Australian battery gold rush 

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Power Up

 

A Reuters Open Interest newsletter

 

By Ron Bousso, ROI Energy Columnist

 
 

Data refreshes every time you open this email. For more energy news, click here. Please send any feedback to powerup@thomsonreuters.com.

 

As the war in Ukraine rages over three and a half years after Russia invaded its neighbour, Western governments continue to debate how to increase economic pressure on Moscow. The Group of Seven nations' finance ministers said on Wednesday they would take joint steps to target countries that continue to increase purchases of Russian oil and those that facilitate the circumvention of sanctions. 

The G7 finance ministers also said they agreed on the importance of trade measures, including tariffs and import and export bans, in efforts to cut off Russian revenues. Washington has called on its allies to impose tariffs on purchasers of Russian oil like India and China. While U.S. President Donald Trump has refrained from imposing additional tariffs on Chinese imports over Beijing's purchases of Russian oil, his administration has put extra tariffs on imports from India. 

The European Union is currently also debating how and when to halt its significant energy imports from Russia. One potentially easier option would be closing loopholes that currently facilitate substantial imports of niche fuels from Moscow, I wrote in a column on this today. More on that below.

A few more headlines this week:

  • New BP chair urges faster oil and gas strategy shift, asset sales
  • Australia's renewables push powers 'gold rush' of bets on big batteries
  • Russia to increase LNG exports to China from Arctic and Sakhalin, minister says

I love to get your thoughts and comments, so don’t hesitate to contact me at ron.bousso@thomsonreuters.com or follow me on LinkedIn.

 
 

Top energy headlines

  • Occidental offloads chemicals unit in $9.7 billion deal with Berkshire to cut debt
  • Fuel oil demand defies forecasts due to Red Sea disruptions and shadow fleet expansion
  • Oil prices sink to 4-month lows on oversupply concerns
  • Solar-powered farming is digging Pakistan into a water catastrophe
  • Mozambique says conditions met for TotalEnergies to resume work on LNG project
 
 

Loopholes

In August, the EU was the fourth-largest buyer of Russian fossil fuels, accounting for around $1.4 billion of Moscow’s export revenue, according to the Centre for Research on Energy and Clean Air. Liquefied natural gas and pipeline gas made up two-thirds of these imports, followed by crude oil at 32%. The remaining 2% came from niche products exempt from sanctions. The EU aggressively reduced Russian oil imports, imposing a ban, with some exceptions, in 2023. Russia's share in EU oil imports has dropped from 29% in early 2021 to 2% in the second quarter of 2025, according to official data. The bulk of remaining oil imports go to landlocked Hungary and Slovakia, which were able to negotiate carve-outs, arguing that logistical constraints made it too complex and expensive for them to find alternative supply routes. 

While the EU hasn’t formally banned Russian gas imports, Europe has reduced Russian pipeline gas purchases from 48% of total imports in 2021 to 12% this year, with Hungary and Slovakia again the major buyers, along with Austria. However, pipeline gas has been replaced by LNG. And the bloc’s Russian imports of the super-chilled fuel actually rose to 11 billion cubic meters in the first half of 2025, up from 9.5 bcm in the same period in 2019, according to research centre Bruegel. 

Given this backdrop, how might the EU respond to the U.S. president’s call for the bloc to wean itself off Russian energy more quickly? An easy win for the EU would be bringing forward the ban on LNG imports by one year, something that is already included in the 19th package of sanctions against Russia proposed by the European Commission in September. The global LNG market is expected to be well supplied for years, thanks to production growth in the U.S. and Qatar, meaning ending Russian LNG imports likely would not significantly raise energy costs for Europe. 

However, the timeline for phasing out Russian pipeline oil and gas imports – which remains unchanged in Europe’s latest proposed sanctions package – is far more politically and technically complex, given the objections of Hungary and Slovakia. 

Another, less politically fraught option would be closing loopholes that have allowed the EU to continue importing significant volumes of specialized oil products. Tankers deliver around 20,000 barrels per day of gas condensate from Russia’s Yamal LNG plant in the Arctic to the Dutch port of Rotterdam. Condensate is typically used as feedstock for gasoline and jet fuel. In December 2022, the EU excluded gas condensate imports from its Russian oil ban, arguing that the byproduct of non-sanctioned LNG facilities should not be restricted. 

This wasn’t the only niche carve-out. While the EU banned Russian liquefied petroleum gas imports in December 2024 - a fuel mainly used for heating and transportation – it allowed Poland to continue importing butane with over 95% purity from Russia. 

Read the full column
 

Essential reading

Definitions vary as to which minerals and metals are genuinely critical, but one thing is certain: The prices of many of them are currently weak and not reflecting their supposed importance to the global energy transition, according ROI Asia Commodities Columnist Clyde Russell.

ROI Energy Transition Columnist Gavin Maguire wrote that the Trump administration's vows to provide federal land leases and power sector loans may ignite a brief and spotty revival in coal's fortunes. But other factors will determine whether a more durable recovery in the U.S. coal sector can take root.

Fuel oil used in ships and power plants is seeing unexpected demand, with efforts to curb its use more than offset by an expanding shadow fleet of oil tankers serving Russia and others, and longer shipping routes as vessels avoid the Red Sea.

 

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