Brent crude prices surpassed $113 per barrel for the first time since May as Middle East security concerns intensified, while Canada approved a major LNG expansion targeting Asian demand. Concurrently, Armenia appointed new leadership for its nuclear expansion company as regional energy trade remained anchored in Eurasian frameworks.
Global market
Brent crude futures climbed above $113 per barrel on the ICE exchange, gaining over 4% amid escalating Middle East conflict. Responding to long-term Asian demand, Shell and its partners approved the Final Investment Decision for LNG Canada Phase 2, doubling the facility’s capacity to 28 million tonnes per annum. To reduce vulnerability to Persian Gulf shipping disruptions, Asia will require $1 trillion annually in energy investments through 2040, according to a McKinsey report. Meanwhile, the European Union excluded Arctic oil and gas from its updated Arctic strategy, recommending that hydrocarbons remain unextracted despite soaring European winter gas prices.
Russia & CIS
Rosatom CEO Alexey Likhachev warned of a non-zero probability that the Paks II nuclear plant project in Hungary could be halted due to an absence of official communication from Budapest. On domestic supply, Russian Deputy Prime Minister Alexander Novak instructed regulators to prepare price-stabilization measures for liquefied petroleum gas, while the Energy Ministry confirmed that small-scale fuel imports will not significantly affect retail prices. In regional infrastructure, attacks damaged 98% of high-voltage electrical equipment around Energodar, putting the city on the brink of a humanitarian crisis as local authorities reported a total lack of municipal gas supplies.
Armenia
CJSC Construction of a New Nuclear Power Unit appointed a new acting director to oversee project planning for Armenia’s future atomic generation capacity. Addressing integration concerns, economic analysts noted that Armenia exiting the EAEU remains an unrealistic prospect, citing deeply intertwined trade links. Despite broader commodity market volatility, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Direct natural gas imports from Russia and generation at the Armenian Nuclear Power Plant continue uninterrupted under EAEU long-term contracts, insulating the domestic market from fluctuations tracked in international market price assessments.