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Japan’s Shikoku to shut Ikata reactor for maintenance

  • Market: Coal, Electricity, Natural gas
  • 12/07/24

Japanese utility Shikoku Electric Power is planning to shut down the 890MW Ikata No.3 nuclear reactor on 19 July, to carry out regular maintenance works.

The absence of Shikoku's sole reactor could prompt the utility to boost thermal power generation at coal-, gas- and oil-fired units to meet expected rises in electricity consumption for cooling purposes during the peak summer demand season.

The Ikata No.3 reactor is set to close for a three-month turnaround, after around 13 months of continuous operations. Shikoku plans to start test generation in the final phase of the maintenance on 30 September and complete the entire turnaround process on 25 October.

The potential fall in nuclear output could theoretically increase LNG demand by 170,270t over August-September, assuming an average gas-fired generation efficiency of 50pc.

Shikoku operates four thermal power plants, including the 1,385MW Sakaide gas- and oil-fired plant, 750MW Saijo coal-fired plant, 700MW Tachibanawn coal-fired plant and 450MW Anan oil-fed plant. Thermal capacity accounts for around 60pc of the utility's power portfolio.


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11/02/25

Brazil’s January inflation lowest since 1994

Brazil’s January inflation lowest since 1994

Sao Paulo, 11 February (Argus) — Brazil's monthly inflation stood at 0.16pc in January, the lowest increase for the month since 1994 when the government enacted multiple measures to contain soaring inflation, according to government statistics agency IBGE. The consumer price index (CPI) slowed annually to 4.56pc from 4.83pc in December, heavily influenced by a 14.2pc tumble in power costs in January, compared with a 3.19pc drop in December. Power costs decelerated January's inflation by 0.55 percentage points — the major individual contributor to the annual drop, according to IBGE — thanks to a R1.3bn ($224mn) federal discount in power tariffs that month, CPI's manager Fernando Goncalves said. Food and beverage costs rose by an annual 7.25pc, decelerating from 7.69pc in December. Beef costs increased annually by almost 21.2pc following a 20.8pc gain in the month prior, while soybean oil costs decelerated to 24.55pc over the last 12 months from 29.2pc in December. Motor fuels prices rose by 11.35pc in January. Ethanol was responsible for the group's largest annual increase of 21.59pc, up from 17.58pc in the month prior. Gasoline and diesel prices also registered annual rises of 10.71pc and 2.66pc from 9.71pc and 0.66pc, respectively. Still, diesel prices remained at a 0.97pc monthly increase from December, while ethanol costs contracted by 1.82pc from 1.92pc and gasoline prices increased by 0.61pc from 0.54pc. Fuel prices are likely to keep increasing in February, as states increased the VAT-like ICMS tax on fuels and state-controlled Petrobras increased wholesale diesel prices by 6.3pc , both effective as of 1 February. Transportation costs rose by 1.3pc in January over the year, following a 0.67pc gain in December. Flight tickets were the most responsible for the increase, with a 10.42pc monthly gain from a 22.2pc contraction in December. Brazil's central bank is targeting CPI of 3pc with a margin of 1.5 percentage point above or below. The bank raised its target rate to 13.25pc in January after it failed to maintain Brazil's headline inflation under the ceiling of 4.5pc for 2024. Further increases are expected in the coming months, the bank said. The central bank has recently changed the way it tracks the inflation goal. Instead of tracking inflation on a calendar year basis, it will now monitor the goal on a 12-month basis. In 1994, Brazil enacted its Plano Real, a series of measures to stabilize the economy and detain soaring inflation, which had hit an annual 916pc by the end of that year. One of the measures was to change its currency to the real from the cruzeiro real. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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BP promises strategy reset after sharp drop in profit


11/02/25
News
11/02/25

BP promises strategy reset after sharp drop in profit

London, 11 February (Argus) — BP today promised to "fundamentally reset" its strategy later this month after reporting a drop in underlying profit last year. The company alluded to what the reset might entail, noting that last year it had "laid the foundations for growth" by committing capital to new oil and gas projects and "refocusing" its investments in low-carbon assets. Details of the strategy shift will be outlined at a capital markets day for investors on 26 February. Key actions in 2024 included taking a final investment decision on the 80,000 b/d Kaskida oil field in the US Gulf of Mexico and raising its exposure to biofuels in Brazil . The company also took steps via a joint venture with Japanese utility Jera that will see it commit less capital to its wind energy investments. BP reported an underlying replacement cost profit — excluding inventory effects and one-off items — of $1.2bn for the fourth quarter of 2024, compared with $3bn a year earlier. For the full year, underlying replacement cost profit fell by 36pc compared with 2023 to $8.9bn, while cash flow from operations dropped to $27.3bn from $32bn. The company benefited from higher oil and gas production last year — up by 2pc on 2023 at 2.36mn b/d of oil equivalent (boe/d). But lower prices, a drop in refining margins and lower contributions from both oil and gas trading weighed on profitability. BP said it expects upstream production to be lower this year and refining margins "broadly flat". It expects a similar level of refinery maintenance in 2025, with the work "heavily weighted towards the first half" and the second quarter in particular. For now, BP is sticking with its share repurchasing programme, announcing a further $1.75bn of share buybacks for the fourth quarter. It has maintained its quarterly dividend at 8¢/share. The company's capital expenditure remained steady at $16.2bn last year. It will provide guidance on this year's investment budget at the strategy day later this month. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Natural gas industry hedges US-Canada tariff risk


10/02/25
News
10/02/25

Natural gas industry hedges US-Canada tariff risk

New York, 10 February (Argus) — North American natural gas producers and LNG importers are evaluating their exposure to impending tariffs on Canadian gas flowing into the US, including how they could benefit from uncertainty around the policy. Marketers responsible for managing gas supplies across the US-Canada border and at least one North American LNG importer are holding internal meetings to discuss risks and opportunities related to the potential tariffs, according to sources who asked to remain anonymous because they are not allowed to speak publicly. President Donald Trump on 3 February delayed 10pc tariffs on energy from Canada and Mexico by a month, a day before they were set to be imposed. One of the largest US gas producers is reviewing its supply contracts with Canadian customers to evaluate its exposure to possible retaliatory tariffs by Canada, a person with knowledge of the matter told Argus . The company is particularly concerned with its ability to achieve price certainty given a lack of clarity around which party would pay the tariff and how such a transaction might be audited by regulators, the person said. Some large US gas producers are also looking to exploit the so-called "uncertainty premium" by strategically timing when they hedge their output — ideally, when rhetoric and anxiety over tariffs mounts, so they can lock in higher prices, sources in the banking sector said. Internal meetings to discuss potential tariffs are also being held at US utility Constellation Energy, owner of the Everett LNG import terminal near Boston, Massachusetts, sources said. Tariffs could make Everett LNG more competitive by modestly raising New England pipeline gas prices, thereby making LNG imports more economical when the price for local pipeline capacity is high. Tariffs could also hurt demand for gas from the Saint John LNG import terminal in New Brunswick, Canada, owned by Spanish energy conglomerate Repsol, since most of Saint John's imported gas supplies are shipped via pipeline across the US border into New England. Constellation and Repsol did not respond to requests for comment. New England relies on gas imported from abroad by Everett LNG and Saint John LNG during particularly cold winter days because of insufficient pipeline capacity connecting the region to prolific gas fields in Pennsylvania and the surrounding states. Goldman Sachs estimates Trump's 10pc tariffs on Canadian energy products would reduce Canadian gas exports to the US by about 160mn cf/d (5mn m³/d), while investment bank RBC Capital Markets said the tariffs could cause "mildly higher US gas prices". By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Energy Transfer to supply gas to planned data center


10/02/25
News
10/02/25

Energy Transfer to supply gas to planned data center

Houston, 10 February (Argus) — US energy infrastructure company Energy Transfer has reached a long-term agreement to supply natural gas to an artificial intelligence data center in central Texas. Under that agreement — Energy Transfer's first direct supply contract with a data center — the company will provide about 450mn cf/d (13mn m³/d) to Denver, Colorado-based CloudBurst Data Center's planned data center campus near San Marcos, Texas, for at least 10 years. That deal is contingent on CloudBurst reaching a final investment decision, which is expected later this year. The data center is scheduled to begin operations in the third quarter of 2026, Energy Transfer said. New energy-intensive data centers that run artificial intelligence software will be a key source of power demand growth in the coming years. Data centers were forecast to drive power demand in the commercial sector 2pc higher this year and lead to another 2pc increase in 2026, according to the US Energy Information Administration. Those additional power needs could lift gas demand by 3 Bcf/d or more by the end of this decade, according to some analyst estimates. Energy Transfer will provide the gas via the Oasis pipeline, a 1.2 Bcf/d line that connects gas supplies from the Permian basin of west Texas to demand centers on the Texas coast. That supply will be used to generate 1.2GW of power exclusively for the data center. Energy Transfer is in talks to supply other data centers along its network of natural gas pipelines. It expects the CloudBurst agreement to be "the first of many," the company said. By Jason Womack Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Noboa's tight lead triggers runoff in Ecuador


10/02/25
News
10/02/25

Noboa's tight lead triggers runoff in Ecuador

Quito, 10 February (Argus) — Ecuador will hold a second-round presidential election on 13 April after incumbent President Daniel Noboa had a closer-than-expected lead over his main challenger in Sunday's election, the electoral authority said. Noboa had 44.5pc of votes as of 11:30pm ET on Sunday, closely followed by Luisa Gonzalez, the candidate for the Citizens' Revolution party with 44.1pc, with 80pc of votes counted, the national electoral council (CNE) said. Ecuador's presidential election goes to a second round if the winning candidate does not have more than 50pc of votes or 40pc of votes with a 10-percentage point lead over the runner-up. Gonzalez' party was founded by exiled former president Rafael Correa, a close friend and supporter of Venezuelan president Nicolas Maduro. Correa guided taking on crude-backed loans from China during his term and oversaw a rewrite of the constitution, allowing him to serve for 10 years. Gonzalez in brief comments said she was optimistic about winning the second round, while Noboa did not speak publicly. This is the first time since 2006 that the candidate with Correa's party did not win at least the initial round of a presidential race. Pachacutik candidate Leonidas Iza was in third place with 4.8pc of votes. His party is the political arm of the Confederation of Indigenous Nationalities (Conaie) that led an 18-day national strike in June 2022, cutting Ecuador's crude production by 17pc that month. The remaining 13 candidates obtained about 6.6pc of the valid votes. About 13.7mn Ecuadorians were required to appear at the polls. Voting is mandatory in the South American country, but only around 85pc actually voted. Ecuadorians also voted for 151 members of the national assembly. Gonazalez' party and Noboa's National Democratic Action party are forecast to win the biggest shares, but officials results will not be known for several days. By Alberto Araujo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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