Energy Update

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JERUSALEM, June 29 (Reuters) - Prime Minister Benjamin Netanyahu on Monday faced his first major coalition crisis since his re-election, with ministers withholding support for government plans for developing Israel's natural gas fields.

WASHINGTON, June 29 (Reuters) - The U.S. Supreme Court on Monday ruled that the Obama administration should have considered costs when it issued a key environmental regulation to limit emissions of mercury and other hazardous pollutants mainly from coal-fired power plants.

SANAA, June 29 (Reuters) - Houthi forces in Yemen shelled the oil refinery in the southern city of Aden on Monday for the second time in three days, an official at the facility said, hitting an empty fuel tank with a rocket.

WASHINGTON, June 29 (Reuters) - The U.S. Supreme Court on Monday rejected bids by BP Plc and Anadarko Petroleum Corp to avoid penalties under federal pollution law in connection with the 2010 Gulf of Mexico oil spill.

ANKARA/ARBIL, June 29 (Reuters) - Iraq's semi-autonomous Kurdistan region has ramped up independent oil sales since mid-June while cutting allocations to Iraq's state oil firm SOMO in an escalating dispute over export rights and budget payments.

WASHINGTON, June 29 (Reuters) - The U.S. Supreme Court on Monday rejected bids by BP Plc and Anadarko Petroleum Corp to avoid penalties under federal pollution law in connection with the 2010 Gulf of Mexico oil spill.

BASEL, Switzerland, June 29 (Reuters) - Drugmakers said on Monday they would continue to ship medicines to Greece in coming weeks, despite mounting unpaid bills, but warned supplies could be in jeopardy if Europe did not take emergency action.

* Russia offers Kiev $40 discount (Adds quotes, details, background)

LONDON, June 29 (Reuters) - British local government officials rejected a shale gas project in northwest England on Monday, dealing a blow to Britain's shale gas sector that is supported by Prime Minister David Cameron's government.

LONDON, June 29 (Reuters) - Britain said on Monday any attempt by Argentina to seize the assets of oil drillers operating in the disputed Falkand Islands would be unlawful after Buenos Aires said it would pursue a local judge's order against six firms.

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