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Sao Paulo state seeks biomethane boost

  • Spanish Market: Natural gas
  • 13/05/24

Brazil's Sao Paulo state is seeking to capitalize on growing demand for renewable energy, announcing a series of measures to increase biogas and biomethane production across various sectors, including sugarcane, waste management firms and waste agriculture.

As Brazil's largest sugar and ethanol producing state, Sao Paulo has substantial potential to leverage existing infrastructure and resources — especially vinasse, a byproduct of ethanol production — to increase biomethane output.

To boost output, the state government will streamline environmental licensing for new projects through new rules that should attract investment, according to the state's environment undersecretary for energy and mining, Marisa Barros.

The focus will initially be on the sugar and ethanol industry, which can produce 30mn m³/d of biogas. Biogas contains 50pc methane, which can be processed into biomethane, a drop-in substitute for natural gas.

The state is also seeking to attract investment in biogas production from animal waste, which can produce up to 5mn m³/d. The government estimates that roughly 190,000 farms in the state can install biodigestors to produce biogas, which would contribute to lower emissions in the state.

The state agriculture secretary also approved the use of the Sao Paulo agribusiness expansion fund (Feap) for investments in biodigestors as well as new solar power installations. And earlier this year state regulatory agency Arsesp stipulated a discount on distribution fees for biomethane sold on the wholesale market.

Brazil's energy research company EPE sees significant potential for the sugarcane industry to expand biomethane production, in part because it has the advantage of having many mills adjacent to existing gas distribution infrastructure.

In addition to selling the renewable gas on the wholesale market, many mills are using biomethane in their own operations and to substitute diesel in their trucks and machinery, contributing to lower fuel costs and emissions.


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07/07/25

Alberta, Ontario to study oil pipelines, port, rail

Alberta, Ontario to study oil pipelines, port, rail

Calgary, 7 July (Argus) — Alberta and Ontario plan to study new trade routes to boost economic activity between the two provinces and beyond, with an interest in exporting oil and gas through Hudson Bay, leaders said today. Alberta premier Danielle Smith and Ontario premier Doug Ford signed two memorandums of understanding to drive interprovincial trade and major infrastructure development, including pipelines and rail lines. The broad intent is to further connect Alberta's energy resources to Canada's most populous province, and on to foreign partners, using steel from Ontario. "Built using Ontario steel, new pipelines would connect western Canadian oil and gas to existing, and potential, new refineries in southern Ontario," said Ford during a joint press conference in Calgary, Alberta. A "potential" new deep sea port at James Bay on the south side of Hudson Bay in northern Ontario would also enable further export opportunities for land-locked Alberta, which is trying to get more pipelines built before growing oil sands production fill existing capacity. Oil and gas would need to flow across Saskatchewan and Manitoba to get to Ontario. Alberta has taken an all-of-the-above strategy in its pipeline pursuits, calling for more egress in all directions, including enhanced access to Pacific Rim markets via a 1mn b/d bitumen pipeline to British Columbia's (BC) coast. "Having access to the northwest BC coast is essential to being able to get to Asian markets, and that's the one that we hear the most enthusiasm for," said Alberta premier Danielle Smith, who expects to have some "good news" on that front in a few months. Federal regulations need to be undone: premiers Smith and Ford called on the federal government to significantly amend or outright repeal the onerous Impact Assessment Act and other legislation that has stifled investment, including the oil and gas emissions cap, Clean Electricity Regulations and the Oil Tanker Moratorium Act that currently prevents an oil pipeline to BC's northwest coast. "No one will build a pipeline to tidewaters if there is a ban on tankers," said Ford. "It is the craziest thing I've ever heard of . . . a ban on tankers." Ford is the latest premier to side with Alberta's stance on federal oversight after Saskatchewan premier Scott Moe did in June . Ford's automobile , steel and aluminum sectors have been caught in US president Donald Trump's crosshairs, spurring the premier to look elsewhere to shore up trade, including within Canada. But hostilities from south of the border are not new for Ontario, whose refining sector relies on Enbridge's 540,000 b/d Line 5 cross-border pipeline. "We have the governor of Michigan constantly threatening to close down the pipeline," said Ford. "Do you know the disaster that would create in Ontario?" To both kickstart a lagging economy and pivot away from the US, Canadian prime minister Mark Carney fast-tracked Bill C-5 through Parliament last month to allow "nation building" projects to bypass regulatory hurdles. To be considered for the new "National Interest Projects" list, a project should strengthen Canada's autonomy, provide economic benefits, have a high likelihood of completion, be in the interests of Indigenous groups, and contribute to meeting Canada's climate change objectives. "The days of relying on the United States 100pc, they're done, they're gone," said Ford. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Drilling slowdown undermines Trump’s energy dominance


07/07/25
07/07/25

Drilling slowdown undermines Trump’s energy dominance

New York, 7 July (Argus) — US shale producers expect to drill fewer wells in 2025 than they initially planned to at the start of the year, dealing a potential blow to President Donald Trump's goal of unleashing energy dominance. Almost half of the executives quizzed by the Federal Reserve Bank of Dallas in its second-quarter 2025 energy survey have scaled back their anticipated drilling in response to lower crude prices. The decline was most notable among the large operators — or those with output of at least 10,000 b/d — that now account for about 80pc of total US production, according to the bank. The anonymous survey, which gauges the pulse of the shale heartland, has become an outlet for industry insiders to vent their growing frustration at the Trump administration, and executives from exploration and production (E&P) firms offered a withering criticism of the president's tariff policies and unrelenting push for lower oil prices that have contributed to an industry-wide slowdown. "It's hard to imagine how much worse policies and DC rhetoric could have been for US E&P companies," one unidentified executive wrote. "We were promised by the administration a better environment for producers but were delivered a world that has benefited Opec to the detriment of our domestic industry." The survey found that activity contracted slightly in the three months to the end of June, with firms becoming increasingly uncertain about the outlook. "The key point from this survey release is that conditions deteriorated for companies in the oil and gas sector this quarter, with survey responses pointing to a small decline in overall activity as well as oil and gas production," Dallas Fed senior business economist Kunal Patel says. The deteriorating outlook for shale comes as the Opec+ group has stepped up efforts to unwind past output cuts, which might help it to regain market share. But the White House argues that efforts to remove permitting obstacles will help the homegrown oil industry to thrive over the longer term, bolstered by Trump's One Big Beautiful Bill that paves the way for expanded oil and gas leasing. Still, that did not stop executives in the latest Dallas Fed survey from complaining that Trump's " Liberation Day chaos " has jeopardised the sector's prospects, and recent volatility is inconsistent with the president's "Drill, baby, drill" mantra. One drew attention to calls from some within the White House for a price target of $50/bl. "Everyone should understand that $50 is not a sustainable price for oil," the executive said. "It needs to be mid-$60s." Firms were also asked about how their production would change at lower prices. A slight decline was expected if oil prices hovered around $60/bl over the next 12 months, while a significant pullback was anticipated if oil retreated as far as $50/bl. Steel yourself About a quarter of producers estimated that tariffs have increased the cost of drilling and completing a new well by as much as 6pc. And about half of the surveyed oil field services firms expect a recent increase in US steel import tariffs to result in a slight decline in customer demand in the next year. "Despite efforts to mitigate their impact, the scale and breadth of the tariffs have forced us to pass these costs on to our customers," one services firm executive wrote. "This comes... when the economics of oil and gas production are already challenged due to the dynamics of global oil supply and demand." On top of this, firms expect challenges related to the huge volumes of water produced alongside oil in the top Permian basin of west Texas and southeastern New Mexico to act as a constraint on drilling in the next five years. "Water management continues to disrupt plans and add significant costs," one executive said. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US to lay out tariff demands in coming days: Trump


04/07/25
04/07/25

US to lay out tariff demands in coming days: Trump

London, 4 July (Argus) — The US will lay out its tariff demands on foreign trade partners in the coming days, President Donald Trump said today. From tomorrow, 5 July, Trump will send letters to 10-12 countries a day, with the aim that all countries will be "fully covered" by 9 July, Trump said. That rate will not cover the amount of tariff deals still to be done by the US, which to date has struck three deals — of 10pc with the UK and China and of 20pc with Vietnam. "[The tariffs will] range in value from maybe 60pc or 70pc tariffs to 10pc and 20pc tariffs," Trump said. Countries will start paying them on 1 August, he said. Since 5 April Washington has been charging a 10pc extra tariff on imports — energy commodities and critical minerals are exceptions — from nearly every foreign trade partner, and those rates could go higher after 9 July. Trump has justified those tariffs by citing an economic emergency caused by allegedly unfair trade practices in foreign countries, and his administration is engaged in talks with foreign governments with the nominal goal of lowering their trade barriers. By Haik Gugarats and Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil real strongest to dollar since August


03/07/25
03/07/25

Brazil real strongest to dollar since August

Sao Paulo, 3 July (Argus) — The Brazilian real closed today at its strongest level since August, prompted by a weakening greenback globally. The real ended the trading session at R5.41 to the dollar at the end of the session, its strongest since 20 August, when it closed at R5.407. The Brazilian currency has strengthened by almost 5pc to the US dollar over the past 12 months, while it has been gaining ground on the greenback since late December of 2024. Brazil's central bank raised its target interest rate to the highest since July of 2006 to fight an "adverse and uncertain" global economic scenario. Back in May of this year, inflation slowed to an annual 5.32pc from 5.53pc in April, according to government statistics agency IBGE. The DXY dollar index, which tracks the greenback against six other major trading currencies, is near a three-year low, mainly on uncertainty over US president Donald Trump's shifting policies on tariffs and federal spending that have rattled financial markets. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IRA rollback to boost US natural gas demand


03/07/25
03/07/25

IRA rollback to boost US natural gas demand

New York, 3 July (Argus) — Cuts to renewable energy tax credits in the budget bill backed by President Donald Trump will likely increase demand for natural gas this decade to generate electricity, as those tax credits would otherwise subsidize the build-out of competing renewable generation infrastructure, according to analysts and industry insiders. Under the landmark bill, which was passed Thursday by the House after clearing the Senate on Tuesday, wind and solar projects only qualify for the clean energy tax credits in former president Joe Biden's Inflation Reduction Act if they begin construction within the next 12 months or are placed into service by the end of 2027. The accelerated timelines for renewable energy infrastructure "will likely slow the growth of renewable capacity," said FactSet senior energy analyst Trevor Fugita. "The legislation is likely to shift the focus from new renewable generation to new natural gas-fired generation, especially as AI data centers drive energy demand higher," he said. Toby Rice, chief executive of EQT, the second-largest US gas producer by volume, in an interview with Argus last week said the bill's effort at "slowing down some renewables could easily add another 1.5-2 Bcf/d" of US gas demand by 2030, especially as coal-fired power plants retire. "If solar and wind investments decrease, that [power] demand is not going away," said Rice, who identified the rollback of clean energy tax credits as key to the investment thesis for his company, alongside surging power demand for data centers and manufacturing and declining associated gas supply amid weak oil prices. EQT expects to produce 6-6.3 Bcf/d of natural gas equivalent this year. Under a previous House-passed version of Trump's One Big Beautiful Bill that required wind and solar projects to enter service by the end of 2027 to be eligible for IRA tax credits, Energy Aspects projected utility-scale solar installations falling from 32.9 GW in 2024 to 27.5 GW in 2027 and 20 GW by 2029. With the Senate's revised bill offering developers a "safer deadline" of alternatively securing the credits by beginning construction within 12 months of the bill's passage, the consultancy now expects a less steep downward trend through 2029, Energy Aspects head of North American power and emissions Michael Lawn told Argus . But utility-scale solar installations would have been on an upward trend through the end of the decade in the absence of the IRA rollback. Jason Grumet, chief executive of the trade group American Clean Power Association, on Tuesday lamented the Senate-passed bill's "very aggressive" 12-month phase out of clean energy tax credits, calling the bill "a step backward for American energy policy." By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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