EU eyes 26pc renewable transport by 2030
The European Commission has delayed until mid-July its presentation of a legislative proposal to boost renewables. A draft document indicates a 26pc target share for renewables in transport by 2030.
A 312-page draft staff working document drawn up by the commission substantiates a forthcoming proposal to revise the EU's renewables directive as part of a wider package of measures to reach a 2030 target to reduce greenhouse gas (GHG) by 55pc. The document confirms a target share for renewables in overall energy consumption of at least 38-40pc in 2030, hinted at last year when the 55pc GHG cut was proposed.
Options include boosting, from 14pc to 26pc, the target share of renewables in the transport sector by 2030, with the sub-target for advanced biofuels increasing from 3.5pc to 5.5pc, albeit taking into account the amount of advanced biofuels estimated for use in the aviation and maritime sectors.
Achieving the transport targets would require EU member states to set out obligations on fuel suppliers with various sub-options, including a requirement to obtain minimum shares for advanced biofuels and renewable fuels of non-biological origin (RFNBOs). Fuel suppliers could also face an obligation to reduce the emission intensity of fuels sold, with no sub-targets for advanced biofuels and RFNBOs.
The draft leaves a cloud over the future of the fuel quality directive (FQD) which, in addition to fuel quality standards, sets a target to reduce GHG emissions of transport fuels by 6pc but has an "outdated" set of sustainability criteria and administrative burden, according to the draft. One of the options considered to increase the share of renewables in transport to 26pc — with new fuel blends and a dedicated supply obligation for renewable aviation fuels — explicitly removes the FQD's 6pc emissions reduction target.
Also relevant is revision of existing fuel technical standards to facilitate introduction of B10 diesel, albeit with the introduction of an EU-wide B7 diesel protection grade for the significant share of vehicles not compatible with B10 by 2030, estimated at some 28pc.
The commission is expected to outline a raft of measures on 14 July aimed at achieving the 55pc GHG emissions reduction target by 2030. They include revisions to legislation covering sectors under the EU Emissions Trading System (ETS) and other sectors — including transport, buildings, agriculture, non-ETS industry and waste — that account for almost 60pc of total domestic EU emissions.
The commission will also make proposals for a carbon border adjustment mechanism and a revision to the renewable energy efficiency directives. A revision of the energy taxation directive will give favourable tax treatment to "sustainable biofuels, bio-liquids and biomass as well as for to renewable hydrogen and less favourable treatment to fossil fuels". The latter would require EU member states to unanimously agree. The commission has previously withdrawn a proposal to revise energy taxation due to opposition from a few member states.
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EPA sets new oil and gas methane reporting rules
EPA sets new oil and gas methane reporting rules
Washington, 7 May (Argus) — Federal regulators have updated emissions reporting requirements for oil and gas facilities as they prepare to implement a methane "waste" fee for the industry. The US Environmental Protection Agency (EPA) on Monday finalized new rules it says will improve the accuracy of data from the oil and gas sector under the federal greenhouse gas emissions reporting program. Oil and gas facility owners and operators will be required to estimate emissions from additional types of equipment under the rule, and they can draw on newer technologies, like remote sensing, to help estimate emissions. "EPA is applying the latest tools, cutting edge technology, and expertise to track and measure methane emissions from the oil and gas industry," agency administrator Michael Regan said. "Together, a combination of strong standards, good monitoring and reporting, and historic investments to cut methane pollution will ensure the US leads in the global transition to a clean energy economy." Data to support new fee The revisions to the "Subpart W" reporting requirements will be used to determine the amount of methane that will be subject to a "waste emissions charge" created by the Inflation Reduction Act. Under the law, the charge will be calculated based on the annual data that about 8,000 oil and gas sources are now required to report. The charge will begin at $900/t for 2024 methane emissions above a minimum threshold using current measurement data. It will then rise to $1,200/t in 2025 and $1,500/t in subsequent years. Industry officials had raised "serious concerns" about several aspects of the original proposal , warning it could lead to inflated emissions data. "We are reviewing the final rule and will work with Congress and the administration as we continue to reduce GHG emissions while producing the energy the world needs," American Petroleum Institute vice president of corporate policy Aaron Padilla said. The industry group previously said it will ask Congress to repeal the fee, which is only likely to occur if Republicans win control of the White House. Data collected since 2010 Oil and gas facilities have reported emissions under Subpart W since 2010. To simplify reporting, operators often count the equipment they have deployed, and use industry-wide averages to estimate emissions, in addition to other direct and indirect measurements. The industry has argued the Subpart W data is not accurate enough to collect the methane charge, which is expected to cost operators more than $6bn over the next decade. Environmental groups have had their own criticisms of the data, which they say omits vast amounts of emissions such as those from "super-emitter" events and poorly maintained flares. The final rule seeks to respond to some of those concerns by relying on updated emission factors, incorporating additional empirical data on emission rates, collecting data at a more granular level and relying on remote sensing technologies to detect large emission events. EPA also revised Subpart W to include more types of sources, including produced water tanks, nitrogen removal units and crankcase venting. The final rule also sets a threshold of 100 kg/hr of methane for requiring the reporting of emissions from "other large release events." The new data rules will take effect on 1 January 2025 and will first apply to reports submitted in early 2026 for next year's emissions. EPA is allowing the use of the new methodologies for calculating 2024 emissions, but operators can still use the existing rules. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Pemex bajo presión para mantener refinación alta
Pemex bajo presión para mantener refinación alta
Mexico City, 7 May (Argus) — La refinación de crudo de Pemex, propiedad estatal de México, en marzo alcanzó sus niveles más altos en casi ocho años antes de las elecciones presidenciales del 2 de junio, pero la empresa podría enfrentarse a desafíos para mantener niveles de refinadoaltos en los próximos meses. Las seis refinerías nacionales de Pemex procesaron más de 1 millón b/d de crudo en marzo por primera vez desde junio de 2016, impulsadas por el progreso en la rehabilitación de las refinerías y una disminución de las exportaciones de crudo para alimentar el sistema de refinación. El presidente Andrés Manuel López Obrador busca reducir las importaciones de combustible en su último año en el cargo, en línea con su promesa de campaña de volver a México más independiente en energía. Sin embargo, los niveles de proceso de crudo podrían disminuir en abril-mayo después de que se produjeran incendios en las refinerías Minatitlán y Salina Cruz a finales de abril. Además, las refinerías de Salina Cruz (330,000 b/d) y Tula (315,000 b/d), las más grandes de México, siguen batallando con una producción elevada de combustóleo con alto contenido de azufre, lo que limita las capacidades de las refinerías para operar a altas tasas simultáneamente. Pemex lleva mucho tiempo luchando con la elevada producción de combustóleo, ya que México produce principalmente crudo pesado, lo que crea una serie de desafíos operativos. El combustóleo suele ocupar valioso espacio de almacenamiento necesario para productos de mayor valor, lo que puede limitar la producción de combustibles más ligeros. Las exportaciones récord de combustóleo en marzo, impulsadas por un aumento de la demanda en la costa del Golfo de EE. UU. después de los reacondicionamientos de la refinería, permitieron a Pemex elevar las operaciones en ambas refinerías simultáneamente. Sin embargo, el problema podría volver a afectar a Pemex en los próximos meses cuando la demanda de combustóleo disminuya y la empresa se vea obligada a almacenar el producto. Pemex está construyendo unidades de coquización en ambas refinerías para resolver este problema, pero no se espera que la unidad de Tula comience a funcionar hasta al menos finales de año, mientras que la unidad de coquización de Salina Cruz comenzaría a finales de 2025. Mientras tanto, la refinería Cadereyta de 275.000 b/d podría compensar parcialmente una disminución en el procesamiento de crudo en Tula y Salina Cruz, ya que su configuración le permite producir menos combustóleo, una fuente familiarizada con las operaciones de Pemex ha dicho a Argus . Las tasas de refinación de Pemex comenzaron a caer en 2014 después de que la administración anterior decidiera depender menos de la producción nacional y centrarse en abrir el mercado de la energía, antes hermético a inversiones externas. En cambio, López Obrador invirtió al menos $3.7 mil millones en mantenimiento para las refinerías antiguas de Pemex de 2019-2023, excluyendo proyectos importantes como las coquizadoras en construcción, además de $17 mil millones para la nueva refinería Olmeca. Cambios en el flujo de crudo y combustible Los mayores niveles de refinación de Pemex han disminuido el flujo de crudo y combustible entre México y EE. UU., y el arranque de Olmeca podría alterar aún más los flujos. Pemex redujo sus importaciones de gasolina y diésel en 25pc a 419,000 b/d en marzo, comparado con 562,000 b/d el año pasado, como resultado de un mejor rendimiento de las refinerías. Las exportaciones de crudo de México cayeron un 29pc hasta un mínimo histórico de 687,000 b/d en marzo, por una menor producción y mayores niveles de refinación. El flujo de crudo y combustible entre México y EE. UU. podría disminuir aún más una vez que Olmeca comience operaciones comerciales y si Pemex mantiene un alto nivel de refinación en sus otras refinerías. La refinería Olmeca comenzará a producir diésel de ultra bajo azufre esta semana, procesando destilados enviados desde la refinería Madero, dijo Pemex el 3 de mayo. Pero la refinería no ha cumplido varios plazos prometidos, el más reciente en abril. La unidad de destilación de crudo de la refinería, la primera unidad de procesamiento, se enfrenta a "problemas importantes" que han retrasado el inicio de la refinería, aunque otras unidades de procesamiento secundario están listas para comenzar, dijo a Argus una fuente familiarizada con las operaciones de Pemex. Sin embargo, el mercado se mantiene escéptico de que se puedan mantener los niveles de refinación después de las elecciones del 2 de junio, ya que Pemex sigue enfrentándose a problemas operativos en sus refinerías. Pero la candidata del partido gobernante Claudia Sheinbaum lidera la votación con doble dígito y se espera que continúe el proyecto actual del gobierno para reforzar Pemex y aumentar los niveles de refinación de la empresa. Por Antonio Gozain Exportaciones de crudo, importaciones de combustible de Pemex ’000 b/d Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
General Petroleum expands UAE base oil storage facility
General Petroleum expands UAE base oil storage facility
Singapore, 7 May (Argus) — UAE-based lubricant producer General Petroleum plans to finish building the second phase of its UAE base oil storage terminal by the end of May, according to a source close to the firm. The construction started in March and will consist of 12 storage tanks, each with a 2,200t capacity. The producer aims to start operations at the second phase in June. Construction for a third phase is also scheduled to begin in June 2025, which will add four storage tanks of 6,000t capacity each. The first phase of the storage terminal started operations in March 2020 . That storage terminal consisted of eight storage tanks, each with a 1,550t capacity. The facility, located in the Hamriyah free zone in Sharjah, is expected to have a combined 62,800t base oil storage capacity after the phase three expansion is complete. The terminal is connected by two pipelines to the jetty. General Petroleum operates a 150,000 t/yr lubricant plant opposite the storage terminal, and exports more than a third of its production to overseas markets, the same source added. The company had highlighted North Africa, Asia-Pacific, and the Americas as key markets for growth. The blender also has a 25,000 t/yr production facility in Tanzania and a 35,000 t/yr facility in Uganda. The UAE is a major lubricant blending and trading hub in the region because of its strategic location and logistics infrastructure. The Mideast Gulf is also largely self-sufficient on base oil supply and is typically a net exporter of the lubricant feedstock, especially for Group I and Group III supplies. Regional base oil supply is set to rise in the years ahead with planned expansions. Africa is a growing market for base oils, propelled by its gross domestic product and population growth. Rising mobility needs and vehicle ownership is also expected to boost demand in the years ahead. Africa predominantly produces Group I base oils but remains structurally short on supply. Overseas supplies, including those from the Mideast Gulf, make up a sizeable portion of the region's imports. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil unlocks relief spending to flooded state
Brazil unlocks relief spending to flooded state
Sao Paulo, 6 May (Argus) — Brazil's president Luiz Inacio Lula da Silva signed a decree to ease relief spending to Rio Grande do Sul state, which has been hit with historically heavy rainfall and floods. "We are going to do everything in our power to contribute to Rio Grande do Sul's recovery," he said today after signing the decree, adding that was only the first of "a large number of acts" for the state. The decree recognizes the state of emergency in Rio Grande do Sul and allows the federal government to grant funding and tax waivers to the state without having to comply with spending limits. In addition, it makes rules for public authorities to contract services and purchase products more flexible. The decree still needs both senate and congressional approval — which should be hasty, as both the senate and house leaders were present at the decree's signing. It is still not clear how much money it will take to rebuild the state, chief of staff Rui Costa and planning minister Simone Tebet said. But the minister of regional integration Waldez Goez estimated that it will take around R1bn ($200mn) to rebuild the state's highways. Rio Grande do Sul has been hit with heavy rainfall since 29 April. The highest volumes reached the central areas of Rio Grande do Sul, with cities receiving rainfall of 150-500mm (6-20 inches), regional rural agency Emater-RS data show. The monitoring station of Restinga Seca city, in the center of the state, recorded rainfall of about 540mm. Rainfall in Rio Grande do Sul overall surpassed 135mm in most of the state, according to the US National Oceanic and Atmospheric Administration (NOAA). State capital Porto Alegre is expected to receive more rain later this week, according to Rio Grande do Sul-based weather forecaster MetSul. MetSul warned that parts of the Porto Alegre metropolitan area could remain uninhabitable for weeks or months. The floods have left at least 83 dead and 111 missing, according to the state government. An additional 130,000 people have been displaced from their homes. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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