Japan’s JAPC to extend Tokai Daini reactor safety work
Japanese nuclear power operator Japan Atomic Power (JAPC) is likely to face a delay in completion of safety reinforcement work at the Tokai Daini reactor to an unspecified date.
JAPC was required by Japan's Nuclear Regulation Authority (NRA) to modify reinforcement work of the 1,100MW Tokai Dani reactor's seawall in east Japan's Ibaraki prefecture, as its foundations were identified to have technical issues. JAPC explained to NRA its plan to fix the issues on 7 August but said it will be difficult to complete the reinforcement work by September, as previously targeted.
It is also unsure when it can resume operations at Tokai Daini. The reactor, which was built in 1978, has been closed since March 2011 when a devastating earthquake and tsunami and several subsequent nuclear meltdowns hit northeast Japan's Fukushima.
JAPC has previously postponed completion of safety reinforcement work at Tokai Daini, previously aiming for a December 2022 completion.
Japanese utility Tohoku Electric Power has also delayed a planned restart of the 825MW Onagawa No.2 nuclear reactor from September to November. It revised the fuel loading schedule for the Onagawa reactor in northeast Japan's Miyagi prefecture to September from a previously targeted July. It said it will need more time to ensure the smooth transportation of portable equipment such as water trucks needed to cool down the reactor, in case of emergencies such as earthquakes.
Delays in nuclear reactor restarts are expected to maintain demand for thermal fuels like LNG and coal. Japan's LNG consumption for power generation totalled 10.5mn t during January-March, according to trade and industry ministry data. Coal use for power generation was 27.4mn t during the period.
Related news posts
EU June manufacturing output down on year, up on month
EU June manufacturing output down on year, up on month
London, 14 August (Argus) — EU manufacturing output was much lower in June compared with a year earlier but edged higher from the previous month, preliminary data from Eurostat show. Seasonally and calendar-adjusted EU manufacturing output dropped to 99.6 against a 2021 baseline of 100, down by a significant 4.2 basis points on the year but up by 0.1 points compared with May. In more absolute terms, EU manufacturing output was down by 3.8pc from June 2023. Manufacturing production has dropped on the year for every month since July 2023 except for December. Output fell in four of the bloc's five largest economies — Germany, the Netherlands, Spain, Italy and France. Production was 4.6pc lower than a year earlier in Germany, the EU's largest economy, while only Spanish output increased ( see year-on-year graph ). Spain's economy has proved more resilient than that of any other major EU country over the past two years. Irish manufacturing data has become declassified, having previously been kept private. Ireland has a disproportionate effect on total EU data, with a weighting of 8.9pc in the 2021 baseline year. A large part of Ireland's manufacturing is performed outside the EU but counted as Irish production, with non gas-intensive sectors such as pharmaceuticals and electronics dominating. Because Irish manufacturing is based on large foreign orders performed overseas, it swings significantly from month to month, and in June was down by nearly 18pc on the year. But while Irish data are now declassified, Slovenian manufacturing data appear to be unavailable, having previously been viewable. Output was mixed across gas-intensive industries. Production in the most gas-intensive of all industries, the chemicals and chemical products sector, climbed by 5.7pc on the year, albeit from a low point of comparison. This was a fifth consecutive month of increase, as European production slowly recovers from the lows of late last year. Output in the food products and beverages, coke and refined petroleum products, and paper and paper products sectors was also up, while basic metals returned to year-on-year growth for just the second time since February 2022. The non-metallic minerals sector continued to struggle, with output down by 1.9pc on the year ( see table ). But this was the smallest decrease since August 2022, which could suggest that production is nearing the point of bottoming out. Non-metallic minerals output last grew on the year in May 2022. In the motor vehicles sector — crucial for demand of other gas-intensive goods such as glass, steel and chemicals — output was down by 3.4pc on the year, falling for a sixth consecutive month. This contrasts with 2023, when output was up on the year in every month as chip shortages eased from early 2022. In construction, a similarly important tertiary sector, the most recent data for May put EU production at 102.3 compared with a 2021 baseline, the lowest for any month since December 2022. High interest rates across the EU have increased the cost of borrowing for consumers, consequently weakening demand for large investments such as cars and houses. Eurozone manufacturing production contracted again in July, according to data compiled earlier this month . "The widely held belief that the eurozone's recovery would pick up speed in the second half of the year is taking a hit," Hamburg Commercial Bank chief economist Cyrus de la Rubia said. "We'll probably need to lower our GDP growth forecast for the year from 0.8pc." GDP growth in the eurozone was just 0.3pc in both the first and second quarters of this year, according to Eurostat. By Brendan A'Hearn EU June manufacturing output by sector Sector ±% Jun 23 ±% May 24 All manufacturing -3.8 0.1 Chemicals and chemical products 5.7 1.2 Non-metallic minerals -1.9 1.1 Food products and beverages 1.3 -1.3 Paper and paper products 5.4 -0.3 Basic metals 2.4 1.9 Coke and refined petroleum products 1.8 2.8 Motor vehicles and other transport -3.4 4.3 — Eurostat data seasonally and calendar-adjusted Percentage change in manufacturing by country, M-o-M Percentage change in manufacturing by country, Y-o-Y Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Major banks ‘far off track’ to hit climate targets: WRI
Major banks ‘far off track’ to hit climate targets: WRI
London, 14 August (Argus) — Major banks are "far off track" to meet their climate pledges, and many of their commitments are not ambitious enough, non-profit the World Resources Institute (WRI) has found. WRI assessed 25 banks in 10 countries, including the four biggest in the US — JP Morgan Chase, Wells Fargo, Citibank and Bank of America — and the world's biggest bank in terms of assets, the Industrial Commercial Bank of China. WRI analysed the institutions' net zero commitments across transparency and ambition, implementation, credibility and nature and equity. Of the 25 banks analysed, just four have a "long-term commitment to phase out or [phase] down oil and gas finance", WRI found. Most of the banks — 16 of the 25 — have committed to phase out coal financing by 2040 or earlier. Although most banks reported "green" financing — albeit using different definitions — this was often significantly lower than financing for fossil fuels, it added. If the world is to meet climate targets in line with the Paris Agreement, investment in "clean energy" must by 2030 outpace fossil fuel investments by 10:1, according to the IEA. But the banks assessed "fell far short of this mark", averaging a ratio of 1.3:1, WRI said. The WRI pointed to "significant blind spots" in banks' plans. The majority of the institutions it assessed do not have a commitment to reduce deforestation, while "high emitting sectors like shipping and real estate are barely covered", it found. Overall, banks' commitments are varied and standardisation is lacking, making comparison difficult, WRI noted. A UN-appointed group in November 2022 set out guidelines to "bring integrity to net zero commitments", while the UK in October last year issued a "gold standard" climate transition plan framework for companies and financial institutions to follow. The focus on private sector finance is intensifying, ahead of the UN Cop 29 summit, set for November in Baku, Azerbaijan. Finance will be the key topic at Cop 29, including discussions around funds to tackle climate change in developing countries. Several jurisdictions, including the EU, are clear that public climate finance will not be enough to address climate change, and that private sector finance must be mobilised. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US inflation slows to 2.9pc in July, 3-year low
US inflation slows to 2.9pc in July, 3-year low
Houston, 14 August (Argus) — US inflation slowed in July to the lowest since March 2021, a sign of decelerating pricing pressure that point to a likely cut in borrowing costs by the Federal Reserve next month. The consumer price index (CPI) slowed to an annual 2.9pc in July from 3pc in June and 3.3pc in May, the Bureau of Labor Statistics reported today. So-called core inflation, which strips out volatile food and energy prices, rose by 3.2pc in July, the smallest gain since April 2021. After the report, the CME's FedWatch tool signaled a 58.5pc probability that the Fed will cut its target rate by a quarter point in September from 47pc odds Wednesday. Probabilities of a half point cut fell to 41.5pc from 53pc the prior day, suggesting underlying signs of stubborn inflation in the details of today's report. The energy index rose by an annual 1.1pc in July, accelerating from 1pc in June, while the gasoline index contracted by 2.2pc in July compared with a 2.5pc contraction in June. Energy services rose by an annual 4.2pc, slowing from 4.3pc the prior month. Food costs rose by 2.2pc in July, matching the prior month. Shelter rose by 5.1pc in July, easing from 5.2pc the prior month. Transportation services rose by 8.8pc in July following a 9.4pc gain in June. After falling to 3.1pc in January, inflation had reaccelerated to as high as 3.5pc in March as job growth and other economic data had come in stronger than expected. That prompted the Federal Reserve to hold off on widely expected rate cuts after hiking its target rate to a 23-year high of 5.25-5.5pc in July 2023 and holding it there since, saying it needed "greater confidence" that inflation was easing to its 2pc target. The Fed, in its June policy meeting, penciled in one likely quarter-point cut this year, down from three signaled in March. But a weaker than expected employment report for July early this month had prompted an equity market downdraft last week on recession concerns and fears the Fed had been too slow to begin cutting rates. CPI rose by a seasonally adjusted 0.2pc in July after a 0.1pc gain in June. Core CPI was up by 0.2pc for the month after a monthly gain of 0.1pc in June. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Iran oil min nominee struggles for parliament approval
Iran oil min nominee struggles for parliament approval
Dubai, 14 August (Argus) — New Iranian president Masoud Pezeshkian's nominee to lead the country's critically important oil ministry is facing an uphill battle to secure a vote of confidence in parliament, largely because of the highly polarized nature of Iranian politics. Mohsen Paknejad, an oil sector veteran with close to three decades of experience in senior leadership roles in Iran's energy sector, was named as Pezeshkian's pick for oil minister early on 11 August, alongside the new president's other cabinet nominees that included former deputy foreign minister Abbas Araqchi to head up the foreign ministry and ex-central bank governor Abdolnaser Hemmati to lead the finance ministry. The response to many of Pezeshkian's cabinet nominees has been mixed, with some of the negative reaction coming notably from those who supported the new president as the sole reformist candidate in the election. Paknejad is no exception. Since his first meeting on 12 August with members of parliament, who must ultimately ratify the president's cabinet picks, Paknejad has been facing criticism from some quarters for a perceived lack of suitable experience and for the absence of a coherent plan for his proposed tenure in the oil ministry. "The nominated ministers of oil and energy appeared at a meeting of the parliament's energy commission yesterday to answer questions… [but] neither had a plan to present," energy commission member Ramezan Ali Sangdovini said on social media platform X on 13 August. There have also been objections over Paknejad's close relationship with ex-oil minister Bijan Zanganeh, who most recently served for the whole of former president Hassan Rohani's two terms in office. Zanganeh, who has had two separate stints as oil minister and one as energy minister, has become a divisive figure in Iranian politics, praised by those who favour opening up Iran's oil industry to foreign investment but reviled by those who consider outside involvement as interference. Zanganeh has also faced allegations of corruption over a gas supply contract that Iran signed with a UAE company in 2001, allegations he vehemently denies. The contract with Crescent Petroleum was to export 1bn ft³/d (10.3bn m³/yr) of gas from Iran to the UAE but the supplies never materialized and Iran was later forced to pay damages. "Zanganeh was in and around the oil ministry for more than 15 years," says one former official at state-owned oil company NIOC. "He made many friends, but also many enemies. And not just in oil circles, but also beyond." Late addition Paknejad held his most senior positions while Zanganeh was oil minister. And it is this close relationship, as well as Zanganeh's strong and public support for Pezeshkian during his election campaign, that has prompted suggestions among some parliamentarians that Paknejad's selection was ultimately Zanganeh's doing. "In terms of political and management policies, he and Zanganeh are like two faces of the same coin," energy commission member Mohammad Kaab-Omir said on X. Others think Zanganeh's role in the nomination should not be overstated. "Was Zanganeh consulted on Paknejad? That is very likely, yes. But to say it is his pick is not accurate," the former NIOC official said. In the days leading up to Pezeshkian's cabinet nominations, Paknejad was not even in the frame, according to the Iranian press, which instead touted a host of other names as likely candidates including former NIOC managing directors Masoud Karbasian and Rokneddin Javadi, former oil minister Gholamhossein Nozari and former deputy oil minister Seyed Emad Hosseini. Nozari had been a leading contender up until late last week, but pushback from the reformist camp saw him fall by the wayside, according to former NIOC officials. Hosseini was then tipped to be the final nominee, only for a last minute change of heart by Pezeshkian. The reason for the shift away from Hosseini is unclear but it could explain why Paknejad appeared so unprepared in his preliminary meetings with members of parliament. Parliament typically has a week to study the president's cabinet picks before taking a vote of confidence. The open sessions to vote on the nominees are due to begin on 17 August. At this point, the cards look stacked against Paknejad but given the role of internal politics in the vetting process, he still has time to turn it around. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more