US to revive broad reviews of pipelines, leasing
President Joe Biden's administration is seeking to reinstate wide-ranging reviews of climate effects when federal regulators are deciding whether to authorize new oil and gas pipelines, expand federal fossil fuel leasing or make other major decisions.
The proposed changes, issued today, would formally undo a sweeping rollback to regulations under the National Environmental Policy Act (NEPA) that former president Donald Trump issued in 2020 that are not fully in effect. The move has won praise from environmentalists but revived complaints about increasing "red tape" during the construction of highways and other infrastructure.
"At a time when our country is desperately trying to build, why announce these changes now and throw states and private builders into limbo?" US Senate Environment and Public Works Committee ranking member Shelley Moore Capito (R-West Virginia) said.
Federal agencies tasked with reviewing highway projects, authorizing pipelines and managing oil leasing must take a "hard look" at the potential environmental effects by preparing reviews under NEPA. Decades of court rulings and on-the-ground implementation guide what regulators must evaluate, resulting in reviews that can take years to finish and exceed hundreds of pages for complex projects.
Trump tried to reset implementation of NEPA and focus on near-term effects, while halting the review of effects such as climate change that are geographically distant and remote in time. But many agencies have yet to implement the 2020 changes. Biden's proposal would undo the rollback, while a subsequent "Phase 2" rule would pursue broader changes.
"The basic community safeguards we are proposing to restore would help ensure that American infrastructure gets built right the first time and delivers real benefits — not harms — to people who live nearby," White House Council on Environmental Quality chair Brenda Mallory said.
The White House proposal would reinstate a requirement for federal agencies to consider direct, indirect and cumulative effects of their actions, reversing the 2020 changes that virtually eliminated the need to look into potential effects on climate change. The proposal would set baseline standards under NEPA but instruct federal agencies they could prepare more robust reviews when warranted.
The proposal is unlikely to affect the Biden administration's work on high-profile reviews where work has already started, such as reviews of the 750,000 b/d Dakota Access crude pipeline, a planned rerouting of the 540,000 b/d Line 5 crude and NGL pipeline, and a supplemental review of oil leasing within the Arctic National Wildlife Refuge in Alaska.
The $1.5 trillion bipartisan infrastructure bill, which is awaiting a final vote in the US House of Representatives, includes language to fast-track environmental reviews under NEPA for a subset of highways and other projects funded under the legislation.
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Brazilian banks, IDB plan new Amazon fund
Brazilian banks, IDB plan new Amazon fund
Sao Paulo, 26 July (Argus) — Brazil's three state-owned banks — Caixa, Banco do Brasil and development bank Bndes — and the Inter-American Development Bank (IDB) are planning to launch a new fund to finance sustainability programs in the Amazon forest, they said on Thursday. The plan is to establish an Exchange Traded Fund — to be called ETF Amazon For All — and distribute quotas before the UN Cop 30 climate summit, which will be held in Brazil's Para state, near the mouth of the Amazon, in November 2025. The fund's investment portfolio will be made up of fixed-income securities issued by the three Brazilian banks. The return offered to investors will be based on a reference index to be created. All the funds raised by the three institutions will be allocated to loans for sustainable projects in the Amazon. "This cooperation, aimed at joining efforts in favor of the Amazon's sustainable development and based on an innovative instrument in the Brazilian capital market, reinforces Bndes' commitment to the Cop 30 agenda," the bank's president Aloizio Mercadante said. The fund is "another step towards ensuring that the Amazon" lasts forever, IDB's president Ilan Goldfajn said. The announcement was made during a G20 meeting attended by finance ministers and central bank presidents in Rio de Janeiro this week. Brazil is presiding over G20 this year. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Eni confident on 2024 output, but Libya project slips
Eni confident on 2024 output, but Libya project slips
London, 26 July (Argus) — Executives at Italy's Eni are confident it will achieve the upper end of its 1.69mn-1.71mn production guidance for this year, but start-up of a key Libyan project is set to slip from 2026 into 2027. In a presentation of second-quarter earnings today, A&E Structure was one of two Libyan projects on a list of Eni's upcoming start-ups through to 2028 that will deliver some 740,000 b/d of oil equivalent (boe/d) of net production to the company. A&E Structure is a 160,000 boe/d gas development that will include some 40,000 b/d of liquids production, mainly condensate. A&E Structure is central to Libya's ability to sustain gas exports to Italy, which have dropped in recent years on a combination of rising domestic consumption and falling production. Supplies through the 775mn ft³/d Greenstream pipeline hit their lowest since the 2011 revolution in 2023, averaging 250mn ft³/d. The slide has continued since, with year-to-date volumes of around 160mn ft³/d on track for a record low. Eni's other upcoming Libyan project — the Bouri Gas Utilisation Project development that aims to capture 85mn ft³/d of gas at the 25,000 b/d offshore Bouri oil field — had already been pushed back from 2025 to 2026. For 2024 Eni expects to be "at the upper boundary of its guidance", according to chief operating officer of Natural Resources Guido Brusco. The company had a strong first half, during which output was 1.73mn boe/d — 5pc up on the year — thanks to good performance at assets in Ivory Coast, Indonesia, Congo (Brazzaville) and Libya. Brusco said Eni is in the process of starting up its 30,000 boe/d Cassiopea gas project in Italy, with first production expected next month, and the 45,000 b/d second phase of the Baleine oil project in Ivory Coast is expected to start by the end of this year. At Baleine, Brusco confirmed the two vessels to be used at phase two "will be in country in September and, building on the experience of phase one, we expect a couple of months of final integrated commissioning" before first oil. Eni also said today it would raise its dividend for 2024 by 6pc over 2023 to €1/share, and confirmed share repurchases this year of €1.6bn. It said there is potential for an additional buyback of up to €500mn, which is being evaluated this quarter. Eni's debt gearing is scheduled to fall below 20pc by the end of the year. Chief financial officer Francesco Gattei said these accelerated share buybacks would be possible if divestment deals are confirmed. By Jon Mainwaring and Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Ichthys LNG to restart liquefaction train
Australia’s Ichthys LNG to restart liquefaction train
Singapore, 26 July (Argus) — The second liquefaction train at Australia's 9.3mn t/yr Ichthys LNG export terminal plans to resume partial operations today, after going off line unexpectedly during 18-19 July, according to traders. The export facility is operated by Japanese upstream firm Inpex. Repairs at the affected train could take up to a month before it returns to full production, although the train is expected to restart by this weekend, according to market participants. Attempts to restart train two could take place by 26 July. Some delays to deliveries from the facility are expected, although there are also unconfirmed reports that up to two cargoes may have already been cancelled at the time of writing. The overall impact on the market is likely to be limited for now, with continuing weak spot demand from northeast Asian importers. Some term buyers previously requested for their deliveries to be deferred, traders said, although it is unclear just how many requests for deferment were received. But other participants have pointed out that the winter restocking season could soon start and any further impediments to train two's restart could lift prices. Recent temperatures in Japan have been higher than expected, with at least a 70pc probability of above-normal temperatures over the vast majority of the country until 23 August, according to the latest forecast issued by the Japan Meteorological Agency on 25 July. At least one Japanese utility may be considering spot purchases for August, owing to higher-than-expected power consumption because of warmer temperatures. But at least two other Japanese firms could be looking to sell a September and an October cargo each, traders said, which could indicate that the spot market is still sufficiently well-supplied to cope with additional demand from Japanese utilities. The 174,000m³ Grace Freesia departed from Ichthys on 25 July after loading an LNG cargo, according to ship tracking data from Kpler. The export terminal sold a spot cargo for loading over 2-6 June at around high-$9s/mn Btu through a tender that closed on 10 May, but further details are unclear. The US' 17.3mn t/yr Freeport export terminal also faced issues restarting since it was first taken off line on 7 July as a precautionary measure against Hurricane Beryl. The terminal loaded its first cargo on 21 July . All three trains are likely to be back on line as of 26 July, although production at the facility should still be closely monitored, traders said. By Naomi Ong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Blast furnace works cut S Korea's Posco 2Q steel output
Blast furnace works cut S Korea's Posco 2Q steel output
Singapore, 26 July (Argus) — South Korean steelmaker Posco reported lower crude steel output and sales in the second quarter because of refurbishments at its Pohang blast burnace, but a higher operating profit. Posco's crude steel production dropped to 8mn t over April-June, from 8.66mn t in the first quarter and 8.85mn t a year earlier, the company said in an earnings call on 25 July. Sales volume also dipped to 7.86mn t, from 8.23mn t in the previous quarter and 8.48mn t a year earlier. The firm's utilisation rates fell to 79.1pc in the second quarter, from 85.6pc in the first quarter and 87.3pc a year earlier. Posco began maintenance and modernisation of its No.4 blast furnace at Pohang in late April, which has a capacity of around 5.3mn t/yr. But production resumed at the end of June, raising its scrap consumption as reflected in its resumption of regular weekly purchases of Japanese scrap after a three-month halt. The group's combined steel revenue, including Posco and overseas steel facilities, stood at 15.4 trillion won ($11.1bn) in the second quarter. This was largely steady from the previous quarter but down from W16.5 trillion a year earlier. Combined steel operating profit stood at W497bn in the second quarter, up from W339bn in the first quarter, but less than half of W1 trillion a year earlier. Posco reported higher mill margins as the cost of raw materials dropped and sales price increased. But overseas upstream operations reported losses given an influx of cheap imports into the southeast Asian market and lower sales prices. Battery, other expansion plans Revenue from secondary battery unit Posco Future M fell by 20pc on the quarter and 23pc on the year to W915bn. Operating profit stood at W3bn, down from W38bn a quarter earlier and W52bn a year earlier. Posco, while citing a difficult battery materials industry over April-June, said during the earnings call that it is "closely monitoring demand fluctuations." The firm will pace its investment, but it will "not lose out" on any opportunity to invest in essential resources such as lithium whose prices have "hit rock bottom." Posco flagged the approaching US presidential election and shifting strategies of major automakers as factors that will continue affecting the EV supply chain. This was echoed by South Korean battery maker LG Energy Solution , which expects global EV market growth to come in at slightly over 20pc this year, down from 36pc a year earlier. Posco's first domestic lithium hydroxide plant, located at the Yulchon Industrial Complex in Gwangyang, with a capacity of 21,500 t/yr aims to start full operations in February 2025. It will be operated by Posco-Pilbara Lithium Solution, a joint venture between Posco and Australia's lithium miner Pilbara Minerals. The company also expects to finish building a second plant at the same location with similar capacity in September whose full operations will begin in September 2025. Its Argentinian lithium operations will have a total capacity of 50,000 t/yr in the near term, split between phase 1 and phase 2, which will start full operations in April 2025 and June 2026, respectively. Trading firm Posco International also reported that the final stage 4 expansion of its Myanmar offshore gas field will start in July, with about 4mn t/yr of By Tng Yong Li and Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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