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Cop 27: Fossil fuels absent in first cover document

  • Spanish Market: Coal, Crude oil, Emissions, Natural gas, Oil products
  • 15/11/22

Fossil fuels have not been included in a first, bare-bones document listing all possible elements of the Cop 27 UN climate summit cover decision to be adopted at the end of the conference.

The document, described as a 'non-paper' by the UNFCCC, is just a bullet-point list of potential topics that could be included in the final Cop 27 decision. It was released late on 14 November, for ministers to start negotiations on the final text.

Coal particularly and fossil fuels more generally are notably absent, although the EU said it expects the mitigation section of the text to build on what was agreed at Cop 26 in Glasgow. Mitigation refers to efforts to reduce emissions.

The Glasgow Climate Pact signed at Cop 26 last year called on countries to accelerate efforts towards the phase-down of unabated coal power and the phase out of inefficient fossil-fuel subsidies. At this Cop, India last week pushed for a phase down of all fossil fuels to be included in the cover text, rather than just coal. Asked if Europe would support India's call, European Commission executive vice-president Frans Timmermans said that "we are all in support of any call to support a phase down of fossil fuels, but we have to make sure that this call does not diminish the early agreement we had on phasing down coal".

"If it comes on top of what was agreed in Glasgow, then the EU will support India's proposal", he said, adding it should not divert "attention and efforts to phase down coal as we have agreed last year in Glasgow".

India, with China, last year secured a last-minute watering down of the language on coal in the Cop 26 cover text.

The EU expects the Sharm el-Sheikh cover text will pick up on the references to fossil fuels, and the phase down of unabated coal, that were made in the Glasgow Climate Pact, but these have yet to be included in the text.

The released list also mentions the "urgency of action to keep 1.5°C in reach". Although some nations may be pushing for this mention to be omitted this year, a large number of countries at Cop have urged no going back on commitments taken in Paris and Glasgow, and have reiterated the urgent need to align emission pledges and actions with the 1.5°C goal. The UN's 2015 Paris Agreement aims to limit global warming to well below 2°C above pre-industrial levels, and ideally to 1.5°C.

The first cover document also mentions the $100 bn/yr finance goal, its status and progress on the target. Egypt wants to see progress on the headline finance target, which developed countries were supposed to meet by 2020 to help developing nations hit their climate goals. The OECD estimates the goal could be reached in 2023.

The document also says the cover decision will reflect the main outcomes on loss and damage, the mitigation work programme and the global goal on adaption. So far, countries remain divided on what progress should look like on the contentious issue of funding arrangements for loss and damage — which many view as key to move forward with other negotiations.


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17/04/25

Risks rising for possible recession in Mexico: Analysts

Risks rising for possible recession in Mexico: Analysts

Mexico City, 17 April (Argus) — The Mexican finance executive association (IMEF) lowered its 2025 GDP growth forecast for a second consecutive month in its April survey, citing a rising risk of recession on US-Mexico trade tensions. In its April survey, growth expectations for 2025 fell to 0.2pc, down from 0.6pc in March and 1pc in February. Nine of the 43 respondents projected negative growth — up from four in March, citing rising exposure to US tariffs that now affect "roughly half" of Mexico's exports. The group warned that the risk of recession will continue to rise until tariff negotiations are resolved, with the possibility of a US recession compounding the problem. As such, IMEF expects a contraction in the first quarter with high odds of continued negative growth in the second quarter — meeting one common definition of recession as two straight quarters of contraction. Mexico's economy decelerated in the fourth quarter of 2024 to an annualized rate of 0.5pc from 1.7pc the previous quarter, the slowest expansion since the first quarter of 2021, according to statistics agency data. Mexico's statistics agency Inegi will release its first estimate for first quarter GDP growth on April 30. "A recession is now very likely," said IMEF's director of economic studies Victor Herrera. "Some sectors, like construction, are already struggling — and it's just a matter of time before it spreads." The severity of the downturn will depend on how quickly trade tensions ease and whether the US-Mexico-Canada (USMCA) free trade agreement is successfully revised, Herrera added. But the outlook remains uncertain, with mixed signals this week — including a possible pause on auto tariffs and fresh warnings of new tariffs on key food exports like tomatoes. IMEF also trimmed its 2026 GDP forecast to 1.5pc from 1.6pc, citing persistent tariff uncertainty. Its 2025 formal job creation estimate dropped to 220,000 from 280,000 in March. The group slightly lowered its 2025 inflation forecast to 3.8pc from 3.9pc, noting current consumer price index should allow the central bank to continue the current rate cut cycle to lower its target interest rate to 8pc by year-end from 9pc. IMEF expects the peso to end the year at Ps20.90/$1, slightly stronger than the Ps21/$1 forecast in March. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India's ONGC wins 15 blocks in upstream oil, gas bid


17/04/25
17/04/25

India's ONGC wins 15 blocks in upstream oil, gas bid

Mumbai, 17 April (Argus) — Indian state-controlled upstream firm ONGC has won 15 of the 28 blocks offered for bidding in the ninth round under the Hydrocarbon Exploration and Licensing Policy's (HELP's) Open Acreage Licensing Policy (OALP). Three of these were with ONGC's joint venture with state-run Oil India, while another was in a consortium with BP and private-sector refiner Reliance Industries (RIL). This is the first time BP, RIL and ONGC have partnered and won a shallow-water block in the Saurashtra basin. ONGC has a 40pc stake in the consortium, with RIL and BP having 30pc each, a trading source said. RIL-BP had jointly won an ultra-deepwater block in the Krishna Godavari basin in the eighth round. Private-sector Vedanta, which had bid for all 28 oil and gas blocks, won seven blocks. Oil India won six blocks on its own and three in collaboration with ONGC. Private-sector firm Sun Petrochemicals, which had bid for seven blocks in this ninth round, did not secure any blocks. Interest from the private sector was relatively higher in this bidding round, but it remains mostly dominated by state-controlled firms. Foreign participation in the Indian exploration sector remains low. The ninth round saw 28 blocks auctioned(https://direct.argusmedia.com/newsandanalysis/article/2524414) across an area of 136,596.45 km². India has awarded 144 exploration and production blocks comprising a total area of 242,055 km² in eight previous rounds. India in March passed the Oilfields (Regulation and Development) Amendment Bill 2024 , which aims to simplify regulations, attract investment, and enhance exploration and production capabilities. It also allows granting oil leases on stable terms, along with sharing of production facilities and infrastructure. It also scrapped the windfall tax on domestic crude oil production in December 2024. The ministry said it is working on new frameworks to address challenges related to the upstream sector. India imports around 89pc of its crude requirements, despite efforts to reduce its dependency on imports. Crude imports in January-February rose by over 1pc on the year to 5.01mn b/d, oil ministry data show. During the same period, its total crude production fell by over 1pc from a year earlier to 539,000 b/d. By Roshni Devi India OALP blocks ninth bidding round Basin Type Block Area (km²) Awardee Cauvery Basin Ultra-deepwater CY-UDWHP-2022/1 9,514.63 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/2 9,844.72 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/3 7,795.45 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2023/1 5,330.49 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/1 5,585.61 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/2 5,453.96 ONGC - BPXA – RIL Saurashtra Basin Onland GS-ONHP-2023/1 2,939.56 Vedanta Saurashtra Basin Shallow water GS-OSHP-2023/1 ,5408.79 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/1 7,699.00 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/2 8,446.28 ONGC Saurashtra Basin Onland GS-ONHP-2023/2 2,977.28 Vedanta Saurashtra Basin Onland GS-ONHP-2023/3 2,793.08 Vedanta Cambay Basin Onland CB-ONHP-2022/2 7,13.92 ONGC- OIL Cambay Basin Shallow water CB-OSHP-2023/1 1,873.66 Vedanta Cambay Basin Onland CB-ONHP-2023/1 446 OIL Cambay Basin Onland CB-ONHP-2023/2 636 Vedanta Cambay Basin Onland CB-ONHP-2023/3 416 ONGC Cambay Basin Shallow water CB-OSHP-2023/2 477 Vedanta Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/1 9,466.85 ONGC - OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/2 9,425.84 OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/3 9,831.48 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/1 9,495.16 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/2 9,223.22 OIL Mumbai Offshore Shallow water MB-OSHP-2023/1 2,935.19 ONGC Mumbai Offshore Shallow water MB-OSHP-2023/2 1,749.74 Vedanta Assam Shelf Basin Onland AS-ONHP-2022/2 784 ONGC - OIL Assam Shelf Basin Onland AS-ONHP-2022/3 2,168.09 OIL Kutch Basin Shallow water GK-OSHP_x0002_2023/1 3,164.61 ONGC Source: Oil ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Saudi petchem expansion plans to cap naphtha exports


17/04/25
17/04/25

Saudi petchem expansion plans to cap naphtha exports

Dubai, 17 April (Argus) — Saudi Arabia's plans to integrate downstream petrochemical units with its oil refineries could weigh on naphtha exports and gasoline blending. State-controlled Aramco recently signed a deal with Chinese state-controlled Sinopec to build and integrate a 1.8mn t/yr mix-feed ethylene steam cracker and a 1.5mn t/yr aromatics complex into the 400,000 b/d Yasref refinery. This sort of integration would typically redirect naphtha to the petrochemical units and away from the gasoline blending pool, traders said. Market participants point to a likely fall in overall Saudi naphtha exports, as has been the case since the integration of petrochemical operations at the 400,000 b/d Jizan and PetroRabigh refineries in 2021 and 2008, respectively. Joint Organisations Data Initiative (Jodi) data show Saudi naphtha exports in steady decline to 93,000 b/d in 2024, 108,700 b/d in 2023, 144,800 b/d in 2022 and 169,200 b/d in 2021. Data from Kpler show naphtha exports from the Yasref refinery at 22,000 b/d in 2024, down from 25,000 b/d a year earlier but higher than 19,000 b/d in 2022. The majority of these exports went to Indonesia, Malaysia and South Korea. Yasref has the capacity to produce 112,000 b/d gasoline but it exported only 17,000 b/d in 2024 and 26,000 b/d in 2023. Market participants said the integration may not have any immediate significant effect on gasoline output but the addition of the aromatic complex, in theory, could need pull in more heavy full-range naphtha that is otherwise used as a blendstock for gasoline production. It remains to be seen if the new mixed feed cracker would favour naphtha or LPG as a feedstock. Ethane accounts for the majority of feedstock for Saudi crackers. The shift of focus from producing transportation fuels to petrochemicals comes as Saudi gasoline demand continues to lag pre-pandemic levels and faces pressure from growing uptake of electric vehicles. Saudi gasoline demand averaged 514,000 b/d in 2024, well below the 550,000 b/d in pre-pandemic 2019, mainly because of higher retail prices . Aramco has a target to process up to 4mn b/d of crude into petrochemicals by 2030, from 1mn b/d currently. It is developing an $11bn petrochemical expansion project at the 460,000 b/d Satorp refinery joint venture with TotalEnergies. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Taiwan poised to import more LNG this summer


17/04/25
17/04/25

Taiwan poised to import more LNG this summer

Singapore, 17 April (Argus) — Taiwan is likely to import more LNG to meet growing demand for gas-fired power generation, as its third LNG import terminal comes on line in time for summer. Taiwan's 3mn t/yr Guantang import terminal in Taoyuan, located in the northwest of the country, has successfully received its first delivery of 63,780t of LNG from the 145,000m³ Methane Rita Andrea on 7 April, according to vessel tracker Kpler. This third importing terminal will increase Taiwan's total import capacity to 19.5mn t/yr, alleviating high utilisation at existing import terminals . Pivoting to gas Taiwan's CPC will require at least one more cargo each month for the new 913MW Datan unit 7 power plant, which is due to come on line in June. The third LNG import terminal would ease the importing process. Assuming a 55pc efficiency rate, the power plant is estimated to burn about 75,260 t/month (166,780 m³/month) of LNG, equivalent to about one standard-sized cargo. Gas-fired power generation accounted for an average of about 41pc of Taiwan's total power generation over 2023-24. Gas fired-power generation reached 29.6TWh for the second quarter of 2024, which was 10pc higher from 26.9TWh over the same quarter in 2023. Taipower planned to install up to 14 gas-fired power plants over 2025-30, according to the firm's 2024 power development plan which was last updated on 9 August 2024 (see table) . Taiwan has a total of 21,196MW of gas-fired power capacity fuelled on LNG as of February 2025. CPC has issued nine tenders seeking spot deliveries over the first quarter of 2025, four more than a year earlier. This latest increase in importing capacity will be crucial to support the increased reliance on gas-fired power generation, especially after Taiwan phases out its last nuclear power facility in July. A gradual nuclear phase-out Nuclear output has also been on a downward trajectory since 2023 and only made up 1pc of Taiwan's overall power mix over the last quarter of 2024. The 951MW Maanshan nuclear unit 2 is planned for decommissioning and will be taken fully off line on 17 May . The Maanshan unit 1 was [shut down last July](https://direct.argusmedia.com/newsandanalysis/article/2581822). Taiwan's annual LNG imports rose by 2pc on the year in 2023, and increased by 5pc on the year in 2024. Taiwan imported a total of 21.5mn t of LNG in 2024, of which 10pc of the volumes were from the US. By Naomi Ong Taipower gas-fired additions Year Units 2025 913MW Tatan unit 7 1,300MW Taichung unit 1 1,300MW Hsinta unit 1 1,300MW Hsinta unit 2 2026 1,300 Taichung unit 2 1,300MW Hsinta unit 3 2028 650MW Talin unit 1 650MW Talin unit 2 650MW Tunghsiao unit 4 650MW Tunghsiao unit 5 2029 650MW Tunghsiao unit 6 650MW Tunghsiao unit 7 2030 1,300MW Hsiehho unit 1 650MW Tunghsiao unit 8 Taipower Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

AD Ports Group pioneers LNG bunkering at Khalifa Port


17/04/25
17/04/25

AD Ports Group pioneers LNG bunkering at Khalifa Port

Dubai, 17 April (Argus) — Abu Dhabi's AD Ports Group has conducted its first ship-to-ship (STS) LNG bunkering operation at Khalifa Port. The operation, executed with marine fuels provider Monjasa, involved the container vessel MSC Thais , berthed at Abu Dhabi Terminals, receiving LNG from the dedicated bunker vessel Green Zeebrugge during a simultaneous cargo transfer. "By ensuring reliable access to low-carbon fuels like LNG, we are enabling shipowners to meet their sustainability goals while aligning with global environmental objectives," said Abu Dhabi Maritime chief executive Saif Al Mheiri. LNG offers lower greenhouse gas emissions, sulphur oxide, nitrogen oxide, and particulate matter than conventional marine fuels. AD Ports Group and Monjasa plan to expand LNG bunkering services across Abu Dhabi's commercial ports, including Zayed Port's cruise liners. Monjasa facilitated the first delivery of LNG bunker fuel in Dubai earlier this year. The firm brought the 5,100m³ Green Zeebrugge in 2024 from northwest Europe to be stationed in the UAE. By Elshan Aliyev Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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