Latest market news

Cop 27: US commits $20bn to cut methane emissions

  • Market: Agriculture, Crude oil, Emissions, Fertilizers, Natural gas, Oil products, Petrochemicals
  • 11/11/22

The US government said today it will deploy $20bn to tackle methane emissions, aiming to significantly reduce emissions of the potent greenhouse gas (GHG) by 2030.

It said the country's Environmental Protection Agency (EPA) will toughen standards proposed in November last year, including a new "super-emitter response" scheme, which would require operators to respond to "credible third-party reports of high-volume methane leaks". If finalised, the proposals would reduce methane emissions "from covered sources" by 87pc by 2030, from a 2005 baseline.

The supplemental proposal, which is open for comment until 13 February 2023, will deliver net climate benefits of around $3.1bn-3.2bn/yr from 2023-35, the EPA estimated. This includes savings from recovered natural gas, and benefits from avoided climate damages.

The US administration today released a methane emissions reduction plan, outlining more than 50 steps to address the issue. The oil and gas sector is at the top of the agenda, but the government also plans to improve energy efficiency and drive electrification and "clean manufacturing" — the latter focussed on non-fossil fuel sources of heat for the industrial sector.

In agriculture, the government has a scheme that will reward farmers for reducing methane emissions and sequestering carbon, as well as setting up GHG measurement initiatives. The US department of agriculture (USDA) will launch a biogas taskforce "to facilitate the collection and use of methane for on-farm renewable energy applications."

The UN today established a new methane detection system, which will alert governments, businesses and operators about large sources of methane "to foster rapid mitigation action." The Methane Alert and Response System (Mars) will use satellite data to track emissions, starting with the largest sources, in the energy sector and will follow lower-emitting sources and include data on coal, waste, livestock and rice.

Methane from human activities is responsible for around 25pc of climate change caused by humans, the UN said. It has said that cutting methane emissions is "the single fastest way to tackle climate change in the short-term," and GHG reporting must improve.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
04/12/24

Brazil's economy accelerates to 4pc growth in 3Q

Brazil's economy accelerates to 4pc growth in 3Q

Sao Paulo, 4 December (Argus) — Brazil's economic growth accelerated to an annual 4pc in the third quarter, led by stronger consumer spending, according to government statistics agency IBGE. The economy accelerated from 3.3pc annual growth in the second quarter and posted the fastest growth since the first quarter of 2023. Household consumption grew by 5.5pc in the third quarter from a year earlier, while government spending increased by 1.3pc. Services grew by 4.1pc. The industry sector grew by an annual 3.6pc, driven by civil construction and five-year high automotive production in July , according to the national association of vehicle manufacturers. Exports rose by 2.1pc, while imports grew by 18pc. The oil, natural gas and mining industry contracted by 1pc, thanks to lower oil and gas exploration and production. Brazil produced 4.35mn b/d of oil equivalent (boe/d) in the third quarter, down from 4.51mn boe/d in the July-September 2023, according to oil and gas regulator ANP. The electricity and gas, water and sewage management sector increased by 3.7pc from July-September 2023, favoured by higher demand despite higher power tariffs. Brazil faced a severe drought in the first two quarters of the year that lowered river levels at hydroelectric plants and increased power charges in September. But the agriculture and cattle raising sector fell by 0.8pc, with expected production of significant crops such as corn and sugarcane dropping from a year prior also because of adverse weather. Still, output of cotton, wheat and coffee increased by 14.5pc, 5.3pc and 0.3pc, respectively, according to IBGE. The investment rate — the percentage of a country's total production that is invested — grew to 17.6pc in the third quarter, an increase of 1.2 percentage points from the same period in 2023. Brazil's GDP growth in the third quarter was up by 0.9pc from the second quarter, reaching R3 trillion ($494bn). By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more
News

Kazakh Oct-Nov sulphur railings down on maintenance


04/12/24
News
04/12/24

Kazakh Oct-Nov sulphur railings down on maintenance

London, 4 December (Argus) — Scheduled maintenance at Kazakhstan's Kashagan and TCO processing plants reduced sulphur railings to seaports over October and November, Russian rail data show. Product delivered to seaports via Russian rail from Kashagan dropped by 110,000t from the previous month to just 85,000t in October while maintenance constrained Kashagan output. Railed volumes recovered to a more usual monthly volume of 183,000t in November. The TengizChevroil oil field then went on maintenance for much of November, lowering November railed quantities by 54,000t from October to just 137,000t. Product flows are expected to recover to usual monthly levels in December. Overall Kazakh sulphur railings to seaports for onward export have now reached 4.17mn t for the first 11 months of the year. This is up by 5pc on 3.98mn t moved in the same period last year. Meanwhile a further 673,000t of Russian producer Gazprom's sulphur moved to the Baltic port of Ust Luga for export shipment in the same period — down from 750,000t last year. No product barging has taken place in October or November down the Volga-Don transit route for the Black Sea region. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Kuwait's KPC sets December sulphur price at $164/t fob


04/12/24
News
04/12/24

Kuwait's KPC sets December sulphur price at $164/t fob

London, 4 December (Argus) — Kuwaiti state-owned KPC has set its December sulphur price at $164/t fob, up by $19/t from November. This implies a delivered price to China of $187-193/t cfr at current freight rates, which were assessed on 28 November at $23-25/t to south China and $27-29/t to Chinese river ports for a 30,000-35,000t shipment. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Williams to sue Energy Transfer over gasline fight


03/12/24
News
03/12/24

Williams to sue Energy Transfer over gasline fight

New York, 3 December (Argus) — US natural gas pipeline company Williams plans to bring a "very large lawsuit" against its US midstream rival Energy Transfer after a legal dispute between the companies delayed construction of a project by Williams, Williams chief executive Alan Armstrong told Argus in an interview today. Armstrong said Energy Transfer is the only company in "pipeline history" to have defied industry norms over pipeline crossings in a bid to block competitors' projects . The market "was always very honorable" before that, he said. Armstrong said he hopes the lawsuit Williams intends to bring against Energy Transfer will undercut the "very bad precedent" set by Energy Transfer's alleged legal strategy and "stop the industry from spiraling into that kind of behavior." Energy Transfer did not immediately respond to a request for comment. Energy Transfer throughout 2023-24 tried to block Williams and other rival pipeline companies from building new gas pipelines across its own Tiger pipeline in northern Louisiana, located in the Haynesville shale near a cluster of planned LNG export terminals on the US Gulf coast. Energy Transfer argued that Williams and other pipeline companies' projects proposed an excessive number of crossings under and over its own pipelines, while its opponents argued it was merely interested in controlling market share. Beyond trying to block Williams from crossing the Tiger pipeline, Energy Transfer also prevailed upon federal regulators to review Williams' proposed 1.8 Bcf/d (51mn m³/d) Louisiana Energy Gateway (LEG) pipeline as an interstate transmission line, rather than a gathering line, as Williams claimed. This would have subjected LEG to more regulatory oversight. But the US Federal Energy Regulatory Commission in September denied the request . The broad legal strategy by Energy Transfer provoked ire from industry groups and now-Louisiana governor Jeff Landry (R), who warned it could threaten production growth out of the Haynesville and the coming US LNG export boom. Energy Transfer lost case after case to Williams in lawsuits spanning parishes across Louisiana, but the litigation pushed back the in-service date of LEG from late 2024 to the second half of 2025. The Tiger-LEG pipeline dispute was not the first time Williams and Energy Transfer had seen each other in court. After agreeing to merge in 2015, Energy Transfer in 2016 terminated the merger because of a tax issue that arose before closing. This led a Delaware judge in 2021 to make Energy Transfer pay Williams a $410mn breakup fee for deciding to pull out of its proposed $33bn merger. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Treasury eyes 45Z guidance before Biden exit


03/12/24
News
03/12/24

Treasury eyes 45Z guidance before Biden exit

New York, 3 December (Argus) — The US Department of Treasury said it still plans to issue guidance before president Joe Biden leaves office next year clarifying how refiners can qualify for a new tax credit for clean fuels. The agency "anticipates issuing guidance" around the Inflation Reduction Act's 45Z credit before 20 January to "enable producers to claim the 45Z credit for 2025", disputing a report today that the Biden administration planned on punting implementation to president-elect Donald Trump. The credit, set to kick off regardless on 1 January, will differ from some prior federal incentives by offering greater subsidies to fuels that produce fewer greenhouse gas emissions. Treasury did not commit to any definitive timeline for releasing guidance, and it did not immediately clarify how thorough any eventual rule would be. Companies in the biofuel supply chain say the current lack of clarity from Treasury — particularly on how it will calculate carbon intensities for various fuels and feedstocks — has slowed first quarter dealmaking. Government guidance could make or break the economics of certain plants, particularly for relatively higher-carbon fuels like soy biodiesel or jet fuel derived from corn ethanol. The US Department of Agriculture's timing for releasing a complementary rule to quantify the climate benefits of certain agricultural practices, envisioned as a way to reward refineries sourcing feedstocks from farms taking steps to reduce their emissions, is unclear. The agency said today that a "rulemaking process" in response to its request for information on climate-smart farm practices is "under consideration" but did not elaborate. Agriculture secretary Tom Vilsack had insisted earlier this year that his department would release some package before the end of Biden's term. Some industry groups remain pessimistic that the Biden administration will answer all of the thorny questions still lingering around the 45Z credit, especially given signals earlier this year that other Inflation Reduction Act programs would take priority. The Renewable Fuels Association, which represents ethanol producers, says final regulations around 45Z "seem highly unlikely" before the end of Biden's term but that it hopes Treasury releases at least some "basic information" or safe harbor provisions. Delays getting credit guidance could prod Congress to extend expiring biofuel incentives for another year, including a $1/USG credit for blenders of biomass-based diesel. Some formerly skeptical lobbying groups have recently come on board in support of an extension, fearing that biofuel production could slump next year given the lack of 45Z guidance and uncertainty about how Trump will implement clean energy tax credits. But four lobbyists speaking on background told Argus today that the proposal still faces long odds. Congress has various other priorities for its relatively brief lame duck session, including government funding and disaster aid, that take precedence over biofuels. A staffer with the Democratic-controlled US Senate Finance Committee said last month that Republicans have been reluctant to negotiate tax policy in a divided Congress this year when they are planning a far-reaching tax package under unified Republican control next year. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

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