Geopolitics and Energy Security - Europe is accused of softening its stance on Azerbaijan [1] - The alleged reason is to avoid purchasing natural gas from Russia [1]

Production & Demand - Russia's gas output declined in the first half of the year [1] - Increased domestic demand and higher exports to China could not compensate for lost flows to Europe via Ukraine [1]

Supply Strategy - Slovensky plynarensky priemysel (SPP), Slovakia's state-owned energy supplier, aims to source up to 100% of its gas needs from Russia next year [1]

Mozambican President Daniel Chapo said he expects to complete talks with TotalEnergies next month over the restart of a $20 billion gas project https://t.co/es5CesfMx1 ...

The EU assured Slovakia that it would take measures to soften the impact of a bloc-wide ban on Russian gas supplies from 2028 after Prime Minister Robert Fico demanded safeguards https://t.co/mdqMiKEfPV ...

New President Daniel Chapo sees hope for long-delayed gas projects that can transform Mozambique. https://t.co/kjvZDE05tW ...

Core Viewpoint - The EPSO-G energy group is set to enhance its responsibilities in facilitating the green energy transition, improving international interconnections, and ensuring the resilience and flexibility of the electricity system [1]. National Security - The Ministry of Energy emphasizes the importance of resilience in critical infrastructure, with plans to bolster physical and cyber protection against military and hybrid threats [2]. - EPSO-G is involved in the Lithuanian-German artillery factory project, indicating its role in national security and defense industry investments [3]. International Connections and Networks - Key projects include the Harmony Link electricity interconnection with Poland and strengthening interconnections with Latvia, as well as plans for the Baltic Hub offshore interconnection with Germany [4]. - There are expectations to increase gas flows from the Klaipėda LNG terminal to Central Europe and Ukraine, alongside developing a hydrogen network in the Nordic and Baltic regions [5]. Energy Green Transformation and System Flexibility - By 2028, Lithuania aims for at least 8 GW of electricity generation capacity from renewable sources, with EPSO-G expected to lead in integrating renewable energy and managing energy flows [7]. - The Group will assess dynamic transmission tariffs and explore long-term energy storage possibilities [7]. Financial Expectations - EPSO-G's adjusted average return on equity must meet or exceed government benchmarks, and investment returns should align with those of mature Western European economies [9]. - The Group is required to maintain an investment-grade credit rating of no lower than Baa2 and manage net debt to adjusted EBITDA ratios effectively [10]. Operational and Sustainability Principles - EPSO-G must adhere to high standards of transparency, governance, and social responsibility, following best practices as per Lithuanian laws and OECD recommendations [12]. - The Group is committed to achieving net-zero greenhouse gas emissions by 2050 and supporting the United Nations Sustainable Development Goals [13]. Company Structure - The EPSO-G Group comprises the management company EPSO-G and six subsidiaries, with the Ministry of Energy acting as the sole shareholder [14].

Market Trend - Canada LNG is the first sign of a tidal wave of new production that could transform the global gas market [1]

Project Development & Security - Mozambican government and private companies to collectively ensure security for a $20 billion gas project [1] Government & Industry Collaboration - President Daniel Chapo emphasizes the need for joint efforts between the government and private sector [1]

Market Outlook & Price Trends - Commodity oil may be topping out at current levels, with a Wall Street view to fade the move [1][2] - The market anticipates a flat futures curve for oil, suggesting a peaking out [9][11] - The oil price implicitly real is really backwardated, if you would deflate it [10] Geopolitical Risks & Supply Disruptions - Potential for conflict involving Iran poses a risk, but Iran has historically been an unreliable oil supplier [2][4] - A missile war against tankers in the Gulf is not off the table, potentially causing a super spike in price [4][5] - Physical outages have impacted Israel, with the Leviathan platform shut down by 2 BCF (billion cubic feet) a day, affecting Egypt's gas supplies [6] Refining & Investment - Volatility in the oil market is not good for equities, making it hard to capitalize on oil price [8][9] - US E&Ps (Exploration and Production companies) cut back CapEx (Capital Expenditures) preemptively with oil in the $60s [12][13] - Oil companies will generate a cash return to shareholders that's undervalued in the market over time [15]