Proposed merger of Mexican regulators paused
Mexico's senate majority leader postponed a proposal to merge the energy regulatory commission (CRE) with a government consumer watchdog agency and telecommunications authority, but a separate energy ministry plan could change the landscape in other ways.
Lawmaker Ricardo Monreal paused his proposal after receiving calls to better analyze the bill, which would require modifying the constitution. Monreal is aligned with the Morena party of President Andres Manuel Lopez Obrador, who offered support for the bill because of its cost-savings potential. The changes would save 500mn pesos/yr ($25mn/yr) and streamline operations, Monreal said.
Yet the 2020-2024 development plan from energy ministry (Sener) — while not suggesting that regulatory agencies should be merged — would aim to align CRE and the national hydrocarbons commission (CNH) with the aim of "rescuing" state-owned oil company Pemex and power company CFE.
The plan also recommended that Pemex move into Mexico's retail LPG market with its own brand instead of only selling wholesale to private-sector distributors, and that CFE should boost fuel oil use in power generation.
Strengthening state-owned companies to boost development and provide energy security can also have a multiplier effect on the private sector, Sener said in its report, which should include providing for domestic energy needs.
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APLNG's Jan-Mar output higher: Origin
APLNG's Jan-Mar output higher: Origin
Sydney, 30 April (Argus) — The 9mn t/yr Australia Pacific LNG (APLNG) project in Queensland state produced and sold more LNG than the previous quarter and year earlier, Australian independent Origin Energy said in its January-March results. Output rose from the final quarter of 2023 because of the power failure of a vessel docked at APLNG's terminal in Gladstone harbour in late November , which prompted upstream operator Origin to cut flows to the liquefaction plant and APLNG to defer three cargoes to 2024. APLNG exported 134PJ (2.4mn t) of LNG through 34 cargoes for January-March, 8pc up from 124PJ and 32 cargoes the previous quarter and 4pc up on the 129PJ and 33 cargoes shipped in January-March 2023. Total APLNG production for July 2023-March 2024, the first three quarters of Origin's fiscal year to 30 June, was 519PJ, 4pc higher than 498PJ a year earlier, because of effective well and field optimisation activities, fewer maintenance disruptions and the continuing benefit of reducing workover backlog resulting in more wells being on line, Origin said. The terminal will take half a train of capacity off line for 12 days in June , following a two-day maintenance period in January. APLNG's domestic gas sales were 36PJ, steady on the previous quarter but higher by 24pc from the 29PJ sold a year earlier. Gas sales volumes for Origin's energy markets business fell by 5pc to 36PJ from 38PJ in January-March 2023. Origin said it continues to negotiate a deal with the government of New South Wales (NSW) regarding the 2,880MW Eraring coal-fired power station's future . The power plant had been due to close in 2025 but insufficient new generation capacity has been completed in NSW for this to occur. "We continue to progress large-scale batteries under development at Eraring and Mortlake power stations and recently announced our first storage offtake agreement from the Supernode battery in Queensland, taking Origin's storage portfolio to around 1GW of capacity once these batteries come on line," chief executive Frank Calabria said on 30 April. By Tom Major APLNG results Jan-Mar '24 Oct-Dec '23 Jan-Mar '23 y-o-y % ± q-o-q % ± Production (PJ) 176 167 165 7 5 Sales (PJ) 168 160 158 6 4 Commodity revenue (A$mn) 2,303 2,149 2,583 -11 7 Average realised LNG price ($/mn Btu) 12.17 11.88 14.50 -15 3 Average realised domestic gas price (A$/GJ) 6.90 6.39 6.17 12 8 Source: Origin Energy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US commends China's Middle East mediation
US commends China's Middle East mediation
Washington, 29 April (Argus) — The US hopes China will continue using its diplomatic influence in the Middle East after the two countries cooperated earlier this month to de-escalate tensions between Israel and Iran, US secretary of state Tony Blinken said today. "We did come very close to an escalation, a spread of the conflict," after Israel and Iran exchanged aerial attacks on each other's territory, Blinken said at a special meeting of the World Economic Forum in the Saudi Arabia capital Riyadh. The US saw that China used its influence in Iran to prevent an outbreak of a broader regional conflict "and that's a positive thing," Blinken said. Beijing stepped in last year to mediate an agreement between Tehran and Riyadh to normalize relations, playing a mediation role that the US could not carry out on its own. The US supported Chinese efforts to normalize Saudi-Iranian relations "because, if we can find through diplomacy ways to ease tensions and to avoid any conflict, that's a good thing," Blinken said. China has "a clear, obvious interest in stability in the Middle East," he said. "They obviously depend on the region for energy resources. There are many vital trading partners here." China provides a critical economic lifeline to Iran by absorbing nearly all of Iranian crude exports, "which is another challenge," Blinken said. But the US sees China as acting in its self-interest to help bolster stability in the Middle East. Finding some common ground on Iran was a rare positive spot during Blinken's visit to China last week. Blinken pushed his Chinese counterparts to put an end to private Chinese companies' supplies for Russia's military industry, while President Xi Jinping accused the US of undermining China's economic growth. "China and the US should be partners rather than rivals," Xi told Blinken during their meeting in Beijing on 26 April. The two countries should find common ground "rather than engage in vicious competition," Xi said. The US contends that Chinese companies supply 70pc of the machine tools and 90pc of the microelectronics for the Russian military industry, allowing Moscow to significantly increase weapons output in the past year. It remains to be seen whether the US threat of sanctions against Chinese companies accused of helping Russia's military industry will work, Blinken said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Pemex fuel output surges, imports down in March
Pemex fuel output surges, imports down in March
Mexico City, 29 April (Argus) — Mexico's state-owned Pemex increased its gasoline and diesel output by 32pc in March from a year earlier, cutting its road fuels imports by 25pc year over year. Pemex's gasoline and diesel output at its six domestic refineries amounted to 562,300 b/d in March, up from 427,100 b/d in the same month of 2023, according to the company's monthly data published on 26 April. Gasoline production rose by 27pc to 350,400 b/d in March year over year. Gasoline output increased by 13pc from February. Pemex's gasoline imports fell by 16pc in March from a year prior, driven by increased domestic production. On a monthly basis, gasoline imports fell by 18pc from February. The company's diesel output surged by 40pc to 211,900 b/d in March year over year, driving imports down by 43pc to 112,500 b/d (see table) . Diesel production was 26pc higher in March compared with February. Road fuels output increased as Pemex's refining system processed 23pc more crude — 1.06mn b/d — in March from the prior year, as result of billion-dollar investments since 2019 to rehabilitate Pemex's refineries and a decline in crude exports . Pemex's regular 87-octane gasoline domestic sales remain almost steady at 527,400 b/d in March from a year earlier. In contrast, 92-octane premium gasoline sales rose by 11pc to 132,800 b/d year over year, as demand for premium gasoline in Mexico has increased this year. The company's diesel sales ticked up by 1pc in March from a year earlier and were 3pc above February sales. Pemex's domestic sales of refined products accounted for 75.6pc of the company's total revenue in the first quarter, Pemex said during its earnings call on 26 April. This compares to a 70.8pc share in full-year 2023, the company said. By Antonio Gozain Pemex fuel production, imports and sales '000 b/d Product Mar 24 Feb 24 Mar 23 YOY ±% Monthly ±% Production Gasoline 350 310 275.5 27.2 12.9 Diesel 212 168 152 39.8 26.0 LPG 110.0 104.0 100.3 9.7 5.8 Jet fuel 38 38 46 -17.1 1.6 Imports Gasoline 307 376 366.0 -16.1 -18.4 Diesel 112 119 196 -42.5 -5.1 LPG 69 100 101 -31.8 -31.1 Internal sales Regular gasoline 527 520 527 0.1 1.5 Premium gasoline 133 134 120 10.9 -0.7 Diesel 261.0 254.0 258 1.2 2.8 ULSD 30.0 28 32 -4.8 8.3 Jet fuel 95 97 94 1.0 -2.3 LPG 167 194 164 2.0 -13.8 Jet fuel and premium gasoline imports and ULSD imports and production are not broken out Pemex Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Norway's marine bio mandate ineffective: Marine market
Norway's marine bio mandate ineffective: Marine market
London, 29 April (Argus) — Norway's 6pc advanced biodiesel mandate for marine, which came into effect in October, has done little to incentivise the uptake of physical marine biodiesel blends at Norwegian ports, market participants told Argus . As of October 2023, bunker fuel suppliers in Norway must ensure that a minimum of 6pc, on a volume per volume basis, of the total amount of liquid fuels sold per year consists of advanced biofuel in the form of fatty acid methyl ester (Fame) or hydrotreated vegetable oil (HVO). The mandate is only applicable to bunker fuels sold in the domestic market, impacting vessels operating between Norwegian ports as well as local tugboats, offshore supply barges, and fishing vessels. Market participants confirmed that the mandate operates on a mass-balance system at the moment, such that the mandate could also be met by supplying the equivalent amount of biofuels into the inland road sector. Consequently, participants said that very few buyers end up purchasing the physical marine biofuel blends, and instead marine fuel suppliers have had to utilise the mass-balance system to meet their mandated targets. This has resulted in a premium added onto conventional bunker fuels in Norwegian ports of about $56-60/t on average. A market participant described the current system as "like a CO2 tax", with most marine fuel buyers paying the premium rather than purchasing a marine biodiesel blend directly. Participants told Argus that HVO is popular and frequently used in road transport because of its superior specifications compared with biodiesel and its generally low freezing point. Norway's HVO imports typically originate from the US — Kpler data shows that about 68.4pc of HVO flows into Norway have originated from there this year. This is mainly because Norway does not apply the same anti-dumping measures as EU nations, which typically put a substantial premium on US-origin biodiesel imports. Norwegian shipowners going internationally are exempt from being liable to the additional premium imposed by the mandate. But participants told Argus that they usually have to pay the premium and then claim it back from the Norwegian Environment Agency (NEA). The system may change very soon. Market participants told Argus that the NEA is considering some changes to the mandate requirement. A gradual move away from the mass balance system is being discussed, in favour of a physical product mandate that would require biofuel blends to be sold to bunker fuel buyers. Further, a switch from an annual reporting system to a monthly one could also be on the cards. NEA is also reportedly looking at mandating the availability of marine biodiesel at all Norwegian ports and biodiesel fuel reconciliation at the tank rather than terminal. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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