Energy Market Update 28/01/2025

Welcome to our weekly energy market update, where we share the latest trends, shifts, and key developments impacting the energy sector. Whether it’s fluctuations in oil and gas prices, changes in renewable energy policies, or updates on energy infrastructure projects, we’re here to help you stay informed. Join us as we break down the most important factors influencing the market this week, and explore what these changes could mean for your business.

Current Market Drivers:

📝 Reports indicate that Ukraine is ready to facilitate the transit of Azerbaijani natural gas to Europe, with a contract ready to be finalised quickly if an agreement is reached, offering prospects of improving European supply security.

🛠️ Freeport LNG has returned from an unplanned outage amid a rare winter storm, with feed gas flows rebounding, providing bearish signals on easing supply concerns.

☀️ Two major solar farm projects have been approved by the UK government, totalling 1GW, contributing to the Government’ target of tripling solar power in order to meet their 2030 clean power ambitions.

⚠️ The IEA has warned that gas markets are expected to remain tight throughout 2025. Additional reports suggest that Europe may need to secure over 100 LNG cargoes this summer to replenish rapidly declining storage levels.

🌍 Geopolitics remain supportive with signs of a faltering ceasefire between Israel and Hamas and little evidence of a quick end to the Russia-Ukraine war.

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