Novak steps down as Russian energy minister

Market: Coal, Condensate, Crude oil, Electricity, LPG, Natural gas, Oil products
09/11/20

Russia's long-serving energy minister Alexander Novak, who oversaw the country's participation in the Opec+ agreement, is stepping down after more than eight years in the post.

Prime minister Mikhail Mishustin has proposed that Novak move into a deputy prime minister role, and he has recommended Nikolai Shulginov, the chairman of state-controlled hydro-power company RusHydro, as Novak's replacement.

Novak's departure from the energy ministry is part of a wider reshuffle in which natural resources minister Dmitry Kobylkin and transport minister Yevgeny Ditrikh will also step down.

Novak took up the energy minister's post in May 2012. He has played a key role in managing Russia's co-operation in the Opec+ production restraint agreements. Before taking the energy minister job, Novak worked in Russia's finance ministry.

By Anastasia Krasinskaya

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

25/04/25

Border checks boost legal fuel sales in Mexico

Mexico City, 25 April (Argus) — Mexico's crackdown on fuel smuggling is disrupting illicit supply chains and boosting sales for compliant players operating through regulated imports, sources say. Fuel imports from Texas by tank truck were halted for at least three weeks as part of Mexico's broader push to curb smuggling at the US border. Authorities increased permit checks and cargo inspections in April, although cross-border flows have gradually resumed this week, according to one source familiar with the matter. Rail flows were largely unaffected, as most of the smuggled fuel crosses via tank truck. As a result, some retail fuel stations in northern Mexico that sold gasoline and diesel below market prices faced shortages in late April, operating intermittently or closing for some days, one fuel retailer told Argus . While compliant retailers saw higher sales, major importers and marketers, including state-owned Pemex, also benefited from the border closure. Executives from a private company with a valid import permit told Argus sales rose by 15-20pc on a yearly basis in some regions. The US-Mexico border remains an active corridor. Several Texas cities host terminals dedicated to fuel exports, with suppliers and truckers among the key players. But only a limited number of private-sector companies in Mexico hold valid import permits, meaning many tank truck shipments enter irregularly or avoid paying proper taxes. Collateral damage Mexico's tax authority on 9 April suspended US independent refiner Valero's fuel import permits as part of the efforts to fight fuel smuggling. The suspension was lifted on 23 April, but the two-week stop disrupted supply in several regions. Although Valero operates about 290 retail fuel stations of the 13,800 across Mexico, the company sells gasoline and diesel to other retailers and fuel marketers. Valero's fuel sales account for about 10pc of Mexico's gasoline and diesel demand, according to the company. Mexico has long battled fuel theft, tax evasion and contraband. Illicit fuel is estimated to meet up to 30pc of Mexico's 1.2mn b/d gasoline and diesel demand, according to the finance ministry. Much of it enters by mislabeling refined products at the border as petrochemicals, additives or biofuels — which are not subject to the excise tax of Ps7.0946/l ($1.34/USG) for diesel and Ps6.4555/l for regular gasoline. By Cas Biekmann and Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Phillips 66 ups crude switching at Texas refinery

25/04/25

News

25/04/25

Phillips 66 ups crude switching at Texas refinery

Houston, 25 April (Argus) — US independent refiner Phillips 66 completed a project in the first quarter that allows it to adjust more of the crude slate at its 265,000 b/d Sweeny refinery in Old Ocean, Texas. The project will allow the company to switch about 40,000 b/d between heavy and light crude, Phillips 66 said today in an earnings release. The flexibility project was completed during a first quarter turnaround. Several US refiners are exploring ways to run more lighter crude grades in the wake of new US tariffs and other actions that may limit the supply of heavier and medium grade crudes imported from trading partners. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Kurdish gas plans may boost Iraqi oil exports

25/04/25

News

25/04/25

Kurdish gas plans may boost Iraqi oil exports

Dubai, 25 April (Argus) — Plans for a significant increase in natural gas production in Iraq's semi-autonomous Kurdistan region over the next 18 months could not only help address the country's chronic power shortages but also enable Baghdad to boost its oil exports. The Pearl Petroleum consortium — which comprises Abu Dhabi-listed Dana Gas, Sharjah-based Crescent Petroleum, Austria's OMV, Hungary's Mol, and Germany's RWE — aims to increase gas production capacity in Kurdistan to 825mn ft³/d by the end of next year, representing a more than 50pc increase from current output. The plan involves expanding the capacity of the region's sole gas-producing field, Khor Mor, to 750mn ft³/d by the first quarter of 2026, and adding up to 75mn ft³/d from the Chemchemal field by the end of 2026. According to a source at Pearl, the development of Chemchemal is a key priority for the companies, as it is believed to have reservoirs comparable to those of Khor Mor. Under a 2019 agreement, the additional gas from the expansion project will be sold to the Kurdistan Regional Government (KRG) for a 20-year term, which should help eliminate the region's frequent power outages, particularly during peak summer months when demand for air conditioning is high. The Kurdistan region will also be well-positioned to supply any excess gas to the rest of Iraq. The federal government in Baghdad had previously approved a plan to import approximately 100mn ft³/d of gas from Khor Mor to power a 620MW plant in Kirkuk province, but no formal agreement has been signed to date. "The federal ministry of electricity and Crescent Petroleum have already met to finalise the agreement, which is ready for signature and awaiting implementation," the Pearl source said. "The infrastructure needed to support the sale of this quantity of gas is also in place." The plan has faced delays partly because of Iran's long-standing influence over Iraq and the potential impact such an agreement with the Kurdistan region could have on Baghdad's reliance on Iranian gas and power. However, the revival of US president Donald Trump's ‘maximum pressure' campaign against Tehran is forcing Baghdad to get serious about seeking alternative energy sources, with the Kurdistan region emerging as a viable option. Crude Export Boost Formalising the deal to import Kurdish gas would allow Baghdad to allocate more oil for export, as it would reduce the need to burn crude for power generation. Argus estimates that Iraq typically burns between 50,000 b/d and 100,000 b/d of crude in its power stations, depending on the season, and has recently increased imports of gasoil for power generation. By the time Iraqi Kurdistan has fully ramped up its additional gas capacity, Iraq's Opec+ crude output target will be 200,000 b/d higher than it is today, based on the group's latest production plans. By Bachar Halabi and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

B100 seen attractive shipping fuel option after MEPC 83

25/04/25

News

25/04/25

B100 seen attractive shipping fuel option after MEPC 83

Singapore, 25 April (Argus) — More buyers in the shipping sector will consider biofuel blends of up to B100 now a greenhouse gas (GHG) pricing mechanism has laid out by the International Maritime Organization (IMO), according to panellists at the Argus Biofuels & Feedstocks Asia Conference. Global biodiesel demand is likely to strengthen in the near-term following the emergence of clearer international pricing standards for GHG emissions, they said. "B100 seems to have great momentum based on the [83rd Marine Environment Protection Committee] MEPC meeting," said French certification society Bureau Veritas' VeriFuel global business development director Bill Stamatopoulos. MEPC 83 is "a clear indication that we have to work together and work fast" because there is a cost penalty for not switching away from conventional marine fuels, said Danish tanker owner Hafnia's general manager of project and fleet sustainability, Pankaj Porwal. Most maritime participants welcomed the two-tier GHG pricing framework approved by the IMO at MEPC 83 from 7-11 April, which is a key milestone as the maritime sector pushes for decarbonisation. Biofuels like B24, B30, and B100 will gain more interest because of cost-savings for buyers when switching to cleaner fuels, said Singapore bunker supplier Equatorial Marine Fuel's (EMF) chief operating officer Choong Sheen Mao. B24 is 24pc of used cooking oil methyl ester (Ucome) blended with 76pc of conventional fuel, such as very-low sulphur fuel oil (VLSFO), while B100 is pure biodiesel not blended with fossil fuels. Panellists said bunkering B100 would provide significant advantages for ships with voyages in EU waters, where firms can "pool" multiple vessels within the EU Emissions Trading System (ETS) and FuelEU Maritime Regulation to balance compliance surpluses and deficits. But vessel shipowners would need to be "absolutely sure" of the amount of fuel required for the voyage, to avoid any unknown consequences if excess biofuels were mixed with other fuel types, said Hafnia's Porwal. The GHG pricing mechanism gives bunker buyers a "strong indication" of the cost of not switching to alternative marine fuels and this will drive biodiesel demand as buyers realise "they need to get involved in some way", said EMF's Choong, adding that suppliers can consider selling biodiesel if it is "commercially viable". There will be a minimum cost of compliance in adhering with IMO decarbonisation targets, but smaller shipowners should start running trials and "building quality control systems for your marine fuels so you're prepared to take on greener fuels", said International Bunker Industry Association (IBIA) Asia chair Rahul Choudhuri. "At the moment hedging is very much focused on VLSFO and gasoil… but as exposures change and regulations change, we'll see more instruments being used to counter [trading risks]," said shipbroker Braemar oil derivatives broker Rebecca Reed-Sperrin. As the decarbonisation mandates grow, "hopefully liquidity increases tremendously" for marine biofuels, she said. Challenges Panellists cited several barriers in the widespread uptake of biofuels in the shipping sector, such as availability of Ucome feedstock, controversies regarding feedstock origin, and limited biodiesel shelf life compared to conventional marine fuels. Fuel pricing and costs associated with bunkering biofuels surfaced as key concerns. International regulations are complex and buyers have to assess "what is [the] real price" taking into account IMO regulations, said Bureau Veritas' Stamatopoulos. Charterers and tanker operators face difficulties in securing a price without hidden costs involved, Italian ship owner Fratelli Cosulich biofuel trading advisor Sebastiaan Bruins. B100 is available but suppliers are not actively selling it as buying interest has been limited, Bruins said. China will be a "dominant force" for B100 supplies because of a larger Ucome volume, and market developments would depend on how China portions domestic and export volumes of Uco, said Choong. Long-term uptake agreements for biofuel with major shipowners would be important in scaling up biofuel bunker supplies, said Indonesian state-owned refiner PT Pertamina's marine fuels trading manager Justin Tan. Bunker buyers need to signal their interest regarding biofuels "so we know where to start too", he said. The maritime sector is still looking at a multifuel future since the supply of "Ucome alone cannot meet shipping's needs", said Danish tanker owner Maersk senior green fuel originator Felicia Ng. By Cassia Teo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Southwest Airlines shortens outlook to 2Q only

24/04/25

News

24/04/25

Southwest Airlines shortens outlook to 2Q only

Houston, 24 April (Argus) — Southwest Airlines withdrew its full-year 2025 and 2026 financial forecasts due to economic uncertainty caused by US tariffs. The US-based passenger airline limited its outlook to just the second quarter 2025 during its first quarter earnings release on Thursday, saying a projected economic slow-down would pressure unit revenue to be flat and possibly fall by 4pc compared to the second quarter 2024. In the second quarter available seat miles (ASM) — a measure of capacity — are expected to rise by 1-2pc compared to the same quarter in 2024. First quarter ASMs were down by 1.9pc to 41.3bn from the same three-months in 2024, which was in-line with their expectations. Southwest's first quarter load factor, or the percentage of seats filled, dropped by 4.4pc from the prior year to 73.9pc. First quarter total operating expenses, including jet fuel, dropped by 2.2pc from the previous year to $6.65bn. Southwest paid $2.49¢/USG for jet fuel in the first quarter, a decrease of 16pc from 2024. Fuel efficiency improved in the first quaer due more fuel-efficient aircraft, with 500mn USG consumed, down by 4.6pc compared to the same quarter in 2024. Expected lower jet fuel prices should help ease operating cost in the upcoming months. Southwest expects to pay $2.20¢/USG to $2.3¢/USG for jet fuel in the next quarter. Southwest narrowed its first quarter 2025 net loss to $149mn from $231mn a year earlier. By Carrie Carter Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more