Ukraine's Naftogaz launches new gas exploration well
Naftogaz produces the lion's share of Ukrainian gas, but its production facilities were severely damaged in a series of Russian missile strikes earlier this year, reducing production by as much as 40%.
The company has also signed deals to buy U.S. LNG from Poland's Orlen (PKN.WA), opens new tab, as Ukraine needs to import large volumes of gas ahead of the 2025/26 heating season after Russian shelling left its storage sites almost empty.
"Step by step, we're building up domestic production and reinforcing Ukraine's energy resilience," Naftogaz CEO Sergii Koretskyi said in a statement.
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Telegraph
an hour ago
- Telegraph
How Trump is torpedoing Ukraine's reconstruction efforts
When it comes to the outlook for post-war Ukraine, hope springs eternal among the international community. Last week, scores of Western leaders, along with an army of NGOs, and thousands of businesses from around the world descended on Rome for the ambitiously named 'Ukraine Recovery Conference'. In the words of the organisers, the purpose of the summit was to devise a roadmap that will lead to 'the swift recovery and long-term reconstruction of Ukraine'. Hosted by Italian Prime Minister Giorgia Meloni, high-profile attendees included Donald Trump's special envoy to Ukraine Keith Kellogg, Volodymyr Zelensky, European Commission President Ursula von der Leyen, and German Chancellor Friedrich Merz. In the build-up, the illustrious think tank Chatham House released an upbeat survey of what so-called 'civil society organisations' wanted from post-war reconstruction. Anti-corruption measures and assistance for young people in overcoming the trauma of war featured heavily on a wish list of the Ukrainian people, the report said. Over two packed days, there were sessions on how to repair Ukraine's crippled energy infrastructure, attract investment in the country's critical minerals, and ways to revitalise its shattered manufacturing industry. One panel, attended by foreign ministers from across Europe, was entitled: 'Ukraine's path to the EU'. Zelensky said the pacts that would be forged in the Italian capital would 'make Ukraine stronger'. But no amount of warm words and well-intentioned diplomacy can disguise the fact that Ukraine's future continues to be dictated by the whims of one man: Donald J Trump. A false start The reconstruction of a country that has suffered more than three years of relentless bombardment, will mostly come down to the generosity of strangers – mainly in the West. Without significant outside funding – much of it from private investors – Ukraine is destined to remain a hollowed-out husk for a generation or more. Yet in the days leading up to the Rome pow-wow, hopes for Ukraine's resurrection suffered a major setback after it emerged that Wall Street asset management giant BlackRock, a linchpin of efforts to raise tens of billions for the post-war rebuild, was no longer involved. Even more alarming for Ukraine, reports claim that it was ultimately Trump's election that prompted BlackRock to get cold feet and pull out. In the aftermath of Russia's invasion, the investment powerhouse was pivotal in the creation of something called 'The Ukraine Recovery Fund'. Described as Ukraine's 'Marshall Plan' – a nod to the US economic aid that paid for the reconstruction of Europe following the Second World War – the project was the brainchild of Australian billionaire Andrew 'Twiggy' Forrest. Yet having made his fortune amid the dirt and dust of Australia's frontier mining towns, Forrest needed someone with the heft to bring together global investors willing to pledge serious money to the fund. After a meeting between Zelensky and BlackRock chief Larry Fink, the Ukrainian government proudly announced that the Wall Street titan had agreed to coordinate 'the efforts of all potential investors and participants in the reconstruction of our country'. Weeks later, BlackRock confirmed it would 'advise the MoE [Ukraine's ministry of economy] on establishing a roadmap for the investment framework's implementation'. Forrest predicted that Ukraine would 'enter a golden era'. Fast forward to 2024, and Philipp Hildebrand, vice chairman of BlackRock, was confident that his firm had managed to raise in the region of $2.5bn (£1.8bn) from a club of Western allies, development banks, and private investors. The figure could eventually top $15bn, he thought. Yet even at the upper end of Hildebrand's estimates, it still would only have been a small fraction of the $525bn that the World Bank and others believe it will take to piece Ukraine back together. Forrest was even more optimistic – he envisaged the fund eventually having $100bn at its disposal. Such sums now look wildly overstated with the future of the fund undoubtedly hanging in the balance. Forrest had already expressed his reluctance to remain involved while the US president was talking about enforcing a peace deal on Ukraine that didn't have the blessing of the Ukrainian people. The expectation in Rome was that BlackRock would be in a position to unveil a big commitment from a consortium of investors. With it gone, who will coordinate fundraising from the capital markets now? Reports suggest France had been working on an alternative proposal but without heavyweight American backers, there are doubts about whether it would get off the ground. BlackRock's loss will be felt hard in Kyiv and beyond – but the way that Trump continues to cast a shadow over its sovereignty will be felt harder. It is indicative of a figure whose attitude towards Ukraine has flittered between indifference and outright hostility – in front of the world's media at the White House, no less – only for his stance to soften after repeated humiliations at the hands of a defiant Vladimir Putin. Such inconsistency appears to have ultimately been the catalyst for BlackRock's change of heart. Reports suggest that it was forced into an about-turn because Trump's flip-flopping had spooked the investors it was trying to round up. 'The only conversations that drive our decision-making are those with our clients,' a spokesman said. Failure to communicate Washington's chaotic approach is encapsulated in the debacle surrounding the Pentagon's recent decision to halt weapons deliveries to Ukraine. The move blindsided even those who are usually closely briefed on such matters, including members of Congress, State Department officials and key European allies, Politico reports. According to CNN, the list of people that Pete Hegseth, the US defence secretary failed to inform before authorising a pause on shipments included the president himself. With the White House seemingly unable to make up its mind on where it stands on Ukraine, it leaves the country's ability to determine its own destiny more uncertain than ever. The US is, by some margin, the largest single donor to Ukraine. It is also the biggest provider of military support. Kyiv is facing a deficit of as much as $19bn this year, largely driven by declining US assistance. The Kiel Institute for the World Economy, a German think tank, calculates that the US has provided just over €115bn (£99bn) of support to Ukraine – €3.4bn in humanitarian aid, €47bn in financial assistance, and €65bn in military funding. The country that has provided the next largest amount of aid is the UK, at €19bn. Some experts believe renewed US backing could change the course of the war. Some observers believe a different approach is required altogether. 'Past Ukraine Recovery Conferences have convened thousands of experts and produced grand ideas, with zero follow-through,' American diplomat Kurt Volker wrote in a piece for the Centre for European Policy Analysis, a Washington-based think tank. There are several obstacles to genuine progress, in his view. First, 'no one has taken charge of supporting Ukraine's economic recovery,' and secondly, 'war risk' – with the Kremlin's bombs still raining down on Ukraine 'major private investment has stayed on the sidelines', Volker, a former US ambassador to Nato, said. Victory on the battlefield has to come first, and that can only happen if Western funding increases dramatically to around $150bn from roughly $100bn a year, Timothy Ash, strategist at RBC Bluebay Asset Management, said. With the US looking to do the opposite and reduce its share, European leaders should bankroll the war effort with the $330bn of Russian central bank assets that are frozen in bank accounts across the continent, he said. Yet, concerns about the possible violation of international law, the destabilisation of financial markets, and possible Russian reprisals against Western companies that still have assets in Russia, have ensured the funds remain untouched. 'It's Russian taxpayer money, so we are spending our taxpayers' money to protect theirs. We're imbeciles and there can be no recovery and reconstruction unless you win the war,' Ash said.
Reuters
11 hours ago
- Reuters
Taiwan's CPC Corp eyes US shale gas assets, sources say
HOUSTON, July 11 (Reuters) - Taiwan's state-owned energy company CPC Corp is in early stage discussions to buy shale-gas producing assets in the United States, three sources familiar with the matter said, in a bid to secure natural gas supplies to fuel Taiwan's economy. If a deal is struck, CPC would join a growing list of Asian companies taking ownership of U.S. natural gas assets, gaining exposure to the commodity at a time that the United States is expanding its export capacity by building more liquefied natural gas plants. Taiwan would also be gaining political leverage with the Trump administration, which has linked increasing imports of U.S. energy with tariff policy. CPC explored in recent months bids for assets held by public and private equity-backed gas producers active in shale formations that are well connected to existing or upcoming LNG plants, such as the Haynesville shale field of east Texas and Louisiana, the sources said. It has also considered bids for assets in mature plays like the Marcellus in the Appalachian Basin, which have attracted more buyer interest in recent years as technological advancements have allowed operators to extract more hydrocarbons at lower drilling costs, the sources added. CPC did not respond to a request for comment. The sources cautioned that any deal was not guaranteed, and CPC could still buy assets somewhere else. They requested anonymity to discuss confidential deliberations. Taiwan's LNG imports have been rising steadily over the last 15 years, according to data from ship tracker Kpler, hitting a record 21.78 million metric tons in 2024. Some Asian companies, including CPC, have already bought stakes in various U.S. LNG plants. Ownership in gas producing assets can be a way for them to secure supply of the fuel to these plants. In March, the Taiwanese company signed an agreement with Alaska Gasline Development Corp to buy LNG and invest in the Alaska LNG project which will transport gas south from Alaska's remote north via pipeline, to be shipped as LNG to Taiwan, Japan and South Korea. Taiwan's President Lai Ching-te said this would ensure the island's energy security. CPC has also expressed interest in acquiring parts of private equity-backed Aethon Energy Management's Haynesville assets, one of the sources said. Aethon is currently in talks to sell the entire company to Japanese conglomerate Mitsubishi Corp, although a deal is not guaranteed, sources said. Aethon declined to comment. The Haynesville produces around 15.4 billion cubic feet per day (bcfd), according to the latest data from the U.S. Energy Information Administration, making it the third-largest gas producing region in the country, and an attractive option to foreign buyers and investment firms. The Appalachian Basin, meanwhile, is the largest gas-producing region in the U.S., with output of 36.4 bcfd, according to the EIA.
Reuters
13 hours ago
- Reuters
US oil/gas rig count down for 11th week to lowest since 2021, Baker Hughes says
July 11 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for an 11th week in a row for the first time since July 2020 when the COVID-19 pandemic cut demand for the fuel, energy services firm Baker Hughes (BKR.O), opens new tab said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, fell by two to 537 in the week to July 11, the lowest since October 2021. , , Baker Hughes said this week's decline puts the total rig count down 47 rigs, or 8% below this time last year. Baker Hughes said oil rigs fell by one to 424 this week, their lowest since September 2021, while gas rigs were unchanged at 108. In Texas, the biggest oil and gas producing state, the rig count fell by one to 255, the lowest since November 2021. But in the Haynesville shale in Arkansas, Louisiana and Texas, one of the nation's biggest and fastest growing gas producing regions, the rig count rose by one to 38, the most since March 2024. The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. The independent exploration and production (E&P) companies tracked by U.S. financial services firm TD Cowen said they planned to cut capital expenditures by around 3% in 2025 from levels seen in 2024. That compares with roughly flat year-over-year spending in 2024, and increases of 27% in 2023, 40% in 2022 and 4% in 2021. Even though analysts forecast U.S. spot crude prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025. On the gas side, the EIA projected a 68% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020. The EIA projected gas output would rise to 105.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023.
