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Countries diverge on plastic production in global talks

  • Market: LPG, Petrochemicals
  • 02/12/24

Countries have failed to reach a consensus in negotiations for a global treaty to tackle plastic pollution, partly because of disagreements about whether its scope should include plastic production.

The fifth session of the UN's Intergovernmental Negotiating Committee (INC) which took place over 25 November-1 December was supposed to result in an international, legally binding instrument to tackle plastic pollution. But negotiations ultimately ended without an agreement in South Korea on 1 December.

The UN Environment Programme's (UNEP's) executive director Inger Andersen acknowledged on 1 December that the session did "not quite" achieve consensus, but added that it is "not for want of trying". Countries instead agreed on a draft text, which will "serve as the starting point for negotiations" next year, the UNEP said on 2 December.

Plastic production

A key point of disagreement was regarding the inclusion of a legally-binding pledge to cut plastic production, echoing the discussions during a preliminary meeting in September when plastic production limits also emerged as a major sticking point.

Many countries want the treaty to tackle the entire plastic value chain, including production, but this met resistance from oil-producing countries.

Panama on 28 November put forth a proposal, backed by over 100 countries, to adopt a global target to "reduce the production of primary plastic polymers to sustainable levels" under article 6 of the draft text. It also suggested that countries must report their production, imports and exports of primary plastic polymers and measures taken to achieve the global target.

But Kuwait, on behalf of like-minded countries, reiterated on 1 December that "the objective of this treaty is to end plastic pollution — not plastic itself." Kuwait hopes that the treaty will address the "core issue" of plastic pollution through "improved waste management systems, recycling infrastructure, and innovations in material design", as opposed to plastic production cuts.

"Attempting to phase out plastic as a material, rather than addressing the issue of plastic pollution, risks undermining global progress and exacerbating economic inequalities," Kuwait added, noting that there has been no solution offered on what can replace plastic across its applications.


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Asian LPG market braces for Trump tariff war


21/01/25
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21/01/25

Asian LPG market braces for Trump tariff war

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S China LPG terminals face LNG, refinery competition


21/01/25
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21/01/25

S China LPG terminals face LNG, refinery competition

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Trump tariffs threaten Canadian NGL exports to US


21/01/25
News
21/01/25

Trump tariffs threaten Canadian NGL exports to US

A tariff on exports would see a significant cut to deliveries or a price drop in order to facilitate trade, writes Yulia Golub Calgary, 21 January (Argus) — Newly inaugurated US president Donald Trump has said he will impose 25pc import tariffs on goods from Canada from 1 February, which could potentially reduce shipments of the latter country's natural gas liquids (NGL) into the US or depress Canadian prices to a level that ensures flows continue. Trump in November announced plans to impose tariffs on the US' northerly neighbour for an indefinite duration, citing inadequate border controls and the US' trade deficit with Canada. Ottawa in response pledged to spend more on border security. Alberta, home to most of Canada's upstream oil and gas production, had expected the tariff to be introduced on the day of Trump's inauguration on 20 January. "Alberta is pleased to see that President Donald Trump has decided to refrain from imposing tariffs on Canadian goods at this time as they study the issue further," Alberta premier Danielle Smith said on 20 January. A 25pc tariff on Canadian propane and butane exports to the US would cut deliveries as suppliers look to the domestic market to sell, market participants say. Relief for Canadian producers is unlikely to come from increasing exports to northeast Asia from the Pacific coast given the country's terminals are operating at capacity. The other likelihood is that Canadian prices will drop to accommodate the tariff and facilitate trade, something producers and Ottawa will want to avoid. The tariff would have closed the Canada-US propane arbitrage in the fourth quarter of last year, lifting the Edmonton, Alberta, hub price to parity to the Conway value in the US midcontinent compared with the actual 15¢/USG discount. This does not take into account rail costs that add 7-10¢/USG for US deliveries. The situation is uncertain and any impact on LPG exports will not happen instantly, market participants say. US importers of Canadian LPG would need to find domestic alternative sources of supply, but overcoming the logistical challenges to do so would take time. Western Canada's propane production stood at 270,000 b/d (675,000t) in October, while exports from the region to the US were 123,000 b/d, or 47pc of the total, the latest provincial and federal government data show. The US as of November was on course to import just under 5.4mn t of LPG in total from Canada last year, which would be up from 5mn t in 2023, customs data show. Canada's Council of the Federation, a group of regional government leaders, met with outgoing prime minister Justin Trudeau in Ottawa on 15 January to discuss the country's response to potential US tariffs. "Everything is on the table," Trudeau said after the meeting. "The clear consensus around the table is that we need to respond in measured but robust ways to the American actions, whatever they are." But Smith refused to sign a joint communique because the federal government is contemplating export tariffs on her province's oil and gas — a vital revenue source for Alberta. Smith is urging the country to use Trump's tariff imposition as the basis to look to alternative countries for energy exports instead of "keeping us fully reliant on one primary customer". Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Germany's Miro CDU outage tightens products supply


21/01/25
News
21/01/25

Germany's Miro CDU outage tightens products supply

Hamburg, 21 January (Argus) — Production at the Miro joint venture's 310,000 b/d Karlsruhe refinery has been restricted by a failure today at a crude distillation unit (CDU). A supplier expects this to result in a multi-week reduction in spot supply from the refinery. The shutdown of a production line at the plant, which is located on the Rhine river in southwest Germany, has led to an estimated 30pc reduction in products output. At least one supplier has fully suspended spot offerings for heating oil and road fuels. Trains and barges that were planned for transporting from the refinery have been canceled, although pick up of contracted volumes is unaffected. Sources said the facility should be back in operation in the coming weeks. Miro did not respond to a request for comment. Production in southern Germany is already constrained after a fire shut the Neustadt section of the Bayernoil consortium's 215,000 b/d Vohburg-Neustadt refinery. By Marcel Pott Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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