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Environmentalists bring Nord Stream 2 permit to court

  • Market: Natural gas
  • 05/08/20

German environmental group Deutsche Umwelthilfe (DUH) has taken legal action against the country's Stralsund Mining Authority, requesting that it reconsider its decision to issue a permit for Russian state-controlled Gazprom's 55bn m³/yr Nord Stream 2 gas pipeline, otherwise it will ask for a court-issued suspension of the permit.

The group has asked the authority to review the permit, taking into account a broader view of related methane emissions. The permit — issued in January 2018 — authorised the pipeline's construction and operation in German territorial waters.

The mining authority had rejected a previous application by DUH for a review. The environmental group submitted its request to the Greifswald higher administrative court on 27 July.

If the authority does not agree to reconsider the permit, DUH is requesting that the German court suspend the permit and refer the case to the European Court of Justice (ECJ). The suspension would remain in effect until the ECJ makes a preliminary decision on whether the permit should require the determination and evaluation of additional operational emissions within its environmental impact assessment, or until the ECJ decides whether the pipeline's operation is compatible with the EU's precautionary approach to environmental risks, taking into consideration new scientific insights.

A review is required because of a "significant" upward revision of estimated methane emissions from gas production than in the mining authority's earlier environmental impact assessment, DUH said. The initial assessment — a prerequisite for the permit's approval — had only taken into account possible methane links from the pipeline itself, assessing them as non-existent along the line's German underwater route. But this does not include methane leaks from extraction, transportation and processing that are "inextricably linked" to the operation of Nord Stream 2, DUH said. The section of the pipeline located within Germany is non-operational without considering additional infrastructure, DUH said.

Related projects should be taken into account as a whole to avoid the circumvention of EU rules by splitting projects that have a significant aggregate effect on the environment into different jurisdictions, the group said.

Independent and verifiable measurement data on methane leaks for related Russian infrastructure are not available, the group said. But methane emissions from gas infrastructure are significantly higher than previously estimated, it said. Peer-reviewed studies have found that leakage from the US oil and gas production chain is 60pc higher than estimated by industry and the US Environmental Protection Agency, DUH said.

Nord Stream 2 has taken note of and will evaluate DUH's lawsuit against the mining authority, the pipeline project developer told Argus. The developer does not comment on ongoing proceedings, it said.

Construction of Nord Stream 2 is mostly complete, with little work remaining in German waters. But Switzerland-based pipelaying firm Allseas suspended works on the Danish section after the US imposed sanctions targeting firms providing pipelaying vessels for the project. Russian president Vladimir Putin said earlier this year that the pipeline could be delayed until the first quarter of 2021.

And the US has threatened further sanctions against Nord Stream's European partners that could jeopardise a timely restart to construction.

Construction in Germany has been conducted in line with permit conditions and planned environmental mitigation measures, Nord Stream 2's developer has said. The line could reduce the EU's CO2 emissions from power generation by about 14pc if its gas supplies replace coal-fired power production, it has said.


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02/04/25

Australia’s gas leaders hit out at market intervention

Australia’s gas leaders hit out at market intervention

Sydney, 2 April (Argus) — Senior figures in Australia's upstream gas sector have hit out at plans for intervention in the heavily regulated industry, as debate continues on how to best address domestic supply shortfalls later this decade. The federal Coalition in March announced National Gas Plan including a 50-100 PJ/yr (1.34bn-2.68bn m³/yr) domestic reservation system aimed at forcing the three LNG exporters based in Queensland's Gladstone to direct more supply to the eastern states' market. But oversupplying the market to drive down prices would destroy the viability of smaller gas projects, Australian independent Beach Energy's chief executive Brett Woods said at a conference in Sydney on 1 April. The domestic-focused firm, which will export some LNG volumes via its Waitsia project in 2025, warns that such a move by the Peter Dutton-led opposition would reduce export incomes while harming Australia's international reputation. The volumes impacted by the policy could reach around 900,000-1.8mn t/yr. Expropriation of developed reserves is equivalent to breaking contracts with LNG buyers and with the foreign and local investors that the country needs for ongoing economic security, Woods said on 1 April. Domestic gas reservation systems put in place by the state governments of Western Australia (WA) and Queensland, designed to keep local markets well supplied, were "clearly supportable", Woods said, but only future supply should be subject to the regulations. LNG terminals, which represent about 70pc of eastern Australia's total gas consumption and shipped 24mn t in 2024 , should not be blamed for the failure of governments to expedite new supply and plan for Australia's gas future, head of Shell Australia Cecile Wake said in response to the Coalition's proposal. Shell's QGC business supplied 15pc of its volumes to the local grid, with the remainder shipped from its 8.5mn t/yr Queensland Curtis LNG project, Wake added. Canberra has moved to promote gas use as a transition fuel to firm renewable energy in line with its 2030 emissions reduction targets, but progress has been slow as reforming laws appear to be hampering development . The state governments, particularly in gas-poor Victoria and New South Wales (NSW), must recognise the need for locally-produced supply and streamline the approvals processes, especially environmental permits, executives said. But despite pleas for an end to years of interventionist policy — including the governing Labor party's measures to cap the price of domestic gas at A$12/GJ , Australia's fractured political environment and rising cost of living has sparked largely populist responses from its leaders. A so-called "hung" parliament is likely to result from the 3 May poll , with a variety of mainly left-leaning independents representing an anti-fossil fuel agenda expected to control the balance of power in Australia's parliament. LNG debate sharpens Debate on the causes of southern Australia's gas deficit has persisted, and the ironic outcome of underinvestment in gas supply could be LNG re-imports from Gladstone to NSW, Victoria and South Australia, making fracked coal-bed methane — liquefied in Queensland and regasified — a likely higher-emissions alternative to pipeline supply. Several developers are readying for this possibility , which is considered inevitable without action to increase supply in Victoria or NSW, increase winter storages or raise north-south pipeline capacity. Australian pipeline operator APA appears to have the most to lose out of the active firms in the gas sector. APA chief executive Adam Watson this week criticised plans for imports, because relying on LNG will set the price of domestic gas at a detrimental level, raise emissions and decrease reliability of supply, Watson said. The firm is planning to increase its eastern pipeline capacity by 25pc to bring new supplies from the Bass, Surat and Beetaloo basins to market. But investment certainty is needed or Australia will risk needing to subsidise coal-fired power for longer if sufficient gas is unavailable to back up wind and solar generators with peaking power, Watson said. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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LNG stocks at Japan’s power utilities rise


02/04/25
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02/04/25

LNG stocks at Japan’s power utilities rise

Osaka, 2 April (Argus) — LNG inventories at Japan's main power utilities increased during the week to 30 March, as warmer weather reduced electricity demand for heating purposes and limited gas-fired generation. The utilities held 2.24mn t of LNG on 30 March, up by 22pc from a week earlier, according to a weekly survey by the trade and industry ministry Meti. This was higher by 51pc compared with 1.48mn t at the end of March 2024 and up by 10pc against 2.03mn t — the average end-March stocks over 2020-24. A seasonal rise in temperatures weighed on power demand, which fell by 12pc on the week to 87GW across 24-30 March, according to the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto). This resulted in a 24pc fall in gas-fired output to an average of 24GW during the period, the Occto data showed. Coal- and oil-fed generation also fell by 14pc to 23GW and by 21pc to 409MW respectively in the same period. The lower demand has created extra supplies to be sold on the wholesale market. This has weighed on day-ahead prices on the Japan Electric Power Exchange (Jepx) and worsened generation economics for the country's thermal power plants. Margins at a 58pc-efficient gas-fired unit running on oil-priced LNG supplies fell into negative territory, with the spark spread averaging at a loss of -¥2.28/kWh ($15.22/MWh) across 24-30 March, compared with the previous week's profit of ¥0.84/kWh. The 58pc spark spread using spot LNG widened the deficit, with the margin averaging at a loss of -¥3.79/kWh against the previous week's -¥0.80/kWh, based on the ANEA — the Argus assessment for spot LNG deliveries to northeast Asia. Coal remained competitive in Japan's merit order. But the dark spread of a 40pc-efficient coal-fired unit also fell by 64pc on the week to an average of ¥1.63/kWh over 24-30 March, based on Argus' spot coal and freight assessments. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Next US tariffs to take effect 'immediately'


01/04/25
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01/04/25

Next US tariffs to take effect 'immediately'

Washington, 1 April (Argus) — President Donald Trump plans to announce a sweeping batch of tariffs on Wednesday afternoon that will take effect "immediately", the White House said today. Trump will unveil his much anticipated tariff decision Wednesday at 4pm ET during a ceremony at the White House Rose Garden. While the administration has announced the effective date, there is little clarity on what goods will face tariffs at what rates and against which countries, leaving the government agencies that will be tasked with enforcing new tariffs largely in the dark. "The president has a brilliant team of advisers who have been studying these issues for decades, and we are focused on restoring the golden age of America and making America a manufacturing superpower," the White House said today, brushing off criticism from economists, industry groups and investors. Economic activity in the US manufacturing sector contracted in March as businesses braced for Trump's tariff threats. Trump has previewed or announced multiple tariff actions since taking office. The barriers in place now include a 20pc tariff on all imports from China, in effect since 4 March, and a 25pc tax on all imported steel and aluminum, in effect since 12 March. A 25pc tariff on all imported cars, trucks and auto parts, is scheduled to go into effect on 3 April, the White House confirmed today. Trump and his advisers have previewed two possible courses of action for 2 April. Trump has suggested that all major US trading partners are likely to see a broad increase in tariffs in an effort to reduce the US trade deficit and to raise more revenue for the US federal budget. But Trump separately has talked about the need for "reciprocal tariffs", contending that most foreign countries typically charge higher rates of tariffs on US exports than the US applies to imports from those countries. In that scenario, high tariffs become a negotiating tool to bring down alleged foreign barriers to US exports. Treasury secretary Scott Bessent told Fox News on Monday night that the second course is the one Trump is more likely to take. Trump will announce "reciprocal tariffs" and "everyone will have the opportunity to lower their tariffs, lower their non-tariff barriers, stop the currency manipulation" and "make the global trading system fair for American workers again", Bessent said. But the White House insisted today that the new tariffs will not be a negotiating tool. Trump is "always up for a good negotiation, but he is very much focused on fixing the wrongs of the past and showing that American workers have a fair shake", the White House said. Trump's words and actions already have drawn retaliatory tariffs from Canada and China, and the EU is preparing to implement its first batch of counter-tariffs in April. Trump, for now, has deferred his tariff plans for imported Canadian and Mexican oil and other energy commodities. But the US oil and gas sector, which depends on pipelines and foreign-flagged vessels to transport its crude, natural gas, refined products and LNG, will feel the effects of tariffs on imported steel and proposed fees on Chinese-made and owned vessels calling at US ports. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Mexican peso weakness may partially offset US tariffs


01/04/25
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01/04/25

Mexican peso weakness may partially offset US tariffs

Mexico City, 1 April (Argus) — Volatility in the peso/dollar exchange rate may help to partially offset any tariffs that US President Donald Trump decides to impose on imports from Mexico as the ensuing peso depreciation would make its exports more competitive, said analysts from US bank Barclays. President Trump will announce Wednesday his next decision related to the threat to impose a 25pc tariff against imports from its commercial partners Mexico and Canada. Trump has delayed the decision twice, and it is likely that he will do so again, given the serious repercussions the tariffs could cause to the US economy, said Latam chief economist at Barclays, Gabriel Casillas, during a webinar held Monday. The base scenario for Barclays is that Trump's administration will finally step back from imposing tariffs on Mexico and Canada and rather go for an early renegotiation of the (US Mexico Canada Free Trade Agreement (USMCA) this year, said Casillas. In this scenario, the Mexican peso would strengthen to between Ps19.5 to Ps19.00 to the greenback, he added. However, if Trump's administration decides to impose the 25pc tariffs on all Mexican imports as he has threatened to do, then the peso would weaken to Ps24/$1, said Erik Martinez, foreign exchange research Analyst at Barclays during the same webinar. "If tariffs were imposed, 25 percent on all imports, we think a good portion of this would be absorbed by the exchange rate," said Casillas. A weaker peso makes Mexican exports more competitive abroad. The Mexican peso on Tuesday was trading at around Ps20.30 to the dollar, and has weakened by 18.5pc in the past year from about Ps16.6 to the dollar a year ago. If President Claudia Sheinbaum's administration avoids the tariffs, the peso may strengthen to around Ps 19.00/$1 in upcoming days, said Martinez. If the tariffs are applied during a brief period or only for the automobile sector, the exchange rate could range between Ps21.00-22.00 per dollar, said Martinez. However, even without any tariff being applied, Mexico's economy is expected to grow only by around 0.7pc this year, less than the estimates made late in 2024 of around 1.4pc, due to the deceleration of the US economy, Mexico's main trading partner, said Casillas. The US economy is showing signs of slowing down, specially in the industrial sector, which will impact Mexico's growth for the year. Also, this uncertainty is directly affecting any upside expected from so-called nearshoring as companies would now lose interest in moving their manufacturing lines to Mexico if there is no clear benefit in using the USMCA to avoid tariffs, said Casillas. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia's OCE sees higher LNG export earnings


01/04/25
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01/04/25

Australia's OCE sees higher LNG export earnings

Sydney, 1 April (Argus) — Australia's Office of the Chief Economist (OCE) has revised up its LNG export earnings forecasts for the present fiscal year and the next, given global supply issues and higher than expected prices. Seasonal pressures — including higher winter demand in Europe owing to lower renewable energy output and an end to Russian gas flows via Ukraine — have increased prices, the OCE's Resources and Energy Quarterly (REQ) March report said. The OCE raised its expectations for the average LNG price for the fiscal year to 30 June by 10pc ( see table ), while increasing its forecast for the following year by 14pc from its previous report. Receipts predicted in 2024-25 have been forecast A$8bn ($5bn) higher to A$72bn, while 2025-26 earnings will likely reach A$66bn, up from A$60bn in December's REQ. Asian demand continues to strengthen, even with Japan and South Korean import levels likely peaking. The OCE noted LNG's growing popularity as a transport fuel in China and record-high Indian imports last year, given increased pressure on power grids. Higher prices have failed to dampen demand in southeast Asia — including Malaysia, Bangladesh, Singapore and Thailand — while Taiwan's backtracking on renewable targets, coupled with artificial intelligence (AI) and semiconductor sector growth, will increase energy demand there. Qatari and US investment in new supply will add 5pc to global export volumes in 2025, while demand witll grow by just 2.5pc, but the REQ expects this year's imports and exports will gradually balance. Greenfield projects The biggest challenge for Australian projects appears to be a lack of greenfield projects, following the expected completion of the 8mn t/yr Scarborough and 3.7mn t/yr Barossa projects in July-December 2026 and July-September 2025 respectively. The impact of these backfill operations in offsetting gradual declines at the 14.4mn t/yr North West Shelf LNG facility will have ceased by 2029-30, with exports falling by 2mn t/yr to 78mn t/yr. But oil and gas exploration spending is increasing after years of declines, the OCE said, with onshore search expenditure rising from A$190mn in July-September last year to A$285mn in October-December 2024. Offshore spending rose from A$125mn to A$178mn in the same period, indicating that higher prices are driving greater confidence. The ANEA price — the Argus assessment for spot LNG deliveries to northeast Asia — for first and second-half May were assessed at $12.96/mn Btu and $12.995/mn Btu respectively on 28 March. The ASEA price — Argus' assessment for spot LNG deliveries to southeast Asia — for the same period was $12.72/mn Btu and $12.75/mn Btu. By Tom Major Australia LNG export forecasts 2023-24 2024-25 (f) 2025-26 (f) 2026-27 (z) 2027-28 (z) 2028-29 (z) 2029-30 (z) Exports (mn t) 81 80 80 82 80 80 78 Export receipts (A$bn) 70 72 68 64 63 57 51 Mar '25 LNG export price (A$/GJ) 16.1 17.1 16.3 14.9 14.8 13.4 12.5 Dec '24 LNG export price (A$/GJ) 16.1 15.6 14.3 n/a n/a n/a n/a Export price % ± (Mar vs Dec forecasts) 0 10 14 n/a n/a n/a n/a f - forecast z - projection Source: OCE REQ Argus gas prices ($/mn Btu) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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