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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21/11/24

Cop: EU, four countries commit to 1.5°C climate plans

Baku, 21 November (Argus) — The EU, Canada, Mexico, Norway and Switzerland have committed to submit new national climate plans setting out "steep emission cuts", that are consistent with the global 1.5°C temperature increase limit sought by the Paris Agreement. The EU and four countries made the pledge at the UN Cop 29 climate summit in Baku, Azerbaijan today, and called on other nations to follow suit — particularly major economies. Countries are due to submit new climate plans — known as nationally determined contributions (NDCs) — covering 2035 goals to the UN climate body the UNFCCC by early next year. The EU, Canada, Mexico, Norway and Switzerland have not yet submitted their plans, but they will be aligned with a 1.5°C pathway, EU climate commissioner Wopke Hoekstra said today. The Paris climate agreement seeks to limit the global rise in temperature to "well below" 2°C and preferably to 1.5°C. Canada's NDC is being considered by the country's cabinet and will be submitted by the 10 February deadline, Canadian ambassador for climate change Catherine Stewart said today. Switzerland's new NDC will also be submitted by the deadline, the country's representative confirmed. Pamana's special representative for climate change Juan Carlos Monterrey Gomez also joined the press conference today. Panama, which is designated as carbon negative, submitted an updated NDC in June. It is planning to submit a nature pledge, Monterrey Gomez said. "It is time to streamline processes to get to real action", he added. The UK also backed the pledge. The UK announced an ambitious emissions reduction target last week. The UAE — which hosted Cop 28 last year — released a new NDC just ahead of Cop 29, while Brazil, host of next year's Cop 30, released its new NDC on 13 November during the summit. Thailand yesterday at Cop 29 communicated a new emissions reduction target . Indonesia last week said that it intends to submit its updated NDC ahead of the February deadline, with a plan placing a ceiling on emissions and covering all greenhouse gases as well as including the oil and gas sector. Colombia also indicated that its new climate plan will seek to address fossil fuels, but it will submit its NDC by June next year . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

LNG diversions to Europe reach double digits

19/11/24

LNG diversions to Europe reach double digits

London, 19 November (Argus) — At least 11 LNG carriers have likely diverted to Europe from Asia and Egypt over the past week, as European delivered prices now offer higher returns than Asian delivered prices, and operational issues delay deliveries in Egypt. Of the 11 cargoes, seven have diverted away from sailing for Asia round the Cape of Good Hope towards Europe, and four have diverted from Egypt, judging by shiptracking data from Vortexa (see table) . This does not include the 173,400m Myrina , which was idling in the mid-Atlantic today. One carrier — 174,000m³ Aristos I — had already passed the Cape of Good Hope, before turning back towards the Atlantic basin. Assuming all carriers are holding full cargoes, this totals around 860,000t, or 13.2TWh of LNG. Northwest European delivered prices rose above corresponding northeast Asian prices last week , prompting diversions from Asia to Europe. The inter-basin arbitrage was already closed, although firms with surplus shipping capacity that they viewed as a sunk cost because of long open vessel lists were still willing to send Atlantic basin cargoes to Asia as the opportunity cost of the longer journey time was limited to the cargo loss through higher boil-off during the voyage. But Europe's discount to Asia has narrowed, and even inverted late last week, with the spread between the two markets less than the boil-off cost difference between US deliveries to Europe and to Asia, incentivising diversions to Europe. The extra boil-off losses amount to around 39¢/mn Btu when shipping a cargo from Sabine Pass to Incheon via the Cape of Good Hope instead of Rotterdam, assuming a northeast Asian delivered price of $14.05/mn Btu, a sailing speed of 17 knots and a 160,000m³ cargo with a 0.1pc daily boil-off rate. The Argus Northeast Asia (ANEA) January delivered price closed at a 49¢/mn Btu premium to the northwest European December des price on 7 November, enough to incentivise deliveries to northeast Asia instead of Europe for firms with sunk shipping capacity as the spread was wider than boil-off losses. But the ANEA January price on 14 November fell to a discount to prompt northwest European des prices, incentivising diversions to Europe. And four carriers have diverted away from Egypt, where delays to a tight delivery schedule have been created by operational issues at the country's 6mn t/yr Ain Sukhna terminal, according to market participants. One of the terminal's two regasification trains has been experiencing operational difficulties, halving the terminal's regasification capacity, they said. The country last imported a cargo on 16 November — nine days after the previous delivery. The terminal's Hoegh Galleon floating storage and regasification unit has a peak regasification rate of 750mn ft³/d (7.7bn m³/yr), equivalent to about 16,500 t/d, meaning that it could regasify a 72,000t standard-sized cargo in 4-5 days when operating at full capacity. By Martin Senior Diversions to Europe m³ Carrier Capacity Diversion date Approx diversion location Diversions from Asia BW Lesmes 174,000 13-Nov West Africa Gaslog Windsor 180,000 14-Nov West Africa Vivirt City LNG 174,000 15-Nov West Africa LNGShips Empress 174,000 18-Nov Carribean Diamond Gas Crystal 174,000 14-Nov Carribean Flex Vigilant 174,000 14-Nov Carribean Aristos I 174,000 18-Nov Madagascar Diversions from Egypt British Listener 173,000 13-Nov Mediterranean LNG Harmony 174,000 14-Nov Mid-Atlantic Axios II 174,000 14-Nov Mid-Atlantic Pacific Success 174,000 16-Nov South of Suez — Vortexa, Argus Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Countries join fossil fuel subsidy phase-out group

19/11/24

Cop: Countries join fossil fuel subsidy phase-out group

Baku, 19 November (Argus) — Colombia, New Zealand and the UK today joined a Netherlands-led international coalition focused on phasing out incentives and subsidies for fossil fuels. They made the announcement at the UN Cop 29 climate summit in Baku, Azerbaijan. The coalition was first formed at Cop 28 in December last year. Member countries that sign up to the coalition commit to publish an inventory of their fossil fuel subsidies a year after joining, and to develop a plan to phase them out. Countries agreed at Cop 26, in 2021, to phase out inefficient fossil fuel subsidies, and reaffirmed this a year later at Cop 27. G20 members first pledged in 2009 to do the same. But global fossil fuel consumption subsidies hit over $1.2 trillion in 2022 and more than $600bn in 2023, IEA data show. "We truly feel that this is something we should tackle at a European level as well", EU energy commissioner Wopke Hoekstra said today. "This is something the next Commission will push; this is something I will personally push", he added. New Dutch climate and green growth minister Sophie Hermans admitted that phasing out fossil fuel subsidies is a "sensitive topic", but that the country is working on a plan. The first step is to make transparent which fossil fuels subsidies are in countries' systems, she said. The coalition now has 16 members — Austria, Antigua and Barbuda, Belgium, Canada, Costa Rica, Denmark, Finland, France, Ireland, Luxembourg, the Netherlands, Spain and Switzerland, as well as the three countries that joined today. Four members have made their national inventory of fossil fuel subsidies transparent — Belgium, France, Ireland and the Netherlands. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

G20 mayors call for $800bn/yr to address climate change

19/11/24

G20 mayors call for $800bn/yr to address climate change

Rio de Janeiro, 19 November (Argus) — Mayors from G20 countries are asking for at least $800bn/yr in investments by 2030 to tackle the effects of climate change. "We need better and faster access to international financing to ensure infrastructure that supports the socioeconomic security of our communities," Rio de Janeiro's mayor Eduardo Paes said. The joint statement from nearly 60 mayors and urban leaders was drafted during the Urban20, a G20 forum that includes leaders from major cities worldwide, and was delivered to Brazilian president Luiz Inacio Lula da Silva. The statement will also be delivered to other G20 members during the ongoing G20 summit in Rio de Janeiro. Climate change is one of the main topics being debated at the G20 summit. Brazil, which holds the G20 presidency this year, has set the energy transition as one of its goals for the year. The group reaffirmed its support for the Paris Agreement climate goals , saying it "fully subscribes" to the Cop 28 deal struck last year, which included language on transitioning away from fossil fuels. Urban investments such as low-emission transport, clean energy, and climate-resilient infrastructure can "significantly reduce emissions" and boost economic growth, according to the statement. The funding could unlock around $23.9 trillion in returns by 2050, it said. The $800bn/yr would cover around 20pc of urban climate finance needs and "serve as a catalyst for additional private sector funding," according to the Global Covenant of Mayors for Climate and Energy, a non-government organization for climate leadership that comprises over 13,000 cities worldwide. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil natural gas supplies diversifying

18/11/24

Brazil natural gas supplies diversifying

Rio de Janeiro, 18 November (Argus) — Supply in Brazil's growing natural gas market has diversified rapidly in recent months as domestic and international companies expand their foothold. Changes include a slew of new import authorizations granted by hydrocarbons regulator ANP in recent months. Last week alone, ANP authorizated up to 1.7mn m³/d of LNG imports, the 12th approval of the year, allowing as much as 3.8bn m³/yr (10.4mn m³/d) of LNG to reach Brazilian shores. US-based New Fortress Energy has led the pack, signing a bevy of new supply agreements from its regasification terminals in Barcarena port in northern Para state and the Terminal Gas Sul (TGS) in southern Santa Catarina state. New Fortress said it signed more than 45 trillion Btu/yr (860,000 t/yr) of downstream supply commitments across 15 buyers, with an average contract length of 18 years. The terminals emerged as important new destinations this year, with the Para terminal claming 2.2pc market share from January-October and the Santa Catarina terminal capturing about 0.5pc. On 8 November, ANP authorized New Fortress to import up to 1.7mn m³/d of LNG to be distributed by pipeline and small-scale means. It holds a 15mn m³/d import authorization for Barcarena and one for 146,000 m³/d of LNG from Bolivia by truck. Gas trading company Edge has also expanded LNG supply to Brazil. It began operating its TRSP regasification terminal in Sao Paulo earlier this year, catapulting Sao Paulo to a 6pc of share of Brazilian LNG imports in the first nine months of 2024 by selling nearly 1.27mn m³/d of gas. Edge sold 27mn m³ of gas to industrial clients from the terminal on the wholesale market in the third quarter. Shell is also looking to expand its Brazilian gas sales amid growing expectations of a boom in supply from its Vaca Muerta shale reserves in neighboring Argentina. Earlier this month it won authorization to import up to 8mn m³/d of gas by pipeline from Argentina and Bolivia. Shell is also assessing LNG exports from Argentina, which could include sales to Brazil. Shell is also planning to expand LNG imports through the Suape port in Pernambuco state next year. OnCorp expects to begin operating the 14mn m³/d LNG regasification terminal in the port, which Shell will use to supply clients in the region, including gas distributor Copergas. Other companies including Gas Bridge and Blueship are also eyeing LNG imports. Blueship is authorized to import through the port of Navegantes, in Santa Catarina, while Gas Bridge can import through state-controlled Petrobras' terminal in northeastern Bahia state. By Betina Moura Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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