Hedge Fund Claims Clean Energy Sector Is “Dead for Now”
There is currently no money to be made from things like wind and solar, a hedge fund set up specifically to profit from that niche has concluded. “The whole sector — solar, wind, hydrogen, fuel cells — anything clean is dead for now,” Nishant Gupta, the founder of the UK-based fund, Kanou Capital, told Bloomberg, hours after one of the largest solar energy players in the U.S. warned it has doubts about its state as a going concern. “The fundamentals are very poor,” Gupta, who manages some $100 million, told Bloomberg, adding “I’m not talking about long term. I’m talking about where I see weakness right now.” The hedge fund executive added, however, that the long-term outlook for the transition remains bullish, with investments in transition technology expected to increase substantially by the end of the decade. “Energy transition–related investments are expected to increase from around $1.8 trillion per year to $5–to-$6 trillion by the end of the decade,” Gupta told Bloomberg. “With roughly a third of that spending directed toward the supply chain, we’re highly focused on identifying supply-chain bottlenecks as core investment opportunities.” The energy transition, hailed as both inevitable and profitable, has run into trouble over the past three years for reasons ranging from the energy crunch that began in Europe in the autumn of 2021 to higher interest rates following the fallout of the pandemic lockdowns, and supply chain snags resulting from ambitious generation capacity targets adopted by various pro-transition governments. Wind and solar have recently become a lot less profitable also because of declining subsidies as governments find that they cannot keep supporting their selected champion industries indefinitely. The return of Donald Trump to the White House has also contributed to the increasingly negative outlook for transition industries specifically in the United States.
Mexico’s Energy Sector Poised for Private Investment Revival
After six years of energy nationalisation under former President Andrés Manuel López Obrador (AMLO), the new President Claudia Sheinbaum administration is expected to once again welcome more private companies into Mexico’s energy sector. While Sheinbaum plans to maintain some of AMLO’s nationalisation policies, she is expected to allow greater participation from foreign companies in both fossil fuels and renewables, to diversify the country’s energy mix and boost energy security. President Sheinbaum came into power in Mexico in October as the leader of the Morena Party, which was voted in for a second term. In November, the government launched a new National Electricity Strategy, part of the National Energy Plan 2025-2030, which established rules to allow private companies to add up to an additional 9.6 GW from renewable sources by 2030. The new framework permits 46 percent of electricity generation to come from private investments. At the end of January, Sheinbaum sent a draft energy reform to Congress, which aims to accelerate the energy transition and improve access to energy, partially by allowing greater private sector investment in the sector. The Senate approved the reform on the 26th of February with 85 votes in favour, 39 against, and one abstention. The law allows for new partnerships between private companies and Mexico’s state-owned utility Federal Electricity Commission (CFE) and national oil company Pemex, but only when the state holds a majority stake. The legislation states that at least 54% of all electricity supplied to the national grid must be provided by the CFE. The state-owned firm currently generates 57% of Mexico’s electricity. It is uncertain whether electricity produced by privately owned plants and sold to CFE will count towards CFE’s share or that of the private sector. In terms of oil and gas, under the law, Pemex will no longer need to undergo a bidding process overseen by an independent regulator to migrate existing agreements to mixed participation contracts. It is worth noting that Pemex remains one of the most indebted oil companies in the world, with a debt of around $5.1 billion. The state-owned oil company has also had various safety failures in recent years. Pemex’s poor financial situation and safety concerns have led to a distrust of the company at the international level, which could make it difficult to foster public-private relationships. Through the new legislation, Sheinbaum aims to ensure Mexico’s energy sovereignty and move away from former President Peña Nieto’s 2013 privatisation reform. However, she appears to be far more open to private participation in the energy sector than her predecessor AMLO, who sought to close Mexico’s energy sector off almost entirely from foreign investment. The legislation is expected to provide clear rules for private companies seeking to operate in the market. Fluvio Ruiz Alarcón, a former Pemex board member stated, “The overall design is positive.” Ruiz added, “It is still early days, but they are on the right track. They will give more coherence to the sector by aligning legislation with institutional design and with energy policy. It gives more certainty and clarity to investors, which wasn’t there before.” While Sheinbaum has generally continued on the same track as AMLO in terms of energy reform, the president has been more favourable about renewable energy. AMLO focused primarily on the expansion of Mexico’s oil and gas industry to ensure the country’s energy security, greatly overlooking the vast renewable energy potential. By contrast, Sheinbaum said in January that the government aimed to add 27 GW of power generation capacity between 2025 to 2030, with a large proportion coming from renewable energy sources. Sheinbaum vowed to expand renewable energy to 45 percent of total power generation by 2030, compared to around 24 percent in 2022. While the new reform shows promise for greater private sector participation, some government decisions in recent months have left private investors uncertain about their role in the sector. In October, Sheinbaum signed a constitutional reform to alter the legal status of the CFE and Pemex, thereby making them “public companies” rather than “productive state companies”. This means that third parties will not be permitted to supply power transmission and distribution services. Then, in November, Mexico’s Senate approved a constitutional reform dissolving the Energy Regulatory Commission (CRE) and National Hydrocarbons Commission (CNH), combining them within the government Energy Ministry (Sener). This will lead to seven autonomous agencies being dissolved in 2025. Private companies are concerned about what that means for them when partnering on energy projects, as they must work with government-controlled agencies rather than autonomous industry regulators going forward. Mexico’s President Sheinbaum has begun to transform the country’s energy sector since coming into office in October, with new reforms opening the doors to renewable energy production and greater privatisation. While the role of foreign companies in Mexico is still expected to be limited, as state actors continue to dominate the country’s energy sector, the new law paves the way for more public-private partnerships and supports greater energy diversification.
Reliance Industries says petroleum ministry raised $2.81 billion demand in gas migration dispute case
The Ministry of Petroleum and Natural Gas has issued a demand for $2.81 billion to Reliance Industries Limited (RIL) and its consortium partners – BP Exploration (Alpha) Limited and NIKO (NECO) Limited – over a long-standing dispute regarding gas migration from ONGC’s blocks to the KG-D6 block, RIL said on Tuesday. The claim stems from a case dating back to 2018, when the Government of India (GOI) had raised allegations against the KG-D6 Consortium, which includes RIL, for allegedly causing gas to migrate from ONGC’s neighboring blocks. The Ministry had initially sought compensation of around $1.55 billion in relation to the supposed migration. This legal dispute was further complicated by a series of judicial proceedings, with the case reaching the Delhi High Court. In May 2023, a single judge bench of the Delhi High Court had dismissed the GOI’s appeal challenging an arbitral award in favor of RIL. However, following the government’s appeal to a Division Bench, the court reversed the earlier ruling in a judgment delivered on March 3, 2025. As a result of this reversal, the Ministry of Petroleum and Natural Gas has now raised a demand for $2.81 billion, citing the updated legal developments and the revised assessment of the gas migration issue.
U.S. Sanctions, Not Demand, Behind Weak Start for Asian Oil Imports
Weaker-than-expected oil flows to Asia have led to some questioning the validity of oil demand forecasts for the year. Imports have indeed been 780,000 bpd lower in January and February than a year ago—yet it has already been an eventful year. Anything might happen yet—including even more bearish things for oil. The 780,000 bpd figure comes from LSEG Oil Research, as reported by Reuters’ Clyde Russell. The decline put the average daily intake of oil in Asia at 26.17 million barrels. Unsurprisingly, it was China that drove the decline, with its crude imports falling by a sizable 840,000 barrels daily over the first two months of 2025. The total daily average stood at 10.42 million barrels, down from 11.26 million barrels over the first two months of 2024. The trend chimes in with reports about Chinese refiners slashing their run rates due to the end of cheap Russian crude, as reported last month. The cause of the price rise: the Biden administration’s last sanction package against Russia’s oil industry. The Biden Administration’s farewell sanctions on Russian oil trade and shadow fleet crippled the supply of ESPO crude, which is shipped from the Far Eastern Russian port of Kozmino. ESPO has been a favorite with Chinese refiners, but the scores of oil tankers sanctioned by the U.S. slashed the availability of non-sanctioned tankers to ship the crude to China. With the cost of procuring ESPO going up, run rates at independent refineries have gone down. However, this might change because Russia has reportedly started to reshuffle tankers to prioritize shipments to China. Aframax tankers that serviced crude exports from Russia’s western ports are now being redirected to the Russian Far East-China route to service the exports of ESPO crude. The above is according to Bloomberg and suggests that it is not demand for oil that is the problem in Asia but rather complications around securing affordable supply. Indeed, an earlier report by Reuters suggested that Chinese oil imports from Russia—and from Iran—were set for a rebound as the tanker market adjusted to the new challenges. The adjustment involved as many as 11 tankers that haven’t been sanctioned by the U.S. that have recently joined the oil delivery route from Russia to China, including vessels that have previously carried Russian oil to India, according to LSEG data cited by Reuters. That followed a surge in freight rates resulting from the last Biden sanctions against Russia. This, too, suggests that demand for crude oil in Asia is not really an issue—access to supply is the issue. Indeed, while analysts ponder whether China’s oil demand growth has already peaked, one of the world’s largest energy traders recently predicted that global oil demand will remain at current levels until at least 2040. According to Vitol, long-term oil demand will remain stable at around 105 million barrels daily, even as the drivers behind this growth change. The trading major expects gasoline demand to decline but demand from the petrochemicals industry to rise, offsetting the decline. Over the shorter term, China will continue to be among the chief drivers of oil demand growth despite the weak start of the year, seeing as the causes of that weak start have nothing to do with organic oil demand. Its contribution to global oil demand growth, however, is going to be smaller, as the pace of demand growth moderates. In the years to 2020, China accounted for some 60% of global oil demand growth, according to the International Energy Agency. This decade, this contribution is seen by the IEA declining to 19%. Yet others in Asia are going to replace China with fast demand growth. India is expected to account for 25% of global oil demand growth this year, the U.S. Energy Information Agency said in December, estimating the rate of oil demand growth at 330,000 barrels per day. Estimates also say that India’s gas consumption could double by 2040 and triple by 2050. So, with India, forecasters see both a strong 2025 and a strong long-term trend in oil demand growth. All this suggests that the weak start to the year in Asian imports of crude oil may well be a glitch, driven by the former U.S. administration’s foreign policy rather than any fundamental factor. The new administration, meanwhile, is making an effort to drive demand for oil higher—including by ending the war in Ukraine and clearing the way for freer Russian oil exports once U.S. sanctions are lifted. Should this scenario play out, it is quite likely that bearish oil demand forecasts will change significantly, as they tend to do when fundamentals point to stronger, not weaker demand ahead. After all, even the IEA has had to repeatedly adjust its forecast numbers because demand kept surprising it to the upside.
Petroleum regulator firms up new guidelines for transporting petroleum products by road
India’s Petroleum and Natural Gas Regulatory Board has issued fresh guidelines on transporting petroleum products by road in the wake of recent tragic accidents involving trucks carrying liquified petroleum gas, or LPG. The regulator has prohibited transporting petroleum products by road at night and mandated quarterly safety checks of vehicles to ensure that all safety fittings are installed, maintained and tested, as per its regulations. PNGRB suggested avoiding roads to transport bulk petroleum products over long distances and using pipelines or railway rakes instead. It added that spare pipeline capacity of oil marketing companies be utilized under product sharing or as common carriers to transport petroleum products. On 10 December, the regulator proposed developing nine LPG pipelines with a cumulative length of 3,470 km to connect 50 bottling plants with ports and refineries. “In view of the recent road incident involving the transportation of LPG in tank truck resulting in several casualties and injuries, PNGRB has reviewed the relevant existing statutory rules/regulations, contractual obligations between the entity and transporter, existing practices, etc.,” the regulator said in a recent notification. “While deciding the mode of travel, commerciality should not be the only consideration. Public safety is also an important consideration, particularly when the travel is over long distance and through congested areas,” PNGRB added. The board has asked oil marketing companies to develop comprehensive journey management plans covering aspects such as authorized stops along a particular route, sensitising drivers and crews on black spots and accident-prone areas, emergency actions to be taken in case of accidents, weather forecast for the route.
Anglo-Eastern sets up LNG/ammonia bunkering station skid for maritime training
Ship management services provider Anglo-Eastern has established a new LNG/ammonia bunkering station skid to provide hands-on training in safe and efficient fueling of LNG- and ammonia-powered vessels. The skid was set up at Anglo-Eastern Maritime Academy (AEMA) in Mumbai, India, and inaugurated on February 20, 2025, to offer real-world experience to industry professionals working with these fuel types, Anglo-Eastern said. As explained, the skid is equipped with the latest cryogenic fuelling technology and safety systems, providing a controlled environment for training in LNG and ammonia transfer operations, emergency response procedures, and regulatory compliance, and replicating real-world bunkering operations. Aalok Sharma, Group Director of Training at Anglo-Eastern, said: “We are thrilled to introduce this LNG/Ammonia bunkering station skid as part of our commitment to shaping the future of maritime fuel safety and efficiency. As the industry transitions toward sustainable fuels, the need for well-trained professionals has never been greater. This new facility will equip maritime personnel with the knowledge and hands-on experience required to meet the challenges of LNG and ammonia bunkering.” Additionally, the company has added the Anglo-Eastern MAN PrimeServ training facility at Anglo-Eastern Maritime Training Centre (AEMTC Mumbai), built for Mk 2 ME-GI engines. The new facility is capable of demonstrating important aspects of engine operations and correct procedures for carrying out maintenance and safe operation of ME-GI engines onboard.
GreenLine expands LNG network in India
GreenLine Mobility Solutions is expanding its LNG fuel station network in India, going from three to 10 outlets this year. The Indian transport solutions company also aims to reach 1,000 LNG-powered trucks by the end of this year, doubling the current amount. Founded in 2021, GreenLine Mobility Solutions – an Essar Group subsidiary – brings liquefied natural gas (LNG) and compressed natural gas (CNG) to corporations in off-gas-grid locations. LNG and CNG As a leader in the green logistics space, the company’s mission is to help make transportation in India sustainable, and it does so by offering LNG and CNG as eco-friendly alternatives to mainstream fossil fuels like petrol and diesel. GreenLine’s own fleet of LNG-powered trucks allows Indian companies to pursue the decarbonization of their trucking fleets. By expanding its network of LNG fuel stations, the company adds a crucial lever to its strategy, allowing more companies to transform their fleet, reduce emissions, and uncouple from the reliance on mainstream fossil fuels.
India emerges as world’s 3rd largest biofuel producer: Hardeep Puri
India has emerged as the world’s third-largest biofuel producer, driving the shift toward cleaner, renewable energy, Minister of Petroleum and Natural Gas, Hardeep Singh Puri, said on Monday. In a post on X, Puri highlighted that India has achieved 19.6% ethanol blending in petrol as of January and is on track to reach 20% very soon, five years ahead of its original 2030 target. This rapid progress is expected to reduce fuel imports and cut emissions. “From the quiet town of Digboi to the world’s top energy markets, India’s petroleum journey is a story of resilience & progress, guided by the visionary leadership of Prime Minister Narendra Modi,” Puri said. Over the last decade, ethanol blending has contributed significantly to rural economic growth, increasing farmers’ incomes and creating jobs while reducing CO2 emissions, equivalent to planting 175 million trees, according to official estimates. The initiative has also saved the country Rs. 850 billion in foreign exchange. Public sector oil marketing companies (OMCs) like Indian Oil, Bharat Petroleum, and Hindustan Petroleum have introduced various ethanol-petrol blends nationwide and signed agreements with 131 ethanol plants, which are set to add an annual production capacity of 7.45 billion litres. OMCs are also ramping up storage and infrastructure to handle higher ethanol blending percentages. Puri also noted that Ethanol 100 (E100) fuel is now available at over 400 outlets nationwide. The petroleum minister had launched the high-octane E100 fuel at 183 Indian Oil outlets in March 2024. According to Indian Oil, with an octane rating of 100-105, Ethanol 100 is ideal for high-performance engines. It improves efficiency and power output while environmental impact. E100 can be used in a wide range of vehicles, particularly flex-fuel vehicles capable of running on gasoline, ethanol, or a blend of both. India has also become the fourth-largest in the world in LNG terminal capacity, ensuring stable energy supplies, Puri said. He further noted that the country holds the fourth-largest global refining capacity and ranks as the seventh-largest exporter of refined petroleum products.