Source: Managing the Energy Trilemma: Role of liquefied petroleum gas, ORF
The geopolitical instability arising from the conflict involving Iran has introduced a new dimension of energy insecurity to Indian households. The supply of liquefied petroleum gas (LPG), the primary cooking fuel for nearly all urban and over half of rural households, has been severely constrained following the near-total closure of the Strait of Hormuz, a critical transit corridor for the majority of India’s LPG imports. In 2025–26, approximately 50 percent of India’s natural gas demand and 64 percent of its LPG demand were met through imports routed via this maritime chokepoint. If reliance on imported primary energy is taken as the principal metric of energy insecurity, piped natural gas (PNG) offers only a marginal improvement over LPG. Nevertheless, the government is actively incentivising a transition from LPG to PNG, leveraging differences in the scale and scope of their use across sectors to recalibrate household-level energy security.
According to the 2023–24 Annual Energy Statistics published by the Ministry of Statistics and Programme Implementation (MoSPI), India’s total primary energy consumption stood at 38,479 petajoules (PJ). Natural gas accounted for 2,615 PJ (6.8 percent), while LPG contributed 1,405 PJ (approximately 3.7 percent). Despite natural gas having a larger overall share in the energy mix, its use within the household sector remains minuscule. Only 23.17 percent of the total natural gas supply is allocated to the city gas distribution (CGD) network, and of this, a mere 8 percent reaches households as PNG. As a result, residential PNG accounts for only 0.12 percent of total natural gas consumption, equivalent to just 3.13 PJ—less than 0.05 percent of India’s total primary energy consumption.
This negligible share provides the government with significant manoeuvrability. In the event of supply disruptions, natural gas can be diverted from industrial and commercial users to households with relatively limited impact on aggregate energy availability. Even in a scenario of a complete halt in imports, domestic production could be prioritised to maintain continuity of cooking fuel supply. While such diversion may entail economic costs in terms of industrial output and efficiency, it offers substantial political dividends by safeguarding household energy access.
By contrast, household LPG consumption alone accounted for approximately 3.1 percent of primary energy consumption—equivalent to 1,236.2 PJ in 2024–25—compared to the negligible contribution of household natural gas consumption. Over 88 percent of total LPG consumption goes to kitchens in India, leaving only about 12 percent for transport, industrial and commercial consumption. This stark disparity highlights a structural asymmetry. Natural gas currently serving industrial and commercial sectors could be reallocated to households without materially undermining overall supply adequacy. From a political economy perspective, ensuring reliable energy access for urban households—a demographic characterised by both affluence and political voice—is a strategic imperative to pre-empt social discontent.
As of 2025, PNG connections number approximately 16 million, covering roughly 5 percent of Indian households and only 13 percent of the Petroleum and Natural Gas Regulatory Board’s (PNGRB) targeted expansion. The network remains geographically concentrated, with penetration largely confined to western and northern India. Maharashtra, Uttar Pradesh, Gujarat, and Delhi together account for over 82 percent of domestic PNG connections, underscoring significant regional disparities in infrastructure development.
Significant challenges constrain PNG expansion. Customer acquisition costs remain high, ranging from INR4,500 to INR10,000 per connection, while pipeline infrastructure entails substantial upfront capital investment. Land acquisition hurdles and regulatory clearances further delay project implementation. In the absence of targeted support mechanisms such as viability gap funding, pipeline expansion is unlikely to scale at the pace required for nationwide adoption.
The push toward PNG also carries unintended fiscal and structural implications. PNG, typically priced closer to market levels, may reduce the government’s subsidy burden associated with LPG supplied to low-income households. In 2024–25, LPG subsidies exceeded INR132 billion. According to the PNGRB, domestic production supplemented by LNG imports could theoretically support up to 300 million PNG connections, approaching current LPG coverage levels. However, prioritising domestic gas allocation for households would increase reliance of industrial and commercial users on imported LNG. This, in turn, would raise input costs for sectors such as fertilisers, necessitating higher government subsidies and potentially offsetting any fiscal gains achieved through reduced LPG support.
PNG pricing must be understood within India’s broader natural gas pricing framework, which operates through a dual-track regulatory system designed to balance affordability with investment incentives. Legacy administered price mechanism (APM) gas, primarily sourced from ageing nomination fields, is priced at 10 percent of the Indian crude basket, subject to a floor and ceiling (US$4.00–US$6.75/mmBtu as of March 2026). In contrast, gas from deepwater and ultra-deepwater fields is subject to a higher ceiling linked to a weighted average of global fuel prices, currently capped at approximately US$8.90/mmBtu for the first half of 2026.
This regulated domestic pricing stands in sharp contrast to international LNG markets. The Platts JKM (Japan-Korea Marker), the benchmark for Asian LNG, surged above US$25/mmBtu in March 2026 due to geopolitical disruptions. This creates a substantial arbitrage gap of US$16–US$18/mmBtu between domestic gas and imported LNG, exposing industrial consumers to high and volatile prices while shielding household consumers of PNG through regulated supply. Consequently, residential consumers benefit from some of the lowest gas prices globally, whereas industrial users bear the burden of market volatility.
Environmental arguments in favour of PNG over LPG are often overstated. On a lifecycle basis, the emissions profiles of LPG and natural gas are broadly comparable. The carbon intensity of LPG is approximately 76 gCO₂e/MJ, while natural gas ranges between 75–78 gCO₂e/MJ, compared to about 90 gCO₂e/MJ for petrol and diesel and 112 gCO₂e/MJ for coal. Furthermore, LPG is not classified as a greenhouse gas by the Intergovernmental Panel on Climate Change (IPCC), implying that its leakage does not directly contribute to global warming. In contrast, natural gas—primarily methane—has a global warming potential approximately 28 times that of CO₂ over a 100-year horizon, making fugitive emissions a significant concern.
From a public health perspective, both LPG and PNG qualify as clean cooking fuels. According to the World Health Organization (WHO), clean fuels are those that meet stringent air quality guidelines, including limits for particulate matter (PM2.5) and carbon monoxide exposure. Under these criteria, LPG, natural gas, electricity, biogas, and alcohol-based fuels such as ethanol are all considered clean options.
For much of rural India, where pipeline infrastructure is absent, LPG cylinders will remain the most practical and scalable solution for ensuring energy access. The transition to PNG is therefore likely to remain predominantly urban. However, by mandating PNG adoption in areas with pipeline connectivity, the government can reallocate LPG supplies to underserved regions beyond the natural gas grid, thereby improving overall distributional efficiency in household energy access.
Production
According to ONGC (Oil and Natural Gas Corporation), there is a “remote likelihood” of escalation of its unextinguished gas well blaze triggered by a blowout in Dr BR Ambedkar Konaseema district. A massive fireball reaching up to a height of 20 meters and a width of 25 meters erupted on 5 January near Mori and Irusumanda villages, following a gas leak at an ONGC owned Well Mori- 5, whose intensity has been reduced. A blowout is the uncontrolled release of crude oil or natural gas from an oil well or a gas well, following the failure of pressure control systems.
Demand
According to GAIL (India), more natural gas is expected to be available in India, with fertiliser plants and city gas distribution set to drive demand in the country. It expects city gas distribution to overtake the fertiliser industry in driving India’s natural gas demand.
The Indian Auto LPG Coalition (IAC) has urged the Petroleum and Natural Gas Regulatory Board (PNGRB) to include Auto LPG (Autogas) in an ongoing TERI-led study assessing vehicular fuel options in India's energy transition. In a formal representation to PNGRB, the coalition sought inclusion of Auto LPG in the study titled 'Comparative Assessment of Vehicular Fuels in India's Energy Transition -- A Multi-Dimensional Approach', commissioned by the regulator to provide evidence-based inputs to policymakers on transport decarbonisation, air-quality improvement and sustainable mobility as India moves towards its net-zero targets. Asper the IAC, the exclusion of Auto LPG would lead to an incomplete and potentially biased assessment, particularly given the study's focus on gaseous fuels and the participation of city gas distribution entities.
LNG
Hindustan Petroleum Corporation Ltd (HPCL) has signed a US$3 billion (bn) 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 two firms signed a Sales and Purchase Agreement (SPA). Abu Dhabi’s state firm will supply 0.5 million tonnes (MT) of LNG a year to HPCL for 10 years starting 2028. As per HPCL, it will receive the LNG at its 5 MT per annum LNG import terminal at Chhara, Gujarat.
India’s 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 (BPCL) 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.
India could save US$1 bn in crude oil imports annually if the country switches 10 percent of its diesel usage in the transport sector to LNG, according to Petroleum and Natural Gas Regulatory Board (PNGRB) study. Drawing a strong case for boosting LNG usage in heavy-haul transport, the regulator said India holds the scope to switch 30-40 percent of diesel vehicles to LNG in the next five-seven years by replacing intra-city or inter-city buses, heavy-haul mining machinery, and haul trucks.
CGD/CNG
Torrent Gas announced a reduction of up to INR3.50 per kg in the retail price of CNG (compressed natural gas) and up to INR2 per standard cubic metre (scm) in domestic PNG (piped natural gas) in its areas of operation connected to the National Gas Grid across the country. This reduction in prices of CNG and PNG comes on the back of the implementation of the Unified Tariff order by PNGRB, effective from 1 January 2026.
GAIL Gas Ltd announced a INR1 reduction in CNG price and the rate for natural gas piped to household kitchens for cooking purposes following rationalisation of pipeline tariffs. The announcement comes a day after Indraprastha Gas Ltd, India’s largest city gas retailer, cut prices of natural gas piped into household kitchens for cooking in Delhi and NCR towns by INR0.70 per scm. Prior to that, Think Gas had cut CNG prices by INR2.50 per kg and that of domestic PNG by up to INR5 per scm.
Gas Transport
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 (mscmd) 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.
Policy & Governance
India’s National Stock Exchange (NSE) is in discussions with Indian Gas Exchange (IGX) to develop and launch Indian natural gas futures. The proposed collaboration with IGX is aligned with the country’s broader goal of increasing the share of natural gas in its energy basket and promoting market-based pricing mechanisms. The collaboration is subject to regulatory approvals, and NSE and IGX will work with stakeholders to ensure a smooth launch of the proposed derivatives contract. India’s energy markets have seen heightened volatility in recent sessions amid global uncertainty, including renewed concerns over potential US tariffs that have weighed on oil and gas stocks.
Global
Global 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 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.
Europe
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.
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 EU but with LNG from the US.
Africa/ Middle East
Tanzania expects to sign before June a deal for its stalled project to construct a US$42 bn 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 (tcf) 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.
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 bn 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 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.
Saudi Aramco and Commonwealth LNG have signed a long-term contract for the US 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 LNG 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.
Lebanon will sign a gas exploration deal with a consortium comprising QatarEnergy, TotalEnergies and Italy’s Eni in the country’s Block 8 offshore area, the Lebanese cabinet said. In 2023, Lebanon granted a licence to conduct seismic studies on Block 8 to Bright Skies and GeoX. Lebanon hopes gas and oil discoveries will help it to reverse a crippling economic crisis that has cost the local currency more than 98 percent of its value, eroded the country's foreign reserves and caused rolling blackouts across towns and cities.
Egypt and Qatar signed a memorandum of understanding (MoU) to boost cooperation in LNG sales and imports, including terms for supplying Qatari shipments to Egypt’s Ain Sokhna and Damietta ports, Egypt’s petroleum ministry said. QatarEnergy said that the agreement includes supplying Cairo with up to 24 liquefied natural gas cargoes for the upcoming summer. Egypt, the Arab world’s most populous nation, has been trying to increase its own gas production and diversify import sources to meet its growing energy needs. Production began declining in late 2022, putting pressure on its ambitions to become a regional supply hub, and forcing it to plan for significant imports from Israel and Cyprus, along with costly LNG cargoes. Egypt produced 3,635 million cubic meters (mcm) of gas in October last year, up slightly from 3,525 mcm in September but down from 3,851 mcm in October 2024, according to the Joint Organizations Data Initiative.
North and South America
The US in 2025 became the first country to export more than 100 MT of LNG in a single year, powered by the startup of production from new plants. The world’s largest LNG exporter sold 111 MT of the fuel, almost 20 MT more than its nearest rival Qatar and nearly 23 MT more than it did last year. US shipments accounted for roughly a quarter of global LNG exports last year. Venture Global’s Plaquemines facility - the country’s second-largest export plant - delivered 16.4 MT in 2025 after sending its first cargo in December 2024.
Russia /Central Asia
The first LNG cargo from Russia’s sanctioned Arctic LNG 2 plant this year was discharged at China’s Beihai LNG terminal. 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. 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.
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 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.
China
China received 22 shipments of LNG last year from two export projects in Russia sanctioned by the US and EU. One shipment was from Portovaya and the rest were from the Arctic LNG 2 project. The US and EU have sanctioned the projects to curb revenue reaching Russia following its invasion of Ukraine. China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC) each own 10 percent of the Arctic LNG 2 project. All of the shipments were delivered to the Beihai LNG Terminal in China’s southwestern Guangxi region.
Rest of Asia-Pacific
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 LNG imports, ensuring continued operations of existing gas-fired power plants.
French utility Engie has signed a 15-year deal to supply LNG to power plants in Thailand owned by Gulf Development PCL, the Thai company said. Deliveries of up to 0.8 MT a year will begin in 2028. Thailand is Southeast Asia’s biggest LNG importer, with demand for the fuel set to rise as the country steadily displaces coal, which still accounts for about 14 percent of the national electricity mix. The state-backed French company has signed long-term contracts to purchase 3.5 MT of US LNG annually beyond 2040 from NextDecade’s Rio Grande LNG, Cheniere’s Corpus Christi LNG and Sempra’s Port Arthur LNG.
Petrovietnam Gas has awarded its first-ever term supply tender seeking LNG to energy major Shell, which will deliver the super-chilled fuel to Vietnam from 2027 to 2031. The five-year supply deal will see Shell deliver about 400,000 metric tonnes a year of LNG to the Southeast Asian nation, according to a Petrovietnam Gas. The LNG will be supplied on a delivered ex-ship (DES) basis to Petrovietnam Gas' Thi Vai terminal. Vietnam began importing LNG in 2023, with its first cargo delivered to its inaugural Thi Vai import terminal. Operated by Petrovietnam Gas, the terminal in the country’s south near Ho Chi Minh City will primarily supply two gas-fired power plants, which began commercial operations in mid-December. Vietnam has only imported LNG from the spot market so far, shipping in 0.5 MT of the fuel in 2025. It issued its first-ever tender seeking term supply in August.
Petroleum reserves can sustain India for 74 days in crisis: Oil Minister
9 February: India’s strategic petroleum reserve can last 74 days to meet the demand arising out of any global turbulence, Oil Minister Hardeep Singh Puri said. He said for any country like India, which is growing at a phenomenal pace, there must be a very viable and secure reserve, so that it is not in a vulnerable situation in the case of global turbulence. He said India has several refineries both in the West coast as well as the East. Taking advantage of low crude oil prices in April/May 2020, Strategic Petroleum Reserves (SPR) were filled to full capacity, leading to notional savings of approximately INR50 billion. The weighted average procurement cost of crude oil filled in SPRs from Government Budgetary Support is still half of the currently prevailing crude oil prices, he said.
Indian refiners avoid Russian oil in push for US trade deal
8 February: Indian refiners are avoiding Russian oil purchases for delivery in April and are expected to stay away from such trades for longer, refining and trade sources said, a move that could help New Delhi seal a trade pact with Washington. The US (United States) and India moved closer to a trade pact, announcing a framework for a deal they hope to conclude by March that would lower tariffs and deepen economic cooperation. Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Reliance Industries Ltd (RIL), are not accepting offers from traders for Russian oil loading in March and April. These refiners, however, had already scheduled some deliveries of Russian oil in March, refining sources said. Most other refiners have stopped buying Russian crude. Indian refiners may change their plan and place orders for Russian oil only if advised by the government. Indian refiners have been buying more oil from Middle Eastern, African and South American countries as they scale back Russian oil purchases.
Asian Energy Services strikes oil in Gujarat
31 January: Asian Energy Services has discovered oil at the onshore Mevad field in Gujarat following the drilling and testing of a new well with expected peak production of about 125-130 barrels of oil per day (bopd). The well NM-01 was drilled to a total depth of 1,650 metres, encountering three hydrocarbon-bearing sand intervals—Mandhali, Sobhasan and Kalol. The zones are being evaluated sequentially. The well is currently producing about 100 bopd in the testing phase from Sobhasan sand, with data indicating potential production rates of 125-130 bopd.
BPCL launches Bharatgas Lite, India’s lighter and safer LPG cylinder
29 January: Bharat Petroleum Corporation Ltd (BPCL) has launched Bharatgas Lite, an innovative LPG (liquefied petroleum gas) cylinder made from advanced composite materials, aimed at providing safer, lighter, and more user-friendly cooking energy solutions for households in Goa. The launch event was attended by significant dignitaries, including the Minister of Petroleum and Natural Gas, Hardeep Singh Puri, and the Chief Minister of Goa, Pramod Sawant. Bharatgas Lite, branded as “Naye Bharat Ka Naya Cylinder,” is over 50 percent lighter than traditional mild steel cylinders, facilitating easier handling, transportation, and installation. Its translucent design allows users to see LPG levels clearly, assisting in refill planning and preventing unexpected runouts. Additionally, the rust-free construction fosters a clean kitchen environment and eliminates corrosion issues typically linked to steel cylinders. Its explosion-resistant features provide enhanced safety under extreme conditions, reflecting BPCL’s commitment to innovation and improved safety standards in the domestic LPG market. Bharatgas Lite improves safety by minimising leakage risks and damage, featuring enhanced handling and a modern design suitable for contemporary kitchens. Launched at India Energy Week, it highlights BPCL’s focus on customer-centric innovations. The cylinder is available for new domestic non-subsidised LPG connections and through a cylinder swapping scheme for existing customers, with an incremental deposit of INR300 for exchanges. New customers can directly opt for Bharatgas Lite with a security deposit of INR2,500. This initiative reinforces BPCL’s leadership in the LPG sector, blending safety, convenience, and sustainability.
BPCL and Trafigura sign landmark crude oil supply agreement
30 January: Bharat Petroleum Corporation Ltd (BPCL), one of India’s leading refiners, and Trafigura, a market leader in the global commodities industry, announced a new crude oil supply agreement signed. Under the agreement, Trafigura has been awarded a tender to supply Iraqi Basrah and Oman crude oil to BPCL on term basis. Delivery will begin in April 2026. This marks the first agreement of its kind for BPCL for imports of Basrah crude, representing a strategic milestone in the company's procurement approach and strengthening India’s energy security framework.
India to drive global oil demand growth till 2050, adding 8.2 mn bpd
28 January: India is projected to be the largest contributor to global oil demand growth till 2050, according to the World Oil Outlook 2025 presented by Abderrezak Benyoucef, Head of Energy Studies at the Organisation of the Petroleum Exporting Countries (OPEC), at India Energy Week (IEW) 2026 in Goa. Presenting OPEC’s flagship long-term outlook on the second day of the event, Benyoucef said India alone is expected to add 8.2 million barrels per day (bpd) of oil demand by 2050, with growth “driven primarily by transportation, petrochemicals and industrial activity.” The outlook projects India as the “largest and most stable contributor” to global primary energy demand growth. India’s total primary energy demand is expected to almost double from around 22 million barrels of oil equivalent per day in 2024 to about 43.6 million barrels of oil equivalent per day by 2050. Benyoucef said demographic and economic trends would consolidate India’s central role in future energy demand. India’s urbanisation rate is projected to rise from 37 percent to 53 percent by 2050, while the country’s passenger car fleet is expected to expand from around 50 million in 2024 to more than 240 million by 2050.
ONGC, BP tieup boosts oil production from Mumbai High by 3.5k-4k bpd
28 January: The partnership between Oil and Natural Gas Corporation Ltd (ONGC) and global major BP has led to a crude oil output increase of over 3,500-4,000 barrels per day (bpd) to date from Mumbai High, bringing the total production to 126,000 bpd from the block, Pankaj Kumar, director of production at ONGC, said. For ONGC’s Krishna Godavari (KG) block, oil production has stabilised at around 27,000 bpd, compared to the peak production estimates of 45,000 bpd earlier, the official said. The company has onboarded a subject matter expert to boost production from ONGC’s KG-98/2 block. Crude oil output from ONGC’s KG-98/2 block has been sliding since production commenced in January 2024. The firm’s crude output from the block was around 35,000 bpd in 2024, declining currently to 26,500 bpd.
Indian Oil to raise diesel exports with refining capacity boost
28 January: Indian Oil Corporation (IOC) expects its annual diesel exports to rise sharply to up to 5 million metric tonnes from 2027 as it expands refining capacity, the company’s head of marketing S P Srivastava said. IOC is raising its annual refining capacity to 98 million tonnes in a year and a half from 80 million tonnes currently, he said. The company operates nearly 41,000 retail fuel stations in India, but he said that IOC’s retail network would be expanded to more than 44,000 over the next two years, adding that he expects India's jet fuel demand to grow 10 percent a year until 2030.
Rajasthan State Gas exploring opportunities in LNG
3 February: State government joint venture (JV) Rajasthan State Gas Ltd has started exploring opportunities in LNG (liquefied natural gas), electric vehicles and compressed biogas (CBG). Principal Secretary (Mines) and Chairman of Rajasthan State Gas Ltd T Ravikant said the company is expanding its traditional operations as part of the state’s push towards green energy. He said work on the state’s first LNG plant at Neemrana is currently underway.
Cairn Oil & Gas uncovers resources in Ambe-2A off India’s west coast
28 January: Vedanta subsidiary Cairn Oil & Gas has announced a hydrocarbon discovery in the Ambe-2A appraisal well off India’s west coast in the Gulf of Cambay in the Arabian Sea. The discovery is located in reservoirs below the main gas field within the Miocene-Tarkeshwar formation. It has been officially reported to the Indian Directorate General of Hydrocarbons and the Ministry of Petroleum and Natural Gas. Cairn Oil & Gas holds a 100 percent participating interest in the block. The company expects the discovery to enhance domestic gas production capabilities, contributing notably to India's energy security objectives. Cairn Oil & Gas recently installed what is described as the first sub-sea template in India as part of its conductor supported platform project. This infrastructure is crucial for supporting cluster drilling operations and plays a vital role in monetising marginal fields within discovered small field blocks.
India’s LNG demand set to grow across industries - if prices cooperate
28 January: India’s appetite for liquefied natural gas (LNG) is set to rise in the coming years, driven by demand across the fertiliser, city gas, refining and power sectors, executives from the country’s top importers said. However, further consumption would hinge on lower prices, they said. India is the world’s fourth-largest buyer of LNG and is seeking to raise the share of gas in its energy mix to 15 percent by 2030 from the present 6.2 percent. Top gas importer Petronet LNG forecasts imports rising to 28 million to 29 million metric tonnes in 2026 from about 25.5 million tonnes last year. Consumption will be boosted as more cities and households are linked to gas pipeline networks, he added, as well as by rising use by refineries and the fertiliser and power sectors. Bharat Petroleum Corporation Ltd (BPC), which recently issued a ten-year LNG import tender, said it would consider floating another long-term import tender next year amid its rising gas sales to sectors including transport, industry and domestic household. India’s push to raise its gas usage however depends on the price of the fuel. Asian spot LNG prices this month rose to a nine-week top of US$11.35 per million metric British thermal units (mmBtu) as lower winter temperatures across the northern hemisphere lifted heating demand. Petronet LNG said US$6-7 per mmBtu will be a comfortable price range to improve LNG consumption in India.
India will use more coal over the next 25 years
10 February: India’s coal consumption could more than double by mid-century before plunging sharply as the country shifts toward cleaner energy, long‑term projections published by government think-tank NITI Aayog showed. Under the current policy scenario - which assumes no major new decarbonisation measures - coal demand is expected to peak at 2.62 billion metric tonnes in 2050, more than double the current 1.26 billion. Even by 2070, industrial demand is expected to keep coal consumption at a relatively high 1.80 billion tonnes, the report shows. India is aiming for net-zero emissions by 2070, and under this scenario, coal consumption is expected to peak at 1.83 billion tons in 2050 before collapsing to just 161 million tons by 2070. Virtually all remaining coal use in 2070 would be limited to hard‑to‑abate sectors such as steel and cement and would require carbon capture, utilisation and storage to meet emissions goals, the report said.
India’s sponge iron boom rides to rescue South African coal
9 February: Finding bullish exporters of thermal coal has been tricky of late given soft prices, lower demand from heavyweight buyers China and India, and for Indonesian miners an additional headache of uncertainty over government policy. But there is one group of coal exporters that seem quite ebullient. South Africa's miners are looking forward to increased demand from their top buyer India as well as improving rail infrastructure that will allow for higher volumes. India’s cement producers rely on imported coal, and they also expect to increase output from 453 million tonnes in the 2024-25 fiscal year to around 480 million in the current 12-month period. While cement production is less coal-intensive than sponge iron, it takes up to 250 kg of coal to make a ton of cement. This implies that rising cement output will boost India’s coal demand by several million tons a year, and the domestic market is unlikely to be able to meet all the demand growth, meaning imports will once again come to the fore.
Adani Group plans to start work on coal gasification plant near Nagpur
7 February: Adani Group plans to start work on its proposed INR700 billion integrated coal gasification and downstream derivatives plant at Linga in Kalmeshwar near Nagpur this year. This is dubbed as one of the company's key ventures in clean energy. Adani was in the city to attend the Advantage Vidarbha - Khasdar Audyogik Mahotsav in Nagpur, organised by the Association for Industrial Development (AID), a voluntary organisation working for the region's growth. The downstream derivatives of coal gasification include syngas, ammonia, and hydrogen. The Adani Group has an underground coal mine at Gondkhairi. The Maharashtra Industrial Development Corporation (MIDC) would be acquiring around 400 acres of land on behalf of the Adani Group for the proposed coal gasification project.
Meghalaya HC pulls up cops & dist admin for allowing illegal operations
6 February: Meghalaya high court (HC) took suo motu cognizance of the coal mine disaster in East Jaintia Hills, where 25 bodies have been recovered so far, and pulled up district civil and police authorities for allowing such illegal operations to continue and ordered immediate arrest of the mine owners and operators. The court’s directives came during the hearing of its ongoing suo motu case on illegal coal mining in the state, initiated in 2022. Coal mining activities in the state was declared illegal by the National Green Tribunal and banned in 2014, which was upheld by the Supreme Court in 2019.
Coal blocks to be allotted only through auctions: Government
2 February: The government said 136 coal blocks have been successfully auctioned since 2020 following the Niti Aayog’s recommendations, and future allocations will also be done through a participative bidding process. Minister of State for Coal Satish Chandra Dubey said the government is ready to examine the Telangana state government’s proposal to allot the Tadicherla coal block on an administrative basis to state-owned Singareni Collieries.
Coal to anchor India’s energy transition amid surging power demand
29 January: Coal will continue to play a central role in India’s energy mix as the country works towards tripling its per capita energy consumption over the next 20 years, Union coal secretary Vikram Dev Dutt said. According to the Economic Survey 2025–26, coal plays an important role in India’s energy landscape, contributing 55 percent to the national energy mix and fuelling over 74 percent of total power generation. India’s total installed power generation capacity currently stands at nearly 514 gigawatt (GW), comprising about 247 GW of thermal capacity. Annual per capita energy consumption currently stands at 1,460 kWh and is expected to increase to 2,000 kWh by 2030 and over 4,000 kWh by 2047. Coal India Ltd CMD (chairman and managing director) B Sairam, said coal will act as a bridge and enabler in India’s transition.
Punjab electricity board engineers flag PSPCL’s ‘unrealistic’ power loss target
10 February: The Punjab State Electricity Board Engineers Association (PSEBEA) has raised serious concerns over the revised multi-year tariff (MYT) petition submitted by Punjab State Power Corporation Ltd (PSPCL) to the Punjab State Electricity Regulatory Commission (PSERC), calling the projected reduction in power distribution losses unrealistic and potentially harmful for the state’s power sector. PSPCL originally filed its MYT petition on 28 November 2025, proposing a gradual reduction in distribution losses from 12.75 percent in FY 2026–27 to 12.20 percent by FY 2028–29, based on what it described as realistic field conditions and operational assessments. However, in a revised ARR submitted on 4 February 2026, PSPCL drastically lowered the target loss for FY 2026–27 to 10 percent. According to PSEBEA, this amounts to an abrupt and unprecedented reduction of 2.75 percent within a single year.
India needs US$14 tn investment in power sector by 2070 to meet net-zero goal: Niti Aayog
10 February: India will require cumulative investments of US$14.23 trillion in the power sector, including renewables, storage and transmission, by 2070 under a net-zero scenario, where non-fossil fuel-based generation accounts for 98 percent, a Niti Aayog report said. As the country moves towards Viksit Bharat 2047 and Net Zero 2070, reliable, affordable and cleaner electricity will be central to inclusive and sustainable growth, it noted. With nearly 258 GW of renewable energy capacity installed by December 2025, India has emerged as the world’s fourth-largest renewable energy market, reflecting the pace of clean energy expansion. Electricity’s share in final energy consumption is projected to rise from 21 percent in 2025 to nearly 60 percent under the Net Zero Scenario by 2070. By 2070, total installed power capacity is projected to be 14 times current levels under the net-zero pathway, with renewable energy accounting for about 90–93 percent of capacity.
Over 1.7 lakh smart meters installed in Kerala so far under RDSS
8 February: A little over 1.70 lakh smart meters have been installed in Kerala under the smart metering component of the Centrally-assisted Revamped Distribution Sector Scheme (RDSS), according to the union power ministry. This includes 1.67 lakh consumer meters as well as 111 distribution transformer meters and 2,904 feeder meters of the Kerala State Electricity Board (KSEB), the State-run power utility which is the implementing agency in Kerala, according to the ministry. The KSEB had started piloting the smart meter project in select electrical sections last year. In the first phase, the power utility is planning to have 3 lakh meters installed. State Electricity Minister K Krishnankutty had presented a slightly updated figure in the State Assembly. According to him, in the first phase, which is currently in progress, the KSEB had installed 1,71,285 meters as of 20 January. This phase, expected to be completed by 31 August this year, covers system meters (transformer, feeder, and border meters) of the KSEB, government consumers and meters of high-tension (HT) electricity consumers. Under the RDSS scheme, Kerala was given approval for installing 1.3.3 million smart meters across multiple phases. Meanwhile, the KSEB has kicked off the process for tendering the second phase of the smart metering project in the State under the alternative proposal approved by the State government. In this phase, close to 50 lakh meters will be installed for consumers. This will include 15 lakh new connections as well 35 lakh replacements of existing meters, according to the Power department. The second phase will cover electricity consumers with monthly consumption in excess of 150 units, monthly-billed consumers, and those consumers who wish to install smart meters. The KSEB is aiming to complete the second phase by May 2028.
Consumers may soon get to buy & sell electricity among themselves
8 February: The government is set to launch a facility that will allow consumers to directly buy and sell electricity among themselves, with the amount adjusted in their monthly power bills. Peer-to-peer (P2P) energy trading under the India Energy Stack (IES) will enable electricity consumers and prosumers — consumers who also generate power through renewable sources such as rooftop solar — to trade surplus renewable energy directly with other consumers, including across state boundaries. The transactions will be facilitated through a trust-based digital framework to ensure a secure, verifiable and scalable P2P energy network. While the buyer will need a smart electricity meter, the seller must have a rooftop solar plant and a net meter to trade surplus energy. The two parties will be able to negotiate prices through a mobile application and complete the transaction. Consumers will continue to receive their regular electricity bills and P2P energy trades will be reflected as cumulative adjustments within the discom (distribution company) billing system for both buyers and sellers. The three utilities together have about 12.5 million consumers, but the pilot will begin with around 1,000 consumers in each discom area. PVVNL managing director Raveesh Gupta said consumers from varied backgrounds are being identified for the pilot.
Relief to consumers as TGERC fixes service charges for power connections
5 February: Consumers seeking domestic electricity connections, especially in areas where there is no power infrastructure as well as those in residential colonies on the outskirts, will be spared from spending lakhs of rupees. Telangana State Electricity Regulatory Commission (TGERC), in a huge relief to consumers, has fixed charges for erecting power infrastructure and distribution, especially in city outskirts. TGERC said that discoms (distribution companies) will collect only 500 as a fixed amount for an electricity connection up to 1 kW. For connections with electricity load between 1 kilowatt (kW) and 5 kW, the amount will be 500 plus 600 per kW. These charges will go up to 2,900 plus 1,500 per kW for connections with a load of 5 kW and 20 kW. Charges per kW would be 10,000 per kW if the connection exceeds 20 kW. For non-domestic connections up to a 1 kW power load connection, the fixed amount would be 1,000, and 1,000 plus 2,000 per kW if the connection is between 1 kW and 5 kW. For connections between 5 kW and 20 kW, the charges will be 5,800 as fixed charges and 2,000 per kW as additional charges. For agriculture connections, discoms can collect up to a maximum of 1,000 per kW from consumers. However, in the case of commercial complexes, apartments and multi-storey buildings, they can recover the cost of transformers where a dedicated transformer is provided to them, and the discoms are not entitled to any development charges additionally, TGERC said.
Tata Power commissions 765 kV transmission lines in Uttar Pradesh
4 February: Tata Power Company Ltd has commissioned two 765 kilovolt (kV) extra high voltage (EHV) transmission corridors in Uttar Pradesh (UP) comprising the Mainpuri to Bara line spanning 380 circuit kilometre (ckm) and the Mainpuri to Unnao line spanning 194 ckm, totalling 574 ckm. The corridors have been developed under the South East UP Power Transmission Company Ltd (SEUPPTCL) project and are expected to strengthen the Northern Grid while enabling large scale power evacuation across the state.
Power sector PSUs' investments to rise nearly 19 percent to INR1k bn in FY27
1 February: The government has proposed to increase total investment by the nine state-owned power sector firms by nearly 19 percent to INR1017.62 billion in 2026-27 compared to the previous fiscal year. According to the Budget document, the Revised Estimate (RE) of investment by these nine firms is pegged at INR858.28 billion for 2025-26 while the budgeted estimate (BE) was INR861.38 billion. NTPC Ltd’s investment will be hiked to INR310 billion in the next fiscal year from RE of INR290 billion and BE of INR260 billion in 2025-26.
India's Adani boosts electricity supply to Bangladesh despite souring diplomatic ties
28 January: India’s Adani Power is boosting electricity exports to Bangladesh, data from both governments showed, despite worsening bilateral relations and a Bangladesh government-appointed panel calling the supply overpriced. Exports to Bangladesh from Adani’s Godda coal-fired power plant in India's eastern Jharkhand state rose nearly 38 percent annually to about 2.25 billion kilowatt hour (kWh) in the three months through December, data showed. That pushed Indian exports to a record 15.6 percent of Bangladesh’s power mix for the year, up from 12 percent in 2024, Bangladesh government data showed. Adani began supplying Bangladesh in early 2023. Electricity trade between the countries is flourishing despite souring diplomatic relations.
Ceigall India wins INR17 bn 220 MW solar plus storage project at Morena Solar Park
10 February: Infrastructure company Ceigall India Ltd said it has received a Letter of Award (LoA) from Rewa Ultra Mega Solar Ltd for the development of Unit 1 at Morena Solar Park, with an installed capacity of 220 megawatt (MW). The project is part of a 440 MW tender floated by RUMSL for the Morena Solar Park in Madhya Pradesh. The awarded project comprises both solar power generation and Battery Energy Storage Systems (BESS) components. It is a tariff-based contract, with Ceigall quoting a tariff of INR2.70 per kilowatt hour (kWh). The total project value, including goods and services tax, is estimated at around IINR17 billion. According to the company, the LoA has been awarded by a domestic entity. The project is scheduled to be executed over a construction period of 24 months, followed by an operational period of 25 years.
NTPC Green Energy expands solar capacity with commissioning of 14 MW at Khavda-I PV project
10 February: NTPC Green Energy Ltd (NGEL) has successfully commenced commercial operations of an additional 14.43 megawatt (MW) solar capacity at its Khavda-I Solar PV Project in Gujarat. This marks the eleventh segment of the total 1,255 MW Khavda-I Solar PV Project, which is part of the CPSU Scheme Phase-II, Tranche-III. The new capacity began operations on 10 February, 2026. The project is being executed by NTPC Renewable Energy, a subsidiary of NGEL, and plays a significant role in NTPC Group’s broader renewable energy strategy. With this addition, NGEL’s total commercial capacity now stands at 8,827.68 MW, further strengthening its position as one of India’s leading producers of renewable energy.
Over 600 tribal homes in Prakasam get solar power under Andhra government initiative
7 February: Andhra Pradesh Energy Minister Gottipati Ravi Kumar launched an off-grid solar project to provide power to over 600 tribal households deep in the Nallamalla Forest, Prakasam district, at INR30 million. After learning that 611 tribal households in the Palutla region had been without electricity for decades, Kumar apprised Chief Minister N Chandrababu Naidu, who approved the off-grid solar initiative.
Haryana offering solar power subsidy from one hand, taking it back from other: Hooda
6 February: Haryana leader of opposition Bhupinder Singh Hooda said BJP government in the state had continuously cheated electricity consumers. He said that under the guise of ‘Solar for Every Home' scheme, the government adopted a policy of offering a subsidy and taking it back. He said if a solar consumer’s electricity generation fell even slightly short of their consumption in a given month, the government slapped them with a hefty fixed charge, resulting in a full bill. He said the Dakshin Haryana Bijli Vitran Nigam (DHBVN) and Uttar Haryana Bijli Vitran Nigam (UHBVN) proposed a 15 percent-17 percent increase in electricity tariffs for 2026-27. This proposal will put an additional burden on domestic, commercial, and industrial consumers, and the public will be hit with another shock of expensive electricity. Referring to changes in electricity rates last year, he said the BJP already gave the public a major shock by changing the tariff slabs. Giving an example, he said the electricity bills of consumers who earlier paid INR900 suddenly rose to INR4000.
Arunachal targets 19 GW hydropower expansion with INR1.9k bn investment: Deputy CM
5 February: Arunachal Pradesh has set a target to add 19 gigawatt (GW) of hydropower capacity with an estimated investment of INR1.9k billion as part of a strategic shift towards large and mega projects, Deputy Chief Minister (CM) Chowna Mein said. He said the state has declared 2025-2035 as the ‘Decade of Hydropower’ to accelerate development in the sector. He said that the state accounts for nearly 40 percent of the country’s hydropower potential, with 58,000 megawatt (MW) capacity, positioning the state as a key contributor to India’s clean energy transition and its net-zero emissions target by 2070.
TPREL Commissions 198 MW group captive wind project in Tamil Nadu
3 February: Tata Power Renewable Energy Ltd (TPREL) has commissioned a 198 megawatt (MW) wind energy project for Tata Steel under the group captive model in Karur, Tamil Nadu, marking one of the largest wind projects of its kind in the state. Located in Karur, the project comprises 55 wind turbine generators, each with a capacity of 3.6 MW. Generating around 31 million units of electricity annually, the project is expected to offset about 26,350 tonnes of carbon dioxide emissions every year.
Nuclear sector reforms to scale up atomic power capacity: Mishra
30 January: PK Mishra, Principal Secretary to the Prime Minister, said India’s decision to open up the nuclear energy sector for private participation is expected to scale up nuclear capacity significantly by 2047 and provide firm and zero-carbon baseload power. Mishra said energy transitions are most durable when they deliver tangible welfare gains. He said that India has already reduced the emissions intensity of its GDP by about 36 percent between 2005 and 2020 and became the first G20 country to meet its Paris Agreement commitments nine years ahead of the 2030 timeline.
NHPC to begin commercial operation of 250 MW unit at Subansiri hydro project
30 January: NHPC Ltd will begin commercial operation of the third unit of its 2,000 megawatt (MW) Subansiri Lower Hydroelectric Project, being constructed at a cost of around INR270 billion. NHPC is constructing the hydroelectric project (having 8 units of 250 MW each) near North Lakhimpur on the border of Arunachal Pradesh and Assam.
BPCL looks overseas for renewable energy acquisitions, investments
30 January: Bharat Petroleum Corporation Ltd (BPCL) is scouting global opportunities, ranging from acquisitions to strategic investments in solar, wind and hydropower. The refiner is pursuing renewable energy alongside refinery expansions, stressing that conventional fuels will remain critical to meeting India’s fast-growing energy demand. Companies in India, the world’s third-largest emitter of greenhouse gases, are investing billions of dollars to cut emissions, while also expanding fossil fuels as economic growth is expected to drive petrochemical and fuel demand. The nation has set a target of reaching net zero by 2070. The strategy will complement BPCL’s expansion plans, as it targets building up to 2 gigawatt (GW) of renewable capacity by 2028.
NTPC, NLC India and Adani Green commission 321.6 MW of new solar capacity
29 January: NTPC, NLC India, and Adani Green Energy have successfully commissioned a combined 321.6 megawatt (MW) of solar power capacity, marking another significant milestone in India’s renewable energy journey. These projects reflect the growing role of public and private sector players in accelerating the country’s clean energy transition. NTPC continues to expand its renewable portfolio as part of its long-term strategy to reduce dependence on fossil fuels. The newly commissioned solar projects add to its ambition of achieving large-scale renewable capacity in line with national climate commitments. NLC India has strengthened its presence in the solar sector through these new installations. Traditionally known for thermal power generation, the company has been steadily diversifying into renewables, reflecting a broader shift within public sector enterprises towards sustainable energy. Adani Green Energy, one of India’s leading renewable developers, contributed a major share of the commissioned capacity. The company remains a key driver of utility-scale solar deployment, with aggressive expansion plans to support India’s clean energy and net-zero goals. The newly commissioned projects are expected to generate significant amounts of clean electricity, reducing greenhouse gas emissions and lowering the carbon intensity of the national power mix. Solar power plays a critical role in replacing coal-based generation and improving environmental outcomes.
740 Tripura households earn by selling solar power to grid under PM Surya Ghar scheme
29 January: Concerns over electricity bills in Tripura are easing as rooftops, tin sheds and household courtyards are being used to generate power and income under the Prime Minister (PM)’s PM Surya Ghar Muft Bijli Yojana. Tripura State Electricity Corporation Ltd (TSECL) said 740 electricity consumers in the state earned money by selling surplus solar power back to the grid after installing rooftop solar panels under the scheme. The Tripura government is pushing implementation of the PM Surya Ghar Muft Bijli Yojana with a target to cover 50,000 families by 2027, including households without concrete roofs. The project involves total govt expenditure of INR750.21 billion and is to be implemented from 2023–24 to 2026–27, with the Centre offering subsidies and financial incentives for solar capacity installation.
Indian renewables firms urge pause on auctions as backlogs surge
29 January: India’s renewable energy producers are urging the government to pause new project auctions until stranded projects secure buyers, and warning of deeper, forced output cuts at existing sites if grid problems persist. More than 42 gigawatt (GW) of auctioned capacity have yet to be awarded power supply contracts. The power ministry has previously said it aims to accelerate the signing of supply deals by fast-tracking interstate transmission lines, while the renewable energy ministry has partly blamed curtailments on slowing power demand growth.
OPEC oil output falls in January on lower supply from Nigeria and Libya
9 February: Organization of the Petroleum Exporting Countries (OPEC)’s oil output fell in January due to lower supply from Nigeria and Libya, a survey found, which offset increases in members including Venezuela after the US (United States) capture of Nicolas Maduro and the ending of an oil blockade. The OPEC pumped 28.34 million barrels per day (bpd) in January, down 60,000 bpd from December's total, the survey showed, with Nigeria posting the largest decline. OPEC+, comprising OPEC and allies including Russia, in January began a first-quarter pause of its monthly output increases amid concerns of a supply glut. Under an agreement by eight OPEC+ members covering January output, the five of them that are OPEC members - Algeria, Iraq, Kuwait, Saudi Arabia and the UAE - were to keep output unchanged before the effect of compensation cuts totaling 130,000 bpd for Iraq and the UAE. The survey showed that they increased output by 60,000 bpd month on month, but total output remained below their targets. Nigeria had OPEC's largest output decline, and Libyan supply also fell as bad weather impacted loadings, the survey found.
EU targets Russian crude anew with far broader sanctions plan
6 February: The European Commission proposed a sweeping ban on any services that support Russia’s seaborne crude oil exports, going far beyond previous piecemeal EU (European Union) sanctions in its effort to stunt Moscow's key source of income for its war on Ukraine. Russia exports over a third of its oil in Western tankers - mostly from Greece, Cyprus and Malta - with the help of Western shipping services. The ban would end that practice, which mostly supplies India and China, and render obsolete a price cap on purchases of Russian crude oil that the Group of Seven Western powers have tried to enforce with mixed success.
Oil majors snap up West African blocks in hunt for next Brazil
4 February: Chevron and TotalEnergies are among the oil majors snapping up offshore blocks in West and Southern Africa as compelling geology, regulatory reforms, and the need to restock spur a hunt for the next Brazil. Companies are restocking their oil and gas assets given prospects for fossil fuel demand to stay higher for longer than predicted just a few years ago. With growth in US (United States) shale topping out, other regions are drawing fresh attention, including West and South Africa, with Shell, for example, returning to offshore Angola after a 20-year absence. Of the oil and gas discovered since 2020, some 11 percent, or about 8.7 billion barrels of oil equivalent (boe), has been found along West Africa, most of it oil, African upstream regional research director for S&P Global Commodity Insights Justin Cochrane said.
Oilfield services provider SLB wins US$1.5 bn contract for Kuwait’s Mutriba field development
3 February: Oilfield services provider SLB said it has been awarded a US$1.5 billion contract over five years by Kuwait Oil Company for the development of the Mutriba field in the country. Oil producers in the Middle East, Africa and Asia are seeking to boost inventories, which is driving exploration and drilling activity in the region, and with it demand for oilfield services.
Russia’s Novak expects oil demand to pick up in March, April
3 February: Russian Deputy Prime Minister Alexander Novak said that there is currently a balance on the global oil market, while demand will be gradually rising in March and April, when asked about the OPEC+ group’s plans on its production policy. OPEC+ agreed to keep its oil output unchanged for March at a meeting. Novak didn’t directly say what the group’s steps could be starting from April.
Citi expects oil prices to stay elevated despite oversupply risks
28 January: Citi said that oil prices may stay elevated due to rising geopolitical risks, US (United States) restrictions on Russian oil purchases and continued Chinese buying, even as markets entered the year expecting a large oversupply. Citi noted that Kazakhstan production outages, severe cold weather in the US, geopolitical tensions in the Middle East and tightening US restrictions on Russian oil purchases helped keep prices above US$60 a barrel. Citi said that potential for Iran getting attacked has escalated the geopolitical premium of oil prices by potentially US$3 to US$4 a barrel, adding that any further ratcheting up of tensions would lift the premium higher. Citi said Chinese buying may help explain oil’s unexpected price strength, noting continued inventory-driven imports. Citi estimated apparent crude stock builds averaged around 0.7 million barrels per day in 2025.
Oil prices rise as US supply worries linger after winter storm
28 January: Oil prices gained further ground as supply concerns lingered after a winter storm disrupted US (United States) crude output and exports, while Middle East tensions lent additional support. US producers lost up to 2 million barrels per day or roughly 15 percent of national output over the weekend, analysts and traders estimated, as the storm strained energy infrastructure and power grids. Crude and liquefied natural gas exports from US Gulf Coast ports tumbled to zero, ship tracking service Vortexa said.
Australia’s Woodside beats Q4 revenue estimates despite oil slump, flags lower 2026 output
28 January: Australia’s Woodside Energy flagged a lower production outlook for 2026, tempering stronger-than-expected fourth-quarter (Q4) revenue that was underpinned by resilient output despite weaker oil and gas prices. Output reached a record 198.8 million barrels of oil equivalent, exceeding guidance on the back of strong operating performance across key assets, including Sangomar, Shenzi and Pluto LNG.
New Zealand set to build LNG import facility to boost energy security
9 February: New Zealand has shortlisted contractors to build a liquefied natural gas (LNG) import facility to boost energy security, provide a reliable backup power source and support economic growth, Energy Minister Simon Watts said. The government aims to sign a contract by the middle of this year for an import facility in Taranaki, on the country’s North Island, that would be ready to receive LNG in 2027 or early 2028. The model will allow LNG to be imported in large shipments and only when needed, limiting exposure to global gas prices.
Japan’s Mitsui close to buying stake in Qatar LNG project
6 February: Japan’s Mitsui & Co is close to buying a stake in the second phase of QatarEnergy’s massive North Field project as it seeks to secure stable liquefied natural gas (LNG) supply. It would also give Qatar, the world's second-largest LNG producer after the United States (US), a greater weighting in Tokyo’s energy portfolio after the Middle Eastern country struck a vast 27-year supply deal with JERA, Japan’s top power generator. The North Field LNG project, which will be the world’s largest, is expected to boost QatarEnergy’s output of the super-chilled fuel by about 64 percent to 126 million metric tonnes per annum (mmtpa) by 2027, from 77 mmtpa. Of that, the second phase, called North Field South, will add 16 mmtpa at a cost of about US$17.5 billion, according to the Japan Organization for Metals and Energy Security report.
Trinidad’s Atlantic LNG to shut down Train 4 for major maintenance
6 February: Trinidad and Tobago’s flagship Atlantic LNG plans to shut its 6 million metric tonnes per annum (mmtpa) Train 4 for up to 50 days in May and June for extensive maintenance and repairs. Atlantic LNG is majority owned by Shell and BP- each with a 45 percent stake - while Trinidad’s National Gas Company holds 10 percent. The facility accounted for roughly 15 percent of BP’s total global LNG production and 10 percent of Shell’s LNG output in 2025, according to the company. The maintenance and repairs, called a turnaround, will commence on 4 May and will run for between 45 and 50 days. During that time Atlantic will continue to export LNG from Trains 2 and 3, which together have a combined capacity of 6 mmtpa. Atlantic LNG said the turnaround is designed to ensure it can operate the plant safely and reliably and could not comment on whether it would allow Trains 2 and 3 to operate at full capacity with the additional gas not needed for Train 4 during the period.
Greek JV seeks 20-year US LNG deal to strengthen Southern Europe’s gas supply
6 February: Atlantic Sea LNG Trade, a joint venture (JV) between Greece’s gas supplier DEPA and construction group Aktor, is in talks to secure up to 15 billion cubic meters (bcm) of US (United States) liquefied natural gas (LNG) annually for 20 years to supply southern Europe, its CEO (Chief Executive Officer) Alexandros Exarchou said. The talks come as Greece seeks to bolster its role as a transit route for gas into Europe and as the continent prepares to halt Russian gas imports by late 2027, intensifying competition for long‑term LNG supply and increasing pressure on governments to avoid being caught short. Atlantic Sea LNG Trade, which imports LNG into Greece and sells it on to central Europe and Ukraine, aims to firm up an agreement during a meeting in Washington on February 24, he said. The company is negotiating long-term deals with US suppliers and is holding parallel discussions with potential buyers across the Vertical Gas Corridor - a route to transport gas from Greece through central Europe and Ukraine. Those potential buyers are in Albania, North Macedonia, Bulgaria, Romania, Hungary, Moldova, Austria and potentially Ukraine, he said. Atlantic Sea LNG Trade signed its first US LNG contract with Ukraine, with a cargo scheduled for delivery in March via Greece’s Revithoussa terminal and onward to Ukraine’s energy company Naftogaz through Bulgaria, Romania and Moldova.
Norway’s Equinor signs gas deal with Eneco in the Netherlands
5 February: Norway’s Equinor said it had signed a five-year gas supply agreement with Netherlands-based energy company Eneco for deliveries to the Netherlands. Equinor said the deal covers up to 0.5 billion cubic meters of gas per year, with deliveries to the Dutch gas grid starting 1 February.
Taiwan to ramp up purchases of US natural gas this year
5 February: Taiwan will ramp up its purchases of US (United States) natural gas to make up about one-third of its imported supply this year, and reduce purchases from other countries. Taiwan, which runs a large trade surplus with the US, has shown an interest in a potentially enormous new liquefied natural gas (LNG) project in Alaska that the Trump administration has been pushing hard to allies in Asia as a supply option. Taiwan Economy Minister Kung Ming-hsin said that Taiwan wants more gas from the United States (US) rather than other countries.
Serbia seeks EU gas deals as it reduces Russian supplies: President Vucic
4 February: Serbia is diversifying its energy supply away from Russia and is already in talks to buy natural gas via a European Union purchasing mechanism, President Aleksandar Vucic said. The Balkan country, which wants to join the European Union (EU), is one of Europe’s few remaining buyers of Russian natural gas - over 80 percent of its supplies come from there. Serbia failed to secure a new long-term contract with Russia’s Gazprom last year, and a short-term deal reached in December expires on 31 March. He said Serbia was aiming to secure 500 million cubic metres of gas annually, about a fifth of its needs, under the EU’s communal gas-buying initiative, which it joined last year. Serbia is already purchasing gas from Azerbaijan, via Bulgaria, and construction of a gas pipeline to North Macedonia that would give Serbia access to liquefied natural gas from Greece should start this year, he said. An oil pipeline linking Serbia and neighbouring Romania is expected to be completed in 2027.
Libya plans to boost gas exports to Europe by 2030
3 February: Libya plans to boost its natural gas production in the next five years to have more supply available for export to Europe by early 2030, National Oil Corporation (NOC) chairman Massoud Suleman said. The country plans to increase gas production to nearly 1 billion standard cubic feet per day and start drilling for shale gas in the second half of this year, Suleman said. Libya has 80 trillion cubic feet of gas reserves, split between conventional and unconventional resources, he added. The country is currently exporting a negligible volume of natural gas via the Greenstream pipeline, Suleman said. Libya plans to announce the winners of its latest bid round on February 11, he added. About 37 companies from Asia, Europe, North America, the Middle East and Africa participated, Suleman said. NOC will announce another bid round this year, Suleman said.
Malaysia’s Petronas set to sign LNG supply deal with QatarEnergy
3 February: Malaysia’s firm Petronas is set to sign a liquefied natural gas (LNG) supply deal with QatarEnergy as the southeast Asian nation seeks more supplies of the super-chilled fuel. Petroliam Nasional, or Petronas, will sign a contract for up to 2 million metric tonnes per annum of LNG. Qatar is the world’s second-largest LNG exporter after the United States (US), shipping out 81.07 million tonnes of the fuel last year, according to Kpler data. QatarEnergy signed a massive LNG deal with Japan’s Jera.
Russia’s pipeline gas exports to Europe jump 10 percent in January on year
2 February: Russian energy giant Gazprom’s average daily natural gas supplies to Europe via the TurkStream undersea pipeline rose 10.3 percent in January year-on-year. Turkey is the only transit route left for Russian gas to Europe after Ukraine chose not to extend a five-year transit deal with Moscow that expired in January 2025. Total Russian gas supplies to Europe via TurkStream stood at 1.73 billion cubic meters (bcm) in January compared to 1.57 bcm during the same period a year earlier, according to Reuters calculations.
US share of Europe’s LNG imports increased to 60 percent in January
30 January: The United States (US) supplied 60 percent of the European Union (EU)'s liquefied natural gas (LNG) this month, analytics firm Kpler data showed, confirming its role as Europe’s dominant LNG supplier as some European officials become wary of growing reliance on US energy. The 5.36 million metric tonnes of LNG the EU imported from the US in January is the second-highest volume for any month to date, exceeded only by October 2025, Kpler said. Higher gas demand driven by cold weather this month partly caused the uptick. But Kpler said it expects the trend for increasing US supply to continue, to around 65 percent of Europe’s total LNG this year, from around 56 percent in 2025. Europe has increased purchases of US gas to reduce its reliance on Russian energy since Moscow’s 2022 invasion of Ukraine, and last year agreed to spend US$750 billion on US energy in a trade deal with President Donald Trump. Around 19 percent of the EU’s LNG supplies came from Russia in January, Kpler said. The bloc has agreed to ban all Russian LNG and pipeline gas imports by late 2027. The first stages of the gradual ban will take effect in the coming months, prohibiting short-term Russian LNG contracts.
Mozambique, TotalEnergies relaunch US$20 bn LNG project
29 January: Mozambique and TotalEnergies agreed to relaunch construction on the French energy major’s US$20 billion LNG (liquefied natural gas) project in the country, even as they continue negotiations over additional costs linked to delays. Construction was halted in 2021 following Islamist militant attacks in the northern province of Cabo Delgado, where the project is located. TotalEnergies, which has taken extra equity with its partners after some backers pulled out, said late last year it was ready to resume work. With capacity to produce 13 million metric tonnes of LNG annually, the project is expected to make Mozambique a major gas exporter and to transform the poor African nation's economy when it comes online.
Australia, Timor urge progress on Greater Sunrise gas field
28 January: Australian Prime Minister Anthony Albanese and his East Timor counterpart said the Greater Sunrise gas project should be developed "as soon as possible", with Australia pledging a third of its state revenue to its small neighbour. Albanese, on his first visit as leader to Australia’s northern neighbour, struck a new partnership agreement with Gusmao covering deeper defence ties between the two nations, border security and economic development. The visit comes as the tiny Catholic nation, which is being courted by China, continues its push to build a liquefied natural gas plant on its south coast instead of piping the gas to a plant in the Australian city of Darwin. After decades of delays, Australia’s Woodside Energy and East Timor agreed in December to study a 5 million metric tonnes project for the Greater Sunrise fields, an area containing an estimated 5.1 trillion cubic feet of gas that Australia has been discussing, initially with Indonesia, since the 1980s.
China’s 2026 coal output set for slowest growth this decade despite lower imports
10 February: China’s coal output is expected to rise 35 million metric tonnes to 4.86 billion tonnes in 2026, a major coal industry group said, the slowest pace this decade despite projections of a second consecutive fall in annual imports due to top supplier Indonesia halting spot exports. Production by the world’s biggest producer, consumer and importer of coal is set to rise 0.7 percent this year, while imports are set to fall 5.1 percent to 465 million tonnes, China Coal Transportation and Distribution Association (CCTD) said. Miners in Indonesia have halted spot coal exports after the government proposed deep production cuts to shore up plunging prices. China will dip into its inventories this year as the pace of consumption will exceed supply growth, CCTD said. China’s coal-fired power generation fell in 2025 for the first time in a decade as its growing renewable fleet helped meet a 5 percent increase in power demand to a record high. Proposals to build new coal-fired power plants are surging, but China is still on track for a peak in emissions by 2030, analysts said.
US President to direct Pentagon to buy coal to revive industry
10 February: United States (US) President Donald Trump is set to direct the Pentagon to use government funding and Pentagon contracts to sustain US coal-fired power plants. The move will come via an executive order, with Trump directing Defense Secretary Pete Hegseth to enter agreements to buy electricity from coal plants for military operations. Trump is set to unveil a plan by the Department of Energy to provide US$175 million for upgrades at six coal-fired plants in Kentucky, North Carolina, Ohio, Virginia and West Virginia. The White House said it would hold an event promoting coal-powered energy sources. Trump last year signed executive orders to increase coal output, in one of his many actions that run counter to global efforts to cut carbon emissions.
Asia's power mix to be shaken up by Indonesia’s coal export stoppage
4 February: Utilities across Asia are scrambling to plug a potential shortfall in critical coal supplies after miners in the top global coal producer Indonesia halted spot coal exports in protest over government proposals to limit output. Indonesia supplied half of all global thermal coal exports in 2025, and is by far the top coal supplier to many of the world's largest coal importers including China, India, Vietnam and the Philippines. Indonesia is by far the world's largest thermal coal exporter, and accounted for 50 percent of all shipments in 2025. The authorities have proved willing to play hardball with the mining sector before, and briefly suspended coal exports in 2022 due to a shortage of coal supplies at local power plants. That suspension triggered a steep climb in global coal prices at the time, and benchmark futures on Asian seaborne thermal coal have already climbed 9 percent to their highest in over a year on the back of the latest intervention. Further price gains in global coal markets are likely as key importers react to the threat of a steep fall in supplies from Indonesia and attempt to secure replacement volumes from other exporters and trading houses. Sixteen different nations imported 1 million metric tonnes or more of Indonesian thermal coal in 2025, Kpler data shows. That span of countries ranged from nearby Brunei to China, and includes most of the world's top coal consumers. China, India and The Philippines are the top destinations for Indonesia’s coal exports, and accounted for 68 percent of shipments in 2025.
Indonesia coal miners warn of layoffs, economic risks over proposed output cuts
2 February: Indonesia’s coal mining association (ICMA) has objected to steep production cuts for 2026 proposed by the government, saying the move could trigger mass layoffs and harm the mining industry. Most members of the association, which represents companies producing two-thirds of Indonesia’s coal, received output quotas 40 percent-70 percent lower than 2025 levels, the ICMA said. The proposed output cut is an attempt to shore up plunging thermal coal prices amid fears of oversupply by the world’s largest exporter of the fossil fuel, revenues of which have been hit by falling demand in top importers, China and India. With the production scale significantly reduced, companies face economic unfeasibility as fixed costs and obligations cannot be adequately covered, the ICMA said. The cuts exceed the rate of decline anticipated after the government earlier indicated an annual output of 600 million metric tonnes, Citi analyst Ryan Davis said. Indonesia produced 790 million tonnes of coal in 2025, down 5.5 percent annually. The association said the impact would ripple beyond mining firms, affecting contractors, transport and shipping companies, and raise the risk of loan defaults in coal-producing regions.
France to set out ambitious electrification drive
9 February: France will set out an ambitious energy plan which Prime Minister Sebastian Lecornu said will include doubling the country’s energy consumption from electricity to 60 percent by 2030. Hitting this target, which Lecornu announced, will require a major shift in the French power mix as electricity only represents only around 30 percent of total energy consumption and is largely generated by nuclear and renewables. French heavy industry and transportation still rely mostly on fossil fuels and their sluggish demand for electricity has meant little change in the take-up of cleaner energy sources. French electricity demand grew 5 percent per year between 1960 and 2000, before declining to about a 1 percent per year growth rate to 2010 and has been largely flat since, consultancy Kpler data showed.
Vietnam awards US$974 mn LNG power plant construction contract to PowerChina, Lilama
9 February: Vietnam’s state utility EVN has awarded a contract worth US$974 million to a consortium of PowerChina and Lilama for building an LNG-fired power plant, EVN said. The Quang Trach II plant in the central province of Quang Tri will have a capacity of 1,612 megawatt (MW), 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. Vietnam, where coal power plants are responsible for more than 40 percent of electricity output, has committed to achieving net-zero emissions by 2050. The plant will use turbines from General Electric Vernova, EVN said. It said the plant would be fully operational by 2030.
Eskom can increase charges more than previously approved: South African regulator
8 February: South Africa’s energy regulator said that it granted state utility Eskom larger electricity rate increases for its next two financial years than originally set after admitting errors in its earlier calculations. Eskom’s prices will now rise 8.76 percent in April this year and 8.83 percent in April 2027 instead of 5.36 percent and 6.19 percent, regulator Nersa said. Eskom, a former monopoly that still supplies the bulk of the electricity in Africa’s biggest economy, has been mired in a financial crisis for years, which it partly blames on Nersa’s tariff decisions. After first setting rate increases in January 2025, Nersa admitted errors in calculating Eskom’s tariffs for the 2025/26 to 2027/28 financial years and reached a settlement with Eskom in July. But in December the high court rejected the settlement and ordered Nersa to make a fresh determination on Eskom’s tariffs after getting submissions from the public.
Norway parliament rejects challenge to LNG plant's power supply
5 February: Norway's parliament rejected a proposal to block Equinor’s plan to supply electricity to its Hammerfest liquefied natural gas (LNG) plant from the region’s power grid, allowing the ongoing development to continue. Opposition parties had sought to revoke the LNG plant's planned link to the power grid, but the motion failed when the Socialist Party withdrew its support for the plan, calling it "in practice unlawful".
UK investor signs US$400 mn power deals
2 February: Gridworks, a British government-owned investor in Africa’s electricity networks, signed agreements to develop and invest in transmission projects worth around US$400 million. The two projects are the first public-private partnerships in Ethiopia’s transmission network, as Prime Minister Abiy Ahmed's government is gradually opening up the state-dominated economy to more private investment. Ethiopia's Finance Minister Ahmed Shide said the projects would bolster industrial growth by making power supply more reliable. The UK (United Kingdom) agreed to provide up to 17.5 million pounds (US$23.91 million) in technical assistance under a programme to strengthen Ethiopia's systems for public investment and asset management.
Demand on largest US power grid forecast close to winter record
30 January: Power demand on the largest US (Unites States) electric grid is expected to peak just shy of the all-time winter record, as the PJM Interconnection region covering one in five Americans endures an unusually harsh and prolonged cold spell. PJM manages the flow of electricity across 13 Midwest and Mid-Atlantic states, and prices in the market affect the power bills for roughly 67 million people. The grid operator forecasted demand at a high of 141 gigawatt (GW), with continued Arctic weather likely keeping electricity use high through 2 February. PJM has so far navigated a snowstorm and 10 days of frigid weather without ordering any rolling blackouts. Generation outages on the grid were expected to be about 15 GW, or around 11 percent of total committed capacity. Generation outages topped 22 GW, according to PJM data.
Germany’s EWE to sit out first power plant tender round
29 January: German utility EWE has no plans to bid in an upcoming tender for new power plant capacity in Europe’s top economy, its CEO (chief executive officer) Stefan Dohler said. 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. The plans are aimed at safeguarding security of supply with baseload-capable power stations, reflecting the phase out of coal power and the intermittent nature of renewable energy. The ministry said there would be additional tenders for new capacity in 2027 and 2029/2030, which would have to be available by 2031, adding these future tenders were also open to existing sites.
Ukrainians face tough weeks as Russia targets power sector during freeze
28 January: Life will be particularly tough for Ukrainians over the next three weeks due to plunging temperatures and a compromised energy infrastructure that has been pummelled by intense Russian attacks, depriving millions of light and heat, lawmaker said. The last two Russian missile and drone attacks on the capital Kyiv in January left about a million people without electricity and 6,000 apartment buildings without heating. Energy Minister Denys Shmyhal said 610,000 Kyiv households remained without power. That picture is replicated across the country, with northern and eastern Ukraine, home to major cities including Kyiv, Kharkiv, Chernihiv and Sumy, regularly targeted, resulting in power restrictions for industry and power cuts for consumers. Attacks on power stations, the energy transmission system and the gas sector have long been key elements of the full-scale invasion of Ukraine launched by Russia in February 2022. DTEK said the situation had improved sufficiently to introduce from midnight a schedule of power cuts for the first time in weeks in the capital.
Australia's renewables boom delivers coveted power price payoff
10 February: Australia’s wholesale electricity prices fell to the lowest in four years in 2025, bucking the rising price trends seen elsewhere and validating claims that renewables-heavy power system overhauls can help lower consumer power costs. Increased battery storage capacity and solar farms should allow utilities to limit operating costs, with those savings potentially passing through to households and businesses as soon as this year. Australia’s electricity system has undergone one of the world’s most aggressive revamps over the past decade, with clean electricity output more than doubling since 2019, according to energy think tank Ember data. Australia’s rapid build-out of clean power capacity resulted in a critical power mix milestone being reached in 2025, when more utility electricity supplies came from clean power sources than fossil fuels for the first time. Considering that fossil fuels still accounted for more than 70 percent of Australia’s electricity mix through most of 2021, the pace of clean power growth since then underscores the extent of Australia’s utility sector retooling.
Britain secures record amount of solar in renewable power auction
10 February: Britain secured a record amount of solar power in an auction offering guaranteed electricity price contracts to renewable projects, the government said, as it seeks to meet its clean energy targets and drive down costs. The country has a target to largely decarbonise its electricity sector by 2030, which will require a huge scale-up of renewable power, including wind and solar. A total of 6.2 gigawatt (GW) of onshore wind, solar and tidal power projects won contracts with the bulk, some 4.9 GW, going to solar.
Germany wants renewables firms to shoulder cost of grid connections, draft law shows
9 February: The German government plans to charge renewables companies for connecting to the electricity grid as part of efforts to meet the fast-rising demand for expansion. Germany is among the European countries pushing ahead with a green energy agenda, despite intensifying criticism from US (United States) President Donald Trump. Wind and solar power produced more electricity than fossil fuels in the European Union for the first time last year. The draft law is intended to create incentives for construction in locations that are advantageous for the grid.
French oil major TotalEnergies to provide solar power to Google’s Texas data centres
9 February: French oil major TotalEnergies signed two long-term deals to supply solar power to Google’s data centres in Texas, as it looks to tap rising electricity demand driven by artificial intelligence. Total will deliver 1 gigawatt (GW) of capacity - equivalent to 28 terawatt hour (TWh) of renewable power over 15 years - from two Texas sites owned by the group that are due to begin construction in the second quarter. The company has bucked the trend among oil majors by continuing to invest in renewable energy alongside gas-fired power plants, expanding its power business in deregulated markets where price volatility can create attractive trading opportunities, including the ERCOT market in Texas.
EU weighing options to support industry in carbon market overhaul
5 February: The European Commission is looking at various ways to support industries in an upcoming overhaul of the European Union (EU) carbon market to prevent them moving to areas with lower pollution standards, the Commission’s climate department head Kurt Vandenberghe said. Brussels is preparing a redesign of the EU carbon market, the bloc’s most important climate change policy, which forces power plants and industries to buy permits when they emit planet-heating carbon dioxide (CO2). The Commission’s proposal for the revision, due after summer, will decide whether to continue the EU’s existing system of giving industries some free CO2 permits, to help them compete with foreign firms that don't pay for their pollution. Launched in 2005, the EU carbon market is currently designed to meet the EU’s 2030 emissions-cutting target. The revision will redesign the system to put industries on track for the EU’s 2040 climate goal, to cut domestic emissions by 85 percent.
US rooftop solar installers cut jobs, restructure as homeowner subsidy expires
5 February: United States (US) residential solar companies are preparing for a steep drop in business this year after the expiration of a federal tax credit that helped drive more than a decade of rapid growth, prompting layoffs, restructurings and some company failures. The 30 percent federal income tax credit for homeowners who purchase rooftop systems expired at the end of 2025 under President Donald Trump’s tax overhaul. That has caused the most labor-intensive segment of the solar industry to contract sharply at a moment when it was already weakened by high interest rates and shrinking state-level incentives. Trump has enacted widespread cuts to clean energy subsidies since taking office last year, arguing solar and wind power are more expensive and less efficient than fossil fuels and dismissing concerns about climate change. Solar analytics firm Ohm Analytics last year slashed its forecast for residential solar panel installations due to the loss of the tax credit. It now expects them to decline 20 percent in 2026, instead of rise 8 percent.
Saudi Arabia to build US$2 bn solar farms in Turkey: Turkish Energy Minister
3 February: Saudi Arabia will invest US$2 billion to build two solar farms with total capacity of 2,000 megawatt (MW) in Turkey, the Turkish Energy Minister Alparslan Bayraktar said. Bayraktar and his Saudi counterpart Prince Abdulaziz bin Salman signed an agreement on renewable energy power plant projects, Bayraktar said. Under the agreement, Saudi companies will construct a solar power plant in the eastern province of Sivas and another in central province of Karaman with a total capacity of 2,000 MW in the first phase, Bayraktar said. The total capacity of solar and wind power plants that the Saudi Arabian companies will construct will reach 5,000 MW. The US$2 billion solar power plants will meet the electricity needs of 2.1 million households in Turkey, Bayraktar said.
Orsted offloads European onshore renewables to firm up finances
3 February: Danish wind farm operator Orsted said it had agreed to sell its European onshore renewables business to private equity group Copenhagen Infrastructure Partners for €1.44 billion (US$1.7 billion) as part of a plan to bolster its finances. Orsted wants to focus on its larger-scale offshore wind business in Europe, where significant capacity is expected to be tendered in coming years. The Danish company’s European onshore renewables business spans onshore wind, solar energy and battery storage projects in Ireland, Britain, Germany and Spain, with 578 megawatt (MW) of operational capacity and 248 MW under construction. Orsted’s US (United States) onshore renewables operations are not part of the deal it has struck with Copenhagen Infrastructure Partners and remain under its control. Copenhagen Infrastructure Partners focuses on energy infrastructure investments, including solar photovoltaic, onshore and offshore wind and energy storage projects and has raised a total of €35 billion of capital across 13 funds.
Spain’s rooftop solar tops 9 GW but new installations slowing
29 January: Spanish households and companies installed fewer rooftop solar power systems last year after the withdrawal of some tax deductions, solar industry group UNEF said, with overall installed capacity reaching 9.3 gigawatt (GW). Once the impact of those subsidies faded, new installations began to decline. Inflation squeezing household budgets and lower energy prices reducing the incentive to cover upfront costs also contributed. Households and companies added 1,139 megawatt (MW) of rooftop capacity last year, 3.7 percent less than in 2024.
Australia hits new renewable milestone of over 50 percent
29 January: Australia hit a new clean energy milestone during the December quarter, even as power demand rose over 2.2 percent from a year earlier, the Australian Energy Market Operator (AEMO) said. Rooftop solar, wind and grid-scale solar output all rose by double digits, reflecting new capacity that is coming online as well as improved wind conditions, AEMO said. Coal and gas generation together fell below 50 percent of the generation mix, driving grid emissions to a record quarterly low of 23.4 million tonnes of CO2-equivalent. Australia is targeting a 46 percent cut in emissions by 2030 from 2005 levels and is seeking to source 82 percent of electricity from renewables by then.
Brussels greenlights US$3.4 bn Spanish state aid for highly efficient power
28 January: The European Commission has approved a €3.1 billion (US$3.4 billion) Spanish state aid scheme to support electricity output from highly efficient power plants, it said, amid an EU (European Union) push to cut greenhouse gas emissions. Natural gas projects must include equipment enabling the use of at least 10 percent renewable hydrogen by volume to avoid perpetuating reliance on the fossil fuel. The EU has current targets to cut net greenhouse gas emissions by at least 55 percent by 2030 and achieve climate neutrality by 2050, and is pushing more broadly to reduce final energy consumption to mitigate the effects of climate change. The Spanish scheme will run for 10 years and be open to operators of CHP (combined heat and power) installations that meet the definition of high-efficiency cogeneration under the EU's Energy Efficiency Directive, the Commission said
Keppel, Aster plan sustainable aviation fuel project in Singapore
28 January: Singapore’s Keppel and Aster have agreed to jointly assess a project to produce sustainable aviation fuel (SAF) from ethanol on the city-state’s Jurong Island industrial area, the companies said, to meet its future demand. The proposed facility is expected to produce up to 100,000 metric tonnes of SAF per year, the companies said. Singapore will implement a mandate to use 1 percent SAF in aviation fuel from this year and plans to raise this target to 3 percent-5 percent by 2030 as it aims to become a regional hub for the low-carbon fuel.
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