Natural Gas

The Exchange: Hydrogen wave

27 Jan 2022

Can green hydrogen decarbonise big chunks of our economies? Air Products CEO Seifi Ghasemi, who’s backing the carbon-free gas in a major Saudi Arabia project, thinks so. He tells Lisa Jucca how his $61 bln group plans to be the world’s top green hydrogen producer in five years.

Italian CEOs’ Putin call exposes European discord

26 Jan 2022

Rome is pushing the firms to scrap their virtual chat with the Russian leader. With their varying degrees of investment, trade and energy dependence, Europeans have more to lose from sanctions against Moscow than the United States. That lets Putin pit them all against each other.

Imperfect UK energy fix would still kill two birds

19 Jan 2022

Finance minister Rishi Sunak faces pressure to help consumers with high power bills without busting the budget. The least-bad plan would spread energy costs over some years. By curbing price pressures, he will also limit inflation-linked bond payouts and public sector pay hikes.

Larry Fink’s pragmatism is awkward but lucrative

18 Jan 2022

The BlackRock CEO rejected criticisms that stakeholder capitalism is “woke”, while backing natural gas. The danger for Fink is that he occupies a no man’s land position on culture war hot topics. His consolation is that $10 trln of assets suggest investors are down with that.

EU greenwash laxity could see it build back worse

13 Jan 2022

Europe’s green taxonomy is meant to direct billions of euros towards clean energy so a post-virus continent can “build back better”. Yet political fudges mean gas and nuclear count as sustainable. Worse, the tool’s new draft contains loopholes that could make it dirtier still.

Europe tightens energy noose round its own neck

17 Dec 2021

Germany will not certify Nord Stream 2 until the second half of next year. The Baltic pipeline is a hugely flawed solution to Europe’s energy security shortcomings. But the main losers from delaying its launch are likely to be its own consumers, rather than Russia or Gazprom.

Aramco pipeline is net win for BlackRock and Saudi

7 Dec 2021

The oil giant is raising $15.5 bln by selling 49% of the cash flow from its gas pipes to the fund giant and partners. Backing from blue-chip investors helps Riyadh unlock international finance. For BlackRock, a 10%-plus return compensates for supporting a major carbon emitter.

Germany enlarges green transition’s grey area

2 Dec 2021

Berlin’s new coalition wants to build new plants powered by natural gas, even as it exits coal quicker. That strays from the ideal path to net-zero CO2 emissions. But the real problem is the precedent set by rich countries caving to those promoting gas as a green “bridge fuel”.

UK energy shakeout will hit price comparison sites

26 Nov 2021

Britain is pumping $2.3 bln into collapsed gas and electricity provider Bulb, the latest in a string of bankruptcies. The clear-out should mean a healthier array of UK energy suppliers. But having fewer operators will hurt the firms that make their money from customers switching.

Belarus’ gas muscle-flexing is self-sabotage

16 Nov 2021

President Lukashenko may regret his threats to disrupt flows of Russian gas to Europe. The pipeline crossing his territory is already of waning importance. By potentially hastening the opening of Russia’s Nord Stream 2 line to Germany, he’s bringing forward its retirement.

Higher gas prices are a long-term corporate thorn

13 Oct 2021

It’s tempting to dismiss soaring values of the fossil fuel as another temporary spike. But prices will stay elevated in the short term, while supply may keep falling short of demand in the longer run too. Sensible businesses should plan for higher energy bills.

Green transition needs a wider focus than oil cuts

13 Oct 2021

Fossil fuel investment has fallen to levels that would limit global warming to 1.5 degrees Celsius, the IEA says. Yet measures to hike green energy and curb demand are just as important, and lagging. Unless states act, high energy prices risk becoming an ongoing headache.

UK power market deficiencies flash red at bad time

20 Sep 2021

Britain may spend hundreds of millions of pounds propping up its energy sector. Soaring prices are a global problem, but the UK has a more liberal market and fewer alternative power sources. It’s a poor look as Boris Johnson prepares to lecture others on cutting carbon emissions.

Guest view: Hold auditors to account on climate

20 Sep 2021

The risks of global warming are missing from companies’ financial statements. Accounting firms must share the blame alongside directors, writes Natasha Landell-Mills of Sarasin & Partners. Investors have the power to demand better, while governments can help speed the shift.

Spain’s utility goof is thin end of net-zero wedge

17 Sep 2021

Madrid’s $3 bln raid on the coffers of its power sector is a clear climate-change own-goal. The political sensitivity of energy prices means it won’t be Europe’s last. The bigger risk is Brussels watering down the carbon-trading scheme partly responsible for gas prices soaring.

High gas prices demand creative climate thinking

13 Sep 2021

The rising cost of the fossil fuel in Europe risks bigger energy bills for households. Public ire would make it harder to secure a decent deal at November’s global climate summit. Politicians can avoid that by taking steps to shield the poorest from the costs of decarbonisation.

Capital Calls: “Friends” reunion, SPACs in D.C.

24 May 2021

Concise views on global finance: AT&T's HBO Max is streaming a delayed 25-year reunion of the popular sitcom cast just as the company ditches its media assets; busybody U.S. Congress is taking a hands-off approach to blank-check firms.

Bursting gas bubble leaves hierarchy of pain

21 May 2021

Until recently, the hydrocarbon seemed a vital bridge from coal to wind and solar. Yet the International Energy Agency now says output must peak by 2025. Gas bulls from European oil majors to producer-states like Qatar all lose out. But some will suffer more than others.

Mozambique’s gas loss could be green energy’s gain

6 Apr 2021

Islamic State attacks near future LNG sites have shattered the African state’s dreams of gas production. Plants planned by Total and Exxon Mobil constitute 8% of current world demand. If they are never built, a mid-decade price spike may hasten a global pivot to renewable power.

Europe’s greenwash-slayer becomes Trojan Horse

30 Mar 2021

The EU has proposed classifying natural gas as sustainable. Its taxonomy, which differentiates green assets from the rest, is likely to be watered down further. Such an imperfect guide risks leading investors astray and delaying progress towards decarbonising the economy.