This week in energy

Policy

The EU's ban on short-term Russian LNG contracts takes effect on 25 April, with a full prohibition on long-term LNG deals from 2027. The timing is awkward: just as the Hormuz disruption removes Qatari supply, Brussels is closing off one of the few replacement options still available to European buyers.

Corporate

Devon Energy and Coterra Energy have agreed a $58 billion all-stock merger, creating the largest independent producer in the Delaware Basin with output of roughly 1.6 million barrels of oil equivalent per day. The consolidation wave reshaping US shale continues – just as LNG exports push American gas deeper into global markets.

Data

EU gas storage sits at just 29.4% full, compared with roughly 52% at the same point last year. Europe must reach 80% by November under EU rules. With Qatari supply disrupted, rebuilding inventories this summer may become significantly more expensive.

Market

Dutch TTF gas futures surged above €60/MWh, one of the sharpest weekly moves since the 2022 energy crisis. Roughly 7 million tonnes of LNG supply disappear from the global market for every month the Gulf disruption continues.

Disruption

Bahrain's state energy company Bapco declared force majeure after strikes on energy infrastructure across the Gulf. The declaration widens the disruption beyond Qatar and reinforces the risk that the crisis becomes a broader regional supply shock.