S Korea election offers potential for nuclear change

: Coal, Electricity, Hydrogen, Natural gas
22/01/25

South Korea's upcoming presidential election on 9 March opens up the possibility for a sharp change in the country's nuclear policy.

The leading two candidates to replace presidential incumbent Moon Jae-in — Lee Jae-Myung from the ruling liberal Democratic Party and Yoon Seok-Yeol of the conservative opposition People Power Party — are running neck and neck in the polls. While both have pledged to honour the country's emissions targets, their proposed roadmaps to reach that goal stand far apart from one another, most notably on the use of nuclear plants.

South Korea has already reduced its nuclear generation capacity in recent years, as president Moon pushed for halting construction of new nuclear plants and shutting down existing units nearing the end of their working lives.

The 679MW Wolsong reactor 1 was retired early in June 2018, despite the fact the country's nuclear commission (NSSC) had previously cleared it to operate until 2020. Plans to build the 1.4GW Shin-Hanul reactor 3 and 4, along with the 1.5GW Cheon-Ji reactor 1 and 2, were also scrapped under Moon's administration.

Moon's nuclear phase-out policies have faced criticism as the president set ambitious renewable targets to reach 2050 carbon neutrality, while simultaneously phasing out coal burn. Nuclear and coal-fired power generation accounted for around 27pc and 37pc of South Korea's power mix in 2019-21, respectively. In contrast, renewable output was around 5pc of the total power generation during the same period.

Lee Jae-Myung: Nuclear reduction not phase-out

The Democratic Party's Lee has proposed policies that are mostly in line with goals set by Moon, although one notable shift is towards a reduction in nuclear capacity rather than a full nuclear phase-out.

Under Lee's announced policies, no new nuclear units would be built, but plants already in operation or under construction would be maintained. Lee also plans to review plans to build the Shin-Hanul reactors 3-4.

The change in tack probably comes in response to both a public backlash to the nuclear phase-out policy and Lee's earlier target date to reach carbon neutrality by 2040 rather than 2050. He aims to achieve a 40pc reduction in greenhouse gas emissions, compared with 2018 levels, already by 2030.

To reach this goal, the Democratic Party candidate has proposed bringing forward coal-fired plant closures, relying instead on other forms of generation to meet power demand, and introduce carbon taxes. He also plans to gather the dispersed energy governmental ministries under a new climate and energy ministry, and increase government investment to build an AI-based power transmission and distribution network nationwide to better enable trade of renewable energy.

Yoon Seok-Yeol: Revival of the nuclear industry

While People Power Party candidate Yoon Seok-Yeol has yet to announce any detailed climate and energy policies, he has pledged to put an end to Moon's nuclear phase-out plan.

The opposition candidate has not only pledged to resume construction of the 1.4GW Shin-Hanul reactors 3-4, but also revive South Korea's nuclear industry to strengthen exports of equipment, material and technology. That said, Yoon has not announced immediate plans to build new capacity, as he would first invest in developing new technologies aimed at extending the life span of nuclear reactors, including Small Modular Reactors (SMRs), as well as producing green hydrogen using nuclear energy.

The People Power Party candidate has pledged to slash the share of fossil-fuel output in the country's generation mix by a third, and fine-dust air pollution by more than 30pc, although details of such plans are scarce.

Yoon has criticised Moon for an increasing reliance on "expensive" gas-fired generation to enable his nuclear programme, resulting in state-owned Kepco's financial losses, and emphasised instead the role of nuclear energy in base-load power supply as coal-fired output is phased out. The candidate has pledged to maintain a level of nuclear output that would help to cut consumer energy costs in an effort to protect low-income families.

By Evelyn Lee

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25/04/25

Canada H2 sees opening as political chaos engulfs US

Houston, 25 April (Argus) — Canada's hydrogen sector sees an opportunity to attract global customers as the US' bellicose stance toward its northern neighbor unites Canadians behind strengthening its energy capacity and as US political turmoil sends countries looking for other trading partners. "The mayhem south of the border has created a real national interest in exports," Trigon Pacific Terminals chief executive Robert Booker said this week at the Canadian Hydrogen Convention in Edmonton, Alberta. Trigon is building a berth at the port in Prince Rupert, British Columbia, to handle low-carbon hydrogen converted to ammonia. "The choice, quite frankly, is become the 51st state or export," Booker said. "We should export, and there's broad understanding that that's good for Canada." Canadian energy exports from Alberta have largely gone south to the US. Ambitions to tap global markets have been stymied in years past by community and federal opposition to building rail and pipeline infrastructure that would connect the landlocked province to the Pacific coast. Multiple large-scale hydrogen proposals in western Canada were quietly shelved in the past year because of a lack of infrastructure, among other challenges, and Canadian companies were shut out of recent Asian auctions to buy hydrogen because of similar restraints. But Trump's return to the White House has changed Canadians' views on export infrastructure. Both candidates in the upcoming 28 April general election, including Liberal Prime Minister Mark Carney who served as UN Special Envoy for Climate Action, have vowed to build out pipelines , rail corridors and other infrastructure — including electricity grids — to diversify energy exports away from the US. "We've never been this united in the country," said Julie Lemieux, chief executive officer of Triple Point Resources, which is developing a salt dome in Newfoundland for hydrogen storage. "That's the positive of the chaos. We've been notoriously slow to approve these projects and invest in infrastructure. Whoever wins next week, they've all committed to investing in infrastructure." Panelists speaking in Edmonton expressed relief that Canada didn't follow the US example of putting tariffs on China, whose technology and components will be instrumental to containing costs while building Canadian infrastructure. "For better or worse, whatever your opinion, the build out of new infrastructure today is really dependent on China, especially when it comes to green infrastructure, where there's already an embedded green premium," said Matthew Borys, vice president of corporate development at EverWind Fuels. "Keeping the cost down is super important to getting these things built out." The Trump administration's preference for fossil fuel extraction over clean energy and its expansionist designs on the Panama Canal are also seen as opportunities for Canadian developers to attract Asian customers who could avoid the canal by exporting from British Columbia terminals, said James Vultaggio, vice president of Atco EnPower. "The administration to the south is focused more on fossil fuel production and reducing environmental regulations," Vultaggio said. "If they want to cede their seat as a clean energy leader, then Canada has an opportunity to fill that seat, and we should take it." Trump has been outspoken in his preference for fossil fuel extraction and has paused all federal clean energy disbursements related to the Inflation Reduction Act, which has raised doubts about whether US hydrogen hubs can survive as they were initially conceived during the administration of former president Joe Biden. Clean energy incentives such as the 45V hydrogen production tax credit have also come under scrutiny as the Trump administration seeks to shrink government spending. The uncertainty around clean energy incentives in the US may well send American investment north, said Denis Caron, chief executive of the Belledune Port Authority in eastern Canada's New Brunswick province, which is positioning itself as a green energy hub targeting European markets. Caron said an American company working with the port of Belledune remains bullish on its prospects there and could serve as a model to attract even more American investment if the US continues to claw back support for clean energy. "We see an opportunity to attract American investment to Canada and make those types of investments," Caron said. "Canada has a golden opportunity to fulfill the requirement of supplying clean and green energy products globally." By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

SLB taking steps to offset tariffs: Update

25/04/25

SLB taking steps to offset tariffs: Update

Adds details from call. New York, 25 April (Argus) — Oilfield services contractor SLB said it is taking proactive steps to offset the impact of US tariffs by reviewing its supply chain and manufacturing network, pursuing exemptions and talking to customers to recover related cost increases. "We have made progress on all these fronts in the last two weeks, and we are stepping up those actions across the organization as we speak," chief financial officer Stephane Biguet told analysts after the company reported first quarter results today. SLB is partly protected from the overall tariff fallout given 80pc of total revenue comes from international markets, as well as its in-country manufacturing and local sourcing efforts. But other areas are exposed to increasing tariffs, such as imports of raw materials into the US, as well as exports from the US subject to retaliatory action. Under the current tariff framework, most of the likely effects come from trade activity between the US and China. "As the second quarter progresses and ongoing trade negotiations continue, we will hopefully gain better visibility of where tariffs may settle and the extent to which we will be able to mitigate their effects on our business," Biguet said. In the current climate, SLB says customers are likely to take a more cautious approach to near-term activity. Given industry headwinds from volatile oil prices and demand risks, SLB expects global upstream investment to decline this year from 2024, with customer spending in the Middle East and Asia holding up better than elsewhere. SLB reported a "subdued" start to the year as revenue fell 3pc in the first quarter from the same three months of 2024. The company noted higher activity in parts of the Middle East, North Africa, Argentina and offshore US, along with strong growth in its data center and digital businesses in North America. However, those gains were more than offset by a larger-than-expected slowdown in Mexico, a slow start in Saudi Arabia and offshore Africa, and a steep decline in Russia. Even so, SLB remains committed to returning a minimum of $4bn to shareholders through dividends and share buybacks this year. "The industry may experience a potential shift of priorities driven by changes in the global economy, fluctuating commodity prices and evolving tariffs — all of which could impact upstream oil and gas investment and, in turn, affect demand for our products and services, said chief executive officer Olivier Le Peuch. "In this uncertain environment, we remain committed to protecting our margins, generating strong cash flow and delivering consistent value." First quarter profit of $797mn was down from $1.07bn in the same three months of 2024. Revenue of $8.5bn compared with $8.7bn last year. SLB is the last of the top oilfield services firms to post first-quarter results. Halliburton and Baker Hughes reported earlier this week. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Danish H2 sector criticises country's mandate draft

25/04/25

Danish H2 sector criticises country's mandate draft

London, 25 April (Argus) — Industry group Hydrogen Denmark and some of its member companies have criticised the country's draft to transpose EU hydrogen transport targets into Danish law, and have urged Copenhagen to adjust the rules before they are finalised in May. Companies with hydrogen projects, including Everfuel, Copenhagen Infrastructure Partners and European Energy, signed an open letter calling for changes, as did fuel producer Crossbridge Energy, which runs the 67,000 b/d Fredericia oil refinery and has an offtake deal for hydrogen from Everfuel. The group said Denmark's targets are unambitious and too low to spur significant demand and help the country realise its goal to export 'green' energy. The draft rules would effectively mean Danish fuel companies supply 1pc renewable hydrogen and derivatives to the transport sector by 2030, which was the minimum goal set by Brussels. The group urged Denmark to aim above the EU target, following member states like Finland that has set a 4pc target . The group also wants Denmark to phase in the quota with incremental increases each year until 2030 starting as early as 2026, to aid first-mover projects and generate experience that ensures Denmark can successfully meet the binding EU target that starts in 2030. The group also warned Denmark must not exclude use of subsidised hydrogen from counting towards transport targets. This would ruin the business case for many hydrogen production projects and could steer Danish producers towards exports and mean Denmark effectively subsidises neighbours like Germany to meet its own mandates, it said. The group's concerns stem from language around 'supported' projects in the draft text, which it understands to refer to state aid. If left unchanged, the rule would affect projects that Denmark has subsidised through its power-to-X tender and Danish projects that may hope to benefit from EU-level funds like the European Hydrogen Bank or the Innovation Fund. The industry group praised Copenhagen's plan to allow renewable hydrogen switching in refineries to count towards the targets. This mechanism, known as the refinery route in some European countries, has been called "elegant" by market participants because it should raise demand for hydrogen in the near term and is a logistically simpler way to cut CO2 than converting refuelling stations and vehicle fleets to use hydrogen. Denmark appears to have allowed the rule without limiting the value of credits, unlike the Netherlands where a 'multiplier' rankled industry participants . Allowing the refinery route will probably please Everfuel and Crossbridge Energy, as the latter had complained Denmark was not supporting its refinery 20MW fuel switching project unlike EU peers. Copenhagen had planned to set the draft mandates into law by 21 May — the deadline set under the EU's revised renewable energy directive (REDIII) — but it remains to be seen if it will press ahead with this timeline given industry has demanded changes. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Kurdish gas plans may boost Iraqi oil exports

25/04/25

Kurdish gas plans may boost Iraqi oil exports

Dubai, 25 April (Argus) — Plans for a significant increase in natural gas production in Iraq's semi-autonomous Kurdistan region over the next 18 months could not only help address the country's chronic power shortages but also enable Baghdad to boost its oil exports. The Pearl Petroleum consortium — which comprises Abu Dhabi-listed Dana Gas, Sharjah-based Crescent Petroleum, Austria's OMV, Hungary's Mol, and Germany's RWE — aims to increase gas production capacity in Kurdistan to 825mn ft³/d by the end of next year, representing a more than 50pc increase from current output. The plan involves expanding the capacity of the region's sole gas-producing field, Khor Mor, to 750mn ft³/d by the first quarter of 2026, and adding up to 75mn ft³/d from the Chemchemal field by the end of 2026. According to a source at Pearl, the development of Chemchemal is a key priority for the companies, as it is believed to have reservoirs comparable to those of Khor Mor. Under a 2019 agreement, the additional gas from the expansion project will be sold to the Kurdistan Regional Government (KRG) for a 20-year term, which should help eliminate the region's frequent power outages, particularly during peak summer months when demand for air conditioning is high. The Kurdistan region will also be well-positioned to supply any excess gas to the rest of Iraq. The federal government in Baghdad had previously approved a plan to import approximately 100mn ft³/d of gas from Khor Mor to power a 620MW plant in Kirkuk province, but no formal agreement has been signed to date. "The federal ministry of electricity and Crescent Petroleum have already met to finalise the agreement, which is ready for signature and awaiting implementation," the Pearl source said. "The infrastructure needed to support the sale of this quantity of gas is also in place." The plan has faced delays partly because of Iran's long-standing influence over Iraq and the potential impact such an agreement with the Kurdistan region could have on Baghdad's reliance on Iranian gas and power. However, the revival of US president Donald Trump's ‘maximum pressure' campaign against Tehran is forcing Baghdad to get serious about seeking alternative energy sources, with the Kurdistan region emerging as a viable option. Crude Export Boost Formalising the deal to import Kurdish gas would allow Baghdad to allocate more oil for export, as it would reduce the need to burn crude for power generation. Argus estimates that Iraq typically burns between 50,000 b/d and 100,000 b/d of crude in its power stations, depending on the season, and has recently increased imports of gasoil for power generation. By the time Iraqi Kurdistan has fully ramped up its additional gas capacity, Iraq's Opec+ crude output target will be 200,000 b/d higher than it is today, based on the group's latest production plans. By Bachar Halabi and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Water levels delay Tennessee River lock reopening

25/04/24

Water levels delay Tennessee River lock reopening

Houston, 24 April (Argus) — The US Army Corps of Engineers (Corps) will delay the reopening of the Tennessee River's Wilson Lock by three weeks after high floodwater disrupted repair plans. The Wilson Lock is now planned to reopen in mid-June or July, the Corps said this week. The lock's main chamber has been closed since September after severe cracks were found in the structure. The Corps initiated evacuation procedures so personnel and equipment could be removed before any water entered the dewatered lock and ruined repairs after high water appeared too close to the lock's edge. The water did not crest above the temporary barrier the Corps installed to keep water out. Delays at the lock averaged around 10 days as of 24 April, according to the Corps. Barge carriers fees have been in place for each barge that must pass through the auxiliary chamber of the lock since 25 September, when the lock first closed. Restricted barge movement placed upward pressure on fertilizer prices in surrounding areas as well. The lock still requires structural repairs to the main chamber gates, including the replacement of the pintle components, the Corps said. This is the fourth opening delay the Corps have issued for the Wilson Lock, with the prior opening dates being in November , then April and then in June . The Wilson Lock will enter its eighth month of repairs next month. By Meghan Yoyotte and Sneha Kumar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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