In addition to strengthening its presence in Oceania, Santos confirmed the final investment decision to move forward with the Project Agogo in Papua New Guinea. The initiative will connect the Agogo production facility to the PNG LNG system via a new 19-kilometer pipeline, increasing the supply of natural gas to existing export facilities.
The company estimates that the first gas will begin flowing during the second quarter of 2028. The development includes the drilling of two new wells along with modifications to existing infrastructure to accelerate the integration of the project.
PNG LNG's existing processing and export facilities . This strategy will reduce construction costs and accelerate the project's financial return.
Santos reported that his share of capital spending amounts to about $160 million, while the gross budget is around $400 million distributed over three years.
The company projects an incremental capacity of approximately 135 million cubic feet per day of natural gas. Of that total, Santos' net share will reach approximately 54 million cubic feet per day.
Furthermore, the Australian oil company stated that the Project Agogo meets its capital allocation criteria thanks to an internal rate of return exceeding 50 percent and a payback period of less than four years from investment approval.
Kevin Gallagher, Santos' CEO, explained that the project will allow the company to transform undeveloped reserves into active production while strengthening its long-term operational profile.
According to the executive, production would remain at a plateau for approximately 12 years with operational potential beyond 2050 depending on the behavior of the field.
Meanwhile, the new pipeline will play an important role in maintaining the supply of natural gas to PNG LNG in a context of growing energy demand in Asia and Oceania.
The initiative also reinforces Santos' strategy to expand its LNG portfolio using existing assets rather than developing new export terminals from scratch.
Within the PNG LNG joint venture, Santos holds a 39.9 percent stake. The consortium also includes ExxonMobil PNG Ltd, ENEOS, Xplora Kumul Petroleum, and Mineral Resources Development Company.
The company also confirmed that the main regulatory approvals have already been obtained along with the land access agreements necessary to carry out the works.
Brett Darley, Santos' director of operations for Australia and Papua New Guinea, indicated that the immediate focus will be on completing the detailed design of the facilities, awarding construction contracts, and developing the temporary camp required for the construction phase.
At the same time, Santos assured that he will continue working with local communities and landowners through programs driven by the Santos Foundation and other active community alliances in the mountainous region of the country.
Eni and MSC Cruises successfully completed a trial of Enilive's HVO diesel on the MSC Opera cruise ship . For nearly 2,000 hours, one of the ship's engines ran on this biofuel in its pure form without any technical modifications. The trial confirmed that HVO can be used immediately in current marine engines while maintaining performance similar to that of traditional fossil fuels.
The tests also showed a 16% drop in nitrogen oxide emissions and a significant reduction in particulate matter. Furthermore, the fuel reduced greenhouse gas emissions by up to 80% compared to conventional marine diesel. The HVO used by Enilive is produced from waste products such as used cooking oils and agri-food byproducts and is already being distributed in Italian ports such as Genoa, Ravenna, and Venice.
electricity consumption records in 2026 and 2027, driven by the growth of artificial intelligence and data centers. The Energy Information Administration projects that demand will increase from 4.195 billion kilowatt-hours in 2025 to 4.379 billion in 2027. The increasing electrification of homes and businesses is also accelerating this growth, while the use of fossil fuels for heating and transportation declines.
The commercial sector will be the main driver of this growth and will surpass residential consumption for the first time in 2027. The expansion of servers for AI and cryptocurrencies is increasing pressure on power grids and energy prices. The EIA forecasts that residential rates will rise by 5% in 2026, particularly in East Coast regions. At the same time, renewable energy will continue to gain ground, reaching 27% of electricity generation in 2027, while coal will continue to lose market share.
Shell plans to sell its network of approximately 60 service stations in France as part of a strategy to focus on more profitable oil and gas businesses. According to French media, the company expects to find a buyer during the third quarter of this year and close the deal by early 2027. Although the stations operate under concession agreements with highway operators, the British oil company supplies the fuel and related services in exchange for a fee.
The French network generated more than $127 million in operating profit last year, but Shell has been adjusting its structure for some time to focus on energy production and global hydrocarbon trading. The company has also just reinforced that strategy with the acquisition of ARC Resources in Canada for $16.4 billion. The deal will expand its production and strengthen its position in the liquefied natural gas market, especially in Asia, where Shell seeks to increase its presence.
TotalEnergies and the state-owned company EGAS have signed a cooperation agreement to advance marine exploration activities off the northwest coast of Egypt . The memorandum establishes a joint framework for conducting technical studies and subsurface assessments to analyze the deep-water energy potential of this area.
The alliance aims to strengthen the relationship between the French oil company and the Egyptian government at a time when the Eastern Mediterranean is gaining importance as a strategic region for natural gas. TotalEnergies emphasized that the agreement will accelerate preliminary exploration work and expand geological knowledge of the area before defining future drilling or commercial developments.
