Appeals court upholds California LCFS again
A federal court today upheld California's Low-Carbon Fuel Standard (LCFS), turning away the latest attempt by refiners and ethanol producers to overturn the program.
A three-judge panel of the 9th US Circuit Court of Appeals unanimously dismissed the legal challenge from the American Fuels and Petrochemical Manufacturers (AFPM) and other groups, saying they had no legal ground on which to wage their fight. Previous court decisions and changes California has made to the program rendered the appeal moot, the judges said.
"To the extent plaintiffs raise new arguments on this appeal, we conclude that they are without merit," the judges said in their ruling.
AFPM, the American Trucking Associations and ethanol industry group Growth Energy had argued that the LCFS is unconstitutional because it unfairly discriminates against out-of-state crude oil and ethanol through its life cycle greenhouse gas emissions analysis, which California uses to set carbon intensity scores for fuels sold in the state.
But the court previously upheld the LCFS in 2013, dismissing similar arguments. And less than a month before holding oral arguments in the case in September, it rejected a similar challenge to Oregon's Clean Fuels Program.
Those decisions, along with the fact the California Air Resources Board amended and readopted its regulations in 2012 and 2015, left the court with little choice but to dismiss the appeal, the judges said.
Lawyers for the groups acknowledged as much during the oral arguments last year, suggesting they were likely to seek help from the full 9th Circuit or appeal to the US Supreme Court. AFPM, which was a party to the Oregon lawsuit, recently petitioned the high court to take that case. The group said it is reviewing today's decision.
The 9th Circuit previously upheld the program in 2013, saying it did not violate the Constitution's Commerce Clause, but sent the case back to a lower court to consider any unresolved issues. That court dismissed the case in 2017 year and the groups appealed that decision.
The LCFS requires a 20pc reduction in the carbon intensity of transportation fuels by 2030.
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India’s Gail seeks swap for August-loading LNG
India’s Gail seeks swap for August-loading LNG
Singapore, 3 July (Argus) — Indian state-controlled gas distributor Gail is offering a LNG cargo loading in the US in August, in exchange for a cargo for delivery to India in the same month. Gail is offering a cargo loading on 9 August from the US' 33mn t/yr Sabine Pass terminal in exchange for a 15-18 August delivery to the 5mn t/yr Dhamra terminal, through a tender that will close on 4 July. The firm was last in the market to seek a swap just last month, for the exact same delivery windows. Gail already issued this tender twice in June, but may have been unsuccessful in awarding the tender both times. Gail remains focused on issuing destination swap tenders to optimise its contracted US volumes. But falling spot prices may compel the firm to emerge for outright spot purchases in time to come. Indian state-controlled firm Gujarat State Petroleum (GSPC) likely purchased a 20-31 August delivery to the 5mn t/yr Mundra terminal at around $11.60-11.70/mn Btu, through a tender that closed on 2 July, traders said. The requirement was likely to fulfil captive demand from its subsidiary city gas supplier Gujarat Gas, they added. This transaction level is markedly lower than the previous spot transaction to India just last week. Indian state-controlled refiner BPCL purchased a delivery either on 30 July or 7, 8, 9, 11 August at around low-$12s/mn Btu, through a tender that closed on 26 June. Spot demand from India will likely fall in the weeks and months to come as the monsoon season has began in the country. More rains will increase hydropower generation, weigh on the need for additional gas-fired power generation as well as lower temperatures and reduce cooling demand, traders said. The Argus -assessed price for deliveries to India and the Middle East was last at $11.89/mn Btu for the second half of August on 2 July, about 3¢/mn Btu higher than a week earlier, but 20¢/mn Btu lower than a recent peak on 27 June. By Rou Urn Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Venezuela's Maduro open to talks with the US
Venezuela's Maduro open to talks with the US
Caracas, 2 July (Argus) — Venezuelan leader Nicolas Maduro plans to talk with US envoys on Wednesday to discuss allowing the South American country to increase oil exports in exchange for free and fair elections, he said late on Monday. But Maduro's call for dialogue comes less than a month before the 28 July election in which polls show him up to 40 percentage points behind his main challenger. It is also after the US rescinded a six-month reprieve on sanctions in April, accusing Venezuela of violating a commitment to hold a fair vote. Maduro said that the US had sought dialogue with him "for two months in a row", and, "after thinking about it, I have accepted". The head of the pro-Maduro assembly elected in 2020, Jorge Rodriguez, will represent him in the talks, Maduro said. The US State Department declined to directly confirm Maduro's statement but said that the US welcomed "dialogue in good faith, and we support the Venezuelan people's desire for competitive and inclusive elections on July 28." The US ties sanctions relief to Maduro's observing the 2023 Barbados agreement with the Venezuelan opposition, which promised to hold a competitive presidential election. The US in April reimposed sanctions against Venezuela because the Maduro government did not allow the main opposition contender, Maria Corina Machado, to run for president. Former Venezuelan diplomat Edmundo Gonzalez is the sole presidential candidate representing the opposition Unitary Platform. "We are clear-eyed that democratic change will not be easy, and certainly requires a serious commitment," the US State Department said. "This is something that we will continue to focus on when we will engage in dialogue with with a broad range of Venezuelan actors." Venezuela in recent weeks has barred an additional 10 city mayors from running for office for 15 years after they expressed support for Gonzalez, according to the CNE electoral authority and the comptroller general's office. During the first six months of 2024 Maduro has arrested 39 people connected to Gonzalez's campaign, the last one as recently as 30 June, a campaign source told Argus, using figures from Venezuelan non-governmental organizations. Police over the weekend also detained Machado for several hours while leaving a rally for Gonzalez. Venezuela's oil output increased by around 4pc in May to 911,700 b/d from 878,000 b/d in April as drilling campaigns showed results after three months of flat production, according to the oil ministry. But US sanctions are expected to keep a cap on much additional growth. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
LPG industry urged to invest to build EU credibility
LPG industry urged to invest to build EU credibility
Tapping into funding for renewable fuels is seen as key for the industry, but investment decisions must not be made in haste, writes Matt Scotland London, 2 July (Argus) — The LPG industry has been urged to work more closely with the sustainable aviation fuel (SAF) and other nascent renewable fuel sectors to establish bioLPG and renewable LPG and DME production plants as soon as possible. "It would be great if the LPG industry could embrace other renewable liquid fuels" as these often already have governmental backing and financing, Vertimass board adviser Neil Murphy told delegates at European LPG association Liquid Gas Europe's Congress in Lyon, France, over 18-20 June. US-based Vertimass aims to commercialise the conversion of ethanol into SAF, renewable diesel and renewable gasoline components. The LPG sector, in its efforts to develop renewable forms of LPG and DME, needs to move from "great intent" to the "earthiness of investment and putting plants down in the ground", Murphy said. Doing so will build credibility among policy makers, he said. But the sector was also warned about making hasty investments that turn out to be "mistakes", hurting the prospects for renewable LPG in the medium to long term. "The US saw huge failures in its early solar panel manufacturing efforts — billions of dollars were wasted. So, we can't advocate for things just to get steel in the ground, we need the steel in the ground to be successful," US start-up BioLPG LLC's chairman Kimbal Chen said. BioLPG LLC and Chicago-based research institute GTI Energy have jointly developed the "Cool LPG" process to convert biogas into bioLPG. Italian consortium Green LG Energy is adopting the technology to develop a pilot plant in Chicago and later a larger demonstration facility in Italy, chief executive Francesco Franchi told delegates. The Chicago facility could open before the end of this year and the Italian plant within the next two years. Once operational, the latter will "show policy makers and stakeholders that we can produce bioLPG, allowing us to secure funding and support to develop an industrial-scale plant", he said. Credibility was a core theme of the conference in Lyon as the industry continues to work to enshrine LPG and renewable alternatives in EU and national legislation. The question the sector needs to ask itself is how to make its proposals and voice credible to EU policy makers after the recent European Parliament elections, LGE president Audrey Galland said. France could play a vital role, as despite having a 10pc share of the European LPG market, it has a strong voice in Brussels, according to French LPG association FGL president Julie de Fazio. A growing recognition that electrification of heating will not be suitable in most rural areas, and that rural customers want to decarbonise, should benefit the LPG sector, she said. But it still needs "financial incentives and mandates" that encourage investment in renewable liquid gases, she said. Hearing the possibility for mandates in a positive rather than restrictive sense was "music to my ears", renewable DME company Dimeta's advocacy director Sophia Haywood said. Combining supportive mandates for renewable liquid gases at the same time as financial incentivisation could be key to unlocking growth, she said. Pragmatic shift? The recent parliamentary election could be a boon for the LPG industry, according to former EU MEP and UK member of the regulatory policy committee Daniel Dalton. The shift in power from centre-left to centre-right should result in "more pragmatic energy policy" that benefits the LPG sector, he told delegates. And the ascent of the cost-of-living and energy security issues up the EU's agenda should also lead to a "watering down of the hard edges" when it comes to the paths to meeting the EU's bold targets under its Green Deal. "You as an industry are well placed" in assisting the EU in its efforts to enhance energy security and lower energy costs, while also moving towards decarbonised renewable liquid gases, he said. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK bitumen production at highest since July 2021
UK bitumen production at highest since July 2021
London, 2 July (Argus) — UK bitumen production in April hit its highest in nearly three years even though there is only one remaining bitumen-producing refinery in the country, in Eastham. The UK government's latest provisional data showed production at 68,000t in April, up by 7pc compared with the same month last year. Bitumen production declined overall last year by 147,000t on the year to just 373,000t, the lowest since records began in 1995, after UK energy company Prax Group ceased all bitumen production at its Lindsey refinery in the northeast of England in early 2023. In January-April this year, the UK produced 77,000t of bitumen, a decrease of 10,000t from the same period last year. UK consumption in April was at 122,000t, up 7,000t since the other refineries in the UK closed by April 2023. With the UK's general election taking place on 4 July, parties have made promises which could support bitumen consumption. The UK government this year committed £8.3bn ($10.52bn) to fill potholes and resurface roads by 2034, and the UK opposition party Labour last month pledged to keep this plan in place if elected while additionally funding councils £320m over five year by deferring the planned A27 Arundel bypass works in Sussex. Asphalt Industry Alliance (AIA) in March 2024 published a report stating that the total number of potholes filled in 2022 was 1.4mn, down from 1.7mn in 2021 and the equivalent of one every 22 seconds. Spending on pothole repairs fell to £93.7mn last year from £107.4mn in 2021. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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