Today’s ESG Updates
- Israel Resumes Gas Exports Amid Conflict: Egypt faces shortages as Israel limits flows to domestic use.
- Russia Calls for Oil Market Coordination: Dmitriev suggests joint action with the U.S. and Saudi Arabia to ease price volatility.
- UK Issues New Emissions Rules: Projects must now assess downstream emissions before approval.
- Greenland Backs EU Mining Project: A 30-year permit advances critical mineral supply for Europe.
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Israel’s gas exports resume amid conflict, while Egypt awaits
After shutting down two key offshore fields amid conflicts, Israel has recently resumed limited natural gas exports from surplus suppliers, ensuring that the exports take place only after domestic needs have been met. Following regional military escalation, only the Tamar field remains operational and is supplying mainly domestic demand. Exports will only fully resume once military authorities deem it safe. Otherwise, most of the limited gas exports are going to Jordan, with Egypt receiving small volumes. Since a domestic production decline in 2022, Egypt has increasingly relied on Israeli gas and is now scrambling to compensate for the supply gap. Israeli gas generally accounts for 60% of Egypt’s total gas imports. While Egypt’s fuel oil use in power plants has surged, they have also signed deals to import more than $8B worth of liquefied natural gas amidst preparations for additional floating regasification units. Companies can stay updated on the latest industry developments using ESG solutions.
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Further reading: Israel restarts limited gas exports amid ongoing conflict, Egypt still waiting
Russia, the U.S. and Saudi Arabia may come together to stabilise oil markets
Russia’s investment envoy, Kirill Dmitriev, suggests that joint action with the U.S. and Saudi Arabia may be required to stabilise oil markets following a surge in oil prices after military conflicts between Israel and Iran. He references a similar joint action that successfully strengthened markets in 2020 when oil prices dropped during the COVID-19 pandemic. Dmitriev states that the dynamics of the events in the Middle East will determine the trajectory of oil price rises. He also references EU considerations on tightening sanctions against Moscow, stating that oil price rises will greatly reduce the possibility of further restrictions on Russia’s energy sector.
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Further reading: Russia’s Dmitriev says Russia, US and Saudi Arabia could act jointly to stabilise oil markets
UK government releases new emissions guidance for oil and gas projects
The UK government has recently published guidance on its considerations for new applications for oil and gas projects. Operators are now required to draw up new environmental impact assessments that address the emissions released from burning oil and gas, on top of the emissions from production. The publication of these new guidelines means that offshore developers can submit their applications for consent to extract oil and gas in already-licensed fields, whereby the UK Energy Secretary and the regulator will come to a decision after considering downstream emissions.
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Further Reading: New emissions guidance for oil and gas projects
Greenland grants mining permission to EU-backed critical metals project
Greenland has handed over a 30-year permit to an EU-backed project which targets the mining of a critical metal, molybdenum. Deemed as a critical mineral by both the EU and the U.S., molybdenum is a metal primarily used to strengthen steel and improve its heat and corrosion resistance, which is key for aerospace, energy, and defence. The permit was granted to Greenland Resources, a company that is backed by the European Raw Material Alliance and holds the license for the Malmbjerg project. The company states that the open pit Malmbjerg mine can produce an average of 32.8M pounds of concentrated molybdenum per year, potentially supplying approximately 25% of Europe’s molybdenum use. Last year, China accounted for approximately 40% of global molybdenum production and has imposed export controls over the metal in response to Trump’s tariffs.
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Further reading: Greenland Gives EU-Backed Critical Metals Project Permit to Mine
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Mufid Majnun
