Latest news with #REPowerEU
Business Wire
31-07-2025
- Business
- Business Wire
KBRA Comments on the Implications of the EU Trade Agreement for U.S. LNG
NEW YORK--(BUSINESS WIRE)--As part of the European Union's (EU) broader REPowerEU strategy to reduce dependence on Russian energy and under the terms of the recently announced U.S.-EU trade agreement, the EU has committed to purchasing $750 billion worth of U.S. energy over the next three years to meet demand. Abundant low-cost natural gas across the Permian, Eagle Ford, and Haynesville basins—combined with modest liquefaction fees and close proximity to liquefied natural gas (LNG) export facilities on the U.S. Gulf Coast (USGC)—continue to make U.S. LNG incredibly competitive. While there is currently no impact to KBRA's portfolio of LNG export facilities due to their contracted nature, future projects could be affected if they seek to monetize merchant cash flows. While the announcement is a positive development for U.S. natural gas producers, meeting export requirements at this scale presents significant challenges. In 2024, U.S. export capacity totaled 11.9 billion cubic feet per day (Bcf/d) across eight facilities, predominantly located along the USGC. The Department of Energy (DOE) has authorized a cumulative 55.3 Bcf/d of LNG exports as of June 30, 2025. Several export facilities currently under construction are expected to reach commercial operations date (COD) this year, with additional projects slated to reach COD later this decade. Further, up to eight U.S. LNG export facilities are anticipated to reach final investment decision (FID) by year-end 2025. While this additional capacity will support broader U.S. export goals, many of these facilities are already committed through letters of intent (LOI) or long-term contracts with international offtakers to secure financing. As a result, they are unlikely to have sufficient uncontracted capacity available to fulfill obligations under the recent trade agreement. About KBRA KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions. Doc ID: 1010640
Euronews
25-07-2025
- Business
- Euronews
Azerbaijan's SOFAZ invests in Italy's solar future
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has acquired a 49% stake in a portfolio of solar power plants in Italy, marking a shift in Azerbaijan‑Italy energy ties from traditional pipelines to long‑term renewable partnerships. For decades, energy cooperation between Azerbaijan and Italy was defined by hydrocarbons and pipelines. This new deal, observers say, signals a new chapter – from molecules to electrons, with Italy securing alternative sources of energy sold under long‑term power purchase agreements, a model that ensures stable tariffs for consumers and predictable, inflation‑linked income streams for investors. The portfolio, owned and operated by Enfinity Global, spans 14 solar plants in the Lazio and Emilia Romagna regions. Once fully operational, the sites are expected to generate about 685 million kilowatt hours of clean electricity a year – enough to meet the annual needs of nearly 250,000 Italian households and offset around 184,950 tons of CO₂‑equivalent emissions. A milestone for Azerbaijan-Italy ties The agreement was formally marked in Rome on 18 July 2025, with Italian government officials, diplomats and industry leaders in attendance. Israfil Mammadov, Executive Director of SOFAZ, said the collaboration 'supports the delivery of competitive clean energy to meet Italy's growing energy needs while contributing to local economic development and energy access. As a forward‑looking institutional capital provider, we remain committed to supporting strategic investment opportunities in Italy and across Europe'. Carlos Domenech, CEO of Enfinity Global, called it 'a proud moment to add new energies to a historic relationship built on gas and oil supply'. A long‑term global investor Celebrating its 25th anniversary last year, SOFAZ manages over €66 billion in assets, more than 90% of Azerbaijan's GDP, and reported a 6% investment return in 2024. Its portfolio spans more than 50 countries and sectors from infrastructure and real estate to private equity and fixed income, reflecting an adaptive strategy shaped by trends such as the energy transition and digitalization. Italy is already SOFAZ's fourth‑largest investment destination, with nearly €3 billion deployed across traditional and alternative asset classes. The solar deal expands that footprint and reinforces SOFAZ's commitment to infrastructure and long‑term real assets in Europe. Powering Europe's energy transition The investment also supports Italy's national decarbonization efforts and the European Union's REPowerEU initiative, which seeks to cut reliance on imported fossil fuels and accelerate the switch to renewables. By backing a 402 MW solar portfolio in Italy, SOFAZ is not only diversifying its own returns but also helping Europe build a more resilient, low‑carbon energy system. For Azerbaijan's sovereign wealth fund, built on the revenues of oil and gas, the message is clear: its future, and its investments, are increasingly tied to clean energy.
Budapest Times
24-07-2025
- Business
- Budapest Times
Foreign Minister says REPowerEU is ‘the Zelensky plan'
Minister Szijjártó said that banning Russian energy sources would multiply utility costs. Péter Szijjártó, Minister of Foreign Affairs and Trade, said Hungary strongly opposes the REPowerEU plan as it would ruin Hungarian energy security and competitiveness and branded REPowerEU as 'the Zelensky plan'. Attending a working breakfast of European Union member state ambassadors in Budapest, Minister Szijjártó also said that banning Russian energy sources would multiply utility costs. The minister told them the bloc faced huge challenges 'in a rapidly changing world,' such as illegal migration and the decline in European competitiveness, which had a severe impact on Hungary's export-oriented economy. Excluding the years of the pandemic, government incentives helped investments break records every year since 2014, and the European Commission needlessly curbed member states, he said, adding that Brussels should leave such investments to sovereign decision-making regarding the national finances. Since the EU has not inked a single investment protection agreement with third countries for a long time, the right to bilateral agreements should be returned to member states, he added. As far as energy deals are concerned, he said the issue was physical and did not impinge on other states. The EC's proposal would result in energy sources being shut down instead of being diversified, he added. 'Frankly, I don't care what the Russians think about our position. And that's the case generally. But nor do I care what Burkina Faso thinks or Australia for that matter.' 'We oppose REPowerEU because it goes against Hungary's interests,' he added. At an event organised by the holder of the rotating presidency, Denmark, Minister Szijjártó noted that Russian energy imports to Europe have shrunk by 85-90 percent. He said it was 'no longer true' that Moscow could use energy to blackmail the bloc and the EU had achieved its objectives in this regard, adding that the security of no single country should be imperilled by banning energy imports. He underlined that the elimination of Russian oil and natural gas sources would increase utility costs in Hungary several times over. 'We Hungarians can't be accused of not trying to diversify our resources,' he said, adding that as a landlocked country, Hungary was in a far tougher spot than others. Six of the country's networks have been interconnected with seven of its neighbours, he said, though lagging infrastructure investments by others mean that 'capacities are still insufficient'. Minister Szijjártó said criticism of Hungary might be valid had the country not done everything it could to boost diversification, but in fact it had spent billions and tens of billions of euros on interconnection. 'We ask for greater understanding,' he said. Addressing the issue of Ukraine's bid to become an EU member, he noted the Hungarian government's strong opposition, for which it has been subjected to 'serious attacks'. Many other member states blocked integration of the Western Balkans for many years, 'yet they aren't branded as puppets of the Russians…' he added.
Yahoo
21-07-2025
- Business
- Yahoo
How can Kazakhstan secure its hydrocarbon export infrastructure?
Kazakhstan is one of the largest oil and gas producers in Central Asia, a significant producer of coal and a major energy exporter – but the markets surrounding it are shifting. In terms of oil production, the vast landlocked country is up against established and well connected heavyweights such as Saudi Arabia and the US, while competition in the gas market is more regionalised, with Russia, Turkmenistan and Uzbekistan as frontrunners. Its production remains on a sharp upward trajectory. In February, Kazakhstan reported a record oil output of 2.12 million barrels per day (mbbl/d), and announced plans to produce 96.2 million tonnes (mt) of oil and gas condensate in 2025, a yearly increase of almost 10%. Moreover, its oil production in the first half of 2025 (H1 2025) saw a yearly surge of almost 12%. However, the nation still has some way to go to diversify its export routes and establish reliable and long-term export markets. Demand from various regions of Europe continues to rise against the backdrop of the Russia-Ukraine war, following an international trend of nations seeking to reduce their energy dependence on Russia. In June, the European Commission proposed a gradual phase-out of Russian gas and oil imports into the EU by the end of 2027, as part of the REPowerEU road map, which aims to ensure the EU's full energy independence from Russia. Kazakhstan is aiming to capitalise on this demand by increasing hydrocarbon exports. Currently, approximately 80% of the country's oil exports are transported via the majority Russia-controlled Caspian Pipeline Consortium's (CPC) Black Sea terminal, which was temporarily restricted in April by Russian regulators. Kazakh hydrocarbon infrastructure has also become collateral damage in the ongoing Russia-Ukraine war. In February, Ukrainian drones hit a pumping station on the main Kazakh oil export pipeline, temporarily dropping oil flows through the CPC by approximately 30–40%. Such vulnerability is exacerbated by Kazakhstan's Soviet-era assets, although the country has been actively building new facilities and reviving previously shelved plans such as the Eskene-Kuryk-Baku oil pipeline, which will extend for 739km from Kazakhstan to Azerbaijan. Market expansion, particularly to hydrocarbon-hungry countries such as China and Türkiye, remains a priority for Kazakhstan, helping it secure its economic future. However, this process relies on reliable pipeline routes and stabilised geopolitical climates, the latter currently seeming a long way off. Market opportunities and challenges As the world's biggest hydrocarbon importer, China offers huge opportunities for Kazakhstan. In February, state-run gas pipeline operator Qazaqgaz extended its agreement with PetroChina to increase gas exports to the east. Qazaqgaz has a pipeline network of more than 76,000km, including 20,000km of main gas pipelines, which also transport Russian gas to Uzbekistan and Kyrgyzstan through an agreement signed with Gazprom in 2024. However, extracting itself from Russia's influence and strengthen its ties with China could prove tricky for Kazakhstan. Much of the region's hydrocarbon infrastructure is co-owned and operated by more than one country, with a notable example being the Atasu-Alashankou pipeline, which carries both Kazakh and Russian oil to China. Competition in the region is fierce for market access and infrastructural planning. Kazakhstan is China's third-largest pipeline gas supplier after Russia and Turkmenistan, but in terms of crude oil the country has fallen behind other suppliers, with a 50% drop from 2023 to 2024 (though overall demand from China has weakened in recent years). Elsewhere in Asia, Türkiye holds further promise. GlobalData oil and gas analyst Rami Khrais highlights the Baku-Tbilisi-Ceyhan (BTC) pipeline, which enables Kazakhstan to bypass Russia and carry crude oil through Azerbaijan and Georgia to Türkiye and other Mediterranean ports. According to reports, Kazakhstan is already diverting its crude exports away from Russia and towards Türkiye through the BTC: in February, 6,000 tonnes of oil from the Kashagan field began to move through the pipeline for the first time. However, Khrais states that Kazakhstan's "plans to reduce dependency on the Russian route might not be easy [and] due to logistical complexities, transporting oil by sea and then through the BTC pipeline is likely to be more expensive than transporting it via the CPC". Meanwhile, South Asia is a relatively untapped market for Kazakhstan. Research from the Journal of Eurasian Studies highlights that Kazakhstan could be of great use to India as an energy provider, particularly as India is heavily dependent on oil imports. While Kazakhstan does export hydrocarbons to India (amounting to a value of $175m for crude oil in 2024) as its largest trade partner in Central Asia, no direct infrastructure connection exists. The International North-South Transport Corridor, which would use the Chabahar and Bandar Abbas ports in Iran, presents a possibility for further connection between the countries. The corridor is designed to facilitate the movement of goods between Azerbaijan, Central Asia, Europe, India, Iran and Russia. According to the Social Policy Research Foundation in India, another key barrier to cooperation with Kazakhstan is China's established presence in Central Asia, as it has "a territorial advantage and has arguably solved the issue of decaying regional infrastructure by building multiple pipelines […] for an entrenched competitive advantage". Despite the geopolitical mire, there are viable options for Kazakhstan to secure its hydrocarbon infrastructure, including strengthened regional cooperation and transportation development. New frontiers for Kazakhstan's hydrocarbon exports Given the complications of pipeline expansion, maritime transportation presents another avenue for Kazakhstan to capture a wider market. In recent years, state-run companies such as KazMunayGas have ramped up investments in tankers to increase exports across the Caspian Sea. Notably, the BTC pipeline relies on a fleet of Kazakh tankers to move oil to Azerbaijan. Kazakh Energy Minister Almasadam Satkaliyev has highlighted the potential to increase the BTC's current output of 1.5mt per year to as much as 20mt, thus reducing oil exports via Russia by approximately 80%. Increased cooperation with Azerbaijan is another possible diversification element for Kazakhstan, which would make it something of a regional energy hub. While a Trans-Caspian oil pipeline remains out of reach due to technical and financial challenges, the countries recognise the mutual benefits of cooperation, such as negotiating port modernisation to facilitate enlarged fleets. In turn, this will open up further access to European markets. Lack of investment taking its toll However, Kazakhstan must also assess how it can solve the problem of declining foreign direct investment flows (FDI), which are intertwined with oil and gas. Kazakh Invest, which attempts to bolster Kazakhstan's economy by drawing in foreign investment, has stated that FDI plummeted from $2.3bn (KZT1.22trn) to $72.9m over the first nine months of 2024, year-on-year. The completion of large-scale infrastructure projects such as the Tenzig oilfield, which began production in January and is owned by Chevron (50%), KazMunayGas (20%), ExxonMobil (25%) and Lukoil (5%), has been cited as a significant factor. According to the International Trade Administration, "the hydrocarbons sector, since 1991, has received approximately 60% of FDI in Kazakhstan, and constitutes approximately 53% of its export revenue". As part of its National Investment Policy, the Kazakh Government is aiming to attract at least $150bn of FDI by 2029 and diversify away from hydrocarbons into agriculture, construction, ecology, information technology, pharmaceuticals and tourism. However, business research from 2024 found that the "sheer weight of oil and gas production within the Kazakh economy will limit the potential for investment diversification". Kazakhstan still leads FDI in Central Asia, particularly in greenfield projects, as per the UN Conference on Trade and Development's (UNCTAD) 2025 World Investment Report. Throughout 2024, gas supply pulled in significant FDI, with UNCTAD highlighting the $5.5bn natural gas facility announced by Qatari-based energy, concessions and construction company UCC. Russia's influence can also be felt in FDI, with inflows totalling $931.9m (Rbs72.88bn) over the first six months of 2024. As hydrocarbon FDI is likely to remain predominant in Kazakhstan, improving existing infrastructure and strengthening regional partnerships appears to offer the most security. In the meantime, Kazakhstan continues to pump out oil and gas, repeatedly exceeding its 1.47mbbl/d output quota under OPEC+ production limits. Much of the country's future export landscape will depend on delicately managing its geopolitical standing and building links (both political and physical) to the nations around it. "How can Kazakhstan secure its hydrocarbon export infrastructure? " was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Euractiv
21-07-2025
- Business
- Euractiv
Budapest claims deal with Belgrade, Moscow on new pipeline for Russian oil
Hungarian Foreign Minister Péter Szijjártó has announced an agreement with 'Serbian and Russian colleagues' to build a new oil pipeline between Serbia and Hungary, aimed at consolidating imports of Russian crude oil – just as the EU moves to finally freeze the Kremlin out of its energy market. In a typically provocative social media post on Monday, Szijjártó blamed the EU's ongoing efforts to prohibit Russian fossil fuel imports for driving up energy prices to 'several times' those in other parts of the world. 'And this is no wonder, given Brussels is forcibly dismantling energy ties, banning Russian energy sources and blocking supply routes,' Szijjártó wrote on social media. The move comes as the EU actively seeks to close off the remaining imports of Russian gas – flows that, although substantially reduced since the full-scale invasion of Ukraine in 2022, still provide considerable revenue for the Kremlin's unprovoked war against its smaller neighbor. Legislators are currently negotiating a proposal to ban imports of Russian gas completely by 2027. The European Parliament's lead negotiator is also pushing to extend the prohibition to pipeline oil, while also bringing forward the deadline. The announcement from Budapest came after a video conference between Szijjártó, Russian Deputy Energy Minister Pavel Sorokin, and Serbian Energy Minister Dubravka Đedović, the state-controlled news agency MTI reported. The proposed pipeline could be operational as early as 2027, MTI reported, although few details were provided about the nature of the agreement with Moscow and Belgrade. In a video clip included in the report, Szijjártó – whose government, led by Prime Minister Viktor Orbán, has long made capping domestic energy bills a key element in election campaigning – reiterated his criticism of EU energy policy. 'We will not allow this,' Szijjártó said. 'We will build pipelines and open up new sources of supply, and so maintain Europe's lowest energy bills for the Hungarian people.' According to recent statistics, Hungarian households have the lowest gas bills in the EU at €3.20 per 100 kWh compared to €16.71 in the Netherlands and €18.93 in Sweden. Hungary and neighbouring Slovakia have repeatedly obstructed EU attempts to impose economic sanctions on Russian oil and gas, where unanimity among all 27 EU member states is required. However, the REPowerEU package currently under negotiation between governments and the European Parliament would require only a qualified majority to pass into law. (aw)
