EU promises flexibility for car CO2 standards

Market: Battery materials, Biofuels, E-fuels, Emissions, LPG
03/03/25

European Commission president Ursula von der Leyen today promised "more flexibility" on CO2 targets, balancing "predictability and fairness" for firms that have already introduced low or zero emission vehicles.

Von der Leyen said the commission will stick to agreed CO2 emission reduction targets for fleets. But the commission will show "more pragmatism in these difficult times" and technology neutrality. She specifically promised a "focused" amendment to the bloc's CO2 standards regulation this month, to introduce "pragmatism" with respect to possible penalties for not complying with 2025 targets.

The EU's CO2 standards for manufacturers lay down an EU-wide fleet greenhouse gas target for light passenger vehicles and vans of 93.6g/km until 2029. That represents a 15pc reduction compared with a 2021 baseline for cars. This falls to 49.5g/km for 2030-34, a 55pc reduction, and 0g/km from 2035.

"Instead of annual compliance, companies will get three years," von der Leyen said, noting the principle of "banking and borrowing". "The targets stay the same; they have to fulfil the targets. It means more breathing space for industry and more clarity, and without changing the agreed targets," she said.

The amendment would need to be agreed quickly by the European parliament and a qualified majority of EU member states. The EU biofuels and hydrogen industry last week expressed disappointment at a draft outline of the commission's forthcoming automotive industrial action plan, for not mentioning low and carbon neutral biofuels and hydrogen.

By Dafydd ab Iago

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07/05/26

US court finds 'section 122' tariffs unlawful

Washington, 7 May (Argus) — A federal trade court ruled on Thursday that 10pc tariffs that President Donald Trump imposed in February on a vast number of imported products were unlawful under a 1974 law he used as the basis for the duties. Trump had imposed the "section 122" tariffs on imports on 20 February as a de facto replacement of emergency tariffs the US Supreme Court had thrown out the same day. Trump said he was imposing the 10pc tariffs to address a deficit in the "balance of payments" flowing into the US, using authorities that could remain in place for 150 days, until 24 July. Trump exempted energy, critical minerals, fertilizers and some agricultural imports from new import taxes. But the US Court of International Trade, in a 2-1 ruling on Thursday, found the latest tariffs were "invalid as contrary to law". The court said nowhere in the proclamation imposing the tariffs had Trump identified a "balance-of-payments deficit" under the meaning of the 1974 trade law. The administration had used a mechanism of finding deficits that unless every individual sub-account was balanced, the "president would always be able to identify a balance-of-payment deficit", the court said. The court permanently blocked the US from collecting the section 122 tariffs from state of Washington and two small private importers that had filed the case, and it also required the US to pay refunds and interest. But the court said California and other states that were part of the lawsuit had not shown legal "standing" to obtain the same relief. The court's decision, if upheld, could open the door to other states and plaintiffs that have paid the section 122 tariffs to pursue their own claims to obtain tariff refunds. The White House did not immediately respond to a request for comment. The administration is still in the process of refunding $166bn in emergency tariffs the Supreme Court struck down. The administration last month launched a system to manage tariff refunds. The first refunds will be paid out as early as 12 May, federal customs officials said earlier this week. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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LPG World editorial: No longer a gap on the map?

06/05/26

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06/05/26

LPG World editorial: No longer a gap on the map?

A wave of investment in the region aims to meet rising domestic demand and could narrow the infrastructure gap London, 6 May (Argus) — Global LPG storage capacity edged up by nearly 1pc to 73.5mn t in the new quarterly storage survey from LPG World. What might seem like a modest gain on the surface masks a more consequential shift — a growing if still uneven wave of infrastructure investment in sub-Saharan Africa, as the region builds capacity to support its clean cooking transition. The latest Global LPG Storage Survey updates Europe and Africa, expands the project dataset and provides more granular data. It captures 1,340 facilities across 123 countries — an increase of 56 from the 2024 iteration — while the list of projects under way nearly doubles to 23, representing close to 1mn t of capacity. Sub-Saharan Africa accounts for much of this expansion in terms of new facilities. Burkina Faso, Eritrea, Gambia, Mayotte and Rwanda appear in the survey for the first time, while additional capacity emerges in Angola, Congo Brazzaville and Kenya. New import-oriented infrastructure dominates these additions, including Sonangol's 71,000t Barra do Dande facility in Angola and Lake Gas' 10,000t Vipingo terminal in Kenya. The survey also captures the 26,500t of storage linked to the floating LNG project offshore Congo Brazzaville, with LPG output there expected to serve domestic demand. The project pipeline reinforces this trend. The list of projects in sub-Saharan Africa expands by 10, reflecting the recent flow of capital for infrastructure projects in the region, much of it backed by international organisations and governments . Most of the projects are modest in scale, the largest being 24,000-30,000t in South Africa, Kenya, Gabon and Tanzania, with start-ups due in the next two years. Nigeria is set to add 33,000t across two developments, Angola has 15,600t under construction and Ghana is expanding its Tema terminal by 12,000t. These projects are small relative to the enormous storage caverns and tanks found in the US and China. But they point to a structural shift — a steady build-out of coastal import terminals designed to meet rising domestic demand. This reflects the reality that LPG adoption in sub-Saharan Africa remains constrained less by supply availability than by the infrastructure required to receive, store and distribute it. And while fragmented, the geographic spread of projects in western, eastern and southern Africa suggests a more regionally embedded approach. China continues to dominate in terms of global capacity additions, with four previously listed projects starting up over the past two years, adding a combined 370,000t. Russia also features prominently, with new terminals at Ust-Luga and Sovetskaya Gavan expected to add 267,000t, although the latter has faced repeated delays owing to funding constraints and the former could be hindered by Ukrainian drone attacks. In the Middle East, AD Ports' planned 82,000t facility at a new Abu Dhabi LPG terminal , due on line in 2029, represents one of the largest additions outside Asia. These projects are primarily export-oriented. The Iran war underlines why storage investment may take on greater strategic importance beyond Africa in the coming years. The conflict has already contributed to drastic export losses and supply shortages in key import markets, most notably India, where LPG is an important household cooking fuel. Such volatility has exposed the limits of India's meagre storage buffer capacity, which is likely to prompt policy makers to place greater emphasis on strategic reserves and expanded storage infrastructure in the future. The war also threatens to destabilise the expected growth in African cooking fuel markets and thwart capital by tearing up the assumed global LPG supply security. The region's recent terminal and storage investments will need to prove their worth by capturing low-cost supplies, alongside the required developments in distribution and inland affordability. This will then determine whether Africa's infrastructure gap can be meaningfully narrowed. Global LPG Storage Survey Total global storage '000t 73,518 Number of countries 123 Number of facilities 1,340 Projects 23 Projects capacity '000t 980 Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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African LPG storage boom signals import growth

06/05/26

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06/05/26

African LPG storage boom signals import growth

A slew of projects are expected to boost supply, with further investment likely in the coming years, writes Yasmin Zaman London, 6 May (Argus) — A growing number of LPG storage projects are set to improve supply to sub-Saharan Africa as governments and private developers respond to expected demand growth from clean cooking policy targets. Another 10 storage projects with a combined capacity of about 180,000t are due to start up in 2026-28, according to the latest Global LPG Storage Survey . Angolan state-owned Sonangol is to open a further 15,600t of capacity at its new 200,000 b/d Lobito refinery with three more spherical tanks in 2027 — one is already in operation. The refinery, which will process 54,000 b/d initially, is expected to sell its LPG domestically in its early phase, although it may also export to neighbouring markets once operating at capacity. Angola's domestic demand rose by 4pc to 448,000t in 2026, ArgusConsulting data show. The country is a net exporter, shipping 448,000t last year, vessel-tracking data from Kpler show. Ghana is expanding storage at Tema. State-owned Goil is adding 12,000t at its terminal — due to open in the second half of 2026. This will help Ghana's government meet its goal of lifting LPG market penetration to 50pc by 2030 . Ghana consumed about 317,000t of LPG in 2023, with demand set to exceed 400,000 t/yr by 2030, Argus data show. LPG imports to Tema averaged 27,400 t/month in January-April, broadly flat on the year compared with the 2025 average, Kpler data show. Refinery output is up, despite worries of domestic shortages emerging . Nigeria remains sub-Saharan Africa's largest LPG market and a hub of investment as it targets 5mn t/yr of demand by 2030 . Master Energy's long-delayed Port Harcourt terminal joins the list, adding 18,000t of storage this year. Falcon's new terminal at the same port includes 15,000t of capacity but the firm has not confirmed a start-up date. Nigeria's import capacity has grown significantly over the past five years, with storage capacity of nearly 155,000t at largely mainland coastal facilities. This includes Stockgap Fuels' expanded 30,000t facility at Port Harcourt. Yet Nigeria's imports dipped to 196,000t last year from 370,000t in 2024, largely as a result of more supply emerging from the Dangote refinery . Imports averaged only 13,800 t/month in January-April, Kpler data show. Mombasa hub Kenya is driving growth in east Africa and positioning itself as a regional distribution hub, although consumption of about 7 kg/yr is still small and well shy of the government's target of 15 kg/yr . Taifa Gas' 30,000t terminal at Mombasa is one of the largest projects in the survey and is set to open this year. It will be able to receive VLGCs and involves converting an old 70,000 b/d refinery into an LPG import and storage facility. Arrivals to Kenya stood at about 52,800 t/month in January-April, according to Kpler. Neighbouring Tanzania is similarly looking to become an east African import hub. Trading firm Petredec's Tanga import terminal includes 24,000t of storage capacity and is due to open in 2027. It will be the country's first sizeable import terminal capable of taking VLGCs . Tanzania imported 14,100 t/month in January-April, according to Kpler. Its domestic demand stood at about 275,000t in 2025. South Africa is also continuing to see investment in LPG infrastructure. A new terminal at Durban port will add 30,000t of storage capacity by 2027, becoming the country's largest and helping to tackle supply shortages . Petredec is also involved in adding a 6,500t inland unit as part of an LPG rail hub in Gauteng, linked to its Richards Bay terminal, which is set to start up in the first half of 2028 . The list of existing sub-Saharan African LPG storage facilities in the latest survey grows to 76 from 52 in 2024, when the last survey was carried out, while the combined capacity reaches 773,000t, up from 574,000t. These latest additions and the likelihood of further investment suggest a glimpse of what is to come. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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AFEI butane hits record vs propane on India demand

06/05/26

News

06/05/26

AFEI butane hits record vs propane on India demand

AFEI butane strength is expected to persist even after the war, with increased Indian and southeast Asian buying becoming more influential, writes Frances Goh Singapore, 6 May (Argus) — Northeast Asian butane prices increased to a record premium to propane last month as a result of India moving from a marginal participant on the spot market to a key buyer and driver of regional pricing given the loss of supply from the Middle East. Argus Far East Index (AFEI) butane prices, basis cfr Chiba, jumped to a $45/t premium to propane from $16/t following the outbreak of the US and Israel's conflict with Iran, before surging to $105/t by mid-March as escalating hostilities curtailed exports from the region . The effective closure of the strait of Hormuz abruptly severed India's access to Mideast Gulf LPG exports, which had met more than 95pc of the country's supply in 2025. Indian and southeast Asian importers reliant on butane-heavy Middle Eastern cargoes have been forced to turn to the next largest global supplier, the US, to plug the massive shortfall. After an initial phase of panic buying at steep premiums, Indian buyers in April slowed their spot purchases for May and June shipments, anticipating a reopening of the strait and redeploying time-chartered vessels to load from the US. Indian importers IOC and BPCL in mid-April bought at least four evenly split propane-butane cargoes loading from late May to the first half of June in quick succession, at 24-47¢/USG ($125-245/t) premiums to Mont Belvieu hub prices, according to market participants, propelling US Gulf coast fob butane cargo premiums to record levels ( see p4 ). Strong butane demand from India supported higher netbacks for sellers by lifting AFEI prices as northeast Asian buyers competed for the same US supply. The butane AFEI subsequently rose to a $156/t premium to propane on 22 April, the highest on record and above the nine-year high of $124/t seen in February 2017. The premiums to corresponding delivery month paper for butane cargoes delivered in May and June compared with equivalent propane shipments increased to $60-80/t last month as demand for butane remained strong and propane availability grew. Traders made offers for evenly split US cargoes to buyers in north China, Japan and South Korea based on netbacks to India, while also factoring escalating auction fees at the Panama Canal . Driving down demand But rising butane prices have weighed on northeast Asian demand. South Korean crackers that historically transition to butane when it is valued at 90-95pc of naphtha saw offers reach as high as 115-120pc. In China, ample oil product supply capped demand for butane as refineries increased production and fuel exports were halted in March. This reduced the need for butane feedstock among the country's MTBE producers, which was compounded by increasing butane prices, with the Argus Ningbo Index (ANI) for butane firming by 72pc to $1,14.50/t by 5 May. Concerns over a potential MTBE export ban after Beijing stopped oil products exports in March further curbed MTBE demand for butane, while increased refinery output ensured sufficient LPG availability. The strength of AFEI butane is expected to persist even if the strait opens and LPG shipments from the Mideast Gulf pick up, as damage to multiple oil and gas facilities in the region during the war will continue to constrain supplies for an indeterminate period. Indian and southeast Asian buyers are also predicted to keep ramping up purchases from the US under supply diversification plans, fomented by energy security concerns after the war, giving this regional bloc greater pricing influence on the AFEI in the coming years. Butane AFEI, ANI prices Butane-propane AFEI spread Mideast Gulf butane exports Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Morocco and Norway sign Paris Article 6.2 agreement

06/05/26

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06/05/26

Morocco and Norway sign Paris Article 6.2 agreement

Berlin, 6 May (Argus) — Morocco and Norway on Tuesday signed a bilateral agreement on co-operating under Article 6.2 of the Paris Agreement, through which Norway will provide financial support to greenhouse gas (GHG) emissions reductions in Morocco's power sector. The activities will generate so-called internationally transferred mitigation outcomes (Itmos) under Article 6.2, which will be counted against Norway's nationally determined contribution (NDC) — climate plan — under the Paris deal, and after a few years also Morocco's, Norway's climate and environment ministry said. Under the agreement, Norway will help finance about 2GW of renewable power capacity, including battery systems, in 2026-36 under a generation-based incentive programme, Morocco's ministry of energy transition and sustainable development said. This provides projects with performance-based payments for every energy unit generated, as opposed to covering initial capital costs. The programme focuses on relatively complex or less profitable renewable energy projects requiring additional financial support through carbon market mechanisms. This "additionality" is a key criterion under Article 6. The initiative is expected to reduce up to 10mn t of CO2 equivalent (CO2e) by 2030, while also providing other benefits such as promoting technology transfer and creating job opportunities. Norway has signed seven other Article 6.2 co-operation agreements, including one with Switzerland on cross-border transport and storage of carbon. Morocco has also signed bilateral agreements under Article 6.2 with Switzerland and Singapore. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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EU promises flexibility for car CO2 standards

Related news posts

US court finds 'section 122' tariffs unlawful

US court finds 'section 122' tariffs unlawful

LPG World editorial: No longer a gap on the map?

LPG World editorial: No longer a gap on the map?

African LPG storage boom signals import growth

African LPG storage boom signals import growth

AFEI butane hits record vs propane on India demand

AFEI butane hits record vs propane on India demand

Morocco and Norway sign Paris Article 6.2 agreement

Morocco and Norway sign Paris Article 6.2 agreement

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