an effective price floor and ceiling by either increasing or decreasing the volume of crude it sent to storage tanks. Production cuts in 2022 by OPEC+, which groups the OPEC and allies led by Russia, did shore up prices. Those gains faded once it began reversing the cuts in April this year. Now, facing a looming oil glut, OPEC+ has decided to sit tight and hold production levels steady in the first quarter of next year. What China does in 2026 is the biggest known unknown in crude markets.
EU & UK
Norway’s combined oil and gas production beat an official forecast by 0.9 percent in November, the Norwegian Offshore Directorate (NOD) said. Norway is Europe’s largest supplier of natural gas and a major producer of oil, but output varies from month to month depending on maintenance needs and other stoppages at close to 100 offshore fields. Overall oil, condensate, natural gas liquids and gas output stood at 0.694 million standard cubic metres per day in November, equivalent to 4.37 million barrels of oil equivalent, an increase of 0.9 percent year-on-year. Crude oil output rose to 1.88 million bpd for the month from 1.73 million bpd one year earlier, and came in above a forecast of 1.80 million bpd, NOD data showed. But the total oil liquids output, which includes crude as well as condensates and natural gas liquids, lagged the NOD’s forecast by 0.5 percent, the data showed.
Indian diesel exports to West Africa jump as EU bans Russian crude-derived fuel
27 January: India stopped exporting diesel to the European Union (EU) due to the European Union’s ban on fuel derived from Russian crude and instead sent a record amount to West Africa, Kpler and Vortexa shipping data showed, while Turkey’s diesel exports to the EU slowed in recent months. The developments highlight that the EU policy, aimed at punishing Russia over its 2022 full-scale invasion of Ukraine, is prompting a further reordering of intercontinental oil flows, forcing India’s oil refineries to seek new markets and disrupting Turkey's lucrative trade in supplying fuel to the EU. Russian crude made up 30 percent of India’s seaborne crude imports in 2025, while it represented 48 percent for Turkey’s seaborne crude imports last year, according to Kpler. India has not sent any diesel to the EU so far in January, having exported a monthly average of 137,000 barrels per day (bpd) in 2025, making it the third biggest diesel exporter to the bloc, according to Kpler. In India, Reliance Industries Ltd (RIL) has been the biggest fuel exporter to the EU in recent years, while Turkey’s Star oil refinery, owned by Azerbaijan state-owned Socar, was the biggest Turkish exporter, according to Kpler. India’s diesel exports to West Africa were on track to reach an all-time high in December at around 155,000 bpd, according to Kpler, which showed January exports were on pace to reach 84,000 bpd.
India flags potential for investments of US$500 bn in energy sector
27 January: India’s energy infrastructure offers potential investment opportunities worth up US$500 billion in the South Asian nation’s quest to become independent in production of energy, Prime Minster Narendra Modi said. India is building energy infrastructure to meet demand, he said, looking towards affordable refining and transport options. The South Asian nation aims to become the world’s No. 1 in refining capacity, he said. India is currently the third largest energy consumer and importer of crude. It aims to boost to US$100 billion the opportunities on offer in oil exploration, in the effort to lift the area under exploration to 1 million square kilometre (386,000 square miles).
Chennai Petroleum Corporation reports INR10 bn Q3 profit
25 January: Chennai Petroleum Corporation Ltd (CPCL) reported a consolidated profit of INR10.01 billion for the October-December 2025 quarter, driven by sustained operational excellence, the company said. For the nine-month period ending 31 December 2025, CPCL’s net profit grew to INR16.80 billion, compared with a net loss of INR2.55 billion in the year-ago period, the group company of Indian Oil Corporation said.
Bharat Petroleum, Brazil’s Petrobras enhance quantum of erstwhile crude oil supply deal
23 January: As India seeks to diversify their avenues for oil import, Bharat Petroleum Corporation Ltd (BPCL), would enhance their term contract to procure crude oil from Brazil’s Petrobras, according to the government. The latest deal would have the Indian state-owned refiner procuring 12 million barrels of Brazilian crude from the state-owned entity for US$780 million in the upcoming financial year. Indian Oil Corporation (IOC) also maintains a commercial agreement with the Brazilian state-owned oil entity for procurement of crude oil. Other than the Bharat Petroleum-Petrobras deal, the document informed that state-owned upstream major Oil India along with their Navaratna subsidiary Numaligarh Refinery would be inking a memorandum of understanding with French major TotalEnergies for LNG sourcing.
India’s MRPL scouts for Venezuelan oil as it halts Russian imports
19 January: India’s Mangalore Refinery and Petrochemicals Ltd (MRPL) is exploring purchases of Venezuelan oil as it halts imports of Russian oil to comply with Western sanctions, its head of finance Devendra Kumar said. The refiner, which operates a 500,000 barrel per day (bpd) refinery in the southern state of Karnataka, exports about 40 percent of its refined fuel output. He said higher margins on refined fuel exports are offsetting the loss of Russian oil. The refiner meets about 40 percent of its crude needs through purchases from the Middle East, in addition to sourcing from spot markets and processing domestic oil. He said MRPL is actively considering purchases of Venezuelan oil if commercial terms, including freight rates, are favourable. India refiners Reliance Industries Ltd (RIL), Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (BPCL) are considering buying Venezuelan oil. To boost its profits, MRPL has turned its focus to direct retail sales instead of selling refined fuels to other refiners. The company plans to expand its retail fuel network to 500 outlets within three years from 200 and aims to operate 1,000 fuel stations within five years, he said.
Indian Oil, BPCL JV makes fresh oil discovery in Abu Dhabi onshore block
14 January: Indian Oil Corporation (IOC) announced that its overseas joint venture (JV) with Bharat PetroResources, a wholly owned subsidiary of Bharat Petroleum Corporation Ltd (BPCL), has made a new oil discovery in Abu Dhabi’s Onshore Block 1. The block is operated through Urja Bharat Pte Ltd (UBPL), a 50:50 venture between IOCL and Bharat PetroResources. UBPL won the concession in Abu Dhabi’s 2019 bid round, the state-owned oil and gas giant said. It said that testing of the exploratory well XN79-02S resulted in a flow of light crude oil, marking the first oil find in the Habshan reservoir within the concession area. The discovery will now be appraised and assessed for potential development, the company said. The latest find comes after UBPL’s first discovery in the same block in early 2024, when oil was struck in the "unconventional Shilaif play" at the XN-76 well.
GAIL sees higher gas availability in India as fertiliser, city gas drive demand
27 January: More natural gas is expected to be available in India, with fertiliser plants and city gas distribution set to drive demand in the country, GAIL (India) Ltd chairman and managing director (CMD) Sandeep Kumar Gupta said. He expects city gas distribution to overtake the fertiliser industry in driving India’s natural gas demand.
India’s LNG importers hold back on long-term deals, awaiting record supply surge
26 January: India’s liquefied natural gas (LNG) importers are holding up some deals spanning decades as they push to lock in cheaper prices, hoping that a surge in supply will tilt negotiations in their favour. Major buyers including GAIL (India) Ltd and Bharat Petroleum Corporation Ltd have been pushing for lower prices and more flexible long-term contracts, leaving discussions with LNG producers stalled for more than a year, according to people familiar with the matter. That approach could be rewarded if prices drop as new projects from the US (United States) to Qatar come online. India for years had a goal of gas making up 15 percent of its energy mix by 2030, roughly double the current level. However, the country has struggled to progress toward the target due in part to LNG being too expensive for consumers.
HPCL inks US$3 bn LNG deal with UAE’s Adnoc Gas
20 January: Hindustan Petroleum Corporation Ltd (HPCL) has signed a US$3 billion deal to buy liquefied natural gas (LNG) from the Abu Dhabi National Oil Company Gas (Adnoc Gas), making it the UAE’s top customer, the firm said. The two firms signed a Sales and Purchase Agreement (SPA) during a very brief two-hour visit to India by UAE President Sheikh Mohammed bin Zayed Al Nahyan for talks with Prime Minister Narendra Modi. Abu Dhabi’s state firm will supply 0.5 million tonnes (MT) of LNG a year to HPCL for 10 years starting 2028. HPCL said it will receive the LNG at its 5 MT per annum LNG import terminal at Chhara, Gujarat.
GAIL completes 694 Km Mumbai-Nagpur Gas Pipeline along Samruddhi Mahamarg Expressway
19 January: GAIL (India) Ltd has completed the 694-km Mumbai-Nagpur Natural Gas Pipeline, a significant project that integrates a high-capacity pipeline within a three-meters-wide utility corridor along Maharashtra’s Samruddhi Mahamarg Expressway. This marks India’s first major gas pipeline integrated into a dense transport corridor under the PM-GatiShakti framework. The pipeline, with a capacity of 16.5 million standard cubic meters per day and bidirectional flow capability, is close to full operational completion. The project, covering 675 km of the Expressway, presented unique engineering challenges, as conventional pipelines typically require much wider spaces. GAIL had to install a 24-inch gas line within a limited footpath width while coordinating with multiple expressway construction packages managed by the Maharashtra State Road Development Corporation. The integration of this pipeline sets a blueprint for future energy expansion along dedicated corridors, and underscores its importance in the country’s infrastructure development.
NMDC begins coal mining operations in Jharkhand
23 January: Iron ore producer NMDC, as part of its diversification plans, has commenced mining operations at the Tokisud North Coal Mine in Barkagaon Block, Hazaribagh district of Jharkhand. The annual production capacity of the mine is 2.30 million tonnes (MT) of thermal coal. The date of commencement of commercial production will be intimated in due course, NMDC said. NMDC has identified 10 minerals as part of diversification strategies. Tokisud North Coal Mine has a project area of 585 hectare and is one of the two coals assets - coking coal block Rohne in the same State is the other -- allotted to the company by the Union Ministry of Coal. The Ministry had declared NMDC as the successful allottee of the Tokisud North coal mine on 16 December 2019 with the allotment agreement and Allotment Order signed subsequently. The company said the Tokisud North coal block has extractable reserves of about 52 MT of thermal coal and planned production capacity of 2.32 MT per annum. The Rohne block has extractable reserves of 191 MT and planned production capacity of 8 MT per annum. Both the blocks are located at an aerial distance of about 10-15 km, in the same district of the State.
Coal India facilitates automated sampling to improve quality of coal supply
22 January: In a continuous endeavour to improve the quality of domestic coal supply, Coal India Ltd (CIL) is progressively stepping up coal despatches through silo based mechanized loading system, integrated with Auto Mechanical Samplers. This technology-driven process ensures greater consistency in coal quality, circumventing human interference, while significantly reducing quality-related concerns of consumers. To ensure an impartial, transparent, and credible determination of coal quality, as stipulated under the provisions of the Fuel Supply Agreement, CIL facilitates sampling and testing through independent Third Party Sampling Agencies (TPSAs). Currently, 11 TPSAs are on board empaneled by Power Finance Corporation Ltd (PFCL) to carry out sampling and analysis at coal loading points of CIL’s subsidiary companies. Coal consumers have the flexibility to select a TPSA of their choice from the PFCL-empaneled agencies for quality assessment. Till December FY 2026, CIL has despatched about 375 million tonnes (MT) of coal through rail mode which was sampled by TPSAs. Of this, half of the despatches were made through silos where the installed auto mechanical samplers ensured high standards of coal quality process control. CIL is aiming to increase this quantity to around 80 percent in the current fiscal. In a bid to achieve this steep target the commissioning of new first mile connectivity projects and loading through silos is rigorously followed. Based on coal quality sampling analysis provided by TPSAs and referee labs, CIL’s overall grade conformity has risen to 85 percent till December of the ongoing fiscal year. The same was 82 percent year ago same period. The increased silo loading efforts by CIL are going to further scale up the conformity. CIL has taken steps to introduce online analysis at two of its subsidiaries to obtain real time quality assessment results.
Coal mining resumes at CCL’s Rajhara colliery in Jharkhand after 16 years
17 January: Union Minister Satish Chandra Dubey inaugurated the resumption of coal mining operations at Rajhara Colliery of Central Coalfields Ltd (CCL) in Jharkhand’s Palamu district. Coal mining operations had been closed at the site since 2010. He said that this would also help curb migration from the region. There has been a long-standing demand to restart the Rajhara coal mine, and the government has accorded it high priority, he said.
Coal ministry signs development agreements with DVC for three blocks
15 January: The coal ministry announced that it has executed Coal Mine Development and Production Agreements (CMDPAs) with Damodar Valley Corporation (DVC) for three commercial coal blocks—Dhulia North, Mandakini B and Pirpainti Barahat. These blocks were successfully auctioned under the 13th round of commercial coal mining auctions, and the agreements represent a significant milestone in India’s journey towards self-reliance in the coal sector, the ministry said. The blocks are fully explored and together account for a peak rated capacity of 49 million tonnes per annum (mtpa), underscoring their strategic importance in meeting the country’s growing energy requirements. The three projects are expected to create around 66,248 direct and indirect employment opportunities, fostering livelihood generation and regional development in the coal-bearing areas.
Eastern Coalfields commissions INR1 bn railway siding to boost coal evacuation capacity
14 January: Eastern Coalfields Ltd, a subsidiary of Coal India Ltd, said it inaugurated the Dalmia Railway Siding in West Bengal’s Salanpur area at a cost of INR1.10 billion, aiming to significantly strengthen coal evacuation and rail logistics in the region. The commissioning of the new siding is expected to enhance coal dispatch capacity by enabling faster, more efficient and reliable movement, while easing existing logistics constraints in the Salanpur region. The colliery siding has a designed evacuation capacity of 6 million tonnes per annum. It comprises two coal-loading platforms of 650 meters each, a dedicated railway weighbridge and a total siding route length of 2.25 km, with an overall track length of 4.65 km. Coal loading will be carried out using pay loaders, providing operational flexibility, the company said. According to ECL, the rail-linked facility will substantially reduce dependence on road transport, improve turnaround time, lower logistics costs and support environmentally sustainable coal movement.
Uttar Pradesh discoms ratings go up, PVVNL shines with A+ in power ministry report
24 January: Six key distribution companies (discoms) of Uttar Pradesh, including private utility NPCL (Noida Power Company Ltd), have shown noticeable improvement in their performance in the 14th Annual Integrated Rating and Ranking of Power Distribution Utilities report, released by the Union power minister Manohar Lal Khattar in Parwanoo, Himachal Pradesh. Leading the charge is NPCL, the state’s privately operated discom, which has secured seventh spot with an A+ rating and a score of 96.18, placing it among the top 10 discoms nationwide. Paschimanchal Vidyut Vitaran Nigam Ltd (PVVNL) emerged as a national standout by earning an A+ rating, a remarkable climb from its B grade the previous year. PVVNL’s score of 86.57 places it among the country’s top performers, and reflects strong strides in financial sustainability, timely payment to power suppliers, and improved cost recovery.
Power distribution reform scheme may get INR180 bn in FY27 budget
23 January: The government may increase the annual allocation for the Revamped Distribution Sector Scheme (RDSS) to INR180 billion in the FY27 budget, scheduled to be presented on 1 February. The scheme, launched in 2021, aims to transform the power distribution sector in the country by making it more efficient and financially sustainable. For the current financial year ending 31 March (FY26), the scheme was allocated around INR160 billion. The proposed increase comes as power distribution companies (discoms) remain under strain, saddled with cumulative debt of over INR7 trillion, despite multiple government efforts to bolster their financial health. These initiatives include Ujjwal Discom Assurance Yojana (UDAY) that was launched in 2015, and the proposed Electricity Amendment Bill, 2025, which aims to introduce reforms such as greater competition in power distribution, stricter performance norms for discoms, and greater consumer choice. For the first time in over a decade, power discoms have returned to cumulative profitability. The RDSS, which aims to install 250 million smart meters, has been extended until FY28 due to slow initial progress.
India’s power evacuation network surpasses 5 lakh circuit km-mark
22 January: India’s national power evacuation network achieved a significant milestone, by crossing 5 lakh circuit kilometres (ckm) of transmission lines (220 kV and above) along with 1,407 gigavolt-amperes (GVA) of transformation capacity (220 kV and above). The world’s largest synchronous national grid achieved this feat on 14 January 2026, with commissioning of the 628 ckm transmission line of 765 kV from Bhadla II to Sikar II substation for evacuation of RE power from Rajasthan Renewable Energy Zone, the power ministry said. With the commissioning of this transmission line, an additional 1,100 megawatt (MW) of power can be evacuated from the RE zone of Bhadla, Ramgarh & Fatehgarh Solar Power Complex, it said.
DERC extends business plan regulations for another year; new tariff order unlikely
20 January: Delhi Electricity Regulatory Commission (DERC), headless since August last year, has failed to come up with a revised tariff order for the national capital this year as well. The commission had 7 released a draft proposal to extend the Business Plan Regulations, 2023, by one year to cover FY 2026-27, inviting stakeholder comments by January 27, 2026.
UPERC nod to INR5.38 per unit power from upcoming Adani plant
15 January: The Uttar Pradesh Electricity Regulatory Commission (UPERC) approved the Power Supply Agreement for Adani Group’s 1,500 MW (megawatt) Mirzapur thermal energy project at a tariff of INR5.38 per unit, discovered through competitive bidding under Section 63 of the Electricity Act, 2003. The tariff was finalised after Adani’s subsidiary, Mirzapur Thermal Energy Pvt Ltd, calculated an estimated savings of INR2.7 billion following the removal of Flue Gas Desulphurization (FGD) systems, a technology used to control pollutants in plant. UPPCL and MTEUPPL had filed a petition with UPERC seeking approval of power supply agreement dated 16 May 2025, for procurement of 1500 MW of power from thermal generation station to be set up in the state. However, the Commission flagged a procedural lapse – when UPPCL filed the petition seeking tariff adoption, it had not presented a quantified estimate of savings from FGD removal, even though the parties were expected to mutually assess and report it post-notification.
Sudden spike in power bills ‘administrative negligence’: Haryana RTS panel
15 January: The Haryana Right to Service (RTS) Commission has termed the practice of issuing excessively high electricity bills as a ‘serious case' of administrative negligence. The case is related to Uttar Haryana Bijli Vitran Nigam Ltd (UHBVN). According to the commission, in a case from Bahadurgarh, the commission found that the consumer either did not receive bills for a long time or was issued negative bills, which were not payable. The commission found that, as per the provisions of the Electricity Supply Code, 2014, neither prior notice was given to the consumer nor the mandatory minimum period of 30 days for payment was allowed. The reasons for the excessive billing were also not clearly explained. The commission has directed the concerned officers to determine the exact number of wrongly issued bills in both accounts and to release the compensation at the earliest. The managing directors of both power distribution corporations were also urged once again to formulate a clear policy to deal with such situations.
Maharashtra to set up floating solar projects on dam water in Krishna and Godavari basins
24 January: State Water Resources Minister Radhakrishna Vikhe Patil announced that Maharashtra will implement floating solar projects on dam reservoirs across the Krishna and Godavari basins. The initiative aims to bolster power generation while promoting green energy to safeguard the environment. The Minister noted that chief minister Devendra Fadnavis has directed the water resources department to expedite floating solar initiatives. To ensure financial viability and technical excellence, department officials have suggested a public-private partnership (PPP) model for the rollout. This approach is expected to attract significant foreign investment and global expertise in renewable technology.
Geothermal energy to power Himachal's ‘green future’: CM
23 January: Chief Minister (CM) Sukhvinder Singh Sukhu said Himachal Pradesh has set an ambitious goal of becoming a Green Energy State by 2026, with plans to meet over 90 percent of its energy requirements through renewable sources. He said that the state government has initiated a series of measures aimed at a systemic transition towards a clean, self-reliant and sustainable energy future. Harnessing geothermal resources, he said, reflects the government’s commitment to innovative governance and optimal utilisation of Himachal Pradesh’s natural assets. Small-scale geothermal plants could reduce dependence on wood and fossil fuels while providing reliable power to remote villages in districts such as Kullu, Mandi and Lahaul-Spiti. Cold towns like Shimla, Manali and Keylong could particularly benefit from geothermal heating solutions, he said. He said geothermal energy would be eco-friendly for households and hotels, while contributing to reduced deforestation. Overall, geothermal energy, he said, would enhance energy security, ensure 24×7 electricity supply and strengthen development in remote and inaccessible regions of Himachal Pradesh.
Andhra Pradesh government sets target of 2 lakh rooftop solar panels in May
22 January: The Andhra Pradesh (AP) government has set a target of completing 2 lakh rooftop solar connections by May 2026 under the PM Surya Ghar – Muft Bijli Yojana. At a review meeting in Tirupati, chief secretary K Vijayanand directed APSPDCL to ensure preparedness and close monitoring of feeder solarisation and rooftop solar projects to guarantee quality execution and long-term performance. Land acquisition, lease registrations, clearance, and project execution were asked to be completed soon. He said government aims to complete 1.5 lakh rooftop solar connections by March 2026 and the remaining by May 2026, with progress to be reviewed at the Conference.
Tripura agency wins silver for solar-powered microgrid projects
20 January: The Tripura Renewable Energy Development Agency (TREDA) was awarded the silver medal for its exceptional contribution to national welfare by implementing solar-powered microgrid projects in remote tribal regions. The recognition highlights TREDA’s impact in the challenging and hilly tribal areas of northeast, where traditional electricity infrastructure is often not feasible. For years, the northeast have faced issues with irregular or non-existent power supply, impacting education, healthcare, livelihoods, and overall quality of life.
Kanpur emerges as solar power hub with 64 MW rooftop capacity
16 January: Kanpur has emerged as a major contributor to Uttar Pradesh’s renewable energy drive, generating around 64 megawatt (MW) of electricity through rooftop solar systems installed under the Pradhan Mantri Surya Ghar Yojana. According to data, a total of 20,756 rooftop solar systems have been installed across the district. As per the UP New and Renewable Energy Development Agency (UPNEDA), Kanpur secured the third position in the state in terms of rooftop solar installations. UP Energy Minister AK Sharma congratulated the residents of the district on this achievement. Energy experts said the current generation of 64 MW is equivalent to nearly 96 million units of clean electricity annually, with an estimated economic value ranging between INR340 million and Rs380 million at prevailing market rates. The pace of rooftop solar installations has remained steady since the launch of the PM Surya Ghar Yojana in February 2024. Currently, around 80 to 90 new rooftop solar systems are being installed every day in the district.
NTPC commissions 300 MW part capacity of 500 MW solar project
16 January: NTPC Renewable Energy Ltd, a wholly owned subsidiary of NTPC Green Energy Ltd (NGEL), has commissioned 300 megawatt (MW) part capacity of the Bhadla solar photovoltaic project in Phalodi, Rajasthan. The total capacity of the project is 500 MW. Furthermore, NGEL’s current commercial capacity stands at 8,010.28 MW. The newly commissioned capacity will increase it to 8310.28 MW. NTPC Renewable Energy floated a tender for the engineering, procurement, and construction (EPC) of a 250 MW solar project. Furthermore, NTPC Renewable Energy Limited issued an EPC tender for the development of a 300 MW interstate transmission system connected ground-mounted solar project.
Assam sets 3.5 GW solar power target by 2030
15 January: Assam Chief Minister (CM) Himanta Biswa Sarma announced that the state has set a target of generating 3,500 megawatt (MW) of solar power by 2030, underscoring the government’s push towards renewable energy and power self-sufficiency. Inaugurating a 70 MW solar power plant at Khudigaon in the Bilasipara area of Dhubri district, Assam has made significant progress in expanding its solar capacity over the past few years. The project has been jointly developed by SJVN Green Energy Ltd (SGEL), a wholly owned subsidiary of Navratna CPSE SJVN Ltd, and the Assam Power Development Corporation Ltd (APDCL). He said that a 50 MW solar project being developed by SJVN at Borsola in Sonitpur district is likely to be completed by April, which will take the state’s total solar capacity to over 730 MW.
NLCIL signs MoU with Gujarat for development of large-scale renewable energy projects
15 January: NLC India Ltd (NLCIL) has inked a memorandum of understanding (MoU) with the Gujarat Government for development of large-scale renewable energy projects in the State. The MoU is non-binding in nature and envisages the development of large-scale renewable energy projects in the State, including solar, wind, hybrid and Battery Energy Storage Projects, with an aggregate investment potential of approximately INR250 billion and generation of substantial employment opportunities. The proposed projects will be developed through NIRL, a wholly owned subsidiary of NLCIL. This strategic collaboration aligns with NLCIL’s corporate plan to achieve 10 gigawatt (GW) of renewable energy capacity by 2030, and underscores the company’s commitment towards sustainable development, energy security and decarbonisation. The collaboration further strengthens Gujarat’s position as a leading hub for renewable energy in the country and contributes to India’s national goals of achieving Net Zero emissions and enhancing the share of non-fossil fuel-based power generation.
Chevron seeks better terms from Iraq before taking over Lukoil oilfield
27 January: United States (US) oil major Chevron is pushing Iraq to improve returns on the giant West Qurna 2 oil field as a condition for buying the project from Russia’s Lukoil. Iraq nationalised the oilfield after the US imposed sanctions on Lukoil to put pressure on Russia to end its war in Ukraine. The sanctions made it difficult for Lukoil to operate its international operations including West Qurna, which is one of the world’s largest oilfields, accounting for about 0.5 percent of global oil supply and nearly 10 percent of Iraq’s output. A deal for Chevron in West Qurna 2 would mark a further push into Iraq for the US oil major after it agreed to develop several fields in the country as part of an international expansion since completing a deal to acquire US oil producer Hess for US$53 billion in 2025. Iraq, the world's seventh-largest oil producer, has improved the terms of its oil contracts in deals signed with global oil majors in the past two years as it seeks to attract investment and increase output.
US shale production could fall by 400k barrels of oil per day if prices dip to US$40 a barrel
26 January: United States (US) shale production could fall by as much as 400,000 barrels of oil per day in 2026 if OPEC countries try to increase market share and oil prices fall to as low as US$40 a barrel, according to Rystad Energy CEO (chief executive officer) Jarand Rystad. US shale production could remain flat if prices stay close to US$60 a barrel, but that will require OPEC countries to hold production at present levels, Rystad said. The US Energy Information Administration said last year that it expected American shale oil production to reach around 9.7 million bpd in 2025.
Venezuela oil output can rise 30 percent in near-term
21 January: US (United States) Energy Secretary Chris Wright told oil company executives that Venezuela’s output can rise 30 percent from its current level of 900,000 barrels per day (bpd) in the short- to medium-term. US President Donald Trump wants US oil executives to invest US$100 billion to fix Venezuela’s dilapidated oil industry and increase output, a key objective for Washington after US forces seized Venezuela’s leader Nicolas Maduro in a raid. Years of under-investment and sanctions have seen Venezuela’s oil output plummet. It pumped 3.5 million bpd in the 1970s when it accounted for 7 percent of global supply, but represents just 1 percent of world output. An increase of 300,000 bpd would have little impact on the global market, one person at the meeting said. Global oil supply was 106 million bpd in 2025.
World oil market faces significant surplus in first quarter: IEA
21 January: The global oil market will be in deep surplus in the first quarter of 2026, the International Energy Agency (IEA) said, as so far excess supplies have offset the geopolitical risk of disruption. The IEA, which advises industrialised countries, in its oil report projected global oil supply would exceed demand by 4.25 million barrels per day (bpd) in the first quarter. A surplus of that size would be about 4 percent of world demand and is larger than other predictions. Oil prices have risen about 6 percent since the start of the year, as concerns about geopolitics and possible oil market disruption drove buying. The IEA said it is too early to assess the full implications of all the latest geopolitical developments on the oil market, but said the US (United States) blockade on Venezuelan oil shipments had lowered exports by 580,000 bpd from December to early January.
US President’s embrace of oil industry is turning into an awkward grip
20 January: President Donald Trump has lavished the US (United States) oil industry with favourable policies since returning to the White House, but his twin demands for cheap oil and “energy dominance” are increasingly colliding with companies’ bottom lines. Over the past year, the Republican president has rolled out numerous pro‑fossil fuel measures and offered strong support for US oil firms abroad, a sharp departure from his Democratic predecessor Joe Biden’s focus on combating climate change. The price drop, and expectations of a future global supply glut, pushed US drillers to scale back operations, with the domestic oil rig count falling 15 percent over the past year, according to energy service provider Baker Hughes. That pullback is set to slow the pace of US output growth this year and next.
Shell seeks exit from Syria’s al-Omar oilfield but US firms show interest
19 January: The head of the Syrian Petroleum Company, Youssef Qeblawi, said that oil major Shell had asked to withdraw from the al-Omar oilfield and transfer its share to Syria’s state-owned operators but that US (United States) companies were interested in the country’s energy sector. The al-Omar oilfield, Syria’s largest, came under government control at the weekend after a lightning offensive against Kurdish forces who had held the site for nearly a decade and used it as a military base. Qeblawi said the field had operated as a joint venture between the Syrian Petroleum Company and Shell. The London-listed oil major had suspended all of its activities in Syria, including exploration and production activities, in December 2011 after the outbreak of Syria’s war and European Union sanctions on Syria’s oil sector.
Russian oil output edges down 0.7 percent in 2025
14 January: Russian oil production dipped around 0.7 percent last year to 9.129 million barrels per day (bpd), OPEC (Organization of the Petroleum Exporting Countries) data showed. Russia has managed to keep broadly steady its oil output, which together with natural gas accounts for around a quarter of federal budget tax proceeds, despite drone attacks by Ukraine on energy infrastructure and lower crude prices. Russia is a member of the OPEC+ group of leading oil producers which decided to keep its output steady. Oil prices fell more than 18 percent in 2025 - their steepest yearly drop since 2020 - amid growing oversupply concerns. Russian oil production in December declined by 73,000 bpd to 9.304 million bpd, according to OPEC. In its report, OPEC said Kazakhstan’s oil output last month dropped by 237,000 bpd to 1.522 million bpd.
Slovakia to file lawsuit against EU’s ban on Russian gas imports
27 January: Slovakia will file a lawsuit to challenge the European Union (EU)’s decision adopted by a qualified majority to ban Russian gas imports, Prime Minister Robert Fico said. EU countries gave their final approval to ban Russian gas imports by late 2027, which Slovakia and Hungary both opposed. The ban was designed to be approved by a reinforced majority of countries, allowing the EU to overcome opposition of both countries, which remain heavily reliant on Russian oil and gas and want to maintain close ties with Moscow.
Tanzania expects to sign US$42 bn mega LNG project before June
26 January: Tanzania expects to sign before June a deal for its stalled project to construct a US$42 billion liquefied natural gas (LNG) plant, with production set to start in eight years' time. Equinor and Shell are joint operators of the mega gas project, which would unlock 47.13 trillion cubic feet of natural gas deposits, while Exxon Mobil, Pavilion Energy, Medco Energi and Tanzania’s national oil company TPDC are partners. The development was stalled by proposed government changes to a financial agreement reached in 2023. Along with ones in neighbouring Mozambique, Tanzania’s project could help establish the East Africa region as an emerging LNG export hub to Asia.
Russia brings first cargo from Arctic LNG 2 to China this year
26 January: The first liquefied natural gas (LNG) cargo from Russia’s sanctioned Arctic LNG 2 plant this year was discharged at China’s Beihai LNG terminal, LSEG data showed. The Buran gas carrier was loaded with LNG on 25 December at a Saam floating storage unit near the Russian port of Murmansk that is used by the project, according to the data. The vessel delivered the cargo to China’s southwestern Guangxi region via the Suez Canal, a route Arctic LNG 2 ships began using after winter restrictions limited access to the Northern Sea Route along Russia’s Arctic coast.
Global LNG supply set to jump in 2026, limiting prices and spurring demand
21 January: Global liquefied natural gas (LNG) output is set to jump this year, easing constraints seen since the 2022 Ukraine war and dampening prices, which could spur demand including from top importers China and India, analysts said. This year marks the start of a large wave of supply that analysts expect to last until 2029, depressing prices that could drive more demand from emerging economies. Projects like Golden Pass LNG on the US (United States) Gulf Coast and Qatar's North Field expansion are expected to contribute sizable volumes, while output is set to ramp up from Corpus Christi and Plaquemines LNG in the US, LNG Canada and the Greater Tortue Ahmeyim projects offshore Senegal and Mauritania.
Philippines makes first natural gas discovery in more than a decade
19 January: Philippine President Ferdinand Marcos Jr said gas and condensate had been found at a well close to the existing Malampaya gas field off the island of Palawan, the country’s first natural gas discovery in more than a decade. The well, called Malampaya East One or MAE-1, is estimated to contain about 98 billion cubic feet of gas in place, equivalent to almost 14 billion kWh (kilowatt hour) of electricity in one year, Marcos said. In 2023, Marcos signed an agreement extending the production contract for the Malampaya natural gas block by 15 years and allowing the operator to drill new wells as it seeks to boost output, which has been declining. Before this discovery, experts projected the field to run dry by 2027. The Southeast Asian country has opened its doors to liquefied natural gas (LNG) imports, ensuring continued operations of existing gas-fired power plants.
Azerbaijan starts natural gas supplies to Germany and Austria
16 January: Azerbaijan’s state energy company SOCAR has started sending natural gas to Germany and Austria, as it increases the number of European markets it supplies. Demand for Azerbaijan’s gas has risen as Europe has sought to end its reliance on Russian gas following the invasion of Ukraine. Last year, its gas exports to Europe fell to 12.8 billion cubic meters (bcm) from 12.9 bcm. Overall gas exports were unchanged at 25.2 bcm, the energy ministry said. SOCAR said it had begun sending gas to Southern and Central European markets via the Trans Adriatic Pipeline, the European segment of the Southern Gas Corridor. In June it signed a 10-year deal with Germany’s SEFE to supply 1.5 bcm annually.
Chevron, partners approve expansion of Israel’s Leviathan gas field
16 January: Chevron and partners approved plans to vastly expand production at Israel’s sprawling Leviathan gas field, a project set to supply Egypt and others with more than US$35 billion worth of natural gas. The expansion will boost gas deliveries from Leviathan by 9 billion cubic meters (bcm) per year to about 21 bcm, flows expected to supply the region as well as Europe in the form of liquefied natural gas (LNG). Leviathan is one of the Eastern Mediterranean’s largest gas fields with an estimated 635 bcm in recoverable gas. The expansion will raise Israel's total gas output by more than 25 percent, partner firm NewMed Energy said.
Ukraine will not restrict gas supplies to consumers despite Russian attacks
14 January: Ukraine will not restrict gas supplies to its population and businesses despite ongoing Russian attacks that have damaged Ukrainian gas infrastructure and curtailed production, the state energy company Naftogaz boss Sergii Koretskyi said. Russia has been attacking Ukraine's energy sector on an almost daily basis since last year, targeting electricity producers and transmission systems as well as gas production and transportation facilities. Last year, then Energy Minister Svitlana Hrynchuk said her team had already worked out scenarios and prepared restrictions on gas supplies to the population and industry for the first time since Russia’s 2022 invasion sparked the war. Before the Russian attacks on the gas sector, Ukraine covered almost all of its gas needs with its own production. Following the attacks, however, it sharply increased gas imports, mainly from the European Union (EU) but with LNG (liquefied natural gas) from the United States.
Saudi Aramco and Commonwealth LNG sign long-term supply deal
14 January: Saudi Aramco and Commonwealth LNG have signed a long-term contract for the US (United States) LNG developer to supply the world's largest oil exporter with 1 million metric tonnes per annum (mtpa). The deal includes an option for Saudi Aramco to double the volume to 2 mtpa. Saudi Aramco wants to become a major liquefied natural gas player, especially in the US, where LNG capacity is set to almost double over the next four years. It has already signed deals with other US players including NextDecade’s Rio Grande LNG project. Commonwealth LNG is looking to build the country’s first integrated LNG export facility in Cameron, Louisiana, with its major shareholder Kimmeridge selling gas from Eagle Ford shale production to the plant. The deal will bring the LNG developer closer to the 8 mtpa it wants to sell out from the proposed facility's total capacity of 9.5 mtpa ahead of construction. The firm is targeting the end of the first quarter to make a positive final investment decision on the project. Saudi Aramco is targeting 20 mtpa of LNG capacity to eventually sell into the global market, with 4.5 mtpa currently in progress, Aramco President and CEO (chief executive officer) Amin Nasser said.
South Africa’s Richards Bay coal exports up 11 percent on rail improvements
27 January: Coal exports from South Africa’s Richards Bay Coal Terminal rose 11 percent to 57.66 million metric tonnes in 2025, the highest in four years, as freight rail performance improved. South Africa’s coal shipments are still significantly lower than the 76 million tonnes recorded in 2017, mainly due to state-owned freight rail and port operator Transnet's limited capacity to haul commodities to export markets. Major coal exporters including Thungela Resources and Exxaro Resources have, however, pointed to an improving freight rail performance since the second half of 2024. RBCT, which has the capacity to handle 91 million tonnes of coal exports annually, said in a performance update that 7,157 trains were offloaded at the terminal in 2025, up from 6,342 the year before. Asia remains the top destination for South Africa’s coal, although its share of total shipments declined to 79.8 percent in 2025 from 84.5 percent the year before. India is the single largest importer of South Africa’s coal, accounting for 25.75 million tonnes, or 45 percent of total shipments. The portion of South Africa’s coal exports heading to Europe edged up to 7.2 percent last year, from 6.8 percent in 2024, as exports to the Netherlands increased, RBCT data shows. Shipments to the Middle East almost doubled to 3.54 million tonnes, with coal exports to Israel increasing by 1 million tonnes to 1.78 million tonnes, the data shows.
Western Australia extends coal mine subsidy, citing energy security
21 January: The state government of Western Australia committed to a five-year extension of a subsidy to the private Griffin Coal company, which supplies the private Bluewaters power station. The state said the extension would help secure power supplies during the transition to cleaner sources of energy, although it planned to shut the state-owned Muja coal station by 2030. The state’s Chamber of Minerals and Energy called the decision pragmatic and said coal remained important in the state’s grid, which is not connected to the national power network. The Australian Energy Market Operator (AEMO) has forecast a small power shortfall in the state of 50 megawatt (MW) in the 2025-2026 period in its latest analysis of mid-2025, although longer term the picture is more complex given the uncertainty around closure of large-scale coal- and gas-fired generation. Last year Queensland’s newly elected conservative government vowed to keep coal in the energy mix indefinitely in its energy roadmap.
Australia’s Origin Energy to extend operations of NSW coal-fired power plant to 2029
20 January: Origin Energy said it will extend the operation of all four units of its coal-fired Eraring Power Station to April 2029, to support energy supply in New South Wales state. The 2,880 megawatt (MW) Eraring power plant had been scheduled to shut down in August 2027. However, a December report by the Australian Energy Market Operator (AEMO) said Sydney could face blackouts in the second half of this decade if the plant retires as planned. A separate coal plant in Queensland suffered an outage which Clean Energy Council CEO (chief executive officer) Jackie Trad said underlined the urgency of getting more renewables into the grid to replace Australia’s ageing coal fleet, which has an average age of 38 years.
Last Czech deep coal mine closes as centuries-old industry reaches final day
16 January: The last Czech black coal shaft will shut at the end of January, closing the door on more than 250 years of deep mining and bringing to an end an industry that powered the rise of heavy industry in Central Europe. The final tons are being hauled from kilometre‑deep shafts at the CSM mine in Stonava, near the Polish border, as low coal prices and Europe’s industrial and environmental transition sap demand for what was once the region’s most prized resource. State‑owned OKD had been preparing to shut down three years ago, until Russia’s full‑scale invasion of Ukraine in 2022 sent energy markets surging and bought the mine a short‑lived extension. For the last time miners rattle into the dark on the underground railway, headlamps flickering across steel supports as machines drill into the coal face. In Poland, black coal mining still employs 70,000, and unions have won pledges to keep mining until 2049. In western Czech Republic, surface mining of lignite is expected to continue for several more years. OKD itself is trying to shape a future above ground. The company aims to stay active in coal trading and develop new ventures including a battery park, a data centre and a small methane‑fuelled power plant using gas seeping from the old shafts.
Largest US power grid PJM issues alerts as storm hikes energy demand
27 January: The largest United States (US) power grid PJM said it had issued extra alerts to transmission and generation firms as a monster winter storm looked set to bring unprecedented energy demand. The operator, which serves 13 states and the District of Columbia, issued Maximum Generation and Load Management alerts for companies to see if any maintenance or testing can be deferred or canceled to keep units online during the critical period. The alerts let neighbouring systems know that electricity exports from PJM may be curtailed. The storm dumped a foot of snow from New Mexico to New England, paralyzed much of the eastern US, scuttled thousands of flights and caused widespread power outages. PJM said it anticipates peak demand has the potential to exceed 130,000 megawatt (MW) for seven straight days, a winter streak it has never experienced.
China’s power, energy and clean technology milestones in 2025
23 January: China’s electricity output and clean energy technology exports scaled record highs in 2025, LNG and coal imports contracted and crude oil imports nosed higher in another dynamic year for the world's largest power producer and energy consumer. China’s power generators boosted gas-fired electricity production by 5 percent in 2025 to a record, which helped underscore total demand for natural gas even as LNG (liquefied natural gas) imports sagged. The share of natural gas within China’s electricity network dropped to a multi-year low of 2.8 percent, however, which highlighted that gas retains only a minor role in the electricity sector.
Oman signs power deals with Qatar’s Nebras and Korea Western Power worth US$2.6 bn
22 January: Oman’s Nama Power and Water Procurement signed agreements worth an overall US$2.6 billion with a consortium led by Qatar’s Nebras Energy and one led by Korea Western Power to develop power generation projects. The agreements are power purchase deals for combined-cycle gas turbine power projects in Misfah and Duqm. The Misfah and Duqm combined-cycle gas projects will use advanced technology to improve fuel efficiency and cut emissions, and are expected to support grid stability and economic growth in Oman. Nebras Energy, through one of its subsidiaries, has been awarded two contracts to develop gas-fired combined-cycle power generation plants in Oman. The projects include the Misfah Power Plant, with a total capacity of 1,700 megawatt (MW), and the Duqm Power Plant, with a total capacity of 877 MW, both under 20-year agreements.
Ukraine’s President orders faster imports of electricity, power equipment
17 January: President Volodymyr Zelenskiy said that he had ordered imports of electricity and additional power equipment to be accelerated as much as possible as Ukraine confronts its worst wartime energy crisis. The government has declared an energy emergency as the system, damaged by relentless Russian strikes, is meeting only 60 percent of electricity needs. The situation is exacerbated by exceptionally cold temperatures. The energy ministry said scheduled power cuts were in effect in most regions.
Vietnam’s EVN secures US$1.13 bn loan for LNG power plant project
16 January: Vietnam’s state utility EVN signed an agreement for a syndicated loan worth 29.57 trillion dong (US$1.13 billion) to build an LNG-fired power plant, the company said. The loan is provided by four of Vietnam’s top banks, including Vietcombank, VietinBank, BIDV and Agribank, EVN said. The Southeast Asian country is seeking to ramp up its power generation capacity to keep up with its expanding economy, which grew 8 percent last year. The loan will cover around 56 percent of the funding needed for the 1,500 MW Quang Trach II power plant to be built in the central province of Quang Tri, EVN said. The plant is scheduled to be fully operational by 2030.
Germany, European Union reach general agreement on power plant strategy
15 January: Germany said it had reached an agreement with the European Commission on a plan to build new power stations, adding it would tender 12 gigawatt (GW) worth of capacity in 2026, with a focus on gas-fired sites. This is a major step on Germany’s path to ensure security of supply in light of the country’s ongoing phase-out of coal-fired power capacity. Most of the new capacity, 10 GW, must be able to generate electricity over a longer period of time to ensure steady supply, Germany’s economy ministry said. The new power stations, which are expected to enter service in 2031, will be able to run on hydrogen by 2045 at the latest, in line with Germany’s goal of becoming climate neutral that year, the ministry said. Germany’s top utilities, most notably RWE, Uniper, and EnBW, have been waiting for details of the power plant strategy, eager to start building the sites provided the regulatory framework allows profitable operation. The ministry said there would be additional tenders for new capacity in 2027 and 2029/2030, which would also have to be available by 2031.
Nigeria’s Niger State to work with Islamic Development Bank on US$163 mn solar project
27 January: Nigeria’s Niger State government will work with the Islamic Development Bank to develop a US$163 million solar electrification project to increase power supply and support agriculture and industry. The project will involve the construction of a 100 megawatt (MW) solar power facility in north-central Nigeria on about 200 hectares of land, providing electricity to several communities across the state.
United Arab Emirates utility withdraws from Yemen and transfers solar power plants to government
23 January: Abu Dhabi-based Global South Utilities (GSU) has completed the handover of two solar power plants in Yemen to the country’s Public Electricity Corporation after Yemeni authorities requested the withdrawal of all Emirati companies from the country, the company said. GSU informed the Public Electricity Corporation of the evacuation of all operations and maintenance teams from the Aden solar power plant, which has capacity of 120 megawatt (MW), and the 53 MW Shabwa solar power plant in a letter dated 22 January. GSU had planned to establish a US$1 billion energy project portfolio in Yemen, with combined capacity exceeding 1,000 MW, alongside plans for sustainable transmission and distribution infrastructure. It said that several renewable energy projects under development in Yemen had been paused after its exit from the country. Owned by Resources Investment, an Abu Dhabi-based investment company, GSU is expanding its presence in Africa and Asia, with a focus on solar, wind and hybrid energy projects.
Wind and solar beat fossil fuels in European Union power mix in 2025
22 January: Wind and solar power for the first time generated more electricity in the European Union (EU) than fossil fuels in 2025, driven by a surge in solar output, energy think tank Ember data showed. Wind and solar made up a record 30 percent of the 27-country bloc's power last year, overtaking fossil fuels that contributed 29 percent. Solar alone was responsible for 13 percent of power generation and expanded by more than 20 percent for the fourth year running, surpassing both coal and hydro. Solar generation grew in all EU countries amid widespread solar panel installations, and supplied more than a fifth of electricity in Hungary, Cyprus, Greece, Spain and the Netherlands in 2025.
Italy solar power production hit new record in 2025
21 January: Italian solar power production rose 25 percent last year compared with 2024 to a new record of 44.3 terawatt hour (TWh), the country’s power grid operator Terna said. Hydroelectric output, after a bumper 2024, dropped 21 percent and wind power was slightly down. Overall, power generation from renewables covered 41 percent of Italian demand, down from 42 percent. Italy added 7.2 gigawatt (GW) of green energy capacity last year compared with 7.5 GW in 2024, in a sign that the country needs to quicken the roll-out of renewables to meet its decarbonisation targets for 2030.
Renewables push China’s fossil‑fuelled power into first annual drop in 10 years
19 January: China’s mostly coal-based thermal power generation fell in 2025 for the first time in 10 years, government data showed, as growing renewable generation met growth in electricity demand even as overall power usage hit a record. The data is a positive signal for the decarbonisation of China’s power sector as the country sets a course for carbon emissions to peak by 2030. Still, coal output edged up to a record high last year. Thermal electricity, generated mostly by coal-fired capacity with a small amount from natural gas, fell 1 percent in 2025 to 6.29 trillion kilowatt hour (kWh), according to the National Bureau of Statistics (NBS). It fell more sharply in December, down by 3.2 percent, from a year earlier, the data showed.
Canadian Solar wins US patent dispute against Maxeon Solar Technologies
15 January: Canadian Solar said it has won a US (United States) patent dispute against Maxeon over its solar cell technology. In 2024, Maxeon had filed a patent infringement lawsuit related to Canadian;s solar cell technology, TOPCon. Maxeon, which designs and manufactures solar panels, said that it will continue to defend its intellectual property rights.
This is a weekly publication of the Observer Research Foundation (ORF). It covers current national and international information on energy categorised systematically to add value. The year 2025 is the twenty-second continuous year of publication of the newsletter. The newsletter is registered with the Registrar of News Paper for India under No. DELENG / 2004 / 13485.
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