Brazil's Porto Alegre airport resumes operations

Spanish Market: Oil products
21/10/24

The Porto Alegre airport in Brazil's southern Rio Grande do Sul state resumed operations five months after record floods suspended all flights.

The airport, managed by Germany's Fraport, will have the capacity to receive up to 128 flights/d, Fraport said. Initially, the airport is expected to receive 70 flights/d, with that number slated to increase to 122/d in November.

Flights will still remain below previous levels. Prior to the floods, the airport had forecast that it would have 5,404 domestic and international flights and transport over 608,000 passengers in April.

The airport was closed for 171 days after its terminal and runways flooded during record rainfall that devastated Rio Grande do Sul state in late April and early May. Fraport temporarily operated a reduced number of flights out of the nearby Canoas military base.

Even with the closure of the Porto Alegre airport, Brazilian airlines transported over 7.9mn passengers in September, a 4.3pc increase from 7.5mn in the same month last year, according to civil aviation agency Anac.

Demand for domestic flights, measured as revenue per kilometer (RPK), increased by 8.8pc in September from a year earlier. The supply of domestic flights, measured as available seat kilometers (ASK), was up by 7.1pc from a year earlier. Demand for domestic flights is up by 3.5pc in the 12 months ending in September, while supply increased by 1.7pc in the period.

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09/12/24

German heating oil demand surges before CO2 tax hike

Hamburg, 9 December (Argus) — Consumers in Germany stocked up on heating oil during the past week in preparation for the CO2 tax hike in 2025, taking advantage of the recent drop in prices. Traded volumes of heating oil, as reported to Argus, rose by almost half last week on the week. Consumers seized the opportunity of low prices — which had fallen by about €4.50/100l since 22 November — to build up their heating oil inventories again, despite storage levels still being unusually high. Privately-owned heating oil tanks were maintained at an average filling level of 60.6pc on 5 December, two percentage points up from 2023, as shown by data from Argus MDX. The continued stocking up on heating oil is largely because of the anticipated price increase from 1 January. Germany's CO2 tax will increase from €45/tCO2eq in 2024 to €55/tCO2eq in 2025. This would result in a price increase of about €2.70/100l for heating oil, according to Argus calculations. But traders are reporting premiums in the range of €3/100l to €4/100l for heating oil in January. Diesel prices could increase by about €3.50/100l in January, Ar gus calculations show. In addition to the CO2 tax increase, the greenhouse gas (GHG) quota, which will rise from 9.35pc to 10.6pc next year, will also impact diesel prices. Diesel for delivery in January is currently trading at between €4/100l and €7.50/100l higher than for December delivery, traders said. As a result, traders anticipate that diesel demand will also increase before the year ends, but it remains low so far. The fill level of industrial diesel tanks has started to recover after hitting a four-year low at the beginning of November. The level was about 53.6pc on 5 December, less than one percentage point below the same time last year. By Natalie Müller Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Republicans weigh two-step plan on energy, taxes

06/12/24

Republicans weigh two-step plan on energy, taxes

Washington, 6 December (Argus) — Republicans in the US Congress are considering trying to pass president-elect Donald Trump's legislative agenda by voting first on a filibuster-proof budget package that revises energy policy, then taking up a separate tax cut bill later in 2025. The two-part strategy, floated by incoming US Senate majority leader John Thune (R-South Dakota), could deliver Trump an early win by putting immigration, border security and energy policy changes into a single budget bill that could pass early next year without Democratic support. Republicans would then have more time to debate a separate — and likely more complex — budget package that would focus on extending a tax package expected to cost more than $4 trillion over 10 years. The legislative strategy is a "possibility" floated among Senate Republicans for achieving Trump's legislative goals on "energy dominance," the border, national security and extending tax cuts, Thune said in an interview with Fox News this week. Thune said he was still having conversations with House Republicans and Trump's team on what strategy to pursue. Republicans plan to use a process called budget reconciliation to advance most of Trump's legislative goals, which would avoid a Democratic filibuster but restrict the scope of policy changes to those that directly affect the budget. But some Republicans worry the potential two-part strategy could fracture the caucus and cause some key policies getting dropped, spurring a debate among Republicans over how to move forward. "We have a menu of options in front of us," US House speaker Mike Johnson (R-Louisiana) said this week in an interview with Fox News. "Leader Thune and I were talking as recently as within the last hour about the priority of how we do it and in what sequence." Republicans have yet to decide what changes they will make to the Inflation Reduction Act, which includes hundreds of billions of dollars of tax credits for wind, solar, electric vehicles, battery manufacturing, carbon capture and clean hydrogen. A group of 18 House Republicans in August said they opposed a "full repeal" of the 2022 law. Republicans next year will start with only a 220-215 majority in the House, which will then drop to 217-215 once two Republicans join the Trump administration and representative Matt Gaetz (R-Florida) resigns. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US House panel approves river infrastructure bill

06/12/24

US House panel approves river infrastructure bill

Houston, 6 December (Argus) — A US House of Representatives committee has approved a bipartisan bill that authorizes improvements to navigation channels by the Army Corps of Engineers (Corps) and maintenance and dredging of river and port infrastructure projects. The House Transportation and Infrastructure Committee advanced the Water Resources Development Act (WRDA) after several months of political wrangling to integrate earlier versions of the legislation approved by the House and Senate . The bill will head to the full House next week, said committee chairman Sam Graves (R-Missouri). This would be the sixth consecutive bipartisan WRDA bill since 2014 if passed by congress. WRDA is a biennial bill that authorizes the Corps to continue working on projects to improve waterways, including port updates, flood protection and supply chain management. WRDA will also "reduce cumbersome red tape", which will allow for quicker project turnarounds, Graves said. The bill authorizes processes to streamline work, he said. The bill also adjusts the primary cost-sharing mechanism for funding for lock and dam construction and major rehabilitation projects. The US Treasury Department's general fund will pay 75pc of costs, up from 65pc, with the rest coming from the Inland Waterways Trust Fund, which is funded by a barge diesel fuel tax. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Industry wary of Trump tariffs on Canada, Mexico

03/12/24

Industry wary of Trump tariffs on Canada, Mexico

Washington, 3 December (Argus) — US president-elect Donald Trump's plan to impose 25pc tariffs on all imports from Canada and Mexico could have a profound impact on the US oil and gas industry and the US' diplomatic efforts, energy industry representatives said at an industry conference on Tuesday. Cenovus Energy, the second-largest oil and gas producer in Canada, is paying close attention to Trump's rhetoric on trade, and trying to "educate" policymakers in the incoming Trump administration on how tariffs on Canada could impact North America's deeply integrated energy system, Cenovus director of US government affairs Steve Higley said at the North American Gas Forum in Washington, DC. The US in 2023 imported 3.9mn b/d of crude oil from Canada and 730,000 b/d from Mexico, accounting for 60pc and 11pc of US crude imports, respectively, according to US Energy Information Administration (EIA) data. Refineries in the US Midwest's PADD 2 region also process about 2.5mn b/d of Canadian crude, Higley said. The US also exports a significant amount of natural gas to Mexico — 6.2 Bcf/d (176mn m³/d) in 2023, according to the EIA — which is another "reminder of how integrated the North American energy system is," said Dustin Meyer, senior vice president of policy at the influential trade group American Petroleum Institute (API). Retaliatory tariffs by Mexico, threatened by Mexican president Claudia Sheinbaum last week in response to Trump's initial threat of tariffs, would likely impact that gas trade. Sheinbaum and Trump have since taken on a more conciliatory tone toward the subject after the two had what Trump called a "wonderful" conversation. API repeatedly called on Trump in his first administration to de-escalate his trade dispute with China, which it said threatened investment in US LNG. A section of API's website on trade titled "The Truth about Tariffs" reads: "Tariffs are taxes on imported goods that increase costs for consumers." Aside from the threat of tariffs causing "alarm" in Canada, it is not clear how US consumers would benefit from a tariff on all Canadian products, including oil and gas, said Robert Johnston, senior director of research at Columbia University's think tank Center on Global Energy Policy. On the diplomatic front, there is a "tension" between the incoming Trump administration's argument that US oil and gas production must be increased to support American allies, when it is also threatening tariffs to support American industry over that of its trade partners, Johnston said. The initiation of new trade disputes could also erode the US' ability to compete with China, said Jason Grumet, chief executive of trade group American Clean Power Association. "Are we trying to take China on alone, or are we trying to build a global economy of the democratic nations who have been our allies for 50 years?" Grumet asked. Whether the incoming Trump administration will actually go ahead with tariffs on Canada and Mexico is far from certain. From its rhetoric, the administration appears to care deeply about narrowing the US' trade deficit, leveraging its massive energy production on the global stage, and keeping energy prices low for US consumers, Meyer said. But "if that's the vision, what is the form that specific policies take?" he asked. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU finalisiert Zölle auf chinesische Biokraftstoffe

03/12/24

EU finalisiert Zölle auf chinesische Biokraftstoffe

Hamburg, 3 December (Argus) — Die europäische Kommission wird ab Februar 2025 Zölle auf importierte chinesische Biokraftstoffe erheben. Dies geschieht in Reaktion auf ungewöhnlich große und teilweise falsch deklarierte Biokraftstoff-Importmengen aus China seit dem Frühjahr 2023. Die Zölle werden am 14. Februar 2025 in Kraft treten und fallen je nach betroffenem chinesischem Unternehmen unterschiedlich hoch aus. Je nachdem, wie kooperativ sich das jeweilige Unternehmen gegenüber der Europäischen Kommission bei den Ermittlungen zu etwaigen Betrugsfällen mit fortschrittlichen Biokraftstoffen gezeigt hat, liegt der Zollsatz zwischen 11,1 % und 36,6 %. Dies geht aus einem Dokument der Generaldirektion für Handel der Kommission hervor, das Argus vorliegt. Die vorläufig erlassenen Zölle wurden ursprünglich in einer Spanne von 12,8 % bis 36,4% festgelegt. Endgültig eingeführte Zölle gelten für gewöhnlich für eine Zeitspanne von fünf Jahren, allerdings kann eine Revision bereits nach dem ersten Jahr angefragt werden. Die Kommission bestätigt in dem Dokument außerdem, dass Nachhaltiger Flugzeugkraftstoff (SAF) von den Antidumping-Zöllen ausgeschlossen ist, da der Kraftstoff weder mit Biodiesel oder HVO austauschbar sei, noch mit diesen konkurriere. Verschiedene europäische Unternehmen und Verbände, darunter der finnische Produzent Neste und das European Biofuels Board (EBB) hatten zuvor gewarnt, dass durch den Ausschluss von SAF von den Zöllen der Flugzeugkraftstoff von verpflichteten Unternehmen zur Erfüllung von Dekarbonisierungsmandaten im Straßenverkehr genutzt werden könnte. Durch sogenannte Opt-Ins können Unternehmen in manchen EU-Staaten, zum Beispiel in den Niederlanden, nicht straßengebundene Kraftstoffe wie SAF auf die Erfüllung ihrer Mandate im Straßensektor anrechnen lassen. Als HVO jedoch Anfang November im Handelszentrum Amsterdam-Rotterdam-Antwerpen (ARA) teurer gehandelt wurde als SAF, gab es keine Anzeichen, dass der Flugzeugkraftstoff tatsächlich verstärkt im Straßenkraftstoffmarkt Einzug hielt. Seit Anfang 2023 erreichten große Mengen von meist als fortschrittlich deklariertem Biokraftstoff aus China den europäischen Markt. Das daraus resultierende Überangebot setzte europäische Produzenten unter Druck und senkte in Deutschland die Kosten zur Erfüllung der Treibhausgasminderungsquote . Von Simone Burgin & Max Steinhau Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2024. Argus Media group . Alle Rechte vorbehalten.

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