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Review delays Brazil's LPG assistance program

  • Market: Biomass, LPG
  • 11/11/24

Brazil's lower house has removed a proposed LPG assistance program from its urgent voting schedule, submitting it to further review and revisions.

The program announced in August is still under deliberation, but officials now expect further revisions before it moves forward and launches on 1 January.

The bill may add new controls to avoid fraud, the mines and energy ministry's petroleum, natural gas and biofuels secretary Pietro Mendes said last week during a debate in the lower house about LPG.

Congressman Hugo Leal, the bill's overseer, told Argus that he will propose creating LPG cylinders smaller than the typical household 13kg models to ease access for low-income families.

Low-income families spend 70pc of their resources on housing and groceries, according to Carlos Ragazzo, a researcher at the Getulio Vargas Foundation. That suggests that the current government financial support has likely been used for monthly expenses rather than substituting firewood usage for cooking with LPG.

Consumption of firewood for cooking fell from 2005-2015 (see chart), thanks to improved economic conditions throughout the country, according to energy research firm EPE. But the share of households that use firewood for cooking has hovered around 25pc since 2015, even after the launch of program to promote LPG cooking use in 2021 to help those families during the Covid-19 pandemic.

Leal met with lower house leader Arthur Lira on 5 November to discuss the program's proposals and voting agenda, but no details have emerged since.

Almost 1mn Brazilian households cook with biomass only. That represents 1.1pc of the 12.7mn households that use biomass for any energy need. Additionally, 56pc of the biomass-only households are low-income families.

A 13kg LPG cylinder in Brazil costs R106.63 ($18.49), on average. That represents 7pc of Brazil's minimum wage. Low-income families usually receive only half of the minimum wage, on average.

Brazil residential energy sources

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26/11/24

Nigeria restarts Port Harcourt refinery: Update

Nigeria restarts Port Harcourt refinery: Update

Recasts and adds details throughout London, 26 November (Argus) — Nigeria's state-owned NNPC said today it has restarted its 210,000 b/d Port Harcourt refinery after three and a half years offline. Product loadings began today after the plant's smaller, 60,000 b/d capacity crude distillation unit (CDU) came into operation. This gradual restart had been planned by Italian engineering firm Maire Tecnimont, which has been rehabilitating the plant under a $1.5bn contract, although a number of deadlines announced by NNPC have been missed. Refined products from Port Harcourt will add to the gasoline that has been supplied since September from the 650,000 b/d Dangote refinery. Product imports are likely to fall, an industry source said. Nigerian downstream regulator NMDPRA's head Farouk Ahmed said products from Port Harcourt will be made available nationwide and would stoke price competition. Nigeria's National Bureau of Statistics (NBS) reported an average national gasoline price of 1,185/litre (70¢/l) for October, a rise of 88pc on the year and 15pc from September. The price of diesel, which has been deregulated since 2003, was an average N1,441/l in October, NBS said, up by 43pc on the year and by 2pc on the month. The Dangote Group dropped its ex-gantry gasoline prices on Sunday, 24 November, to N970/l from N990/l. Nigerian importers already appear under pressure to compete with Dangote on product pricing, which the Port Harcourt start-up may exacerbate. A local trader said he has found gasoline trading economics most workable when lifting from Dangote ex-single point mooring (SPM) and delivering to coastal ports such as Port Harcourt and Warri in Nigeria's southeast, where truck deliveries from Dangote would prove uneconomic. Nigeria's presidency and NMDPRA's Ahmed urged NNPC to now bring back online its 125,000 b/d Warri and 110,000 b/d Kaduna refineries, which have been closed since 2019. NNPC has opened a combined tender for operating and maintaining these. The outcome of a similar tender for Port Harcourt is unclear. Nigeria would become a net products exporter when Warri and Kaduna come online, NMDPRA's Ahmed said today. A source at the regulator said exports might become vital to Nigerian refiners. "The patronage for petroleum products is low and Nigeria is oversupplied," the source said, attributing the latest Dangote price cut to competition with imports and weak demand. The prospect of Port Harcourt running at its nameplate capacity is in doubt, sources said. It would at best reach 40-50pc of capacity, the industry source said, which would focus on mainly local gasoline deliveries. Port Harcourt was shut in 2020 after several years of low capacity utilisation. NNPC previously said it expects the initial 60,000 b/d phase to produce 12,000 b/d of gasoline, 13,000 b/d of diesel, 8,600 b/d of kerosine, 19,000 b/d of fuel oil and 850 b/d of LPG in the first year of resumed operations. By Adebiyi Olusolape and George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Japan’s Taketoyo to resume biomass co-firing in 2027


22/11/24
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22/11/24

Japan’s Taketoyo to resume biomass co-firing in 2027

Tokyo, 22 November (Argus) — Japan's largest electricity producer Jera aims to resume coal and biomass co-firing at the 1.1GW Taketoyo plant in 2027's first quarter, after a fire halted plant operations in January. Jera announced on 22 November that the thermal power plant in central Japan's Aichi prefecture would resume co-firing wood pellets with coal at a rate of 8pc, around the end of the 2026-27 fiscal year ending in March. This will come after its safety measures are completed. The plant's co-firing rate was 17pc before the serious fire, which was caused by an explosion of dust from wood pellets. The company will consider increasing the co-firing rate again in the future, provided safety can be ensured. But the plant will restart coal-only combustion in early January 2025, operating mainly during the summer and winter seasons, when electricity demand is high. Jera will keep operation rates low at Taketoyo and other coal-fired plants when electricity demand is low and rely more on gas-fired generation, to achieve its initial plan to cut CO2 emissions through co-firing at Taketoyo. Taketoyo started co-firing operations in August 2022 and burned around 500,000 t/yr of wood pellets imported from the US and Vietnam. It will burn 200,000 t/yr after it resumes co-firing at 8pc. The plant will slow down the speed of wood pellet conveyors to reduce friction as a part of safety measures, which means it must also reduce its coal and biomass co-firing rate. It is also currently working on other safety measures, such as installing air pressure conveying facilities dedicated to wood pellets and explosion suppressor systems to inject fire extinguishing agents. The outage at Taketoyo has encouraged Jera to boost replacement gas-fired generation, with the extra gas-fired costs accounting for most of the estimated cost resulting from the shutdown, which could be tens of billion yen in the 2024-25 fiscal year ending in March. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Brazil natural gas supplies diversifying


18/11/24
News
18/11/24

Brazil natural gas supplies diversifying

Rio de Janeiro, 18 November (Argus) — Supply in Brazil's growing natural gas market has diversified rapidly in recent months as domestic and international companies expand their foothold. Changes include a slew of new import authorizations granted by hydrocarbons regulator ANP in recent months. Last week alone, ANP authorizated up to 1.7mn m³/d of LNG imports, the 12th approval of the year, allowing as much as 3.8bn m³/yr (10.4mn m³/d) of LNG to reach Brazilian shores. US-based New Fortress Energy has led the pack, signing a bevy of new supply agreements from its regasification terminals in Barcarena port in northern Para state and the Terminal Gas Sul (TGS) in southern Santa Catarina state. New Fortress said it signed more than 45 trillion Btu/yr (860,000 t/yr) of downstream supply commitments across 15 buyers, with an average contract length of 18 years. The terminals emerged as important new destinations this year, with the Para terminal claming 2.2pc market share from January-October and the Santa Catarina terminal capturing about 0.5pc. On 8 November, ANP authorized New Fortress to import up to 1.7mn m³/d of LNG to be distributed by pipeline and small-scale means. It holds a 15mn m³/d import authorization for Barcarena and one for 146,000 m³/d of LNG from Bolivia by truck. Gas trading company Edge has also expanded LNG supply to Brazil. It began operating its TRSP regasification terminal in Sao Paulo earlier this year, catapulting Sao Paulo to a 6pc of share of Brazilian LNG imports in the first nine months of 2024 by selling nearly 1.27mn m³/d of gas. Edge sold 27mn m³ of gas to industrial clients from the terminal on the wholesale market in the third quarter. Shell is also looking to expand its Brazilian gas sales amid growing expectations of a boom in supply from its Vaca Muerta shale reserves in neighboring Argentina. Earlier this month it won authorization to import up to 8mn m³/d of gas by pipeline from Argentina and Bolivia. Shell is also assessing LNG exports from Argentina, which could include sales to Brazil. Shell is also planning to expand LNG imports through the Suape port in Pernambuco state next year. OnCorp expects to begin operating the 14mn m³/d LNG regasification terminal in the port, which Shell will use to supply clients in the region, including gas distributor Copergas. Other companies including Gas Bridge and Blueship are also eyeing LNG imports. Blueship is authorized to import through the port of Navegantes, in Santa Catarina, while Gas Bridge can import through state-controlled Petrobras' terminal in northeastern Bahia state. By Betina Moura Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Japan’s Enshu Forest starts 7MW biomass power plant


18/11/24
News
18/11/24

Japan’s Enshu Forest starts 7MW biomass power plant

Tokyo, 18 November (Argus) — Japan's Enshu Forest Energy started commercial operations at its 7.1MW biomass-fired power plant in Fukuroi city of Shizuoka prefecture on 16 November. The Enshu plant will burn 90,000t/yr of wood chips made from unused forest materials and gathered mainly from Shizuoka prefecture. It can generate around 53GWh/yr of electricity, which will be sold under the country's feed-in tariff (FiT) scheme for 20 years. The plant was initially scheduled to come on line in December, but started two weeks earlier as Enshu Forest Energy, the operating company, completed its safety check and test runs earlier than expected. Enshu Forest Energy is a joint venture between renewable power developer Forest Energy, Shizuoka Gas and Power and Japanese utility Chubu Electric Power, with each holding 70pc, 25pc and 5pc shares, respectively. Shizuoka Gasa and Power is a subsidiary of gas provider Shizuoka Gas. Forest Energy runs several biomass generation projects, including the 480kW Tsuwano plant in Shimane prefecture and the 1.8MW Shingu plant in Wakayama prefecture, mainly burning wood chips that are secured domestically. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Korea’s Plagen plans Azeri green methanol plant


15/11/24
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15/11/24

Cop: Korea’s Plagen plans Azeri green methanol plant

Baku, 15 November (Argus) — South Korean clean energy firm Plagen has signed an initial agreement to develop a green methanol production plant near the port of Baku, Azerbaijan. Plagen expects that the plant, which it described as Azerbaijan's first green methanol facility, will produce 10,000 t/yr of the fuel by 2028. It will use Plagen's technology, the firm said at a side event at the UN Cop 29 climate summit today. The methanol will be produced from agricultural waste and wood waste, including hazelnuts shells and almond shells, which will be sourced from Azerbaijan, Plagen chief executive officer John Kyung said. The production process yields 96t of methanol from 300t of biomass. The produced methanol will be used as bunker fuel, and contribute Baku port's goal to reach "carbon neutrality" by 2035 amid increased traffic through the Trans-Caspian International Transport Route, as ships seek alternatives to the fraught Suez Canal route. Kyung said today that the firm also has plans to produce green methanol at Indonesia's Batam to supply as bunker fuel to Singapore, the biggest bunkering port in the world. Plagen also expects 32,000 t/yr of green methanol production by 2027 at a plant in Taebaek, South Korea. This is up from 10,000 t/yr as previously planned . By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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