TotalEnergies teams with French farmers on renewables

Spanish Market: Biofuels, Natural gas
04/03/22

TotalEnergies today said it has formed a partnership with the French federation of farmers' unions (FNSEA) to develop renewable energy, including biofuels and biomethane, one of three moves it took this week to further its energy transition strategy.

The link with FNSEA aims to develop projects to produce renewable power from agrivoltaic installations, produce biomethane from agricultural waste, and manufacture biofuels from agricultural residues or "low greenhouse gas" crops.

Earlier this week TotalEnergies said it had started production of sustainable aviation fuel (SAF) from wastes and residues at its 240,000 b/d Gonfreville refinery, adding to existing output at its Oudalle and La Mede facilities. It also said it would invest $50mn in the Tropical Asia Forest Fund 2 project, managed by nature-based investment firm New Forests. The project, which invests in native forest conservation across southeast Asia, will allow TotalEnergies to access "carbon sinks," it said.

TotalEnergies is targeting net zero emissions by 2050. It plans to spend $100mn annually to build a portfolio of projects capable of generating carbon credits worth a minimum of 5mn t/CO2 equivalent per year by 2030. The credits will be used after 2030 to offset the company's scope 1 and 2 emissions.

But not everyone is convinced. Several complainants, including environmental law firm ClientEarth and non-governmental organisations (NGOs) Greenpeace and Notre Affaire A Tous, this week launched a court case against TotalEnergies for what Greenpeace terms "misleading commercial practices following the group's misleading communications on its climate commitments." TotalEnergies' activity is in direct conflict with its aim to be carbon neutral by 2050, Greenpeace said, given fossil fuels still represent 90pc of its activity and 80pc of its investments.

Around half of TotalEnergies' spending last year went to oil, and the other half to "growth" sectors — in which it includes gas and LNG.

By Georgia Gratton

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03/04/25

Funding cuts could delay US river lock renovations

Houston, 3 April (Argus) — The US Army Corps of Engineers (Corps) will have to choose between various lock reconstruction and waterway projects for its annual construction plan after its funding was cut earlier this year. Last year Congress allowed the Corps to use $800mn from unspent infrastructure funds for other waterways projects. But when Congress passed a continuing resolutions for this year's budget they effectively removed that $800mn from what was a $2.6bn annual budget for lock reconstruction and waterways projects. This means a construction plan that must be sent to Congress by 14 May can only include $1.8bn in spending. No specific projects were allocated funding by Congress, allowing the Corps the final say on what projects it pursues under the new budget. River industry trade group Waterways Council said its top priority is for the Corps to provide a combined $205mn for work at the Montgomery lock in Pennsylvania on the Ohio River and Chickamauga lock in Tennesee on the Tennessee River since they are the nearest to completion and could become more expensive if further delayed. There are seven active navigation construction projects expected to take precedent, including the following: the Chickamauga and Kentucky Locks on the Tennessee River; Locks 2-4 on the Monongahela River; the Three Rivers project on the Arkansas River; the LaGrange Lock and Lock 25 on the Illinois River; and the Montgomery Lock on the Ohio River. There are three other locks in Texas, Pennsylvania and Illinois that are in the active design phase (see map) . By Meghan Yoyotte Corps active construction projects 2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico, Canada sidestep latest Trump tariffs: Update

03/04/25

Mexico, Canada sidestep latest Trump tariffs: Update

Adds Canada reaction Mexico City, 3 April (Argus) — US president Donald Trump's sweeping tariff measures largely spared Mexico and Canada from additional penalties, as the US-Mexico-Canada free trade agreement (USMCA) will continue to exempt most commerce, including Mexico's energy exports. According to Trump's tariff announcement on Wednesday , all foreign imports into the US will be subject to a minimum 10pc tax starting on 5 April, with levels as high as 34pc for China and 20pc for the EU. Mexico and Canada are the US' closest trading partners and have seen tariffs imposed and then postponed several times this year, but remained mostly exempt from Trump's "reciprocal" tariffs. Energy and "certain minerals that are not available in the US" imported from all other countries also will be exempt from the tariffs. Trump also did not reimpose punitive tariffs on energy and other imports from Canada and Mexico. All products covered by the USMCA, which include energy commodities, are exempt as well. Yet steel and aluminum, cars, trucks and auto parts from Mexico and Canada remain subject to separate tariffs. Steel and aluminum imports are subject to 25pc, in effect since 12 March. The 25pc tariff on all imported cars and trucks will go into effect on Thursday, whereas a 25pc tax on auto parts will go into effect on 3 May. Mexico's president Claudia Sheinbaum this morning emphasized the "good relationship" and "mutual respect" between Mexico and the US, which she said was key to Trump's decision to prioritize the USMCA over potential further tariffs on Mexican imports. "So far, we have managed to reach a relatively more privileged position when it comes to these tariffs," Sheinbaum said. "Many of our industries are now exempt from tariffs. We aim to reach a better position regarding steel, aluminum and auto parts exports, too." The Mexican peso strengthened by 1.5pc against the US dollar in the wake of the tariff announcement, to Ps19.96/$1 by late morning on Thursday from Ps20.25/$1 on Wednesday. Mexico has not placed any tariffs on imports from the US, which may have eliminated the need for the US to reciprocate with tariffs. "In contrast to what will apply to 185 global economies, Mexico remains exempt from reciprocal tariffs," Mexico's economy minister Marcelo Ebrard said. Mexico exported 500,000 b/d of crude to the US last year, making the US by far the most important export market for the nation's commodity. Mexico also imports the majority of its motor fuels and LPG from the US. If US won't lead, Canada will: Carney To the north, Canada's prime minister says the US' latest trade actions will "rupture" the global economy. "The global economy is fundamentally different today than it was yesterday," said prime minister Mark Carney on Thursday while announcing retaliatory tariffs on auto imports from the US. Canada is matching the US with 25pc tariffs on all vehicles imported from the US that are not compliant with the USMCA, referred to as CUSMA in Canada. But unlike the US tariffs, which took effect Thursday, Canada's will not include auto parts. Automaker Stellantis has informed Unifor Local 444 that it is shutting down the Windsor Assembly Plant in Ontario for two weeks starting on 7 April, with the primary driver being Trump's tariffs. The closure will affect 3,600 workers. Trump on 2 April unveiled a chart of dozens of countries the US is targeting with new tariffs, but that lengthy list may also represent opportunity for Canada and Mexico, who have already been dealing with US trade action. "The world is waking up today to a reality that Canada has been living with for months," Canadian Chamber of Commerce president Candace Laing said, a reality which Carney views as an opportunity for his country. "Canada is ready to take a leadership role in building a coalition of like-minded countries who share our values," said Carney. "If the United States no longer wants to lead, Canada will." By Cas Biekmann and Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to 'stand firm' on tariffs as markets crash

03/04/25

Trump to 'stand firm' on tariffs as markets crash

Washington, 3 April (Argus) — President Donald Trump does not intend to back down from his plan for sweeping import tariffs that have already caused a sell-off in global equity markets and some commodities, administration officials say. The tariffs — which will start at 10pc for most imports on 5 April before steeper country-specific tariffs take effect on 9 April, with exceptions for some energy and mineral imports — have caused key stock indexes to drop by as much as 5pc, with even larger declines in crude futures, as investors brace for lower growth and a higher chance of a recession. Trump earlier today defended the tariffs, as he prepared to leave the White House for a dinner tonight at a golf tournament at one of his resorts in Florida. "THE OPERATION IS OVER! THE PATIENT LIVED, AND IS HEALING," Trump wrote in a social media post before major stock markets opened. Trump's cabinet has downplayed the short-term price effect of the tariffs, which they say will boost economic growth in the US and cause a resurgence in domestic manufacturing. US commerce secretary Howard Lutnick said he does not think there is "any chance" that Trump will rescind the tariffs, and said Trump will only begin to work on new trade deals once a country has "really, really changed their ways" on trade practices. "Trump is going to stand firm because he is reordering global trade," Lutnick said today in an interview with CNN. "Make no mistake about it, America has been exploited, and he is done allowing America to be exploited." Other administration officials have suggested a greater potential for lower tariffs in the near-term. US treasury secretary Scott Bessent has encouraged world leaders to "take a deep breath" and not to "panic" because the tariff rates that Trump announced were a "ceiling" that might come down, so long as there was no retaliation. "Don't immediately retaliate, let's see where this goes, because if you retaliate, that's how we get escalation," Bessent said on 2 April during interview on Fox News. The tariffs have caused bipartisan backlash on Capitol Hill, but so far legislative action has been symbolic and unlikely to become law. The US Senate, in a bipartisan vote on 2 April, approved a joint resolution that would end the justification Trump has used to put tariffs on Canada. US senators Chuck Grassley (R-Iowa) and Maria Cantwell (D-Washington) introduced a bill today to eliminate most new presidential tariffs after 60 days without approval by the US Congress. Democrats say the tariffs will force consumers to pay far more on everyday goods, with revenue offsetting Republican plans to provide more than $5 trillion in tax cuts. "Donald Trump is using tariffs in the dumbest way imaginable. In fact, Donald Trump slapped tariffs on penguins and not on Putin," US Senate minority leader Chuck Schumer (D-New York) said today, in reference to Trump's decision to put a 10pc tariff on an island populated only with penguins. Trump has claimed his country-specific tariffs are "reciprocal" even though they have no relation to the tariffs each country charges on US imports. Instead, Trump's tariffs were calculated based on a universal equation that is set at half of the country's trade deficit with the US, divided by the country's imports from the US, with a minimum tariff rate of 10pc. Major US trading partners are preparing for retaliatory tariffs. Canada's prime minister Mark Carney said he would respond to Trump's tariffs on automobiles, which took effect today, by "matching the US approach" and imposing a 25pc tariff on auto imports that do not comply with the US-Mexico-Canada free trade agreement. China said it was preparing unspecified countermeasures to US tariffs that would be set at 54pc. Trump's cabinet today dismissed the market reaction to the tariffs. Stock markets are going through a "short-term adjustment" but the tariffs will ultimately result in more growth and additional investments, US Small Business Administration administrator Kelly Loeffler said today in an interview on Fox News "The gravy train is over for the globalist elites," said Loeffler, who previously was a top executive at US exchange operator ICE. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

LNG faces limited direct disruption from US tariffs

03/04/25

LNG faces limited direct disruption from US tariffs

London, 3 April (Argus) — New US trade tariffs announced on 2 April are unlikely to cause any direct disruption to the LNG market because global LNG demand has become more inelastic in the past three years. But market participants warned of recessionary pressure and indirect effects on gas demand. The key recipients of US LNG — the EU, Japan and South Korea, for example — may be considering responding to the new US trade policy with retaliatory tariffs, among other measures. But these are unlikely to include levies on US LNG imports, market participants said, which would limit any direct disruption on LNG trade flows in the Atlantic basin. Europe has become much more reliant on LNG imports after losing the bulk of Russian pipeline imports. Europe last year imported 45pc of its LNG from the US, according to ship-tracking data from analytics firm Vortexa. And the EU would need quick LNG imports to replace Russian supply and fill its underground storage facilities this summer, with its combined gas inventory level at 33pc on 31 March, according to transparency platform Aggregated Gas Storage Inventory. Traditional Asian importers such as Japan, South Korea and Taiwan are likely to seek an engagement approach other than direct retaliatory tariffs on US imports. US LNG purchases in the past often have been a means by which to reduce countries' trade surplus with the US. South Korea's energy minister expressed the country's interest in the 20mn t/yr Alaska LNG project in a visit in late March , while Taiwan's CPC signed an initial agreement for the project, according to Taiwan's Ministry of Economic Affairs . Emerging LNG importer Vietnam was considering reducing import taxes on US LNG to 2pc from the present 5pc, according to state-owned PV Gas. The possibility of increasing US LNG purchases in the future also may be a key element in potential trade negotiations with the US aimed at reducing the 46pc tariffs on imports from Vietnam announced on 2 April, according to market participants. LNG trade flows already had been reshuffled before the latest round of US tariffs, in light of China's retaliatory tariff of 15pc on US LNG imports. China halted LNG imports from the US in early February , by reselling its contracted US offtake in other markets and replacing it with cargoes of other origin, if needed. But the tariffs have destabilised economies around the world, particularly those with large trade surpluses with the US, which are likely to reduce gas and LNG demand in different geographies. Tariffs pose direct risks for US LNG projects US tariffs on steel and aluminum imports, imposed on 12 March, present an immediate risk for US LNG developers, particularly for the five projects currently under construction and the six others expected to reach final investment decisions in 2025. Metals represent up to 30pc of the cost of building an LNG export plant. Depending on the project's size, an LNG terminal could cost $5bn-$25bn, with steel used for pipelines, tanks and other structural frameworks. Although facilities can use some domestic supplies for construction, higher prices could result in delays to construction and final investment decisions in planned liquefaction projects ( see table ). Delays to the planned 18.1mn t/yr Golden Pass LNG facility have already underscored how rising costs can upend construction timelines. Zachry, a lead contractor in engineering, procurement and construction work for the facility, filed for bankruptcy last May and exited the project. Pandemic-related inflation and supply chain delays have caused costs to surge by $2.4bn from the original $9.25bn contract, the firm said . Golden Pass, which once targeted first LNG in the second half of last year, now expects its first production in late 2025 or early 2026 . NextDecade's 17.4mn t/yr Rio Grande LNG project in south Texas had bought only 69pc of supplies for trains 1-2 and only 33pc for train 3 by late February, making the three-train project particularly vulnerable to higher steel prices. Projects that are closer to completion may face less inflationary pressure. Equipment and materials needed for the seven-train expansion at Cheniere's Corpus Christi stage 3 were delivered, according to the firm in February . And 34 of 36 liquefaction trains at Venture Global's Plaquemines facility have been delivered on site, with the two remaining trains expected to arrive by the end of March, Venture global said last month . US LNG projects in pipeline Project Capacity ( mn t/yr ) Expected start/FID Under construction Plaquemines 19.2 2025 Corpus Christi stage 3 12.0 2025 Golden Pass 18.1 2026 Rio Grande 17.6 2027 Port Arthur 13.5 2027 Waiting for final investment decision Delfin FLNG 1 13.2 mid-2025 Texas LNG 4.0 2025 Calcasieu Pass 2 28.0 mid-2025 Corpus Christi train 8-9 3.3 2025 Louisiana LNG 16.5 mid-2025 Cameron train 4 6.8 mid-2025 — Argus Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Prio supplies B100 for bunkering in Portugal

03/04/25

Prio supplies B100 for bunkering in Portugal

Sao Paulo, 3 April (Argus) — Portuguese biodiesel supplier Prio has supplied B100 marine biodiesel and fixed contracts for the supply pure hydrotreated vegetable oil (HVO) into marine for the first time in Portugal. The bunker fuel delivery comprising 30t of 100pc used cooking oil methyl ester (Ucome) biodiesel took place in the Portuguese port of Viana do Castelo to the ferry Lobo Marinho and the containership Funchalense V , both owned by Grupo Sousa. Prio said the B100 supply achieved an emission intensity value of about 11.4 gCO2e/MJ, reflecting greenhouse gas (GHG) savings of about 88pc against a default fossil bunker value. The company also fixed summer-season March-July contracts with a cruise liner for the supply of 175t of Class II HVO at the port of Lisbon. This fuel is produced from used cooking oil (UCO). The B100 and HVO supplies are done on an ex-truck delivery basis. Marine biodiesel is seen as an alternative to conventional bunker fuels since the introduction of FuelEU Maritime regulations starting this year, which require ships traveling in, out, and within EU territorial waters to reduce GHG emissions by 2pc on a lifecycle basis and increasing up to 80pc by 2050. Argus assessed the price of Class II HVO fob ARA at an average of $1,795.13/t in the first quarter of this year, compared with $1,431.46/t for Ucome fob ARA in the same time in 2024. Both biofuels were marked well above conventional bunker fuel prices. Very-low sulphur fuel oil (VLSFO) dob ARA averaged $515.56/t and marine gasoil (MGO) dob ARA was $655.37/t during January-March this year. By Hussein Al-Khalisy and Natália Coelho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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