TOKYO: Japanese industry minister Koichi Hagiuda told Kuwait’s oil minister Muhammad Al-Faris at an online meeting Thursday of a plan to help Kuwait step up crude oil production as Russia’s invasion of Ukraine has rocked the market.
Nippon Export and Investment Insurance, or NEXI, which the Japanese government wholly owns, will insure a syndicated loan to be extended to Kuwait Petroleum Corp.
According to the industry ministry, the syndicated loan is expected to reach 1 billion dollars, or some 120 billion yen. The loan will be decided soon by Western financial institutions as well as three Japanese megabanks–MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank.
In the online meeting, Hagiuda said he is concerned about high crude oil prices brought about by the Ukrainian crisis, stressing that he hopes that the syndicated loan will enable Kuwait to increase its crude oil output capacity.
In response, the Kuwaiti minister, who concurrently serves as deputy prime minister, suggested that Kuwait will have discussions with other oil-producing nations toward stabilizing the market.
After the meeting, the ministers signed a memorandum of understanding for cooperation between NEXI and Kuwait Petroleum in the fields of energy and decarbonization.
JIJI Press
Japan to help Kuwait step up oil production
https://arab.news/8eyde
Japan to help Kuwait step up oil production
- NEXI will insure a syndicated loan to be extended to Kuwait Petroleum Corp.
- The syndicated loan is expected to reach 1 billion dollars
European gas prices soar almost 50% as Iran conflict halts Qatar LNG output
- Analysts warn prolonged disruption could push prices higher
- Some shipments of oil, LNG through Strait of Hormuz suspended
- Benchmark Asian LNG price up almost 39 percent
LONDON: Benchmark Dutch and British wholesale gas prices soared by almost 50 percent on Monday, after major liquefied natural gas exporter Qatar Energy said it had halted production due to attacks in the Middle East.
Qatar, soon to cement its role as the world’s second largest LNG exporter after the US, plays a major role in balancing both Asian and European markets’ demand of LNG.
Most tanker owners, oil majors and trading houses have suspended crude oil, fuel and liquefied natural gas shipments via the Strait of Hormuz, trade sources said, after Tehran warned ships against moving through the waterway.
Europe has increased imports of LNG over the past few years as it seeks to phase out Russian gas following Russia’s invasion of Ukraine.
Around 20 percent of the world’s LNG transits through the Strait of Hormuz and a prolonged suspension or full closure would increase global competition for other sources of the gas, driving up prices internationally.
“Disruptions to LNG flows would reignite competition between Asia and Europe for available cargoes,” said Massimo Di Odoardo, vice president, gas and LNG research at Wood Mackenzie.
The Dutch front-month contract at the TTF hub, seen as a benchmark price for Europe, was up €14.56 at €46.52 per megawatt hour, or around $15.92/mmBtu, by 12:55 p.m. GMT, ICE data showed.
Prices were already some 25 percent higher earlier in the day but extended gains after QatarEnergy’s production halt.
Benchmark Asian LNG prices jumped almost 39 percent on Monday morning with the S&P Global Energy Japan-Korea-Marker, widely used as an Asian LNG benchmark, at $15.068 per million British thermal units, Platts data showed.
“If LNG/gas markets start to price in an extended period of losses to Qatari LNG supply, TTF could potentially spike to 80-100 euros/MWh ($28-35/mmBtu),” Warren Patterson, head of commodities strategy at ING, said. The British April contract was up 40.83 pence at 119.40 pence per therm, ICE data showed.
Europe is also relying on LNG imports to help fill its gas storage sites which have been depleted over the winter and are currently around 30 percent full, the latest data from Gas Infrastructure Europe showed. In the European carbon market, the benchmark contract was down €1.10 at €69.17 a tonne
