Alt-fuel ship orders fall in 1H25: DNV

Market: Fertilizers, Hydrogen, LPG, Natural gas, Petrochemicals
15/07/25

Ship orders for new alternative-fuelled vessels fell to 151 in the first half of 2025 compared with 179 a year earlier, according to Norway-based classification agency DNV. These orders represented 19.8mn gross tonnes, up by 78pc from the same period in 2024. LNG-fuelled vessels accounted for 87 of the new orders in the first half, followed by 40 methanol-fuelled ships, 17 LPG-powered vessels, and four hydrogen and three ammonia-fuelled ships. Orders stood at 19 in June, up from 16 in May, with two of these LPG-fuelled carriers. The total fleet of ships that could run on LPG stood at just over 150 in the final quarter of last year, with around 126 on order by 2028 following the latest additions, as orders lag other fuel types despite low prices because of safety issues and a lack of four-stroke engines.

New orders, 1H 2025
Fuel	Number of vessels

LNG-fueled	87
Methanol-fueled	40
LPG-fueled	17
Hydrogen-fueled	4
Ammonia-fueled	3
DNV

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22/10/26

Brazil PPSA plans 1.8mn m³/d gas auction for 2027

Sao Paulo, 22 October (Argus) — Brazil's state-owned commodity trading firm PPSA plans to offer 1.8mn m³/d of natural gas to industrial consumers in a new auction around mid-2027, more than 50pc above the volume sold in the first auction held on 22 October. The announcement follows demand that exceeded the volumes offered across all five industrial segments in 22 October's first auction, in which 1.1mn m³/d gas was sold. Total demand was 39pc above supply, national oil, gas and biofuels secretary Renato Dutra said after the auction. Demand in some segments reached nearly three times the volumes available, according to PPSA president Luis Fernando Paroli. The government plans to announce the next auction further in advance to give industrial consumers more time to prepare and could adjust the rules to broaden participation, Paroli said. The first auction took place as some companies were finalizing their existing gas supply contracts, which limited their ability to participate, he added. The government expects to advance the rules for the next auction after concluding the current process, Dutra said. A group of 23 companies among 36 industries authorized to participate in the auction bought all 1.1mn m³/d offered in the first auction, eliminating the need for a second bidding round. The contracts will generate R376mn ($74mn) for the government over their 10-month term, PPSA estimates. The average gas price resulting from the auction was $5.83/mmBtu, based on the average September benchmark Henry Hub gas price , according to Paroli. The auction pricing formula consists of 115pc of Henry Hub plus the B coefficient offered by each bidder and monthly pricing will use the previous month's average. The average winning B coefficient was $0.64/mmBtu above the $1.80/mmBtu minimum set for the auction. Mines and energy ministry MME estimates the resulting gas prices represent reductions of 38pc for glassmakers, 56pc for ceramics producers, 46pc for steel, metals and mining companies, 56pc for chemical and petrochemical producers and 57pc for fertilizer producers compared with prices currently paid by those industries. The comparisons were based on the average prices currently paid by each sector for contracted gas volumes. Dutra said some industrial users currently pay around $12/mmBtu for natural gas. The auction price includes infrastructure costs such as outflow pipeline access and processing plants, known locally as SIE and SIP, Dutra and Paroli said. Those prices cover only the gas molecule component (PM) and exclude any transport costs stemming from the pipeline network. The winning companies will be responsible for arranging transportation and may choose to hire trading companies to handle the process. The government has been discussing how to establish adequate remuneration for that infrastructure as part of its Gas for Jobs program, while hydrocarbons regulator ANP is also considering the issue . Some successful bidders are not registered gas shippers and will rely on gas trading firms to arrange transportation from the Itaborai delivery point to their facilities. Paroli said all such buyers had already identified a trading firm and had preliminary arrangements in place to qualify to compete in the tender. They must submit their contracts with those companies by 27 November. PPSA will monitor whether the gas reaches winning industrial consumers, and that consumption must match their current gas demand. Buyers or the trading companies they hired will be subject to penalties if consumption mismatches the requirements. PPSA said players can swap volumes with auction participants in extraordinary situations such as maintenance periods and other emergencies. But winning companies must swap volumes under the auction's own framework , without profiting from it. Officials also argued that the program should continue regardless of the outcome of Brazil's 2026 presidential election , which will head to a second round of voting on 25 October. Dutra described the gas agenda as a "state policy" rather than a government program and said its backing by energy policy council CNPE reinforces its long-term nature. Paroli said state participation in strategic sectors including oil, gas and power gives the government tools to support industrial competitiveness. He expects lower gas costs to improve Brazilian industrial competitiveness, potentially supporting domestic production and exports. By Marcos Mortari, Maria Frazatto and Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Italy nears gas liquidity service, gas cap for power

22/10/26

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22/10/26

Italy nears gas liquidity service, gas cap for power

London, 22 October (Argus) — As energy regulator Arera is expected to rule imminently on the implementation of the liquidity mechanism, market participants question if it may have less of an impact on power prices than initially envisaged, as well as how it will interact with a parallel proposal to cap gas prices for power generators. The liquidity service is designed to flatten the spread between prices at the Dutch TTF hub and Italy's PSV by compensating selected firms for importing extra marginal volumes at Passo Gries on the border with Switzerland. The entry point is one of Italy's main sources of marginal supply, and the accumulation of entry-exit tariffs, as well as the regulatory discontinuity caused by transit through Switzerland, has been viewed historically as the root cause of the long-established PSV premium. The PSV everyday price has been at a €2.16/MWh premium to the TTF so far this year. Under the initial plan, presented in June by Arera, selected firms would pledge to offer to the market a certain volume of supply, within a €0.50/MWh premium cap to the TTF, or "volatility fee", set by the regulator. Participating firms would be selected in advance by a competitive auction on the basis of their requested fee for providing the service. A final decree implementing the service is expected to be published imminently, after Arera concluded the relevant discussions on 20 October. But there could be significant changes to the mechanism's final form, according to market participants. Arera initially said it would only apply the service to unbooked capacity limiting the service to the German route through Switzerland. But some market participants reported that Arera would extend the service to the French route as well, currently fully booked, although another market participant said this was not correct. The government has backed the scheme with €200mn, which according to Argus ' estimates would be enough for the mechanism to last no longer than 6-8 months. But if the French route were included, it could exhaust the available budget more quickly, limiting the impact of the mechanism to the first quarter, one power trader said. A reduction in the PSV-TTF spread through the liquidity service would also feed through to the power single national price (Pun), but market participants expect the effect to be limited, cutting only a few €/MWh at most on the power curve. Under the energy decree, Italy is also planning to introduce a cap on gas prices for power generators to cut energy bills similar to the one implemented by Spain and Portugal in 2022, known as the "Iberian exception". Italy recently reached a preliminary agreement with the European Commission to cap wholesale prices at about €60/MWh for at least one year starting in January. The Pun has cleared at an average of €177.81/MWh so far this year, but the implementation of the gas cap could cut prices by 20-25pc compared with recent delivery prices, according to a power trader. This would bring the Pun closer to but not below last year's delivery of €133.36/MWh over 1 January-23 October. But if the Pun falls, Italy could import less electricity and burn more gas domestically, potentially supporting the PSV-TTF spread and counteracting the desired effect of the liquidity service. Also, if thermal generators were reimbursed against PSV, their net gas cost would remain at €60/MWh regardless of prompt gas prices. Any PSV reduction from the liquidity service would therefore cut reimbursement costs rather than lower the Pun, reducing the benefit to consumers, Banco Energia analyst Claudio Savoldelli told Argus . If reimbursement is linked to the TTF instead, the PSV-TTF spread would remain in generators' fuel costs, and the liquidity service would continue to pressure the Pun. "This is most relevant in the third quarter, when the spread is around €2/MWh, implying a net gas cost closer to €62/MWh than €60/MWh," Savoldelli added. Market participants are sceptical that the liquidity service and gas cap will be implemented in January, hence why the market appears to be pricing in only a partial compression of prices. Any news of delays or potential opposition from the commission would likely trigger a repricing of the first and second quarters of 2027, according to market participants. The PSV-TTF January basis market rose on Wednesday to +€1.40/MWh, up from +€1.23/MWh the previous day, after the conclusion of Arera's discussions on 20 October was followed by rumours of a delay to its start date, market participants told Argus . Similarly on the power curve, January gained €9.50/MWh, rising faster than November and December's respective €3.60/MWh and €3.80/MWh increases. By Ilenia Reale and Alex Ferguson Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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EU parliament wants three-year delay to methane law

22/10/26

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22/10/26

EU parliament wants three-year delay to methane law

Brussels, 22 October (Argus) — The European Parliament today called for a three-year delay to monitoring, reporting and verification (MRV) obligations for importers under the EU's 2024 methane emissions regulation (MER), after the European Commission earlier this month proposed a one-year postponement. Parliament voted by a clear majority of 341 votes in favour, 225 against and six abstentions, signalling strong support for the three-year delay when negotiations on the final legal text start with EU member states. If adopted into law, parliament's proposal would also give crude, natural gas and coal importers until 31 May 2031 to ensure their supply contracts meet EU-equivalent MRV standards. EU producers and importers would also be required to report the methane intensity of their fossil fuels sold on the EU market by 5 August 2031, rather than by 5 August 2029 as earlier proposed by the commission. Parliament does not want to extend the proposed delay to imports from countries under EU sanctions. Parliament adopted its position under an urgency procedure. If no legal text is formally adopted before the end of 2026, MRV rules would automatically apply from 1 January 2027 for oil, gas and coal importers. Earlier this month, EU energy commissioner Dan Jorgensen urged parliament and EU member states not to make " other " demands for changes to the regulation. The three-year delay is an "absolute scandal", said German Green MEP Jutta Paulus, parliament's lead negotiator on the 2024 methane regulation. "It is utterly incomprehensible that, in the midst of an energy price crisis, gas should be needlessly flared or allowed to vent into the atmosphere," Paulus said. Oil and gas producers' association IOGP Europe called on EU states to follow parliament's lead and ensure a level playing field for domestic producers. A "rigid" one-year delay, as proposed by the commission, would only bring the industry back to the same situation 12 months later, IOGP said. Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Australia’s APA advances gas pipeline network expansion

22/10/26

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22/10/26

Australia’s APA advances gas pipeline network expansion

Sydney, 22 October (Argus) — Australian gas pipeline operator APA will go ahead with stage 3B of the East Coast Gas Grid (ECGG) expansion, it said today. The project is set to boost eastern Australia's north-to-south gas transport capacity by about 30pc when the works are completed. APA will commit A$700mn ($491mn) to construct and commission the Bulloo Interlink Pipeline (BIL), an 800 TJ/d connection to join APA's 512 TJ/d (13.7mn m³/d) South West Queensland Pipeline (SWQP) in Queensland to the 590 TJ/d Moomba to Sydney Pipeline (MSP) in New South Wales (NSW). At present, Queensland's gas must transit via the Moomba hub in South Australia state before entering the southern states' supply. The final investment decision (FID) comes after APA in February agreed to undertake ECGG expansion 3A , building new compressors and conducting debottlenecking works on the SWQP and the MSP. It also allocated A$220mn for ECGG 3B to buy pipe and progress a works programme. Construction of the 340km BIL will start early next year ahead of first commercial operations in winter 2029, APA said on 22 October, meaning it is likely to start operations in the April-June or July-September quarters of that year. Stage 3A of the ECGG expansion remains on track for delivery in winter 2028. The FID is supported by a five-year, take-or-pay, inflation-linked gas transport and storage agreement with Australia utility Origin Energy for ECGG services. The BIL is critical to energy security in Australia's east, APA chief executive Adam Watson said, adding that unlocking northern gas supply and expanding existing pipelines will push out projected shortfalls in southern markets into the 2030s. Australia is planning a 20pc domestic supply obligation , controlling LNG exports in a bid to oversupply its domestic market by about 110pc to lower prices. But despite a draft bill introduced to parliament by the Labor government, the final outcome will hinge on negotiations in the nation's senate. Australia's south could be supplied by imported LNG, supported by several proposed and one completed terminal. But Canberra appears to prefer piped gas, with possible federal funding for new pipelines to bring gas to the south from the Northern Territory . By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Algeria cuts gas pipeline flows to Spain

21/10/26

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21/10/26

Algeria cuts gas pipeline flows to Spain

London, 21 October (Argus) — Algeria has cut pipeline flows to Spain by around a third so far this month, prompting Spanish firms to boost LNG imports. Inflows at the Almeria entry point have averaged 211 GWh/d in October, down from 322 GWh/d across the rest of 2026 and 324 GWh/d in October last year. Monthly averages have not fallen below 300 GWh/d this year, except in September when maintenance on the Medgaz pipeline halted all flows on 18-21 September. Flows outside that period in September averaged 315 GWh/d. The cause of the drop is unclear. Medgaz's 2026 maintenance schedule, published in January, lists works in October but does not indicate any capacity reduction. The October maintenance cites "TK20 OVH" at "BSCS", which could mean an overhaul at the Beni Saf compressor station, which pressurises gas before transit to Spain. The operator issued notices of full flow stoppages before September works this year. Increased Algerian LNG output suggests upstream maintenance or higher domestic demand are unlikely to be behind the lower pipeline exports. Algeria has exported 729,768t of LNG so far this month, the highest this year apart from May, according to Kpler ship-tracking data. That is below the 1.03mn t exported in October last year, but loadings at the current pace would exceed that figure by the end of the month. Spain has compensated for the lower pipeline supply with additional LNG deliveries. It has imported 1.22mn t so far this month — the most since May but below the 1.62mn t received in October 2025. At the current rate, October imports would exceed last year's total for the month. As of Wednesday afternoon, three more cargoes were indicating arrival before month-end. Algeria supplied part of that increase. Three full-size Algerian cargoes totalling 214,671t have been delivered to Spanish terminals so far this month, the most this year but below the 254,149t delivered in October 2025. By Maxim Krukov Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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