Japan’s Jera to handle 35mn t/yr LNG until FY2035-36
Japan's largest LNG importer Jera plans to maintain its LNG handling volumes at no less than 35mn t/yr until the April 2035-March 2036 fiscal year.
Rising renewable power supplies and the possible return of more nuclear reactors are likely to pressure LNG demand from Japan's power sector. Jera consumed 23mn t of LNG in 2023-24, down by 3pc on the year, although it handled 35mn t through its global operations during the same year.
But Jera needs to secure sufficient LNG supplies to adjust for imbalances in electricity supplies and ensure power security, through more flexible operations. It is also looking to further promote LNG along with renewable electricity in Asian countries, while helping to reduce their dependence on coal- and oil-fired power generators.
The 2035 target for LNG is part of Jera's three pillars of strategic focus, along with renewables as well as hydrogen and ammonia, which was announced on 16 May to spur decarbonisation towards its 2050 net zero emissions goal. The company plans to invest ¥5 trillion ($32bn) for these three areas over 2024-36.
Jera also aims to retire all supercritical or less efficient coal-fired units by 2030-31. This would help achieve the company's target of cutting CO2 emissions from its domestic business by at least 60pc against 2013-14 levels by 2035-36.
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Rio Tinto to buy out New Zealand Aluminium Smelters
Rio Tinto to buy out New Zealand Aluminium Smelters
Sydney, 31 May (Argus) — UK-Australian mining firm Rio Tinto has signed an agreement to acquire Japanese firm Sumitomo Chemical's stake in New Zealand Aluminium Smelters (NZAS) to own 100pc of NZAS. Rio Tinto will buy Sumitomo Chemical's 20.64pc stake in NZAS for an undisclosed price which will give it full control of the joint venture if all approvals — including from New Zealand's Overseas Investment Office, are secured — Rio Tinto said today. NZAS operates the Tiwai Point smelter at Southland on New Zealand's South Island, which was expected to close in December, but will now operate for at least two more decades as Rio Tinto signed 20-year supply deals with local utilities Meridian Energy, Contact Energy and Mercury NZ for a combined base-load volume of 572MW. The smelter is the largest single user of electricity in the country, and produced between 333,000-336,000 t/yr over 2021-23. The power supply agreements are expected to begin in July and run until at least 2044, with the biggest coming from Meridian Energy at 377MW, followed by 100-120MW from Contact Energy and 50-75MW from Mercury NZ. The supply deals — which are subject to regulatory approvals and other conditions — include 20-year demand response agreements with Meridian Energy and Contact Energy, under which NZAS may be requested to reduce electricity consumption by up to a total of 185MW. "The NZAS decision to extend the smelter life removes significant uncertainty for the electricity sector, which also helps pave the way for new renewable energy to be built," Meridian Energy chief executive Neal Barclay said on 31 May. Rio Tinto has also signed an agreement to buy Sumitomo Chemical's 2.46pc stake in Boyne Smelters Ltd (BSL), which owns and operates the Boyne Island aluminium smelter in Gladstone, Australia. Rio Tinto's interest in BSL will increase to 61.85pc upon completion of the deal. Sumitomo Chemical said it held shares in the Australian and New Zealand business for the purpose of importing primary aluminium for resale, but decided to sell its interests as changes in global market conditions led to "high" volatility in profitability and as it looks to strengthen its financial position. Rio Tinto originally planned to shut down NZAS in August 2021 because of high energy costs and a tough outlook for the sector, but pushed back its decision a few times. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Queensland bans CCS in Great Artesian Basin
Australia’s Queensland bans CCS in Great Artesian Basin
Sydney, 31 May (Argus) — Australia's Queensland state government announced today it will ban carbon capture and storage (CCS) in its portion of the Great Artesian Basin. Greenhouse gas (GHG) storage activities, including CCS projects, will be permanently prohibited in the basin as the government looks to protect its water resources, Queensland premier Steven Miles said on 31 May. The ban, which will be legislated, also includes enhanced oil or petroleum recovery activities that use a greenhouse gas stream. Activities involving GHG storage or the injection of GHG streams into underground formations may be able to continue in other parts of the state, subject to existing assessment and approval processes. The government will appoint an expert panel to review projects outside the Great Artesian Basin, which will report back in 2025. The Great Artesian Basin is Australia's largest groundwater aquifer. It is made up of several sedimentary basins spanning over 1.7mn m² across Queensland, the Northern Territory, South Australia and New South Wales. Water extracted from the basin is used for agriculture, irrigation and stock watering, as well as for industry and household supply in over 80 Queensland towns, according to the government. Queensland's Department of Environment, Science and Innovation last week rejected the environmental impact statement for commodities producer and trading firm Glencore's CTSCo Surat Basin CCS project, which aimed to demonstrate carbon capture from a coal-fired power station and the permanent storage of CO2. The project was unsuitable to proceed because of the potential impact on groundwater resources in the Great Artesian Basin, the department said. The CCS ban follows the state's decision late last year to ban unconventional oil and gas extraction in its portion of the Lake Eyre basin to protect inland waterways, as well as conventional production alongside rivers and on floodplains. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Trump found guilty in criminal 'hush money' case
Trump found guilty in criminal 'hush money' case
Washington, 30 May (Argus) — Former president Donald Trump was found guilty today on 34 felony counts of falsifying business records in relation to the reimbursement of a $130,000 payment to an adult film star ahead of the 2016 presidential election. The unanimous guilty verdict, from a 12-member jury in New York, will inject further uncertainty into the presidential election on 5 November, where Trump is the presumed Republican nominee and is leading in many polls against President Joe Biden. Trump is the first former US president to face a criminal trial, and his conviction means he will run for office — on a campaign focused in part on rolling back energy sector regulations and expanding drilling — as a convicted felon. Sentencing is scheduled for 11 July. Trump has argued the criminal charges, filed by New York state prosecutors, were "ridiculous" and were a politically motivated attempt to interfere with his campaign. At trial, Trump's attorneys argued against the credibility of a key witness, Trump's former attorney Michael Cohen, who testified that Trump directed the falsification of the business records to conceal a "hush money" payment to the adult film star following an alleged affair. "This was a rigged, disgraceful trial," Trump said following the verdict, "but the real verdict is going to be November 5 by the people, and they know what happened here." Despite the conviction, Trump, if elected, could still serve as president. Trump could face up to four years in prison, and sentencing will be decided by the judge overseeing the case. Trump is separately facing dozens of other felony charges in federal and Georgia state court, but those cases have faced delays and may not go to trial before the election. President Joe Biden's campaign said Trump has "always mistakenly believed" he would not face consequences. Biden's campaign said that despite the verdict, it would be up to voters to decide whether Trump is re-elected. "Convicted felon or not, Trump will be the Republican nominee for president," Biden's campaign said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Enagas LNG bunkering sales at record high in 2023
Enagas LNG bunkering sales at record high in 2023
London, 30 May (Argus) — Spanish system operator Enagas' supplies of LNG as a marine bunkering fuel from its terminals in Spain and LNG bunkering vessels (LNGBVs) rose to a record high last year, as more capacity and stronger demand boosted throughput. Enagas supplied about 1.4TWh of LNG as a bunkering fuel in 2023, much more than the 400GWh supplied in 2022 and 300GWh in 2021, according to the firm. Enagas has expanded its LNG bunkering capacity in recent years, while the cost of LNG as a marine fuel has held much lower than competing alternatives such as marine gas oil (MGO) over the past year, supporting demand for LNG bunkering operations. The firm fully owns three LNG import terminals in Spain that offer LNG bunkering services — the Barcelona, Huelva and the Cartagena facilities. Barcelona offers pipe-to-ship (PTS) and ship-to-ship (STS) services, Huelva offers STS services and will soon offer PTS services, while Cartagena offers PTS operations, while Enagas plans to add STS services at the port too, the firm said. Enagas subsidiary Scale Gas co-owns two LNGBVs — the 5,000m³ Haugesund Knutsen in Barcelona with Norwegian firm Knutsen, and the 12,000m³ Levante LNG in Huelva, alongside UK supplier Peninsula. Most of the LNG bunkering operations in Spain are carried out in Barcelona, where bunkering volumes similarly rose to an all-time high last year, according to the port authority. The increase to 143,000 m³ of LNG as a bunker fuel across 199 deliveries last year, more than double the previous record posted in 2021 of 65,051m³, was linked largely to the commissioning of the Haugesund Knutsen in 2023. Enagas partially owns other assets that can offer truck-to-ship operations at the El Musel import terminal and the Sagunto and Bilbao LNG terminals. Bilbao can also provide PTS operations. Spain eyes growth Spain aims to build on its presence in the LNG bunkering market, with several planned LNG bunkering projects adding to its already-large LNG import and storage capacity. Utility Endesa recently advanced plans that were initially announced in 2021 to build a small LNG terminal with 5,000m³ of LNG storage capacity in the Spanish exclave of Melilla in north Africa. Endesa earlier this month requested permits for the project from the local government. Endesa also has plans for an LNG bunkering project in the port of Algeciras, with an LNG plant comprising four tanks with a combined capacity of 4,000m³. The firm had intended to start offering services earlier this year, but this appears to have been delayed. Scale Gas also aims to launch an LNGBV in the Canary Islands that it is building at present and aims to start operating in 2026. This LNGBV will also offer bio-LNG bunkering operations. By Ellie Holbrook Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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