East Asia

Sources from top Russian companies, including the vast Russian nuclear corporation Rosatom, and giant gas concern Gazprom, are looking at selling "panda bonds" denominated in yuan, according to company sources on Monday. Western capital markets, however, remain closed to Russia. Since Moscow's invasion of Ukraine in 2022, Russian companies are no longer able to access the capital markets of the West. The Financial Times reported Monday that China is preparing to reopen the domestic bond market for major Russian energy companies, as Xi Jinping & Vladimir Putin continue to deepen their partnership "without limits". Putin, who visited China this week,...

The Chinese rating agency CSCI Pengyuan gave a triple-A rating to the Russian oil giant Gazprom, which was blacklisted by the United States. Media reports said Beijing is preparing to reopen their domestic bond market for major Russian energy companies. "Gazprom’s rating reflects both its strategic importance and its legal ties with the Russian government," CSCI Pengyuan stated. It added that the firm's "strong business profile" as a global leader in the oil and gas industry, and its significant position on the Russian energy market, underpins its credit profile. The "AAA", with a stable outlook, rating came only days after...

The Asian spot LNG prices remained stable this week, as regional demand was muted. Meanwhile, a gas supply agreement between Russia and China could curb future LNG shipments by the largest Asian importer. Average LNG price for delivery in October to Northeast Asia Industry sources estimate that the price per million British Thermal Units (mmBtu) was $11,30, a slight increase from $11,15/mmBtu in the previous week. Masanori Odaka of Rystad Energy said that east Asian importers showed a muted interest in purchasing cargoes, although some Japanese and Korean firms offered to deliver them by the fourth quarter. Current prices are...

LSEG released preliminary data on Monday showing that Russia's exports in January-August of liquefied gas decreased by 6.3% compared to a year ago, to 19.3 millions metric tons. This was due to a steep decline caused by the Yamal LNG Project. U.S. sanctions against Ukraine have also slowed down LNG exports, particularly from Russia. The new Arctic LNG 2 facility has been effectively frozen due to the difficulties Moscow faces in finding buyers. Ship-tracking data provided by Kpler and LSEG revealed that China received its first LNG shipment from the sanctioned Russian Project last week. This was just days before...

Ship-tracking data provided by Kpler and LSEG revealed that China received its first liquefied gas cargo this week from a Russian sanctioned project. This was just days before the meeting between Russian President Vladimir Putin and Chinese President Xi Jinping. Putin will be one of more than 20 world leaders including Indian Prime Minister Narendra modi who will attend on Sunday and Monday the Shanghai Cooperation Organisation Summit in China's northern city port Tianjin, where he expects to meet Xi for a revival of trade between the two countries. After meeting with U.S. president Donald Trump earlier this month in...

Gas traders in Europe have been racing against time to fill up depleted storage facilities before winter. As demand on Asian markets is waning, Europe will see a spike in liquefied gas imports. This will give traders and governments more breathing space. It was a niche concern to ensure that European gas supplies are at maximum levels before the cold weather arrives. But it has become a political necessity after Russia's invasion of Ukraine 2022, which led to a sharp reduction in pipeline gas imports. The EU implemented rules in that year that have since been relaxed, requiring that storage...

Gas traders in Europe have been racing against time to fill up depleted storage facilities before winter. As demand on Asian markets is waning, Europe will see a spike in liquefied gas imports. This will give traders and governments more breathing space. It was once considered a niche issue to ensure that European gas supplies are at maximum levels before the cold weather arrives. But it has now become a political necessity after Russia's invasion of Ukraine 2022 led to a sharp reduction in pipeline gas imports. The EU implemented rules in that year that have since been relaxed, requiring...

The trade wars of U.S. president Donald Trump are pushing the global plastics sector toward a painful, but necessary restructuring in order to deal with the acute overcapacity which has caused the industry's profit to be in a long-term slump. In the next few decades, demand for plastics will increase dramatically as middle class populations grow in major economies. This is especially true in Asia. This will increase oil demand. The consumption of petrochemical products - such as naphtha and propane - was responsible for 95% percent of the total growth in oil demand between 2019 and 2024. According to...

Three people familiar with the discussions said on Monday that Tokyo Gas and Venture Global are in talks to buy 1 million metric tons of liquefied gas per year from the company's CP2 Export Facility. Venture Global, the U.S.'s second-largest LNG exporter, has been the primary source for the growing LNG export capability of the U.S. since 2023. This helps the U.S. to remain the largest exporter in the world of supercooled gas. Tokyo Gas has begun negotiations with Venture Global to purchase LNG on a long-term contract. Two of the three sources confirmed this. Three people have confirmed that...

The Asian spot LNG prices fell slightly this week due to high storage inventories and continued low demand, as well as the lack of progress in peace talks with Ukraine. Average LNG price for delivery to North-East Asia in October Industry sources estimate that the price per million British Thermal Units (mmBtu) was $11.40, down from $11.65/mmBtu a week ago. Go Katayama is an LNG and gas analyst with Kpler. He said, "We expect further downward pressure on Asian LNG prices as storage levels continue to be elevated while the supply situation continues to firm up." The demand for heating...

Three sources familiar with the matter said that the United States had discussed using Russian nuclear-powered vessels to support gas and LNG development projects in Alaska, as a possible deal to be aimed for when Donald Trump meets Vladimir Putin this Friday. Trump arrived in Alaska Friday to attend what he described as a "high-stakes" meeting with Putin, the Russian president. The two men were expected to discuss a ceasefire agreement for Ukraine and an end to the deadliest conflict in Europe since World War Two. The U.S. president and the Russian president, who are meeting in the largest city...

Three sources familiar with the matter said that the United States had discussed using Russian nuclear-powered vessels to support gas and LNG development projects in Alaska, as one possible deal to be aimed for when Donald Trump meets Vladimir Putin this Friday. Trump arrived in Alaska Friday to attend what he described as a "high-stakes" meeting with Putin, the Russian president. The two men were expected to discuss a ceasefire agreement for Ukraine and an end to the deadliest conflict in Europe since World War Two. The U.S. president and the Russian president, who will meet in the largest city...

A senior executive of Malaysian state oil company Petronas stated on Wednesday that Southeast Asia was well positioned to export its biofuels into other markets, such as Europe, as the production capacity in the region exceeds demand. Ahmad Adly Alias told the APPEC Conference in Singapore that by 2030, Asia's annual sustainable aviation fuel production capacity is expected to reach 4,000,000 metric tons. He said that "this surplus positions ASEAN to be a viable net-exporter into markets such as Europe." Ahmad Adly stated that Asia's strength lies in the availability of feedstocks, increased production capacity, and an accelerating demand. He...

U.S. Federal Aviation Administration has issued a safety warning to airlines on Tuesday, citing an alarming number of incidents involving lithium batteries. The FAA has recommended that airlines implement risk mitigation strategies. This includes clear messaging about potential fire risks associated with lithium batteries carried by crew and passengers, and reviewing firefighting training and procedures. The FAA reported that 50 incidents of lithium-ion batteries causing extreme heat, smoke or fire have occurred in the U.S. this year. Some of these have caused accidents or injuries. A cell phone that was being used by a passenger on an American Airlines flight...

Two sources familiar with the matter confirmed that Japan hired Wood Mackenzie, an energy consultancy, to assess the proposed 800-mile Alaska gas pipeline project and LNG plant. This is a sign of its support for the $44billion project pushed by U.S. president Donald Trump. One of the sources said that the assessment could ease concerns of potential Japanese investors and off-takers about a project which has been stalled for decades because of cost and logistical issues. It is not clear what the scope of the Wood Mackenzie deal is, nor if any report that results from it will be public....

Two sources familiar with the matter confirmed that Japan hired Wood Mackenzie, an energy consultancy, to assess the proposed 800-mile Alaska gas pipeline project and LNG plant. This is a sign of its support for the $44billion project pushed by U.S. president Donald Trump. One of the sources said that the assessment could ease concerns of potential Japanese investors and off-takers about a project which has been stalled for decades because of cost and logistical issues. It is not clear what the scope and cost of this deal will be, nor if any report that results from it will be...

On Friday, President Vladimir Putin called on leaders of the aerospace industry to continue their efforts to develop booster engines for space launch vehicle and to build on Russia’s long-standing reputation as an innovator in space technology. Putin, who spent the last week in China, and the Russian port of Vladivostok in the far east, flew south to Samara where he met with industry experts and toured Kuznetsov Design Bureau aircraft engine manufacturing facility. According to Russian news agencies, Putin stated that Russia was a leader in the development and growth of the aerospace sector. The agencies reported that Putin...

Hitachi's energy unit announced on Thursday that it would invest $1 billion in expanding its U.S. manufacturing of power grid infrastructure, as the nation faces record electricity demands from Big Tech building AI data centers. Hitachi's announcement comes in response to a call by U.S. president Donald Trump for a dramatic increase in electricity supply, to support the rapid expansion and development of artificial intelligence. This is happening at energy-intensive data centres around the world. In a recent statement, U.S. Secretary of Energy Chris Wright stated that "if we want to win the AI Race, reindustrialize and keep the Lights...

The Russian state news agency RIA reported that Russia and China had agreed on the route of the Power of Siberia 2 pipeline and the volumes of gas to be supplied, citing Energy Ministry Sergei Tsivilev. The signed memorandum states that the pipeline will pass through Mongolia, and it is estimated to deliver 50 billion cubic meters of gas per year. A binding memorandum was signed by Russia and China during Putin's China visit. However, little is known about key details and Gazprom has said that the pricing of the project still needs to be decided. Tsivilev stated, "We need...

Two sources familiar with shipping data said that Russia would deliver oil to Brunei for the first ever via the Northern Sea Route in September. This will expand its export reach by using the strategic Arctic route. NSR shipments were limited until now to China because of its proximity to Russia’s Far East. Moscow has actively promoted the route to partners such as India and the U.S., claiming that it is cheaper and quicker than shipping crude oil through the Suez Canal. One source confirmed that the tanker Latur was currently on its way to Muara, Brunei, carrying Arctic heavy...

The Russian President Vladimir Putin stated on Wednesday that China would benefit from the new Power of Siberia 2 pipeline because it would provide gas at a competitive price, based on market formula. Gazprom announced on Tuesday that Russia and China had signed a binding agreement on the pipeline but they have not yet agreed on its price. This shows President Xi Jinping’s disdain for Western pressure to back away from a deeper partnership with Moscow. Putin said that the gas agreements would guarantee Russia's supply of more than 100 billion cubic meters (bcms) of gas to China each year...

Robert Fico, the Slovak prime minister, told Vladimir Putin that Russia wants to normalise relations with Slovakia and will increase imports of Russian natural gas via TurkStream. These comments were in direct conflict with the European Union's position, which seeks to reduce its dependence on Russian energy to punish Moscow for its invasion of Ukraine 2022. They also come at a crucial time in the efforts to end this conflict. Both Slovakia and Hungary, both EU member states, are led by populists who have maintained political ties with Russia which supplies most of their oil requirements. Fico told Putin during...

Fico announced on Monday that the Slovak prime minister Robert Fico would hold bilateral meetings this week with Russian President Vladimir Putin and Chinese President Xi Jinping at China's World War Two Anniversary celebrations in Beijing. In a Friday statement, he announced that he would meet Ukrainian President Volodymyr Zelenskiy in the eastern part of Slovakia. Fico has had tense relationships with Zelenskiy, who is the leader of a NATO member and EU country, but opposes Western sanctions against Russia. Fico has also broken ranks with European Allies. In December, he met Putin in Moscow. Fico is the only European...

According to calculations, recent Ukrainian drone attacks have shut down facilities that account for at least 17% or 1.1 millions barrels per day of Russia's oil-processing capacity. The following is a list of recent attacks on energy sites in Russia. Russia is one of the largest energy producers in the world. SYZRAN REFINERY The Ukrainian military confirmed that there was an August fire at the Syzran Oil Refinery in the Samara Region. This refinery had a processing capability of 8.5 millions tonnes per year. On August 15, the military confirmed that they had hit the Syzran refinery. According to two...