AGP Executive Report

Nuclear Power: Constellation won a key FERC waiver to restart the Crane nuclear plant (Three Mile Island Unit 1), allowing a capacity rights transfer that boosts what the unit can deliver to the grid. Oil & Markets: Oil prices swung with Middle East ceasefire hopes and renewed US-Iran tensions; Brent eased toward $97 while US stocks pulled back from records as the dollar firmed on strong US data. Energy Security & Infrastructure: Russian crude flows via the Druzhba pipeline to Hungary and Slovakia returned to normal operating levels after a disruption, though May volumes stayed below pre-suspension levels. Policy & Biofuels (India): India is pushing flex-fuel adoption with about 5,200 ethanol dispensing stations planned, alongside a launch of a flex-fuel passenger vehicle to cut crude imports and emissions. Gas & Shipping Decarbonisation: Baker Hughes’ NovaLT™16 gas turbine received RINA Type Approval for marine propulsion using natural gas and up to 100% hydrogen. Renewables & Methane: Clean Energy Fuels completed an RNG dairy facility in Idaho, injecting low-carbon RNG into the pipeline for transport fleets. Power Projects: South Korea’s KEPCO secured the second phase of Saudi Arabia’s Jafurah combined-cycle power plant deal with Aramco. Accidents: An 18-wheeler rollover spilled oil on San Antonio’s Finesilver Curve, prompting cleanup and road hazard warnings.

Oil Shock Policy: India’s cabinet approved a Rs 100bn one-time ATF price stabilization support for oil marketing companies to cushion airlines as Middle East tensions keep fuel costs elevated. Energy Security & Markets: Oil pushed back toward $100 as U.S. crude inventories fell for a sixth straight week and the U.S. Strategic Petroleum Reserve was drawn down again, while Wall Street slipped on renewed U.S.-Iran retaliation fears. LNG Procurement: Bangladesh’s cabinet cleared purchases of three LNG cargoes (including BP and TotalEnergies) to support power generation and industry demand, with deliveries scheduled across late June to early July. Nuclear Power Debate: Malaysia’s energy leaders argued nuclear could replace coal to provide reliable baseload for growing data-centre demand, while keeping renewables on track. Nuclear Milestone: Iran said its Bushehr plant hit a record 80bn kWh, framing it as proof of civilian nuclear resilience. Ukraine-Russia Energy Targeting: Satellite imagery showed a burning St. Petersburg oil terminal after Ukrainian strikes, underscoring how war is disrupting fuel export infrastructure. Local Spill Response: Alberta reported cleanup of a Sundre-area crude leak largely wrapped up within days.

Middle East Oil Shock: Oil prices surged toward $100 as fresh US-Iran tensions and attacks in the Gulf raised supply fears, with Brent around $98 and WTI near $96, while analysts pointed to Strait of Hormuz disruption and low inventory risks. Ukraine–Russia Energy Targets: Ukrainian drones struck Russia’s St. Petersburg oil terminal ahead of Putin’s SPIEF, sparking major fires and forcing flight disruptions, as Kyiv also reported hits on other fuel and military sites. India–UAE Oil Shift: India’s May crude imports from the UAE jumped to make it India’s second-largest supplier, underscoring how route disruptions are reshuffling oil flows. Policy Support for Aviation Fuel: India approved Rs 10,000 crore one-time support to oil marketing companies to stabilize ATF prices for airlines amid West Asia conflict-driven fuel volatility. Nuclear Cooperation & Safety: Turkey’s Fidan is set to discuss nuclear energy cooperation with South Korea, while the IAEA highlighted UAE’s Barakah response after a drone attack; meanwhile, Calvert Cliffs sirens get extra testing. Gas & LNG Moves: Cosco ordered four LNG carriers for leasing to Shell Tankers Singapore, and a UAE non-oil PMI uptick came despite Hormuz-linked constraints. Oil & Gas Discoveries: Pakistan’s OGDCL reported a new oil and gas find in Sindh’s Sanghar district. Local Energy Cost Savings: Spokane said switching solid-waste trucks to compressed and renewable natural gas cut 2025 fuel costs by up to $2.6 million versus diesel.

Middle East Shipping Crackdown: The US disabled an unladen oil tanker (Lexie) heading toward Iran’s Kharg Island after repeated crew noncompliance, firing a Hellfire missile into the engine room; CENTCOM says it has disabled six vessels and redirected 122 since the blockade began. Oil Prices & Supply Stress: With Strait of Hormuz disruption back in focus, crude surged toward $100 again as traders warned global inventories are draining fast ahead of summer demand. IEA Warning: The IEA says global oil stockpiles fell by 250 million barrels in March-April, with the market expected to stay in deficit into Q4 2026. US Inventories Tighten: API data showed US crude stocks down 6.75 million barrels for the week ending May 29, nearly double expectations, while the Strategic Petroleum Reserve is near a 40-year low. Nuclear Safety Support: The IAEA is backing the UAE after a drone attack at Barakah, saying repairs could take weeks; separately, Constellation advanced plans for a 2027 restart of Three Mile Island Unit 1. Energy Policy Watch: India faces uncertainty over whether US sanctions waivers for Russian oil will be extended beyond June 17, with refiners likely to reshuffle sourcing quickly.

Middle East Oil Shock: Oil prices slipped after a sharp rally as traders weighed mixed signals on US-Iran talks and the risk of Strait of Hormuz disruption, with Brent and WTI both easing from recent 5%+ gains. Supply Security: The IEA warned global oil inventories could fall to critical or historically low levels if stock draws continue into the summer demand peak. South Africa Macro Risk: S&P flagged rising oil as a growing threat to South Africa’s consumer-led growth and inflation outlook, revising its oil price assumptions higher. Ukraine–Russia Energy Strikes: Ukraine confirmed strikes on Russia’s Ilsky oil refinery in Krasnodar Krai, sparking a fire, as well as attacks on air-defense and other energy-related targets. Oil Market Operations: South Korea’s crude swap system was extended until end-June to stabilize supplies amid Hormuz uncertainty. Power Grid Stress (Coal): The Philippines’ NGCP warned Visayas may face rotating outages June 2 as major coal plants remain offline, tightening margins ahead of the evening peak. LNG Diversification: Ukraine and Lithuania agreed a long-term LNG supply expansion via Klaipėda to diversify sources ahead of winter. Energy Policy Response: Sri Lanka’s cabinet approved a national plan and digital platform to strengthen responses to oil and hazardous chemical spills in its waters.

Middle East Oil Shock: Iran suspended US-mediated talks after Israeli strikes in Lebanon, reviving Strait of Hormuz supply fears and pushing global crude sharply higher, with markets also weighing whether the ceasefire can hold. Eurozone Inflation Watch: An ECB survey says eurozone consumers still expect inflation to stay elevated after the Iran-driven oil and energy shock, with households citing persistent fuel-price pressure. Sanctions & Shipping: France intercepted the sanctioned Russian-linked tanker Tagor in the Atlantic, citing a “shadow fleet” effort to evade sanctions. Ukraine Energy Pressure: Zelensky said Ukrainian forces have struck 15 Russian oil refineries since January, disabling nearly 40% of Russia’s primary refining capacity and worsening fuel shortages. Safety & Infrastructure: A Dallas apartment explosion followed a gas leak after a contractor notified Texas811 before boring; records show a gas line was “nicked” during digging. Nuclear Local Revenues: Japan’s municipalities collected a record 2.4bn yen in taxes tied to spent nuclear fuel storage, as reprocessing delays leave more fuel accumulating. US Power & Gas Costs: Maine’s Unitil seeks about a $11/month natural gas distribution rate hike for southern customers. Energy Transition Signals: Arizona’s Navajo Generating Station is set to shut down soon, ending coal-era power in the region.

Sanctions Crackdown: France boarded the sanctioned Russian tanker Tagor in the Atlantic, with UK support, saying it was flying a false flag and was linked to Moscow’s “shadow fleet”; the Kremlin called it illegal. Middle East Shock to Markets: Oil jumped as US-Iran trade strikes and renewed Lebanon fighting stoked supply fears, with Brent back near $94 and gas prices also rising. EU Energy Transition Reality Check: A report argues the world is still in the fossil-fuel era, even as renewables expand fast in electricity, led by the EU and China. Gas Infrastructure Buildout: The EIA says US pipeline additions in 2026-27 total about 44.9 billion ft³/d, with most capacity coming from Texas to feed LNG and debottleneck Waha. Coal Pollution Push: US Democrats unveiled bills to curb coal mine pollution and tighten reclamation bonding for “zombie mines.” Nuclear Debate and Safety: Italy shows majority support for smaller next-gen nuclear to cut bills, while Japan began its 20th Fukushima wastewater discharge round. Local Power Costs: Ohio’s Supreme Court upheld PUCO’s decision allowing costs tied to “must-run” coal plants. Onsite Solar for Oil Ops: Sungrow commissioned a 1.4 MWp solar system at an Egypt oil facility to cut diesel use and emissions.

Nuclear Safety Under Fire: The IAEA confirmed drone damage to the exterior of a turbine building at Russia-controlled Zaporizhzhia (ZNPP), with radiation levels reported normal, while Grossi warned attacks on nuclear sites “endanger” safety principles. Ukraine–Russia Energy War: Kyiv and Moscow traded claims as Ukraine said it hit the Saratov oil refinery, a fuel depot near Matveev Kurgan, and a Lazarevo pumping station—part of a wider campaign targeting Russia’s energy infrastructure. EU Sanctions Watch: The EU is weighing a temporary freeze on its Russian oil price cap as Strait of Hormuz disruptions and falling inventories raise fuel-shortage fears. Oil Market Shock Drivers: Oil prices jumped more than 2% after Israel moved further into Lebanon, adding to volatility tied to Middle East supply risks. Fuel Pricing Moves: Bangladesh kept diesel steady for June while adjusting other fuel oil prices, and Kuwait’s electricity minister visited Az-Zour South to review power and water readiness. Grid Expansion: Kenya’s Ruto set aside Sh4.1bn to connect 17,000 Wajir homes via a Last Mile Electrification grid extension anchored by a solar hybrid plant. Energy Transition & Risk: Canada’s oil sands face renewed wildfire risk, while the US considers large Colorado oil-and-gas lease sales amid habitat and tourism concerns.

EU Sanctions Watch: The EU is considering freezing its Russian oil price cap at $44.10/bbl or pausing automatic increases after the next July review, as Middle East tensions and a Strait of Hormuz squeeze push crude higher; the bloc is also expanding its sanctions to more banks, traders, refineries and Russia-linked covert tankers, with possible limits extending to LNG shipping. Ukraine-Russia Energy Strikes: Ukraine says it hit the Rosneft-linked Saratov oil refinery and the Lazarevo pumping/dispatch station in Kirov overnight, with reports of major fires and thick smoke; Russia and Ukraine also trade claims over drone attacks tied to the Zaporizhzhia nuclear plant, while the IAEA chief warns attacks on nuclear sites are “playing with fire.” Nuclear Safety & Diplomacy: Ukraine urges IAEA governors to block Russia’s return to the board amid a new disinformation campaign over Zaporizhzhia. Gas Infrastructure: Nigeria’s NLNG Train 7 nears completion at 92% as the $5bn expansion moves into systems completion and pre-commissioning. Middle East Shipping: A South Korean tanker becomes the sixth to transit the Red Sea route since Hormuz disruptions, underscoring rerouting pressure. Market Pressure: Oil price slides and Hormuz uncertainty are feeding inflation and business confidence worries across regions.

Nuclear Security: The IAEA’s Rafael Grossi warned that attacks near nuclear sites are “like playing with fire” after a reported drone strike at Ukraine’s Zaporizhzhia plant; Rosatom says a drone hit the turbine hall of Unit 6 and caused a hole in the wall, while Ukraine denies any strike and calls it propaganda. Oil Market & Shipping: Oil prices ended the week sharply lower on US-Iran ceasefire optimism, with Brent down to $91.29 and WTI to $87.60, as traders also watched Strait of Hormuz disruption and reports that some tankers slipped through covertly. Sanctions: The US announced fresh sanctions on Iran’s oil and petrochemical networks and vessels, intensifying “maximum pressure.” Gas Infrastructure: Texas is driving a new US natural gas pipeline buildout, with over 66% of planned 2026-27 additions coming from the state. Local Energy Ops: Oklahoma will plug thousands of abandoned oil/gas wells using state funds, while SaskEnergy plans controlled gas flaring near Moosomin for maintenance. Policy & Power: India tightens rules from June 1 so households can’t hold both LPG and PNG connections at the same time.

Oil Market Watch: Crude prices slid to six-week lows as traders weighed tentative US-Iran ceasefire extension hopes and the prospect of Strait of Hormuz reopening, though analysts warn damage to infrastructure and shipping delays could keep supply tight. Middle East Sanctions: The US rolled out fresh sanctions targeting Iran’s “shadow oil economy” and petrochemical transport network, aiming to cut revenue streams tied to military activity. Ukraine Energy Attacks: Ukrainian drones struck a tanker and oil depot in Russia’s Taganrog and hit fuel infrastructure in Armavir, sparking fires but with authorities reporting no major casualties. Nuclear Cooperation: India and Kazakhstan deepened ties with a major uranium supply agreement, while Russia’s Putin said Kazakhstan’s nuclear plant financing follows standard international practice. Advanced Nuclear in the US: Texas A&M highlighted DOE approval steps for Last Energy’s PWR-5 pilot reactor at the RELLIS campus. Gas Price Pressure (India): Mumbai saw CNG jump to ₹86/kg and PNG rise by 50 paise, triggering long queues and fare-revision demands. Biofuels Policy (US): Renewable fuel credit prices hit record levels on stronger EPA biofuel mandates and widening biodiesel vs diesel cost gaps. Energy Security (Guyana): Guyana’s oil boom is set to accelerate as conflict reshapes global energy markets, raising pressure to invest windfalls beyond crude.

Strait of Hormuz & Oil Markets: Oil slid sharply as Trump said he will make a “final determination” on a preliminary US-Iran ceasefire extension, with markets betting shipping through Hormuz could reopen—yet Iran says no final deal is reached. Sanctions Pressure: The US Treasury and State Department kept “maximum pressure” on Iran’s oil trade, adding tankers, firms and traders to curb revenue for the military. Inventory Tightness: Exxon warned global inventories are nearing “unheard-of” lows, raising the risk of a fast price spike even if peace talks progress. EU Supply Watch: EU countries discussed gas and oil supply risks with no immediate EU gas shortage expected for next winter, but tighter conditions—especially for jet fuel—if Hormuz disruption drags on. Asia Impact: Japan reported crude imports down nearly 66% in April as Middle East flows fell amid Hormuz disruption. Energy Policy at Home: India ordered state fuel retailers to build LPG reserves for at least 30 days, while also suspending LPG supply to households already connected to PNG. Energy Incidents: A Bangladesh oil train derailment suspended rail links in Sylhet; in West Virginia, officials investigated a used-oil release after a valve failure at a compressor station.

Geopolitics & Oil Markets: Oil slid as reports said the US and Iran have a draft 60-day ceasefire extension, with Strait of Hormuz shipping hoped to gradually normalize—though Trump approval is still pending and traffic remains far below pre-war levels, keeping risk premiums in place. Fuel Prices: The easing global crude backdrop is expected to cut Philippines diesel by about ₱6.50–₱7.50/liter and gasoline by ₱3.50–₱4.50/liter in the June 1 adjustment. Sanctions: The US also announced fresh sanctions on Iran-linked oil and petrochemical shipping networks and vessels, aiming to choke off revenue tied to Tehran’s military. Nuclear Power: A study says floating nuclear plants using small modular reactors could help supply Greece’s non-interconnected islands and replace oil-fired generation. Power Infrastructure: Austin, Texas approved emissions limits for a new gas peaker plant, while Guam celebrated the ribbon-cutting of the Ukudu 198 MW LNG/combined-cycle facility. EU Climate Rules: The European Commission is set to delay methane penalties for oil and gas firms until 2029, citing legal and supply concerns.

Middle East Energy Shock: The US and Iran reached a tentative 60-day ceasefire extension framework that would ease the Strait of Hormuz shipping squeeze, but it still needs President Trump’s approval—oil swung from earlier gains to mixed closes as markets weigh whether peace headlines hold. Sanctions & Shipping Risk: Washington also imposed fresh sanctions on Iran’s military oil trade, targeting eight vessels and 16 companies tied to Iranian crude and petroleum flows, keeping supply fears alive. Power & Fuel Costs: Alaska’s Fairbanks faces nearly a 25% summer power-price jump as diesel use rises amid Iran-driven fuel market pressure and natural gas constraints. Grid Buildout: New Brunswick’s regulator approved a 500-MW natural gas plant to back up renewables and meet demand growth, with further environmental review pending. Nuclear Supply Chain: NANO Nuclear Energy highlighted its newly acquired STS logistics unit’s role in DOE/NNSA-aligned nuclear materials transport missions, including a major HALEU shipment. Oil & Gas Policy: California’s Cap-and-Invest hearing could reshape allowance rules, while US lawmakers push bills to force cleanup of abandoned coal mines. Business Moves: Nextpower agreed to buy Prevalon Energy to expand battery energy storage and controls, lifting its 2027 outlook.

Middle East Energy Shock: Fresh U.S. strikes on Iran near Bandar Abbas and drone interceptions have pushed Brent up about 4% to near $98 and WTI above $92, while Asian stocks slid on renewed ceasefire jitters and Strait of Hormuz disruption fears. Sanctions Evasion Watch: A Wall Street Journal report says Iran keeps selling oil via ship-to-ship transfers using a “shadow fleet,” with China allegedly helping refineries avoid extra U.S. sanctions. Ukraine–Russia Energy Targets: Ukraine again hit Russia’s Tuapse oil refinery, with fires reported, as both sides intensify long-range attacks on energy infrastructure. Shipping in the Crosshairs: Drone attacks near Türkiye’s Black Sea coast targeted three tankers in ballast, with crews reported safe. Nuclear Expansion: Russia and Kazakhstan agreed to start building the first nuclear power plant on Kazakh territory, boosting regional energy cooperation. Power Sector Moves: South Africa’s Eskom began a R1.2bn, 75MW solar plant at Lethabo; India’s Coal India says it has a 168m-ton buffer for thermal plants. Oil & Gas Policy: Nebraska approved a natural gas utility merger (Black Hills–NorthWestern), adding customer protections. Regional Support: Saudi Arabia pledged $150m in Yemen oil-derivatives to keep diesel/mazut power generation running.

Oil Market Mood: Crude slid sharply as U.S.-Iran diplomacy hopes grew, with Rubio saying talks deserve “every chance to succeed” and markets betting on a possible Strait of Hormuz reopening; Brent fell to about $95 and WTI to around $89, helping stocks hover near records. Energy Security & Trade: Germany’s SEFE agreed to buy 1mn tonnes/year of LNG from Canada’s Ksi Lisims project starting early 2030s, while Suriname’s Staatsolie said Block 52 could reach commercial oil in about 18 months. Power & Grid Buildout: 2G Energy won a multi-year deal for containerized power systems for North American data centers, and New York lawmakers are debating a potential two-year moratorium and review process for new nuclear plants. Fuels & Policy Pressure: BLM advanced a Central California oil-and-gas leasing plan despite heavy opposition, and Rajasthan’s coal project in Hasdeo Arand forest cleared an in-principle step for phased mining. Nuclear Developments: Kazakhstan confirmed active construction of the Balkhash nuclear power plant will start in 2027, and emergency siren testing is set for Pennsylvania’s Peach Bottom plant. Coal & Climate Tensions: Greenpeace Bulgaria staged a “TOXIC” action targeting the Bobov Dol coal plant, while China launched an investigation into a deadly Shanxi coal mine blast. Regional Energy Support: Saudi Arabia pledged $150m in oil derivatives to help Yemen keep diesel and mazut flowing to power stations.