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Guaido builds up exile state, vows to persevere

  • Market: Crude oil, Electricity, Oil products
  • 23/07/19

Venezuela's opposition leader Juan Guaido promised further appointments to his parallel administration intended to take the reins of government once President Nicolas Maduro leaves office.

Speaking before a seated audience of local and international supporters on the six-month anniversary of his putative interim presidency, Guaido dismissed "magic solutions" and called on Venezuelans to stay the course to prevent the country's political and economic crisis from turning into a "catastrophe".

The event, which doubled as a session of the opposition-led National Assembly over which Guaido presides, took place in a square in opposition-friendly eastern Caracas.

At today's open-air session, the National Assembly deputies approved a resolution to resurrect Venezuela's participation in the 1947 Inter-American Treaty of Reciprocal Assistance, a symbolic move intended to invoke regional cooperation for a political transition.

Guaido is recognized by dozens of western countries, including the US and Latin America's Lima Group that is meeting today in Buenos Aires. But his popular support is starting to wane after a failed aid campaign in February and a botched military uprising in April.

Guaido called for more UN cooperation and international "mediation", a term he uses to describe controversial Norwegian-sponsored negotiations with the government that are underway in Barbados. He promised impending appointments for the controller's office and the health sector, and called for more countries to establish registries of the growing diaspora.

The assembly has previously approved the appointments of shadow attorney general, security chief and the boards of national oil company PdV and its overseas subsidiary Citgo. But an approved central bank board apparently fell apart late last week after one of the appointments, respected former central bank president Ruth Krivoy, backed out. None of the appointees, who are in exile, has power inside Venezuela, as Maduro still controls all governing institutions.

In another symbolic move earlier today, Guaido issued a decree guaranteeing that Chevron will not lose its assets if the US government declines to extend a sanctions waiver to operate in Venezuela that expires on 27 July.

An expiry would constitute a "force majeure event that could temporarily suspend Chevron's activities in Venezuela, but in no case would that permit the illegitimate regime of Nicolas Maduro to take control or expropriate those assets," the decree states. "When the temporary suspension ceases, all measures will be adopted to allow Chevron and its subsidiaries to resume activities."

Lights out on Guaido

Most Venezuelans could not see or hear Guaido's lengthy speech today because of a blackout that started yesterday afternoon.

Power began returning to Caracas and other areas after midnight, but for most of Venezuela the restoration was short-lived, if it came at all. Schools, businesses and government offices were ordered closed today as the government copes with the latest near-nationwide outage.

Among the affected states are Falcon, Monagas, Anzoategui and Zulia, which encompass PdV's key oil-producing and refining assets. The company relies on the fragile national power grid for most of its operations.

The government blamed the blackout, the fifth since 7 March, on an "electromagnetic attack".

Electricity ministry and state-owned Corpoelec officials say privately that the blackout appears to have been caused by another breakdown of the 765kV transmission system that connects the 10GW Guri hydroelectric complex to the rest of the country.


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08/05/25

Trump to grant partial tariff relief to UK

Trump to grant partial tariff relief to UK

Washington, 8 May (Argus) — The US will carve out import quotas for UK-produced cars and, eventually, reduce tariffs on UK steel and aluminum, under a preliminary deal US president Donald Trump and UK prime minister Keir Starmer announced today. The Trump administration will allow UK car manufacturers to export 100,000 cars to the US at a 10pc tariff rate, instead of the 25pc tariff to which all foreign auto imports are subject. The US and the UK will negotiate a "trading union" on steel and aluminum that will harmonize supply chains, US commerce secretary Howard Lutnick said. The US commended the UK government on taking control of Chinese-owned steelmaker British Steel last month. As a result of that action, under yet to be negotiated arrangements, the US would reconsider the UK's inclusion in its 25pc tariffs on steel and aluminum, the White House said. Starmer, speaking after the ceremony, told reporters that US tariffs on the UK-sourced steel and aluminum would, in fact, fall to zero. Trump announced the deal during a ceremony at the White House, with Starmer phoning in. The two leaders suggested that their preliminary deal was as significant as the end of World War II in Europe, 80 years ago. But that deal, which Trump described as "full and comprehensive" hours before its announcement is anything but that. Under the "US-UK Agreement in Principle to negotiate an Economic Prosperity Deal", the US will maintain the 10pc baseline tariff on nearly all imports from the UK that went into effect on 5 April, Trump said. The UK, Trump said, would lower the effective rate on US imports to 1.8pc from 5.1pc. The actual details of the agreement are yet to be negotiated. "The final deal is being written up" in the coming weeks, Trump said, adding that it was "very conclusive". Boeing, beef and biofuel The UK would commit to buying $10bn worth of Boeing airplanes, Trump said. He described the UK market as "closed" to US beef, ethanol and many other products, and said that the UK agreed to open its agricultural markets as a result of his deal. US ethanol exports to the UK, in fact, rose by 23pc year-on-year in March. Under the deal, the UK would expand market access to US ethanol, creating $500mn more in US exports, the White House said. The UK will reduce to zero the tariff on US-sourced ethanol, the UK Department of Business said, adding that "it is used to produce beer". Trump previewed the preliminary deal with the UK as the first of the many trade agreements the US administration is negotiating with many other countries. Trump contended today that there are trade talks underway with the EU and expressed confidence that the US-China trade discussions expected over the weekend would produce results. But Trump added that he will not lower the high tariffs on imports from nearly every US trade partner he imposed last month and described the UK's 10pc tariff rate as a favor to that country. 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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Sonatrach Augusta refinery restart extends into May


08/05/25
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08/05/25

Sonatrach Augusta refinery restart extends into May

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Japan’s Erex to build biomass power plant in Cambodia


08/05/25
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08/05/25

Japan’s Erex to build biomass power plant in Cambodia

Tokyo, 8 May (Argus) — Japanese renewable energy developer Erex aims to start constructing a 50MW biomass-fired power plant in Cambodia in mid-2025, the company told Argus today. The plant in southern Cambodia's Kampong Speu province will be the first biomass-fired power project for Erex in the country. It is scheduled to start commercial operations in the 2027-28 fiscal year, and will burn domestic wood chips and agricultural residues to generate around 350 GWh/yr. The Cambodian government will purchase all the electricity generated at the plant for 25 years after its start-up. Erex plans to build up to five biomass-fired power plants which will burn domestic biomass fuels, as well as several wood pellet factories in Cambodia. The government expects these projects to raise the country's energy security. Erex on 23 April began commercial operations at the 20MW Hau Giang biomass-fired power plant in southern Vietnam, its first biomass-fired power project in the country. Erex aims to construct up to 18 biomass-fired power plants in Vietnam, following Hau Giang. The company has already started constructing two 50MW plants in northern Vietnam. Erex also started wood pellet production at its first factory in Vietnam in March, with a capacity of 150,000 t/yr. The company plans to build up to 20 wood pellet factories in the country. Erex's profits from projects in Vietnam and Cambodia are expected to grow rapidly and could account for more than half of its total profits by around 2030, according to the company, and the projects would also contribute to both countries' decarbonisation efforts. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australian renewable projects gain power grid access


08/05/25
News
08/05/25

Australian renewable projects gain power grid access

Sydney, 8 May (Argus) — A total of 10 renewable energy projects have been granted access to a power grid in New South Wales (NSW), Australia, to avoid over 10mn t/yr of CO2 equivalent (CO2e) of emissions by 2031, the NSW state government said today. The 10 private solar, wind and battery storage projects will connect to the Central-West Orana Renewable Energy Zone (REZ) , a 20,000 km² area about 400 km west of state capital Sydney that will avoid 10.29mn t/yr of carbon emissions, according to the state's energy minister. Construction of the 240 km transmission line connecting the renewable energy projects to the national electricity market will start in mid-2025 and is estimated to cost A$3.2bn ($2.1bn). The 10 projects will provide total renewable energy and storage capacity of 7.15 GW, capable of powering over half the households in NSW by 2031. The Central-West Orana REZ is expected to be completed by December 2028 and is part of the NSW's transition to renewable energy. The REZ is expected to generate 15,000 GWh/yr of energy when fully operational, around 5pc of the total 273,000 GWh generated in the country in 2023, according to the Australian Department of Environment. The REZ improves the state's chances of meeting its target of reducing emissions by 50pc from 2005 levels by 2030 through lowering its reliance on coal-fired generation, which accounted for 70pc of fuel used in NSW in May 2024-April 2025. Australia's largest coal-fired power station Origin's 2,880 MW Eraring provides 18pc of the state's electricity and will close in August 2027, around a year before the expected completion of the Central West Orana REZ project. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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IMO GHG pricing falls short on green methanol, ammonia


07/05/25
News
07/05/25

IMO GHG pricing falls short on green methanol, ammonia

New York, 7 May (Argus) — The International Maritime Organization's (IMO) proposed global greenhouse gas (GHG) pricing mechanism might not drive significant uptake of green methanol and green ammonia by 2035, given current market prices. Despite introducing penalties on high-emission fuels use and tradable surplus credits for low-emission fuels, the mechanism does not sufficiently close the cost gap for green alternatives. Under the system, starting in 2028 ship operators will face a two-tier penalty: $100/t CO₂e for emissions between the base and direct GHG intensity limit, and $380/t CO₂e for those exceeding the looser base limit. These thresholds will tighten annually through 2035. Ship operators can earn tradable credits for overcompliance when their GHG emissions fall below the direct limit. Assuming a surplus CO₂e credit value of $72/t — mirroring April 2025's average EU emissions trading system price — green ammonia would earn about $215/t in surplus credits in 2028 (see chart) . This barely offsets its April spot price of $2,830/t VLSFO equivalent in northwest Europe. Bio-methanol would receive about $175/t in credits, offering minimal relief on its $2,318/t April spot price. Currently, unsubsidized northwest Europe bio-LNG sits mid-range among bunker fuel options under IMO's emissions framework. While more expensive than HSFO, grey LNG, and B30 bioblends, the bio-LNG is cheaper than B100 (pure used cooking oil methyl ester), green ammonia, and bio-methanol. To become cost-competitive with unsubsidized bio-LNG — priced at $1,185/t in April 2025 — green ammonia and bio-methanol prices would need to fall by 57pc and 49pc, respectively, to around $1,220/t VLSFOe and $1,180/t VLSFOe by 2028. Unless green fuel prices drop significantly or fossil fuel prices rise, the IMO's structure alone provides insufficient economic incentive to accelerate green ammonia and bio-methanol adoption at scale. By Stefka Wechsler NW Europe, fuel prices plus IMO penalties and credits Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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