Investors are rapidly shifting their view of clean energy from a niche ESG allocation to a core economic strategy, as the rise of artificial intelligence and data centre expansion reshapes global power needs. ESG lost its shine after too many companies “green washed” their businesses to attract socially and environmentally conscious investment money in the shape of the so-called green bonds. It was more or of a fad than a thing, but interest in climate compliant investments has resurged as the demand for power surges on the back of the AI revolution and makes green energy a mainstream investment. Despite political setbacks in the US and Europe, capital has flowed into green assets at record levels in 2025, with global green bond and loan issuance reaching $947bn so far this year, Bloomberg reported on December 24. “Green investments are increasingly becoming viewed as core infrastructure and industrial plays, not just niche ESG trades,” Melissa Cheok, associate director for ESG investment research at Sustainable Fitch, told the newswire. “Capital is likely flowing toward areas with clear revenue visibility, policy backing and structural demand such as grid upgrades and renewables tied to electrification.” Driving the shift is a nearly 4% rise in global electricity demand, led by AI computing, cooling systems and industrial electrification. Investors are responding to the structural nature of that growth, betting on energy infrastructure as a long-term earnings driver rather than a values-based allocation. The switch has been helped by the collapse in the price of producing green energy. The cost of generating solar and wind power has tumbled to become the cheapest source of power on the planet. That has also changed the attitudes of governments, especially in emerging markets, which have moved renewable energy strategies from the periphery of their power strategies to the centre. Previously, emerging markets like India, Uzbekistan, Vietnam, and South Africa, adopted green energy projects at the coaxing of their development bank partners, but once the financials became available, they quickly expanded those programmes. The biggest additions of renewable generating capacity in 2025 were made in Emerging markets in 2025, according to the International Energy Agency (IEA) and BloombergNEF. India, for instance, surpassed 175 GW of renewable capacity in 2024 and has one of the world’s fastest-growing clean power sectors China has become the Global green energy champion and is still the world’s largest single market for renewables. India is expected to add 30–35 GW of new capacity in 2025, with heavy investment in solar and wind. And Latin America, especially Brazil and Chile and Southeast Asia, have also seen record-setting tenders and installations. Uzbekistan has overcome its initial reluctance and become the Green energy champion of Central Asia. These trends are changing the nature of investors in the more developed markets. Green equity markets have outperformed broader benchmarks for the first time in four years. Clean-energy indices compiled by S&P Dow Jones and WilderShares have risen 45% and 60% respectively in 2025, outpacing the S&P 500, though both remain below their 2021 peaks. In fixed income, the so-called “greenium” — lower yields on green bonds compared to conventional equivalents — has become especially pronounced in Asia-Pacific, where issuers in November enjoyed discounts of more than 14 basis points, according to BloombergNEF. China led with a record $138bn in green bond issuance this year, and debuted its first sovereign green bond in London. Asia-Pacific corporations and government-linked entities raised $261bn in green debt — a 20% increase year-on-year — backed by China and India’s state-led renewables push. Globally, the market for outstanding green bonds has grown at a compound rate of 30% over the past five years and now accounts for 4.3% of all fixed income instruments, according to LSE Group research. BNP Paribas and Crédit Agricole were the top underwriters of green bonds in 2025. Crystal Geng, ESG research lead for Asia at BNP Paribas Asset Management, said easing interest rates and refinancing needs could lift global green bond sales to as much as $1.6tn in 2026. The laggard in these changes is the US. President Donald Trump has rolled back clean energy subsidies and climate legislation in the US, while European governments have eased environmental rules in response to competitiveness concerns. Yet the underlying economic momentum behind electrification and infrastructure investment appears to be outweighing policy risks. “Green energy is no longer just about sustainability,” said Cheok. “It’s becoming fundamental to the global industrial transition.”

North Macedonia declares electricity supply crisis amid fuel oil shortages linked to Greek protests North Macedonia’s government declared a crisis in electricity supply citing disruptions in fuel oil deliveries needed for power generation, 360stepeni reported on December 23. The decision, adopted at the government’s crisis coordination body's proposal, will apply nationwide for a period of seven days from the date of entry into force. The move follows mounting difficulties in procuring fuel oil, a key input for domestic electricity production. Under the decision, mandatory state reserves of oil derivatives will be released to the state-owned power utility AD ESM without compensation. ESM is required to submit regular reports to the government and the Ministry of Finance on fuel oil consumption. As reported earlier, ESM last week formally asked the government to declare a crisis in the electricity market, warning that ongoing blockades by Greek farmers were obstructing fuel deliveries. The company requested access to state reserves to ensure uninterrupted electricity generation, Energy, Mining and Mineral Resources Minister Sanja Božinovska said the state has sufficient fuel oil reserves to supply ESM. She noted that if protests in Greece continue and fuel oil cannot be procured for more than 30 days, state reserves would be used to maintain production. The disruptions stem from renewed protests by Greek farmers, who in recent weeks have staged road blockades across northern Greece. The farmers are demanding higher subsidies, tax relief and compensation for rising production costs, particularly for fuel and fertilisers. Similar protests in previous years have frequently affected cross-border transport, including energy and goods shipments to neighbouring countries. North Macedonia relies partly on imported fuel for electricity generation, making it vulnerable to regional transport disruptions. The government said it will continue to monitor the situation and take further measures if necessary to safeguard energy security.

Trade between China and Iran fell 24% to $9.09bn in the first 11 months of 2025 from $12bn over the same period in 2024, with Chinese exports to Iran declining 22% to $6.23bn whilst imports dropped 27% to $2.86bn, China's General Administration of Customs reported on December 24. The decline comes as part of weaker Chinese demand and ongoing financial frictions between the two countries, leaving a trade surplus of $3.38bn in Beijing's favour. Official figures understate energy flows as crude oil, the backbone of Iranian exports, is often recorded under third-country blends or omitted entirely. November brought a modest rebound in Iranian shipments, with China importing $760mn, up from $735mn a year earlier. Chinese exports to Iran fell sharply, plunging 57% to $170mn from $395mn in November 2024. The rebound in imports likely indicates delayed deliveries or a temporary surge in condensates and heavy crude rather than a sustained trend. GACC data show Beijing's exports to Iran predominantly comprise industrial machinery, electrical equipment, automotive parts, chemicals and durable consumer goods, though official monthly bulletins do not provide full commodity-level breakdowns. Recorded import flows mainly include petrochemicals, minerals and non-crude hydrocarbon derivatives. Chinese state media and Ministry of Commerce releases stress that despite lower formal trade volumes, "energy trade remains substantial" and strategic cooperation with Iran continues. Falling exports relate to banking constraints, weaker Iranian purchasing power and heightened caution over secondary US sanctions, whilst import reductions partly stem from shifts toward discounted Russian crude and other non-Iranian suppliers.

China has emerged as the world’s leading builder of nuclear power plants, completing new reactors in as little as five years, while the United States—once the global leader in nuclear technology—has seen its reactor development efforts stall amid rising costs, regulatory uncertainty, and political hesitation. According to the World Nuclear Association, China currently has 26 reactors under construction, more than any other country, and continues to invest heavily in nuclear energy as a core pillar of its long-term energy strategy. In contrast, the United States is not building any new commercial reactors, following the cancellation or indefinite delay of multiple high-profile projects. Nuclear power is the cheapest and most efficient way to generate reliable electricity yet over the past decades, the US has become worse at building reactors, while China has become better, say experts. The divergence in timelines is stark: China typically completes a nuclear reactor in five to six years, while in the US projects routinely take ten years or more, often running far over budget. The most recent example, the Vogtle expansion in Georgia, was completed in 2023—seven years behind schedule and more than $17bn over budget. The US Department of Energy had supported efforts to revive domestic nuclear construction during the Trump administration, including a small modular reactor (SMR) demonstration project near Idaho Falls. The reactors were intended to operate as a cooperative on federal property, using advanced passive safety features. But the project was cancelled in late stages, after participating states withdrew over cost concerns. Despite the promise of new reactor designs—many of which offer improved safety and scalability—funding gaps and political uncertainty have limited US momentum. By contrast China is emerging as the global green energy champion and has thrown itself into nuclear power station construction. Nuclear development continues to be state-driven and centrally coordinated, with the government viewing it as essential to achieving energy security, decarbonisation, and industrial competitiveness. China has also become a leading exporter of nuclear technology, challenging Russia's long lead in nuclear technology. China has plans to supply reactors to countries in the Middle East, Africa, and Southeast Asia, while Russia’s nuclear exports are already booming. This growing asymmetry in industrial capability has contributed to Washington’s strategic anxiety over Beijing’s rise and threatens to displace it economically, industrially, and technologically. China’s nuclear buildout is not without challenges—local opposition, environmental concerns, and long-term waste storage remain unresolved. But the country’s ability to deliver projects consistently and at scale underscores a growing gap in technical competence.

A new class of solid-state sodium-ion batteries could reshape the future of electric vehicles and renewable energy storage that may replace the dominant lithium batteries and solve several headaches along the way. Sodium-ion (Na-ion) batteries offer a safer, lower-cost alternative to the lithium-ion systems that currently dominate the business, according to recent studies published in Advanced Materials and Advanced Functional Materials. The long-sought breakthrough outlines a novel solid-state battery architecture that achieves 99.26% efficiency after 600 charge cycles, while eliminating lithium, cobalt, and flammable liquid electrolytes — long-standing weaknesses in current lithium-ion (Li-ion) designs. The new batteries use a solid electrolyte based on sulphur and chlorine that mimics the conductive performance of liquid systems while offering dramatically improved thermal stability. Unlike conventional Li-ion cells, which are prone to thermal runaway and catching fire, sodium-ion batteries have lower electrochemical potential and more stable cathode materials, making them far less susceptible to overheating. The potential implications are significant. Li-ion batteries currently account for roughly 70% of the world’s rechargeable batteries, with the energy sector alone consuming over 90% of global supply, according to data from the International Energy Agency. Their role in battery energy storage systems (BESS) — which store intermittent solar and wind power — that is part of the current battery revolution, has come under scrutiny recently following a series of fires at US grid storage sites, particularly in California. A move to Na-ion will end this problem while lowering the already tumbling costs further. However, the biggest advantage is the wide availability of sodium, one half of the regular table salt molecule. By contrast, lithium ore deposits, the sister element of sodium in the first group in the periodic table, are relatively rare and the ore is difficult and expensive to process. There are major deposits in Bolivia, Argentina, Chile, Australia and China. In Europe, Ukraine holds one third of, as yet untapped, European deposits. Historically Na-ion batteries have lagged behind lithium in energy density and cycle life, limiting their commercial uptake. However, the new research brings sodium cells closer to the performance levels needed for widespread adoption. The next step will be to balance safety with energy output, and to find manufacturing processes that can scale to meet global demand. As part of its green energy dominance agenda, China is already moving aggressively in this direction. In April 2025, battery giant CATL announced it had begun mass-producing Na-ion batteries using its new “Naxtra” platform, with deployment in cars expected from 2026. Chinese automaker BYD is also developing Na-ion systems for grid storage. Sodium’s availability also contributes to lower costs and simpler recycling, with no cobalt or heavy metals involved. As one researcher noted: “No cobalt, no lithium, no drama.” Still, the challenge of manufacturing Na-ion batteries at commercial scale remains to be overcome. Experts caution that, while the material-level breakthroughs are promising, real-world deployment hinges on economies of scale, supply chain development, and integration with existing vehicle and grid architectures.

A wave of new rich nations oil and gas extraction projects approved since 2022 will consume nearly one-fifth of the world’s remaining carbon budget for limiting global warming to 1.5°C, according to a new peer-reviewed study published in Environmental Research Letters on December 19. Just five nations are responsible for most of the gains with Trump’s America accounting for a third of the increases by itself. The study, led by researchers at the Stockholm Environment Institute and Oil Change International, finds that fossil fuel projects approved in 2022 and 2023 alone could emit more than 24bn tonnes of CO₂ over their lifetimes—equivalent to 17% of the global carbon budget remaining as of 2023 if warming is to be kept below 1.5°C with a 50% probability. “This analysis makes clear that governments are approving new fossil fuel extraction that is fundamentally incompatible with the Paris Agreement,” said Kelly Trout, co-author of the study and research director at Oil Change International. “This is not a marginal overshoot—it is a reckless gamble with the climate system.” The research identifies five countries as responsible for the majority of post-2021 fossil fuel project approvals: the United States, Canada, Norway, the United Kingdom, and Qatar. Of these, the US alone accounts for nearly one-third of the projected emissions, led by the approval of major oil and gas expansions including the controversial Willow project in Alaska. According to the International Energy Agency, no new oil and gas fields are needed beyond those already producing if the world is to reach net zero by 2050. Yet the new study shows that governments have continued to greenlight major developments that would lock in emissions for decades. "These projects are long-lived, capital-intensive, and once started, are politically and economically difficult to stop," said Ploy Achakulwisut, a scientist at the Stockholm Environment Institute and co-author of the report. The study calculates that if all approved projects go forward, global oil and gas extraction in 2030 will exceed levels aligned with a 1.5°C pathway by 35%, and by 19% in 2050. This expansion contrasts sharply with global climate commitments, including the COP28 agreement in Dubai, which called for a “transition away from fossil fuels.” The researchers also emphasise that these new extraction projects contradict national climate pledges. All five countries highlighted in the report have made formal net-zero commitments, and four are members of the G7, which has publicly committed to climate leadership. The report adds to growing pressure on governments to impose moratoriums on new fossil fuel approvals, which will almost certainly be ignored. "Approving new oil and gas in 2023 is like building new coal plants in 2020—economically risky and environmentally disastrous," said Peter Erickson, another co-author. With global CO₂ emissions are already at all-time highs and continuing to rise, the Climate Crisis is accelerating. The IPCC says that the Paris Agreement goal of keeping temperature increases to less than 1.5°C-2°C above the pre-industrial benchmark has already been missed and temperature increase are on course to reach a catastrophic 2.7C-3.1C by 2050. At that point extreme temperature events will become routine and large parts of the world will become uninhabitable. The study serves as yet another warning that climate ambitions are being undermined by investment decisions that carry irreversible consequences. “Time is not on our side,” said Trout. “Every new approval widens the gap between rhetoric and reality.” Fossil fuel expansion risks triggering AMOC collapse The study also highlights the growing danger of crossing irreversible climate tipping points, including the potential collapse of the Atlantic Meridional Overturning Circulation (AMOC)—a major ocean current system that regulates temperatures across the Northern Hemisphere. The AMOC could collapse as early as mid-century, with some models projecting a breakdown between 2025 and 2095. That would trigger a mini-ice age in Europe where average winter temperatures would fall by 10°C to 30°C, accompanied by catastrophic global consequences, including intensified summertime heatwaves in Europe, disrupted monsoons in Africa and South Asia, and accelerated ice loss in the Arctic and Antarctica. “New oil and gas projects increase the likelihood of breaching critical planetary boundaries, including the AMOC,” the authors write. They argue that by expanding fossil fuel extraction in defiance of the 1.5°C limit, governments are increasing the risk of triggering feedback loops that would amplify global warming and destabilise climate systems. Those feedback loops are already kicking in with temperature currently rising faster than the worst case scenarios of all the climate models on which the Paris agreement targets are based. Trout said: “The risks of passing irreversible climate tipping points are no longer theoretical—they are now part of the near-term outlook. Continuing to approve fossil fuel expansion is playing roulette with planetary systems.” The warning follows multiple scientific assessments indicating that the window to avoid tipping points is narrowing rapidly, with carbon-intensive infrastructure locking in emissions through mid-century.

Gold prices surged to record levels approaching $4,500 per ounce as demand for safe-haven assets intensified amid escalating geopolitical tensions between the United States and Venezuela, whilst silver reached a new all-time high, Emirates Al Youm reported on December 23. Spot gold rose 0.8% to $4,479.18 per ounce after recording a peak of $4,497.55 earlier in the session. The jump in gold comes on the back of investor concerns over the blockade imposed by US President Donald Trump on oil tankers travelling to and from Venezuela, alongside speculation about Federal Reserve leadership changes and expectations of interest rate cuts next year. Silver continued its upward trajectory, reaching $69.39 per ounce after surpassing $69.98, marking annual gains of over 141%. The performance reflects a structural deficit in global supply against strong demand from technology and renewable energy sectors. Platinum recorded its highest level in more than 17 years, whilst palladium touched a three-year peak, benefiting from collective momentum in the precious metals market. Several factors contributed to the historic rally, primarily dedollarisation policies, intensive purchases by central banks, and liquidity flows into exchange-traded funds. Despite potential price volatility due to year-end liquidity shortages, experts anticipate gold will continue its climb towards $5,000 in 2026, with precious metals maintaining their role as primary hedging instruments against economic uncertainty.

Danish Prime Minister Mette Frederiksen and Greenland's Premier Jens-Frederik Nielsen stated on December 22 that they expect respect for the Kingdom of Denmark's territorial integrity after US President Donald Trump appointed a special envoy to Greenland, DR News reported. "We have said it very clearly before. Now we say it again," the leaders stated in a joint statement. "One cannot annex other countries. Not even with an argument about international security. Greenland belongs to Greenlanders, and the US shall not take over Greenland." "We expect respect for our common territorial integrity," they added. Frederiksen wrote on Instagram that the situation created by a decades-long ally is difficult. "But we will not deviate from our democratic values," she stated. Greenland's Premier Jens-Frederik Nielsen wrote on Facebook that whilst the appointment of a special envoy "can sound big," it "does not change anything for us at home". "We have our own democracy, our own decisions and a strong community that stands firm. Greenland belongs to Greenlanders and one must respect territorial integrity," Nielsen wrote. He added that all cooperation, including with the US, must "happen with respect for us and our values and wishes". Pia Olsen Dyhr, leader of Denmark's Socialist People's Party, wrote on Facebook that Denmark and Greenland "must mobilise all forces" and activate alliances in North America and Europe. "Trump's venture must be made maximally difficult for him," she wrote. "All illusions about the Arctic as a low-tension area and about old alliances must be shelved. Because this is as serious as it is regrettable," Olsen Dyhr added.

Chinese researchers have developed a zinc-bromine flow battery that demonstrated record stability through a new mechanism based on two-electron bromine transfer, with a 5 kW prototype completing more than 700 cycles. This latest Chinese breakthrough makes cheaper, longer-lasting giant batteries for storing solar and wind power more realistic, which could help cut your electricity bills and blackouts over time, which comes as electricity prices in some markets in Europe, including Germany, France and the UK, have increased significantly in recent years. Professor Li Xianfeng from the Dalian Institute of Chemical Physics at the Chinese Academy of Sciences led development of the new battery version. The device showed record operational stability thanks to the new mechanism. High corrosive activity of free bromine accumulating in the electrolyte during charging has been a major problem for traditional zinc-bromine batteries, New Science reported. This element destroyed key battery components including electrodes, current collectors and membranes, shortening device lifespan and making their use in power grids unprofitable and risky. Chinese researchers proposed adding special amine compounds to the electrolyte that bind bromine during battery operation. Through reactions, the aggressive element converts to brominated amines, sharply reducing corrosion levels and improving safety. Free bromine concentration in the solution remains extremely low. The approach eliminated the need for expensive fluorine-containing membranes previously required for such systems. Standard ion-exchange materials were used instead, reducing production costs and simplifying scaling of the technology. The 5 kW flow battery prototype demonstrated high efficiency during testing. More than 700 stable operation cycles were recorded at current density of 40 mA/cm² and energy efficiency above 78%. Component analysis after testing revealed no signs of corrosion. The development could form the basis for creating reliable, safe and economically effective energy storage systems, particularly relevant for integration into power grids and systems using renewable sources.

Dubai-headquartered renewable energy developer AMEA Power, a unit of UAE’s Al Nowais Group and Japan’s Kyuden International Corporation have partnered with the International Finance Corporation (IFC) and other lenders to develop a major $700mn solar and battery storage project in Egypt, according to a statement from AMEA Power, cited by Al Mal. The facility aims to strengthen the resilience of the country’s power system. Egypt aims to rapidly expand renewable energy to reach 42% of its electricity generation mix by 2030, focusing on large-scale solar and wind projects across the country. The plan is designed to reduce reliance on fossil fuels and cut carbon emissions. The project, to be built in Aswan, will include a 1,000MW photovoltaic solar plant alongside a battery energy storage system (BESS) with a capacity of 600MW/hs. Once operational, expected in June 2026, it is set to become Africa’s largest combined renewable energy and battery storage facility developed as a single asset. At full capacity, the project is expected to generate more than 3mn MW/h of clean electricity annually, enough to supply over 500,000 homes, while reducing carbon dioxide emissions by around 1.6mn tonnes per year. Ownership of the project will be split between AMEA Power, holding a 60% stake, and Kyuden International, with 40%. Financing is being supported by a $570mn loan package led by IFC, alongside several international development finance institutions. Construction is expected to create more than 4,000 jobs, with over 95% filled by Egyptian workers, supporting local skills development and economic growth. Days earlier, Amea Power commissioned a 120 MW solar power plant in Tunisia, marking the largest solar project ever brought online in the country and a key milestone in its energy transition.

Azerbaijan has sent a shipment of petrol to Armenia via Georgia for the first time, marking an unprecedented instance of direct fuel trade between the two countries. Azerbaijani media outlet APA reported that 22 rail wagons loaded with AI-95 petrol produced by SOCAR departed Azerbaijan on December 18 and are en route to Armenia through Georgian territory. The shipment comes amid renewed diplomatic engagement between Armenia and Azerbaijan following talks in Washington in August, as both sides continue discussions aimed at concluding a broader peace agreement. The Azerbaijani government has not issued an official statement confirming the shipment. Armenian officials, however, have publicly acknowledged the delivery. According to OC Media, Prime Minister Nikol Pashinyan confirmed during a press briefing that the fuel shipment had begun and welcomed the development. He stated that although the transaction is being carried out between private companies, the political conditions enabling such trade were created by the stabilisation of relations between Armenia and Azerbaijan. Pashinyan also noted that agreements had been reached at the political level. Pashinyan said there were unresolved issues related to Georgian transit tariffs and expressed hope that they would be addressed. He added that if such obstacles persist, businesses would logically seek alternative routes for imports and exports. Separately, Armenian Economy Minister Gevorg Papoyan told RFE/RL that the shipment comprises around 1,300 tonnes of petrol and is expected to arrive in Armenia in the coming days. He declined to disclose the name of the importing company but said that Armenian and Azerbaijani firms had negotiated the terms of the deal directly. According to Papoyan, the imported fuel meets high technical and quality standards. APA reported that the shipment aligns with the broader peace agenda between Armenia and Azerbaijan and cited an agreement reached on November 28 in Gabala between Azerbaijani Deputy Prime Minister Shahin Mustafayev and Armenian Deputy Prime Minister Mher Grigoryan. The meeting took place as part of talks between the two countries’ border delimitation commissions and was the first such meeting held inside either country. According to APA, the petrol is being sold at international market prices and the transaction is described as purely commercial in nature. The outlet also referred to a reported commitment by the Georgian authorities earlier in December to allow a one-time, tariff-free transit of Azerbaijani petrol to Armenia, although Georgian officials have not publicly detailed the terms. The transit issue has drawn attention in recent days. Azerbaijani media outlets, including Minval, previously reported that Azerbaijani cargo was facing high transit tariffs in Georgia. Armenian state media Armenpress later cited Georgian Prime Minister Irakli Kobakhidze, who said Georgia takes into account the interests of both Azerbaijan and Armenia and expects negotiations to produce solutions acceptable to all three countries.

Oil and gas producer Canadian Natural Resources (TSX: CNQ, NYSE: CNQ) has selected the Pisys simulator for the training of process operators at the Baobab Floating Production Storage and Offloading (FPSO) unit, located off the Ivory Coast, Pisys said in a press statement on December 15. The Baobab Ivoirien FPSO operates at depths ranging from 900 to 1,700 metres in the deepwater Baobab oilfield. The field relies on an intricate network of subsea trees and manifolds connected to the FPSO for liquid separation and oil storage. Pisys, a Scottish software company, specialises in HSEQ (Health, Safety, Environment and Quality) management systems for industries, including the energy sector. According to the company, its major emergency and incident response and control room training simulator is the most widely used in the world. “Pisys simulator allows the operational team to have exposure to an accurate representation of our operational system; without the need for expensive hardware and travel,” Paul Hunter, Systems and Controls Technical Authority at CNR commented. “The support from Pisys is very good and the system itself can be modified as the actual subsea system develops and changes. The Fidelity [degree of realism and accuracy] of the system will also get better with use and as we build new operational scenarios into it, such as ‘Black start models’ - it's been game-changing for our team,” he added. The Pisys simulator is expected to cut costs and improve efficiency by allowing training to be carried out remotely. This supports CNR’s local content objectives by giving local staff access to cloud-based training, removing the need for expensive travel to the FPSO. Pisys worked closely with CNR’s process engineers to replicate the same graphic user interfaces (GUIs) used on the live system, creating a realistic and interactive training environment. A detailed process flow model was also developed so users can see data change exactly as it would on the real system. The simulator is expected to boost the confidence of new team members, enabling them to train from anywhere in the world and take part in the same real-time scenarios. The Canadian producer’s decision to select the Pisys simulator for training purposes highlights the company's commitment to operational excellence and safety in managing the complex subsea development of the Baobab field, Pisys said in the statement.

The US Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned 28 vessels and 18 shipping management companies forming part of Iran's shadow fleet, the Treasury announced on December 18. The vessels were added to the Specially Designated Nationals and Blocked Persons List, targeting tankers that evade sanctions and contribute to Iran's energy revenues. OFAC also sanctioned two International Criminal Court (ICC) judges, Erdenebalsuren Damdin of Mongolia and Gocha Lordkipanidze of Georgia, for what the US described as "illegitimate targeting of Israel". The sanctioned vessels include chemical tankers, products tankers, crude oil tankers and asphalt tankers flagged under various jurisdictions including Palau, Panama, Cook Islands, Barbados and Jamaica. The shipping management companies targeted include Phoenix Ship Management FZE, Red Sea Ship Management LLC, High Seas Petroleum LLC, and Golden Gate Ship Management, amongst others, based in the United Arab Emirates, India, Panama, and the Marshall Islands. Egyptian national Hatem Elsaid Farid Ibrahim Sakr was designated for involvement in Iran-related sanctions evasion activities. OFAC issued two general licences authorising wind-down transactions and limited safety and environmental transactions involving newly blocked persons and vessels. The Treasury removed several Russia-related designations from the SDN List, including Dmitry Bugayenko and associated companies Veles International Limited and Hadlerco Limited, both registered in Cyprus. Turkish companies Etasis Elektronik Tarti Aletleri ve Sistemleri Sanayi ve Ticaret Anonim Sirketi and CPS Proses Kontrol Urunleri Sanayi ve Ticaret Anonim Sirketi were also removed from the list. The Treasury removed Finnish company Hi-Tech Koneisto International OY and Evgenia Dremova from Russia-related designations. "Treasury increases pressure on Iran's sanctions-evading shadow fleet," the Treasury said in a statement.

The European Commission is preparing to scale back one of its most ambitious climate pledges as it seeks to relieve pressure on its lacklustre economy. The commission announced this week that it will drop plans for a complete ban on the sale of new internal combustion engine vehicles from 2035. The shift reflects growing concern among governments and industry that targets agreed in the early 2020s are colliding with economic, geopolitical and competitiveness realities — a dynamic increasingly visible not only in the ongoing deindustrialisation that started in Germany, but is now spreading to the agriculture sector. The ban on combustion engines law, adopted in 2022, stipulated that from 2035 all new passenger cars and vans sold in the EU must produce zero carbon dioxide emissions. In practice, this amounted to a ban on new petrol and diesel vehicles and a requirement for a full transition to battery electric or hydrogen fuel cell models, a cornerstone of the bloc’s plan to achieve climate neutrality by 2050. Agriculture, which was expected to deliver parallel emissions reductions through lower fertiliser use, pesticide cuts and land-use changes, has been subject to similarly rigid targets under the Green Deal that has been the signature initiative for the last decade. Climate rules softened Despite the roll back, Brussels insists it is not abandoning its climate goals. According to reports by the Financial Times and Reuters, the Commission is instead preparing to adjust the mechanism underpinning the car ban, that the industry hated. Under revised proposals, carmakers would no longer be required to eliminate CO₂ emissions entirely. Residual emissions of up to 10% of 2021 levels could be permitted, provided strict conditions are met. A comparable shift has already taken place in farming, where the Commission has eased environmental conditions attached to Common Agricultural Policy subsidies and withdrawn a proposal to halve pesticide use by 2030 following widespread opposition. “Farmers are not against sustainability, but the pace and scale of these targets are disconnected from economic reality,” said Pekka Pesonen, Secretary General of Copa-Cogeca, which represents EU farmers and cooperatives, in comments reported by Reuters. “If policies are not adjusted, production will simply move outside Europe.” People familiar with the automotive discussions say the new conditions would include the use of low-carbon materials, particularly green steel, and the production of extended-range electric vehicles, which rely primarily on batteries but include a small internal combustion engine as a backup power source. Reuters has also reported that officials are discussing extending the effective ban by five years or softening it indefinitely, a move that would mark the EU’s most significant retreat from its climate agenda in recent years. In agriculture, farmer groups argue that similar flexibility is needed on fertiliser use and crop rotation rules, warning that rigid mandates risk undermining food security. In March, the Commission had already granted automakers a three-year grace period to meet separate CO₂ reduction targets originally due by 2025, signalling a broader willingness to introduce flexibility. That decision followed months of protests by farmers across France, Germany, Poland, Italy and Belgium, where growers blocked roads and borders to demand relief from environmental regulations, they said were being implemented faster than markets and technology could adapt. “We are being asked to do more with less, while competing with imports that do not follow the same rules,” Arnaud Rousseau, head of France’s FNSEA farm union, told Reuters during protests earlier this year. “This is not a rejection of environmental goals, but a demand for fairness.” “It is a geopolitical moment and a complicated context,” said Sara Aagesen, Spain’s minister for the ecological transition. “The Commission itself has already introduced flexibilities in the past.” Under the emerging automotive framework, tailpipe emissions would be required to fall by 90% by the middle of the next decade rather than the current target of a 100% reduction, according to people briefed on the talks. Carmakers would also need to compensate for additional pollution by using low-carbon or renewable fuels or locally produced green steel. Agricultural policymakers are pursuing similar offset-style approaches, emphasising soil carbon storage, precision farming and lower-emission fertilisers rather than blanket cuts to production. “We believe that we must continue with that roadmap that was drawn up with the goal of ending the commercialization of combustion vehicles in 2035,” Aagesen said. “It is important to meet the commitments that have been defined in order to provide stability to investors and also to citizens.” The Commission declined to comment, but the proposal is expected to be adopted by EU commissioners this week before being sent to the European Parliament and the EU Council. Farm policy revisions, including changes to CAP conditionality, are also moving through the same legislative channels, with member states pressing for greater national discretion. Global green policy pullback The policy rethink comes amid a wider global pullback from green transition targets, as governments confront the economic costs of rapid decarbonisation. In Europe, rising trade tensions with both the US and China have sharpened concerns about industrial competitiveness, highlighted by the report from former Italian Prime Minister and ex-European Central Bank boss Mario Draghi last year. In agriculture, farmers have warned that EU producers face stricter environmental rules than overseas rivals, while imports produced under looser standards continue to enter the bloc. Germany has played a pivotal role in pushing for changes to the car ban. Chancellor Friedrich Merz has argued that a blanket prohibition on internal combustion engines from 2035 does not reflect market realities and has called for a “technology-neutral” approach, echoing the calls from the industry, including plug-in hybrids, synthetic fuels and advanced biofuels. Berlin has taken a similar stance in agriculture, backing demands for flexibility on fertiliser limits and land-use requirements. Italy and Poland supported Germany in a joint letter urging Brussels to abandon the outright automotive ban, with several central and eastern European countries also opposing it. The automotive industry has added to the pressure. Electric vehicle sales in the EU are rebounding this year after a difficult 2024. According to industry body ACEA, EV sales rose by 38.6% between January and October, while hybrid sales increased by 9.4%. By contrast, agricultural producers continue to grapple with high input costs, particularly for fertilisers, where prices surged after Russia’s invasion of Ukraine and remain volatile. The recovery in car sales has been supported by more affordable models and new subsidy programmes, already in place in France and recently launched in Germany. Even so, automakers argue that the transition remains slower and less profitable than expected. Farmers make a similar case, saying sustainable practices often carry higher upfront costs without guaranteed returns, particularly as voluntary carbon credit schemes struggle to gain traction. Environmental groups warn that easing the rules risks creating loopholes that weaken Europe’s climate ambitions. They have voiced the same concern in agriculture, arguing that rolling back pesticide and fertiliser targets could lock in emissions and biodiversity loss for decades. “Weakening Green Deal measures in agriculture sends the wrong signal at the worst possible moment,” Greenpeace EU said in a statement cited by Reuters, warning that delays could undermine the bloc’s credibility on climate leadership. The electric vehicle race is increasingly global. A third of the 39 countries where EVs account for more than 10% of new car sales in 2025 are now outside Europe, according to energy think-tank Ember. Agricultural markets are equally globalised, with food companies warning that unilateral EU standards risk shifting production — and emissions — abroad rather than eliminating them. Even so, the prospect of a 2035 ban triggered intense lobbying from groups including Stellantis NV and Mercedes-Benz Group AG. Farming organisations have mounted comparable campaigns, pressing Brussels to prioritise economic resilience and food security alongside climate objectives. Automakers worldwide are struggling to make the transition pay. Ford Motor Co this week announced it would take $19.5bn in charges linked to a sweeping overhaul of its electric vehicle business. Across agriculture, governments are increasingly acknowledging similar trade-offs, as producers push for a slower, more flexible transition that mirrors the recalibration now under way in Europe’s car industry.

The European Union imposed sanctions on 41 vessels forming part of Russia's shadow fleet of oil tankers that contribute to Russia's energy revenues, the EU Council announced on December 18. The vessels have been added to the list of those subject to a port access ban and prohibition on provision of services related to maritime transport. The measure targets non-EU tankers that form part of Russia's shadow fleet circumventing the oil price cap mechanism or supporting Russia's energy sector, or vessels responsible for transporting military equipment for Russia or involved in transporting stolen Ukrainian grain and cultural property from Ukraine. The decision brings the total number of designated vessels to almost 600. The move is closely linked to recent EU Council decisions to list nine shadow fleet enablers and adopt a declaration by the EU and its member states on making full use of international law of the sea framework relating to threats from the shadow fleet and protection of critical undersea infrastructure. The EU remains ready to increase pressure on Russia and its shadow fleet value chain, including by adopting further sanctions, the Council said. In response to Russia's military aggression against Ukraine in February 2022, the EU has expanded sanctions against Russia with the aim of significantly weakening Russia's economic base and depriving it of critical technologies and markets. The European Council reiterated its condemnation of Russia's war of aggression against Ukraine in its conclusions on December 19, reaffirming the Union's unwavering commitment to providing continued political, financial, economic, humanitarian, military and diplomatic support to Ukraine. "These 41 vessels are added to the list of those subject to a port access ban and ban on provision of a broad range of services related to maritime transport," the EU Council said in a statement.

Israeli Prime Minister Benjamin Netanyahu announced approval of a $35bn ($34.7bn) natural gas export agreement with Egypt, describing it as the largest gas deal in Israel's history, Israeli media i24 reported on December 17. Netanyahu said the agreement, worth ILS112bn, will see ILS58bn ($17.9bn) go directly to the state treasury and could pontentially ease tensions between the two neighbours following the cessation of fighting in Gaza with Hamas. The deal involves large-scale development of gas infrastructure with participation from American company Chevron and Israeli businesses. Gas supplies to Egypt will come from Israel's Leviathan field in the Mediterranean Sea, with reserves officially estimated at 600bn cubic metres. Israeli authorities describe the reserves as "a strategic asset capable of changing the region's energy balance". The agreement between Israel and Egypt was announced in August but approval stalled due to Israel's position. Energy Minister Eli Cohen blocked progress, citing lack of clear guarantees that Israel would receive "fair prices". An unnamed Israeli official told CNN the Netanyahu government deliberately delayed the process for unclear reasons. Decisive pressure came from the US presidential administration, which lobbies interests of project participant Chevron. After Cohen's statements, US Energy Secretary Chris Wright demonstratively reduced contacts with him and cancelled a visit to Israel on October 31. Egypt has imported gas from Israel for a long time, with Egyptian Oil and Natural Resources Minister Tarek El Molla stating on March 1 that there were no problems receiving gas from Israel. Relations between Israel and Egypt deteriorated noticeably after the start of the war in Gaza, despite Egypt being one of few Arab countries maintaining diplomatic relations with Israel. Cairo increased military presence on the Sinai Peninsula, fearing thousands of Palestinian refugees fleeing Israeli strikes might flood Egyptian territory. The Trump administration believes the gas agreement, expanding energy supplies to North Africa, will bring Israel and Egypt closer together. "This is a huge opportunity for Israel. Selling gas to Egypt will create interdependence, bring countries closer together, ensure more reliable peace and prevent war," an American source told Axios. The White House has notified Netanyahu's government it will attempt to help organise a summit with Egyptian President Abdel Fattah el-Sisi immediately after concluding the deal. "I approved this deal after our security interests and other vital interests were secured. This deal significantly strengthens Israel's status as a regional energy power and promotes stability in our region," Netanyahu said.

Russian President Vladimir Putin is pulling his punches in the bombing campaign of Ukraine’s power system. The country is plagued by rolling blackouts after Russia destroyed half of its generation capacity, but Russia could turn out the lights overnight and plunge the whole county into total darkness if it wanted to. In a harbinger of what could come, Russian missiles hit a key 750kV substation just outside Odesa on December 7, causing the city's power supply to fail completely for at least 24 hours. The heating stopped, the internet was offline, mobile phone services went down and electricity exports to Romania via the Isaccea interconnector were suspended. For nearly two days Odesa was completely blacked out. State utility Ukrenergo rushed to repair the damage but said it would take several days or longer to fix. Russia has been targeting Ukraine’s power sector since the start of 2023, but so far it has avoided hitting the crucial ultra-high-voltage 750kV substations, the backbone of Ukraine’s power grid that enable both domestic distribution and cross-border power flows. Still, running a system built in Soviet times, there are hundreds of the smaller 330kV substations but the 90-odd the larger 750kV substations make up the spinal cord of the distribution system. Their high voltages are needed to drive power across long distances connecting the still functioning nuclear and hydro power plants to regional centres and neighbouring countries. “These are not just any substations — they’re the skeletal structure of the Ukrainian grid,” an energy advisor to Ukrenergo says. “They connect nuclear power plants to the rest of the country, balance regional loads, and interconnect with neighbouring countries. Take one down and you're not just blacking out a neighbourhood, you’re disrupting a region.” The 750kV level is not common in Europe — most EU transmission networks operate at 400kV or lower — making replacements even more difficult. EU officials and ENTSO-E have coordinated emergency deliveries of transformers, but available reserves are limited. Russia began the assault on Ukraine’s generating capacity with a massive missile barrage in January 2024 that went on to destroy or badly damage nearly all of Ukraine’s thermal and hydropower capacity. Today more than half of Ukraine’s 27 regions are under emergency power regimes. After the start of the drone war that May, the attacks have intensified as a new phase in the war, a missile war, began. Drone and missile attacks have quadrupled since July this year and the targets have expanded to include energy infrastructure and domestic gas production and pipelines. Russia’s tactics have also changed. It now sends a swarm of hundreds of drones against a target in waves, each one separated by around half an hour, before sending in a salvo of half a dozen powerful guided missiles against a high value target like air defence systems or energy infrastructure. Ukraine is still able to shoot most of the drones down and some of the missiles, but enough get through to do devastating damage. Until now, the 750kV substations have been largely ignored. But that is changing now. In October, a substation in Sumy was disabled in a drone and missile strike, triggering widespread outages in the north-east of the country. The coordinated barrage involving Shahed drones and Kalibr cruise missiles strikes on Odesa’s 750kV substation was the first major city to be hit by the Russians, affecting the power supplies for over 1.5mn people. Ukrenergo restored partial Odesa’s power within 48 hours, but warned on December 11 that full repairs would take weeks. The scale of the damage was compounded by secondary fires caused by falling missile debris, affecting transformers and control systems. Repairing 750kV substations is particularly difficult during wartime: transformers of this size are custom-engineered, not mass-produced, and can take 6–18 months to replace. “There is a shift from punishing to disabling,” said the Kyiv-based government adviser. “If you can take out three or four more of these [750kV] substations, you risk a systemic failure — especially if nuclear or hydro output has nowhere to go.” Ukraine’s fleet of nuclear power plants (NPPs) — including the Rivne, Khmelnytskyi, South Ukraine and Zaporizhzhia plants — are still working, but they are heavily reliant on the 750kV network to evacuate power safely and efficiently. Attacks on this infrastructure not only reduce grid capacity but also create operational risks at generation sites which could be forced to shut down if they have nowhere to send power to. Following the extraordinary synchronisation of Ukraine’s power grid with Europe’s ENTSO-E electricity grid that literally happened on the day before the Russian invasion in March 2022, the 750kV system also plays a greater role in cross-border balancing. Unable to generate all the power it needs anymore, Ukraine has become dependent on increased imports from its partners in the EU to make up the shortfall. Disabling the cross-border nodes removes this lifeline just as the mercury begins to fall and the first snows of winter arrive. If blowing up the 750kV is so effective, why has Russia avoided it so far? The Kremlin is waiting for temperatures to fall further, analysts warn. Most of Ukraine’s urban population continue to live in Soviet-era centrally heated apartment blocks. If the power to these is cut off they become impossible to heat. As the central heating is distributed by hot water, if the temperatures in the buildings fall below zero the water will freeze and the pipes will burst – damage that is almost impossible to repair quickly. If Russia were to launch a coordinated attack against all of Ukraine’s 750kV substations the entire country could go black and much of the housing made uninhabitable. bne IntelliNews government sources say that Western capitals have been warned to prepare for a potential second wave of refugees if the lights in Ukraine are turned off in the very coldest months of January and February.

Uganda plans to use part of a proposed $2bn loan backed by global oil trader Vitol Bahrain E.C. (VBA), to the Uganda National Oil Company (UNOC), to acquire a stake in the Kenya Pipeline Company (KPC), according to a finance ministry brief submitted to parliament. The move comes as Kenya prepares to divest up to 60% of the state-owned pipeline operator through an initial public offering (IPO). President William Ruto has confirmed the privatisation drive, which aims to raise about KES60bn ($460mn) while maintaining a strategic government holding. KPC is a wholly state-owned midstream operator responsible for Kenya’s refined-products pipeline system, storage depots and related infrastructure. It plays a central role in supplying petroleum products to landlocked East African markets, including Uganda, Rwanda, Burundi and eastern Democratic Republic of Congo (DRC). In its submission to lawmakers, Uganda’s Ministry of Finance said the borrowing would support critical oil-sector investments, including the acquisition of equity in KPC, infrastructure Uganda has long relied on for fuel imports via Kenya’s Mombasa port. Industry data cited by officials indicate that Uganda imports the vast majority of its refined fuels through Kenya, accounting for roughly 90% of national petroleum demand. Beyond the KPC purchase, the funds are earmarked for expanding fuel storage, pipeline infrastructure and refinery projects. The borrowing will be undertaken by the Uganda National Oil Company (UNOC), which manages the country’s commercial interests across the petroleum value chain. The ministry described Vitol’s role as providing a financing-backed facility rather than taking an equity position. Repayments are expected to be secured against revenues from fuel sales and future oil-related projects, as Uganda prepares to begin commercial crude production later this decade from fields in the Albertine Graben. KPC operates more than 2,740km of pipeline linking Mombasa to Nairobi and western Kenya. The network is critical to East Africa’s fuel logistics, moving several million tonnes of refined products annually and underpinning supply to inland markets. Ruto has encouraged East African participation in the IPO, framing KPC as a regional asset underpinned by cross-border demand. “I want to encourage Ugandans and East Africans to equally invest,” he said during a recent visit to eastern Uganda, noting that shares would be available to public entities and private investors across the region. Ugandan finance officials said acquiring a stake in KPC would strengthen Kampala’s influence over fuel-supply logistics and align with broader East African Community integration objectives, at a time when global financing for fossil-fuel infrastructure has tightened amid the energy transition.

Brazil's oil and gas self-sufficiency faces threats in the coming decade as new field discoveries plummet and domestic production approaches its peak. Brazil will increasingly rely on gas imports from Argentina and liquefied natural gas to meet growing demand, according to industry data and executives at Brazil’s state-owned oil producer Petrobras, BNamericas reported. Commerciality declarations registered with national oil regulator ANP are expected to decline for a second consecutive year in 2025, with only two registered so far: Orca and Sul de Orca, both from Shell's Gato do Mato area in the Santos basin. That compares with 11 declarations in 2024 and 15 in 2023, and contrasts sharply with the first decade of the 2000s when Brazil recorded as many as 35 declarations in a single year. "Brazilian production continues to rise until 2029-2031, depending on the scenarios. However, the decline is expected and cannot be avoided," said Marcelo de Assis, a partner at consulting firm MA2Energy, as quoted by BNamericas. The Energy Research Company expects national oil extraction to peak in 2030 at 5.1mn barrels per day, and gas in 2031 at 316mn cubic metres daily (cmd). "Brazil's reserves are of gas associated with oil, so gas production will fall along with oil production. In other words, after 2035 we will have to import gas from Argentina or LNG (liquified natural gas)," said De Assis. The decline reflects delays in granting new areas following creation of a production sharing regime in 2010, which established that only Petrobras could operate pre-salt blocks. As the state company faced cash constraints during president Dilma Rousseff's 2011-2016 administration, no new pre-salt auctions occurred. Mahatma dos Santos, technical director of the National Institute for Strategic Studies on Oil and Gas, attributed the drop to reduced exploratory investments over the past decade and declining new well drilling. Pedro Zalán, founding partner of consultancy ZAG, cited low oil prices around $60 per barrel versus the $80 he considers necessary to stimulate exploration, given the geological complexity in new frontier areas. Gas imports will remain important in coming years as production from some fields increases while others decline, said Angélica Laureano, Petrobras' executive director of energy transition and sustainability, as quoted by BNamericas. The country will gain additional domestic supply with the Raia field starting in 2028 and Sergipe Deep Waters phase II in 2030, adding 25mn cmd. The Rota 3 pipeline, operational since 2024, delivers an additional 18mn cmd. "So far, Rota 3 has been serving to cover the decline of other sources, mainly from Bolivia, which today is supplying between 10mn and 12mn cmd, compared with more than 30mn in the past," Laureano said.

Moldova's separatist unrecognised Transnistria republic has reintroduced a state of economic emergency due to a reduction in natural gas supplies, with local authorities planning to restrict gas consumption for industrial users while prioritising households, NewsMaker reported on December 15. The region has frequently instituted such a regime throughout the year, amid unstable gas supplies under a new arrangement with its Russian sponsors. Since February, the pro-Russian separatist region has been supplied with gas purchased from the European market by a Hungarian trader paid by subsidies extended by Russia. The mechanism replaced the gas supplies made by Gazprom to Moldova, distributed by the authorities in Chisinau to the separatist region, therefore generating no revenues to the Russian company. Moldova, other than the separatist region, is using gas purchased from the free market after it abandoned Russian supplies two years ago. Amid the restrictions announced on December 15, the employees of three large enterprises in the separatist region have been placed on temporary unemployment. These are the Râbnița Cement Plant, the Tirotex textile plant, and the Râbnița Metallurgical Plant. The decision was taken by Transnistrian leader Vadim Krasnoselsky amid "worsening supply conditions". According to local media, in the separatist region, the decree declaring the emergency must be signed by Krasnoselsky and then submitted to the Supreme Council of the unrecognised Pridnestrovian Moldavian Republic for consideration. Minister of Economic Development of Transnistria Sergei Obolonik explained that the current problems were linked to “a decrease in the rate of settlement transactions within the European Union”. He said the authorities were taking all possible measures to stabilise supplies and restore normal gas deliveries. “For now, the priority is to ensure gas supplies for the population,” Obolonik said, adding that industrial enterprises may be required to limit fuel consumption during the emergency period. A state of emergency had previously been declared for the first time in Transnistria on December 11, 2024, following a reduction and subsequent cessation of natural gas supplies to the region. In January 2025, the region faced prolonged disruptions after Russia halted gas supplies to the unrecognised republic. The region experienced more than a month without gas, heating or hot water, alongside rolling power outages. Following negotiations, Chisinau and Tiraspol agreed on a so-called Hungarian scheme for gas supplies. Under the arrangement, gas was delivered by the Hungarian company MET through Moldovagaz, with payments reportedly made by a Dubai-based company. Tiraspol said the scheme was financed through a Russian loan. At the time, it was reported that up to 3mn cubic metres of gas per day would be supplied, a volume described as sufficient only for critical needs such as heating, electricity generation and food production. One of the conditions set by Chisinau was that the gas would not be used for industrial production. Despite this, regional authorities later announced an early end to the heating season and the resumption of operations at major industrial enterprises, which form the backbone of the Transnistrian budget. In June, reports again emerged of gas supply problems and the reintroduction of a state of emergency.

The global LNG market is facing a supply crunch as planned liquefaction capacity is outpacing the number of new carriers set to enter service by 2030, Argus Media reported on December 18. A surge in vessel retirements and a lagging newbuild orderbook are raising concerns that LNG shipping infrastructure may fall short of what is needed to transport the fuel to key demand centres, particularly in Asia. According to data from the International Maritime Organisation, 234 newbuild LNG carriers are scheduled for delivery between 2026 and 2030, with 2026 on track to be the busiest year for deliveries on record. However, this number is insufficient to handle the 229mn tonnes per year (t/yr) of new LNG export capacity already sanctioned globally, based on projects that have reached final investment decision (FID). "Applying simple shipping ratios, the gap is clear," Jerry Kalogiratos, chief executive of Capital Clean Energy Carriers, at the World LNG Summit in Istanbul said as cited by Argus Media. “There definitely looks like there is going to be a shortage.” Transporting 1mn t/yr of LNG to Europe typically requires 1.5 vessels, while delivering the same volume to Asia requires three, due to longer voyage distances and turnaround times. On this basis, the 234 newbuilds could support just 158mn t/yr of supply if routed entirely to Europe — or just 78mn t/yr to Asia. The latter is the more likely scenario, according to experts, as demand growth in Southeast Asia accelerates. The shortfall could deepen if more liquefaction projects reach FID, with a further 80mn t/yr of production capacity sanctioned in 2025 alone, which are not covered by potential shipping capacity. At the same time, a wave of scrapping is thinning out the older end of the fleet. So far in 2025, 14 steam turbine LNG carriers have been sold for demolition — nearly triple the annual average between 2020 and 2024. These ageing vessels are increasingly deemed “obsolete” due to high boil-off rates and limited flexibility in today’s trading environment. Data from ship-tracking firm Kpler shows 29 LNG carriers aged 25 years or older remain in operation, including the 137,000m³ Puteri Nilam and Al Jasra, both recently idled in the Strait of Malacca and Brunei Bay. The oldest, LNG Maleo, was built in 1989 and is operated by Indonesia’s Pertamina. Another 47 vessels built between 2000 and 2005 are also likely candidates for retirement by the end of the decade. The average age of LNG vessels scrapped in 2025 was 26, according to Flex LNG. If all 76 pre-2005 vessels are removed from the fleet by 2030, the net fleet expansion falls to just 158 carriers — enough to transport 105mn t/yr to Europe or 53mn t/yr to Asia. Both figures fall well short of projected supply growth. Some capacity relief could still come through fresh orders. South Korean shipyards have delivery slots available for late 2028, but market sources suggest shipowners remain cautious amid rising costs and long lead times. The growing mismatch between LNG supply and shipping capacity risks undermining the industry’s ability to meet rising Asian demand while maintaining supply security in Europe.

Russia and India have instituted what amounts to a "no limits” partnership, a phrasing previously reserved for Moscow's relationship with Beijing. Many reframed avenues of cooperation are becoming resurgent by progressively deepening cooperation across defence, nuclear technology, and logistical integration. The December 4-5, 2025 state visit by Russian President Vladimir Putin to New Delhi demonstrated this structural transformation through substantive commitments that reveal how both nations are dismantling traditional supplier-purchaser dynamics in favour of collaborative development and co-production frameworks that characterise genuine no limits partnerships. The no limits partnership finds its operational expression in fundamentally reoriented defence cooperation. Historically, the India-Russia military relationship operated within conventional parameters. Between 1969 and 1998 Moscow supplied weapons systems, India purchased them either off the shelf or as license production runs which were little more than knocked down kits being assembled in India. The current trajectory reverses this logic entirely. Rather than importing finished Russian weapons platforms, India now increasingly participates in collaborative innovation that births new defence technologies through bilateral research initiatives. Joint Research and Development(R&D), co-development, and co-production of advanced defence systems have become the explicit operational framework. This encompasses specific commitments to encourage manufacturing in India of spare parts, components, and aggregates for Russian-origin defence systems, coupled with technology transfer mechanisms enabling Indian firms to develop indigenous production capabilities. During Putin’s visit, Russia's Deputy Economic Development Minister Vladimir Ilychev aptly spoke about eliminating Indian tariffs to diversify Russian exports toward manufactured goods. Moscow no longer envisions India merely as an energy consumer but as an integrated manufacturing partner within Russian supply chains. The military platforms currently under discussion exemplify how this no limits partnership extends into operational capabilities spanning air, land, and maritime domains. The S-400 Triumf air defence system represents the most visible component of deepening defence integration. India currently operates four regiments of the S-400, an advanced long-range air defence platform capable of simultaneously engaging up to 36 targets at ranges exceeding 400 kilometres. Preliminary discussions during the summit concerning additional S-400 regiments and even its successor the S-500 suggest India's air defence architecture will progressively include more Russian systems. However, Russia's ongoing delays in delivering previously contracted S-400 regiments, a reality acknowledged by both nations complicate New Delhi's confidence whilst simultaneously illustrating the dependency dynamics characteristic of no limits partnerships. Furthermore, Russia has also reportedly not taken the conversation forward on the S-500 as its own forces are yet to field the system operationally. The Su-57 fifth generation stealth fighter jet was another big ticket platform under discussion for procurement. Russia's fifth-generation combat aircraft, comparable in concept to the US's F-22 Raptor, was once projected to be India’s first inducted stealth fighter and was partly funded by India in its R&D phase under the code name FGFA/PAK-FA. However in 2018 before any of the licensed production airframes could roll off the assembly line the Indian Airforce (IAF) withdrew from the programme citing underwhelming performance of the prototypes. After the withdrawal India focused on its own indigenous design the Advanced Medium Combat Aircraft (AMCA) but has failed to make any significant progress on moving beyond the blueprint stage, leaving a massive capability gap in India’s fighter fleet. However with shrinking options, India may be returning to the Su-57 programme but given its 2018 withdrawal it is unlikely to get a subsidised price. While Russia has offered to locally produce the Su-57 in India, it is likely to be a progressive technology transfer agreement. Under this scenario the first few units or batches may be just assembled knocked down kits, but just as the case with the Su-30MKI, the raw material to component manufacturing may gradually become more cost effective. However these economies of scale may only be feasible if India procures over 200 units of the fighter, as has been the case with the MiG-21 and Su-30MKI, two Russian origin aircraft that were workhorses for the IAF and were extensively reengineered and adapted for various roles through the decades. Although the MiG-21 has now been phased out in any sort of crewed role, the Su-30MKI is also on the agenda to get upgraded components rivaling the Su-35, with the programme being designated “Super Sukhoi”. The BrahMos cruise missile system also illustrates how existing platforms within the no limits partnership framework could undergo continuous technological evolution through bilateral collaboration. Originally a joint Russian-Indian venture, BrahMos is billed as the world's fastest cruise missile, with supersonic variants operational across Indian naval and air forces, and exported to the Philippines. Ongoing discussions between Moscow and New Delhi now centre on hypersonic BrahMos variants, missiles capable of sustaining speeds exceeding Mach 5 throughout flight trajectories, developed through ongoing Indo-Russian research initiatives. The upcoming nuclear submarine lease arrangement demonstrates how the no limits partnership extends into maritime domain capabilities. Russia is on track to lease an Akula-class nuclear-powered attack submarine equipped with advanced sensors, cruise missiles, and stealth capabilities to India successively for the third time. This lease arrangement while often compared to the US-UK-Australia AUKUS pact, is far older in precedent and more comprehensive, stretching as far back as 1987 when India first got a Charlie class Nuclear attack submarine for training its crews and christened it Chakra-I. While India returned Chakra-I in 1990, it leased another nuclear attack submarine, this time an Akula-class in 2010, and returned it in 2021. Now with the anticipated delivery of another Akula class boat, India will likely have a Russian nuclear attack submarine in its fleet until its own domestically constructed nuclear attack submarines are commissioned. Civil nuclear cooperation has undergone equally transformative reorientation within the no limits partnership framework. Beyond traditional procurement of Russian nuclear technology for India's Kudankulam Nuclear Power Plant(KKNPP), both nations have committed to accelerated discussions on future VVER reactor design - the Russian technology currently deployed at KNPP. The substantive shift involves joint research initiatives and localised manufacturing of nuclear equipment rather than straightforward technology transfer as was the case in the 1980s when the original deal for KKNPP was negotiated. India's government target of achieving 100GW of nuclear capacity by 2047 now intersects with bilateral commitments to jointly finalise allotment for constructing additional KNPP-sized installations as well as Small and Medium Sized Reactors(SMR)s Russia’s state owned nuclear conglomerate Rosatom may supply. In additon, Rosatom has successfully broken ground on SMRs in India by signing a feasibility study agreement with India’s southern state of Maharashtra in 2024 and also reportedly receiving an inquiry on what kind of solutions it could offer Indian Railways. With the dual lever of defence and civil nuclear cooperation, the transformative emerging framework of a “no limits” partnership is already well poised between India and Russia.