Generic Hero BannerGeneric Hero Banner
Latest Market News

Review delays Brazil's LPG assistance program

  • Spanish Market: Biomass, LPG
  • 11/11/24

Brazil's lower house has removed a proposed LPG assistance program from its urgent voting schedule, submitting it to further review and revisions.

The program announced in August is still under deliberation, but officials now expect further revisions before it moves forward and launches on 1 January.

The bill may add new controls to avoid fraud, the mines and energy ministry's petroleum, natural gas and biofuels secretary Pietro Mendes said last week during a debate in the lower house about LPG.

Congressman Hugo Leal, the bill's overseer, told Argus that he will propose creating LPG cylinders smaller than the typical household 13kg models to ease access for low-income families.

Low-income families spend 70pc of their resources on housing and groceries, according to Carlos Ragazzo, a researcher at the Getulio Vargas Foundation. That suggests that the current government financial support has likely been used for monthly expenses rather than substituting firewood usage for cooking with LPG.

Consumption of firewood for cooking fell from 2005-2015 (see chart), thanks to improved economic conditions throughout the country, according to energy research firm EPE. But the share of households that use firewood for cooking has hovered around 25pc since 2015, even after the launch of program to promote LPG cooking use in 2021 to help those families during the Covid-19 pandemic.

Leal met with lower house leader Arthur Lira on 5 November to discuss the program's proposals and voting agenda, but no details have emerged since.

Almost 1mn Brazilian households cook with biomass only. That represents 1.1pc of the 12.7mn households that use biomass for any energy need. Additionally, 56pc of the biomass-only households are low-income families.

A 13kg LPG cylinder in Brazil costs R106.63 ($18.49), on average. That represents 7pc of Brazil's minimum wage. Low-income families usually receive only half of the minimum wage, on average.

Brazil residential energy sources

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

23/06/25

NZ’s Genesis Energy to maintain coal generators to 2035

NZ’s Genesis Energy to maintain coal generators to 2035

Sydney, 23 June (Argus) — Four New Zealand utilities have signed a non-binding agreement to support utility Genesis Energy's coal and gas-fired Rankine generators at its 953MW Huntly power station through to 2035, underpinning New Zealand coal demand for a decade. The company announced the deal on 19 June. It did not reveal the specific support mechanisms in the deal, but likely involves the other utilities making annual payments in exchange for the right to buy electricity from the company's Huntly power station as needed. Genesis will use the support to maintain its Rankine units until 2035 and build a fuel reserve at Huntly. One of the generators was set to retire in 2026, and two others were previously set to shut early in the next decade. Maintenance will be required on the unit set to retire in 2026. Genesis expects to finalise an agreement with the other utilities by the start of 2026, with the aim to have all Rankine units on line by mid-2026 in time for New Zealand's winter period. Genesis' Rankine units at its Huntly power station play a supporting role in New Zealand's power system, firing up when renewable generation from hydroelectric, geothermal and wind sources falls. The company is working on transitioning its Rankine units to biomass generators, but this is dependent on economic viability of black wood pellet prices . Indonesian sub-bituminous coal, which Genesis uses to power Huntly, is currently much cheaper than pellets. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Gas carriers pool on both sides of Hormuz


20/06/25
20/06/25

Gas carriers pool on both sides of Hormuz

London, 20 June (Argus) — The number of gas carriers idling on both sides of the strait of Hormuz has grown in recent days as operational risks mount with continued geopolitical tensions in the Mideast Gulf. Kpler shipping data show that seven gas carriers halted today, joining a pool of 23 vessels now idling near UAE and Oman, south of the strait. Of the total, 13 began idling on or after 13 June, when the first reported strikes on Iran occurred. The pool includes nine very large gas carriers (VLGCs), six medium gas carriers (MGCs) and eight smaller vessels. At least 11 of the 23 gas carriers have been previously linked to Iranian trade, Kpler data show. Some of the vessels have probably halted as a result of the increased operational risks in the Mideast Gulf, although several were idle before the start of the conflict and may be so for other operational reasons. A second pool of halted vessels has formed inside the Mideast Gulf, where six VLGCs, all with history of assumed Iran trade, have stopped since the airstrikes began. At least two vessels — Pyra and Gas Endurance — stopped after making U-turns shortly after the conflict escalated, Kpler ship tracking data show. Assumed Iranian LPG shipments consisted of 47 vessels in the first quarter of 2025, according to Kpler. Current disruptions could significantly impact this flow, especially to China as it has increased its reliance on Mideast Gulf cargoes following trade tensions with the US. Shipments via the strait of Hormuz — Iranian and from other Mideast Gulf producers — corresponded to 60pc of China's LPG imports so far in the second quarter, Kpler data show, up from 40pc in the previous quarter, as Chinese buyers sought to replace US product. Despite the vessel buildup, gas carriers continue to transit the strait. Chartering activity in the Mideast Gulf rebounded on 19 June following the release of Saudi Aramco's July loading acceptances. An Indian charterer moved quickly and secured vessels at rates nearing $90/t on a Ras Tanura to Chiba basis, a sharp rise from the $76/t on 13 June before the start of the current conflict. Volatility is likely to persist as some vessels remain unwilling to operate in the area, which could further support freight rates on limited competition. But this could be offset if high time charter equivalent (TCE) revenues — now significantly elevated due to the risk premium — lure more shipowners back into the region. By Yohanna Pinheiro Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Malaysian biomass transport cost to rise on subsidy cut


20/06/25
20/06/25

Malaysian biomass transport cost to rise on subsidy cut

Singapore, 20 June (Argus) — The cost of transporting biomass products could surge in Malaysia in the second half of 2025 because of fuel subsidy cuts by the government, potentially pushing up market prices. The Malaysian government is expected to reduce petrol and diesel subsidies in July, according to market sources. Malaysia first announced plans to reduce fuel subsidies in October 2024 , mainly targeting businesses, high income earners, and foreigners, with the subsidy to be removed entirely for these groups. This will inevitably lead to rising costs of procuring biomass in Malaysia, namely palm kernel shells (PKS) and wood pellets. PKS collection takes place at crude palm oil (CPO) mills, and the cargoes are then loaded on trucks, transported inland to loading ports, and exported to key buyers such as Japan. Wood residue is also sent to pellet manufacturing plants via trucks to be converted into wood pellets, before being delivered to loading ports. Cutting fuel subsidies that logistic firms currently enjoy will push up operational and transport costs, inflating the overall price of biomass exports from Malaysia. The subsidy cut may result in a $5-10/t hike in prices for Malaysian biomass, several market participants told Argus . This comes during a period of weak demand for Malaysian PKS, because prices of Indonesian PKS have fallen since the start of June to almost level with that of Malaysian products. Buyers are switching to Indonesian PKS because it has higher calorific value and quality. Meanwhile, demand for Malaysian wood pellets has been gradually increasing in 2025 because of higher buying interest from major wood-pellet consuming countries like South Korea and Japan, who are diversifying their sources. But higher prices caused by the reduction in fuel subsidies could still weigh on demand for Malaysian biomass in the coming months. By Joshua Sim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Keyera acquiring Plains' Canada NGL assets for $3.75bn


17/06/25
17/06/25

Keyera acquiring Plains' Canada NGL assets for $3.75bn

Houston, 17 June (Argus) — Midstream operator Keyera will acquire Plains All American's Canadian natural gas liquids (NGLs) business for C$5.15bn ($3.75bn). The transaction, which is expected to close by the first quarter of 2026, includes 193,000 b/d of fractionation capacity in western Canada, more than 1,500 miles of pipelines gathering 575,000 b/d of NGLs, 23mn bl in NGL storage capacity, and the 5.7 Bcf/d Empress straddle gas processing plant. The acquisition is expected to deliver C$100mn of annual synergies between the assets in the first year, according to Keyera. Plains said the divestiture will allow the US-based midstream operator to focus on its crude handling assets in both the US and Canada. Plains will keep nearly all of its NGL assets in the US. The acquisition of Plains' assets gives Keyera NGL fractionators and gas processing plants in Fort Saskatchewan, and at the Empress facility in western Canada as well as storage at Sarnia, Ontario. It also links Keyera's existing assets to takeaway agreements for LPG exports out of British Columbia. Keyera chief executive Dean Setoguchi said the acquisition "... brings key infrastructure under Canadian ownership, keeping value and decision-making closer to home." Plain's Canadian business is underpinned by fee-based contracts with an average remaining life of 10 years, Keyera said. Associated NGL production in Canada is expected to grow by 500,000 b/d by 2040, according to Keyera, as natural gas production in western Canada climbs by 6 Bcf/d during the same timeframe. By Amy Strahan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US ethane exports slump as China flows blocked


17/06/25
17/06/25

US ethane exports slump as China flows blocked

The EIA has revised down its forecast for US ethane exports following the introduction of licensing requirements, writes Amy Strahan Houston, 17 June (Argus) — US exports of ethane fell to a nearly five-year low in early June following the US Department of Commerce's restrictions on shipments to China , but market participants expect the trade dispute to be short-lived. The department's Bureau of Industry and Security (BIS) sent a letter to midstream firm Enterprise Products in late May requiring it as the operator of the 240,000 b/d (5mn t/yr) Morgan's Point ethane terminal in Texas to obtain a licence for future shipments to China citing possible military uses for ethane and butane. The US' largest ethane exporter, Energy Transfer, which operates the 180,000 b/d Nederland ethane terminal, then received a similar notice on 3 June. Enterprise's request for emergency authorisation to ship three ethane cargoes totalling 2.2mn bl (177,000t) was subsequently denied, sending ethane prices at the Mont Belvieu hub in Texas to a six-month low of 19.25¢/USG ($142/t) on 5 June. Around 198,000 b/d of US ethane loaded during the week to 26 May, after Enterprise received its letter, down from 410,000 b/d a week earlier and 547,000 b/d in the same week of 2024, Kpler data show. They are forecast to stand at 218,000 b/d over the week to 9 June. Ethane prices at Mont Belvieu had recovered to levels seen before the trade restriction by 10 June, owing in part to seasonal gains in Gulf coast natural gas prices but also because market participants expect disruptions to cargo loadings to be temporary, with the US and China holding trade talks in London this month. Very large ethane carriers (VLEC) that deliver ethane to China were on standby by mid-June. The Pacific Ineos Grenadier , which loaded ethane from Morgan's Point while Enterprise appealed against the BIS measure, has been moored at the company's nearby Houston terminal since 9 June. Satellite's Seri Erlang remains offshore Energy Transfer's Nederland facility, while its STL Qianji ang , which loaded at Nederland in the first week of June, is now heading to India. Another Satellite vessel, STL Yangtze , discharged in India in early June, possibly owing to maintenance at Satellite's cracker in Lianyungang , China, and is now returning to Nederland, according to Kpler. "We are all hoping the policy will be reversed soon," one market participant says, while another adds that it is likely to be resolved in days and not weeks. Restricted view US government agency the EIA has nevertheless attempted to forecast the impact the restriction would have on US ethane exports, revising down its forecast by 51pc to 310,000 b/d (6.4mn t/yr) for 2026. US ethane export capacity is on track to grow to as much as 900,000 b/d by the end of next year following the opening of new projects, including Enterprise's new 360,000 b/d Neches River ethane and propane terminal near Beaumont, Texas, and expansions at Morgan's Point and Energy Transfer's Marcus Hook terminals. Chinese buyers of US ethane are also hopeful of a relatively swift resolution owing to the mercurial trade policy of the Donald Trump administration. If it is not forthcoming, they may look to switch feedslates to LPG and naphtha when possible in the shorter term, and those that have invested in new VLEC fleets could repurpose them to LPG or ethylene in the longer term. Neither would be an attractive proposition given the substantial levels of investment in new ethane-fed cracking and VLEC capacity, but would ensure that domestic downstream derivative plants are kept running. Chinese companies are unlikely to begin importing ethylene instead given the margins would still be uncompetitive compared with cracking alternative feedstocks. In any event, buyers "do not want to make a big decision they will regret", one market participant says. Mont Belvieu ethane price Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more