OECD highlights Chile’s green transition potential

: Electricity, Metals
25/01/15

The energy transition holds the potential to boost Chile's stagnant economic growth, the Organization for Economic Cooperation and Development (OECD) said in a report published today.

Chile's high renewable energy potential and "vast" lithium and copper reserves put the country in the right position to benefit from the switch to cleaner energy, according to the OECD Economic Survey of Chile 2025.

But the country must simplify regulation, boost investment, upgrade electricity transmission and port infrastructure, and increase carbon prices to meet its climate targets and harness the benefits of the energy transition, it said.

Chile's massive renewable energy potential is built on its OECD-leading photovoltaic power possibilities and the world's best onshore wind resources in the Magallanes region in the far south, it noted.

It needs to streamline permitting processes that often exceed legal permit reviewing times, making "investment approvals costly and lengthy," it said.

Chile's tax on carbon emissions of $5/t of CO2e is low by international standards and insufficient for the country to meet its emission reduction targets, the report said. The country plans to increase the tax to $10/t on sites that emit more than 25,000t/yr of CO2.

The OECD also highlighted the country's need to ensure fiscal sustainability, foster women's participation in the labour market and accelerate productivity through digitalization and innovation to bolster growth.

The country's income convergence with more advanced OECD economies has stalled since 2012, it said. GDP rose by 2.4pc in 2024, up from a 0.3pc increase in 2023, on the back of postpandemic "adequate macroeconomic policies".

By Emily Russell

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25/04/03

Oil futures, stock markets fall on Trump tariffs

Singapore, 3 April (Argus) — US president Donald Trump's announcement of sweeping new tariffs on all US imports has sparked an immediate sell-off in oil futures and stock markets. Crude oil futures fell by almost 3.5pc in Asian trading and some stock markets in the region fell by a similar amount, after Trump unveiled the new import tariffs on 2 April. All foreign imports into the US will be subject to a minimum 10pc tax, with levels as high as 34pc for China and 20pc for the EU, Trump said. But energy and some mineral products have been excluded from the new tariffs. Tariffs on Japan and South Korea, both major trading partners and long-standing US allies in Asia, have been set at 24pc and 25pc respectively. Indonesia, Vietnam, Taiwan and Thailand also face tariffs of more than 30pc. Tariffs on imports from China will be subject to a 54pc rate, after taking into account the 20pc tariffs imposed by Trump over the last two months. Some imports from China that are subject to pre-existing tariffs will face an even higher effective rate. The blanket 10pc tariffs will take effect on 5 April. Any additional country-specific rates will come into force on 9 April. Oil futures fell despite the exemption for energy products. The June Brent contract on the Ice exchange fell by as much as 3.2pc to a low of $72.52/bl in Asian trading, while May Nymex WTI dropped by 3.4pc to $69.27/bl. The prospect that the US tariffs could disrupt global trade and hit export-focused economies in Asia sent stock markets in Tokyo, Hong Kong and South Korea down by 2-3pc or more. US stock futures also fell sharply. By Kevin Foster Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico manufacturing extends contraction in March

25/04/02

Mexico manufacturing extends contraction in March

Mexico City, 2 April (Argus) — Mexico's manufacturing sector contracted for a 12th consecutive month in March, with production and employment both deepening their slides, according to a survey released today. The manufacturing purchasing managers' index (PMI) ticked up to 47.2 in March from 47.1 in February, but remained below the 50-point threshold between contraction and expansion, according to the latest PMI survey from the finance executive association IMEF. Manufacturing, which accounts for about a fifth of Mexico's economy, is led by the auto sector, contributing about 18pc of manufacturing GDP. Within the manufacturing PMI, the new orders index rose by 1.3 points to 45.3, still deep in contraction. Meanwhile, production fell by 0.6 points to 44.6. The employment index also declined 0.6 points to 46.4 in March, now in contraction for 14 consecutive months. Meanwhile, the non-manufacturing PMI — covering services and commerce — declined 0.8 points to 48.8 in March from 49.6 in February, holding in contraction for a fourth consecutive month. Within the non-manufacturing PMI, new orders fell 1.5 points to 48.2 and production declined 1 point to 47.5 with employment down a point as well in March to 47.5, as all three pushed deeper into contraction. In contrast, the inventories component rose 3.5 points to 50.6 into expansion territory in March. But this may be the result of company strategies to stockpile inventories ahead of US tariffs and the reciprocal measures Mexico is set to announce on 3 April, IMEF technical advisory board member Sergio Luna said. PMI data show that the economic stagnation that began in late 2024 persisted through March, with results from January and February pointing to a sharp slowdown in the first quarter, IMEF said. This follows annualized GDP growth of 0.5pc in the fourth quarter of 2024, slowing from 1.7pc in the third quarter, according to national statistics agency data. Luna said concerns over US tariffs continue to drive much of the uncertainty reflected in the PMI data. Internal factors — such as reduced government spending to contain the fiscal deficit and investor unease over judicial reforms passed last year — are also weighing on activity, Luna added. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Market mulls 'limited' EU strategic project funding

25/04/02

Market mulls 'limited' EU strategic project funding

London, 2 April (Argus) — Market participants had mixed reactions after the European Commission granted Strategic Project status to 47 critical materials projects, securing €22.5bn investment to bolster the bloc's homegrown battery supply chain. The listed €22.5bn is not yet allocated, but the commission will work with funding bodies such as the European Investment Bank and other private institutions to advise on distribution. The commission did not offer a deadline for funding allocations, but stated that permit-granting will be cut to 27 months for extraction and 15 months for processing or recycling projects, down from current waiting times of up to 10 years. The commission also maintains that the sum of expected overall capital investment will be enough to bring all 47 projects on line (see map) . "Securing Strategic Project status is likely to bring key advantages, including better access to finance and investment," Vulcan Energy chief executive Cris Moreno told Argus . "It will enable us to scale our operations and ensure long-term sustainable lithium production for Europe's mobility transition." One carmaker told Argus the commission's decision offers projects more of a "seal of quality" than a decisive cash injection, the significance of which has divided participants. "Funding is indeed limited considering the size of individual investments," a spokesperson from Finnish majority-state-owned energy firm and battery recycler Fortum told Argus . "In general, one could say that cost of refinery or battery materials manufacturing capacities are easily 1bn — each." Others estimate the average cost for a project closer to $2.5bn . The EU's fast-tracked timelines for these projects might also be delayed by the handling of appeals against its permitting decisions, Fortum added, perhaps over the climate and local community. EU funding dwarfed by China, US The EU's €22.5bn of earmarked funding pales in comparison with China and the US. Chinese state subsidies into the electric vehicle (EV) supply chain tipped $45bn in 2023 alone, while the US invested more than $50bn last year into all clean energy under the Inflation Reduction Act (IRA) (see graphs) . "From a lithium perspective, it is nice to see some action in Europe but many of the projects are at best mediocre," Global Lithium podcast host Joe Lowry told Argus , citing high costs and an overall "mining unfriendly continent". "I welcome it, I think it's very good news", consultancy EV Outlook founder Roger Atkins said. "Almost inevitably, some will fail, some will thrive — they would've anyway, but this definitely helps." Participants speculated as to whether EU Strategic Project status will encourage enough additional investment to get projects under way. "I don't know all 47, but for [Swedish graphite producer] Talga, this will allow it to attract the investment it's been looking to close in on, but I'm certain production in Europe could benefit from more collaboration — even between competitors," Atkins added. "There is an annual forum in China going on since 2015, called China EV100, to get industry actors and politicians in the room. It's not for profit, so it's open to everyone, just an organic process of managing change. It wouldn't harm Europe to basically copy it." By Chris Welch EU's 47 strategic projects Annual Chinese state subsidy estimates $bn US manufacturing investments by stage of supply chain $bn Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s gas leaders hit out at market intervention

25/04/02

Australia’s gas leaders hit out at market intervention

Sydney, 2 April (Argus) — Senior figures in Australia's upstream gas sector have hit out at plans for intervention in the heavily regulated industry, as debate continues on how to best address domestic supply shortfalls later this decade. The federal Coalition in March announced National Gas Plan including a 50-100 PJ/yr (1.34bn-2.68bn m³/yr) domestic reservation system aimed at forcing the three LNG exporters based in Queensland's Gladstone to direct more supply to the eastern states' market. But oversupplying the market to drive down prices would destroy the viability of smaller gas projects, Australian independent Beach Energy's chief executive Brett Woods said at a conference in Sydney on 1 April. The domestic-focused firm, which will export some LNG volumes via its Waitsia project in 2025, warns that such a move by the Peter Dutton-led opposition would reduce export incomes while harming Australia's international reputation. The volumes impacted by the policy could reach around 900,000-1.8mn t/yr. Expropriation of developed reserves is equivalent to breaking contracts with LNG buyers and with the foreign and local investors that the country needs for ongoing economic security, Woods said on 1 April. Domestic gas reservation systems put in place by the state governments of Western Australia (WA) and Queensland, designed to keep local markets well supplied, were "clearly supportable", Woods said, but only future supply should be subject to the regulations. LNG terminals, which represent about 70pc of eastern Australia's total gas consumption and shipped 24mn t in 2024 , should not be blamed for the failure of governments to expedite new supply and plan for Australia's gas future, head of Shell Australia Cecile Wake said in response to the Coalition's proposal. Shell's QGC business supplied 15pc of its volumes to the local grid, with the remainder shipped from its 8.5mn t/yr Queensland Curtis LNG project, Wake added. Canberra has moved to promote gas use as a transition fuel to firm renewable energy in line with its 2030 emissions reduction targets, but progress has been slow as reforming laws appear to be hampering development . The state governments, particularly in gas-poor Victoria and New South Wales (NSW), must recognise the need for locally-produced supply and streamline the approvals processes, especially environmental permits, executives said. But despite pleas for an end to years of interventionist policy — including the governing Labor party's measures to cap the price of domestic gas at A$12/GJ , Australia's fractured political environment and rising cost of living has sparked largely populist responses from its leaders. A so-called "hung" parliament is likely to result from the 3 May poll , with a variety of mainly left-leaning independents representing an anti-fossil fuel agenda expected to control the balance of power in Australia's parliament. LNG debate sharpens Debate on the causes of southern Australia's gas deficit has persisted, and the ironic outcome of underinvestment in gas supply could be LNG re-imports from Gladstone to NSW, Victoria and South Australia, making fracked coal-bed methane — liquefied in Queensland and regasified — a likely higher-emissions alternative to pipeline supply. Several developers are readying for this possibility , which is considered inevitable without action to increase supply in Victoria or NSW, increase winter storages or raise north-south pipeline capacity. Australian pipeline operator APA appears to have the most to lose out of the active firms in the gas sector. APA chief executive Adam Watson this week criticised plans for imports, because relying on LNG will set the price of domestic gas at a detrimental level, raise emissions and decrease reliability of supply, Watson said. The firm is planning to increase its eastern pipeline capacity by 25pc to bring new supplies from the Bass, Surat and Beetaloo basins to market. But investment certainty is needed or Australia will risk needing to subsidise coal-fired power for longer if sufficient gas is unavailable to back up wind and solar generators with peaking power, Watson said. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

LNG stocks at Japan’s power utilities rise

25/04/02

LNG stocks at Japan’s power utilities rise

Osaka, 2 April (Argus) — LNG inventories at Japan's main power utilities increased during the week to 30 March, as warmer weather reduced electricity demand for heating purposes and limited gas-fired generation. The utilities held 2.24mn t of LNG on 30 March, up by 22pc from a week earlier, according to a weekly survey by the trade and industry ministry Meti. This was higher by 51pc compared with 1.48mn t at the end of March 2024 and up by 10pc against 2.03mn t — the average end-March stocks over 2020-24. A seasonal rise in temperatures weighed on power demand, which fell by 12pc on the week to 87GW across 24-30 March, according to the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto). This resulted in a 24pc fall in gas-fired output to an average of 24GW during the period, the Occto data showed. Coal- and oil-fed generation also fell by 14pc to 23GW and by 21pc to 409MW respectively in the same period. The lower demand has created extra supplies to be sold on the wholesale market. This has weighed on day-ahead prices on the Japan Electric Power Exchange (Jepx) and worsened generation economics for the country's thermal power plants. Margins at a 58pc-efficient gas-fired unit running on oil-priced LNG supplies fell into negative territory, with the spark spread averaging at a loss of -¥2.28/kWh ($15.22/MWh) across 24-30 March, compared with the previous week's profit of ¥0.84/kWh. The 58pc spark spread using spot LNG widened the deficit, with the margin averaging at a loss of -¥3.79/kWh against the previous week's -¥0.80/kWh, based on the ANEA — the Argus assessment for spot LNG deliveries to northeast Asia. Coal remained competitive in Japan's merit order. But the dark spread of a 40pc-efficient coal-fired unit also fell by 64pc on the week to an average of ¥1.63/kWh over 24-30 March, based on Argus' spot coal and freight assessments. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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