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Nigeria commits to 2060 net zero emissions target

  • : Crude oil, Electricity, Natural gas
  • 21/11/03

Nigeria has committed to reaching net zero emissions by 2060, but stressed that developing countries need technical and financial support to hit targets.

Gas will retain a key role in the country's energy transition, Nigeria's president Muhammadu Buhari said at the UN Cop-26 climate conference in Glasgow. "The data and evidence show that Nigeria can continue to use gas until 2040 without diverting from the goals of the Paris agreement," he said.

"Nigeria is actually more of a gas than an oil producing country. Consequently, I am requesting for financing of projects using transition fuels, such as gas," he said.

The president stressed throughout his speech at the world leaders summit at Cop 26 that developing countries will require financial and technical support to attain their climate change goals.

He said that Nigeria did not need to be persuaded about the importance of fighting climate change. "Desertification in the north, floods in the centre, pollution and erosion on the coast are enough evidence," he said.

Buhari said that Nigeria's commitment to a just transition is reflected in the country's "ambitious" energy plan, which includes bringing power to five million households by using decentralised solar energy solutions.

Nigeria is the largest producer of oil on the African continent and a major LNG exporter. The country exported 11.8mn t of LNG in January-August this year.

Nigeria joins major oil producers Saudi Arabia and Russia in targeting net zero emissions by 2060.


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24/12/04

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.

Williams to sue Energy Transfer over gasline fight


24/12/03
24/12/03

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.

Argentina streamlines energy efficiency program


24/12/03
24/12/03

Argentina streamlines energy efficiency program

Montevideo, 3 December (Argus) — Argentina's government continues to fine-tune its energy efficiency program, eliminating red tape that slowed the import of appliances and machinery into the country. President Javier Milei's administration launched a new program in August to provide households and businesses with low-interest loans for energy efficiency. It has expanded the program to include more products and incentives. In late November, it announced a regulatory change for importing energy-efficient products, eliminating the need for performance testing, audits and other bureaucratic steps. Companies importing products now only have to provide an efficiency certification. The measure covers products from televisions for households to motors and pumps for businesses. The change is part of the government's efforts to deregulate the economy. It is juxtaposed to the president's skepticism for climate change. Milei eliminated the environment ministry and Argentina's delegation to the recent UN Cop 29 climate talks abruptly left the meeting. The change is part of the government's efforts to deregulate the economy to encourage investment and use of new technology. The government created in July the ministry of deregulation and state transformation and since then has eliminated hundreds of regulations, including more than 100 related to imports. The government has also eliminated more than 33,000 public sector jobs since Milei took office a year ago. "Any effort for energy efficiency has an immediate effect," said Nicolas Vizcaino, co-founder of Greempact, which creates energy-efficiency strategies for companies. "There is no excuse not to focus on efficiency." Greempact analyzes energy consumption data and other variables to create an energy baseline for clients. The data helps design strategies. Its strategies, which include changing technology, improving management and modifying production procedures, have helped some clients reduce consumption by more than 30pc, the company says. Vizcaino said efficiency is the key to the energy transition, because it not only saves a company money, but also has a positive impact on the entire system, from generation to distribution. "One megawatt of energy saved is less expensive and has a much greater impact than one megawatt of renewable energy added to a grid," he said. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Industry wary of Trump tariffs on Canada, Mexico


24/12/03
24/12/03

Industry wary of Trump tariffs on Canada, Mexico

Washington, 3 December (Argus) — US president-elect Donald Trump's plan to impose 25pc tariffs on all imports from Canada and Mexico could have a profound impact on the US oil and gas industry and the US' diplomatic efforts, energy industry representatives said at an industry conference on Tuesday. Cenovus Energy, the second-largest oil and gas producer in Canada, is paying close attention to Trump's rhetoric on trade, and trying to "educate" policymakers in the incoming Trump administration on how tariffs on Canada could impact North America's deeply integrated energy system, Cenovus director of US government affairs Steve Higley said at the North American Gas Forum in Washington, DC. The US in 2023 imported 3.9mn b/d of crude oil from Canada and 730,000 b/d from Mexico, accounting for 60pc and 11pc of US crude imports, respectively, according to US Energy Information Administration (EIA) data. Refineries in the US Midwest's PADD 2 region also process about 2.5mn b/d of Canadian crude, Higley said. The US also exports a significant amount of natural gas to Mexico — 6.2 Bcf/d (176mn m³/d) in 2023, according to the EIA — which is another "reminder of how integrated the North American energy system is," said Dustin Meyer, senior vice president of policy at the influential trade group American Petroleum Institute (API). Retaliatory tariffs by Mexico, threatened by Mexican president Claudia Sheinbaum last week in response to Trump's initial threat of tariffs, would likely impact that gas trade. Sheinbaum and Trump have since taken on a more conciliatory tone toward the subject after the two had what Trump called a "wonderful" conversation. API repeatedly called on Trump in his first administration to de-escalate his trade dispute with China, which it said threatened investment in US LNG. A section of API's website on trade titled "The Truth about Tariffs" reads: "Tariffs are taxes on imported goods that increase costs for consumers." Aside from the threat of tariffs causing "alarm" in Canada, it is not clear how US consumers would benefit from a tariff on all Canadian products, including oil and gas, said Robert Johnston, senior director of research at Columbia University's think tank Center on Global Energy Policy. On the diplomatic front, there is a "tension" between the incoming Trump administration's argument that US oil and gas production must be increased to support American allies, when it is also threatening tariffs to support American industry over that of its trade partners, Johnston said. The initiation of new trade disputes could also erode the US' ability to compete with China, said Jason Grumet, chief executive of trade group American Clean Power Association. "Are we trying to take China on alone, or are we trying to build a global economy of the democratic nations who have been our allies for 50 years?" Grumet asked. Whether the incoming Trump administration will actually go ahead with tariffs on Canada and Mexico is far from certain. From its rhetoric, the administration appears to care deeply about narrowing the US' trade deficit, leveraging its massive energy production on the global stage, and keeping energy prices low for US consumers, Meyer said. But "if that's the vision, what is the form that specific policies take?" he asked. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

German 2030 coal phase-out called into question


24/12/03
24/12/03

German 2030 coal phase-out called into question

London, 3 December (Argus) — Germany's coal phase-out targets are being reassessed owing to the likelihood of further delays to the passing of the power plant security act (KWSG), as well as decisions already taken on the future design of the electricity market. Germany has pledged to phase out coal and lignite-fired generation by 2038 at the latest, but energy ministry BMWK said an earlier, market-driven phase-out by 2030 is possible . Grid regulator Bnetza said 21GW of new gas-fired capacity — which should in the future be hydrogen-ready — would be needed by 2031 for a complete coal phase-out. Utility Leag said it does not see the current government changing the legal phase-out deadline. But "any further delay" to adding controllable replacement capacities would create an "urgent" situation, it said. And utility EnBW told Argus that it remains committed to phasing out coal by 2038 at the latest, while adding that "security of supply must not be jeopardised". At a transmission system operators' (TSO) forum held in November, TSO Amprion's Peter Lopion said the KWSG is vital to encourage plant construction in the south, where more gas-fired capacity is crucial if coal is to be phased out. He also raised concerns about Germany's target to phase out gas-fired power by 2045 — the year in which the country aims to reach climate neutrality — given the lack of a hydrogen economy and hydrogen production. Earlier this month, the CDU/CSU opposition parties commissioned an investigation into the feasibility of reactivating decommissioned nuclear plants, seeing the shutdown of Germany's final nuclear plant in April 2023 as "ideologically wrong". EnBW has told Argus that the decommissioning of its 1.4GW GKN II plant — the dismantling of which began in May 2023 — is "virtually irreversible". By Bea Leverett and John Horstmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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