Malaysia’s oil, gas projects to emit 4bn t GHG: CREA

Spanish Market: Crude oil, Emissions, Natural gas
12/06/25

Malaysia's continued extraction and use of its oil and gas resources could emit around 4bn t of greenhouse gases (GHGs), according to a report by the Helsinki-based Centre for Research on Energy and Clean Air (CREA).

Malaysia holds about 9.84bn bl of oil equivalent (boe) in committed fossil fuel reserves, of which 82pc is gas, stated the report, which was written in collaboration with environmental think-tank RimbaWatch. This figure only includes projects with proven reserves that are covered by a production commitment such as production sharing contracts.

These committed reserves would also emit an estimated 4.15bn t of CO2 equivalent (CO2e), which is equivalent to 13 years of Malaysia's annual emissions. The emissions will also consist of 10.9mn t of methane, which is a much more potent GHG than CO2.

Malaysia's remaining commercially recoverable reserves are estimated at over 17bn boe over more than 400 fields, with gas comprising about 75pc of this.

Malaysia launched its national energy transition roadmap (NETR) in 2023, detailing initiatives to achieve its 2050 net zero carbon emissions target, such as renewable energy development, hydrogen and carbon capture, utilisation and storage (CCUS). The country aims to reduce its economy-wide carbon emissions by 45pc in 2030 compared with 2005 levels, under its nationally determined contribution — climate plan — to meet the goal of the Paris Agreement.

But at the same time, the country is seeking to maximise its fossil fuel production to ensure energy security. State-owned Petronas raised its total oil and gas production in 2024 to 2.4mn b/d of oil equivalent (boe/d), up by 1pc on the year. Of this, oil production fell by 4.4pc on the year to 813,000 boe/d, while gas output rose by 3.6pc to 1.64mn boe/d.

More than 80pc of Malaysia's power was generated from fossil fuels in 2024. The NETR plans to increase the share of gas in total primary energy supply by 16pc from 2023 to 57pc in 2050, with gas viewed as a transition fuel for decarbonisation. But "referring to gas as sustainable, and claiming that Malaysia can achieve net-zero emissions through growing gas, are oxymorons," stated the report.

Petronas' Scope 1 and 2 greenhouse gas emissions totalled 46.04mn t of CO2e across its Malaysian operations in 2024, surpassing its target of 49.5mn t of CO2e for the year. In comparison, the firm recorded 45.6mn t of Scope 1 and 2 GHG emissions in 2023.

But the firm's net zero pathway excludes its Scope 3 emissions, which make up about 80pc of a fossil fuel entity's emissions, according to the report. Additionally, its CCUS plans are aimed at enabling sour gas extraction, hence exacerbating fossil fuel production and emissions.

Malaysia should instead set a sectoral carbon budget for the domestic energy sector in line with its net zero goals, taking into account both production and consumption, and cement this budget in the country's upcoming Climate Change bill, stated the report.

By Prethika Nair

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11/07/25

Trump threatens 35pc tariff on Canada by 1 August

Houston, 10 July (Argus) — The US will impose a 35pc tariff on all imports from Canada effective on 1 August, President Donald Trump said in a letter to Canadian prime minister Mark Carney. The 10 July letter that Trump posted on social media late Thursday noted that Canada previously planned retaliatory tariffs in response to the US' first tariff threats in the spring. He repeated his earliest justification for the tariffs - the illegal smuggling of fentanyl into the US from Canada - and said he would consider "an adjustment" to the tariffs if Canada worked with him to stop that flow. The 35pc tariff would be separate from tariffs set for specific sectors, which include a 50pc tariff on copper imports . It is not clear if any imports currently covered by the US-Mexico- Canada trade agreement (USMCA) would be affected by the new tariff threats. The Trump administration since 5 April has been charging a 10pc extra "Liberation Day" tariff on most imports — energy commodities and critical minerals are exceptions — from nearly every foreign trade partner. Trump on 9 April imposed even higher tariffs on key trading partners, only to delay them the same day until 9 July. On 7 July, Trump signed an executive order further delaying the implementation of higher rates until 12:01am ET (04:01 GMT) on 1 August. Earlier this week he threatened 50pc tariffs against Brazil for its ongoing criminal prosecution of former president Jair Bolsonaro. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US biofuel support clears way for new crush capacity

10/07/25

US biofuel support clears way for new crush capacity

New York, 10 July (Argus) — North American oilseed crushers told Argus that projects to increase processing capacity are on track for the next year, potentially enabling more renewable fuel production. After a difficult start to the year for biofuel producers, US policymakers are increasingly making clear that they want refiners to up their output in future years and rely more on domestic feedstocks like soybean oil. That could pave the way for more oilseed crush capacity to come online, after some facilities delayed or cancelled plans over the last year on stagnant demand. Companies confirmed to Argus that more than 620,000 bu/d of new soybean and canola crush capacity were on track to come online in North America in the next year, and other facilities that did not respond to requests for comment have plans in the coming years too. Greater vegetable oil supply also could at least partly address concerns from oil and biofuel refiners that Republicans' protectionist approach to biofuels threatens feedstock shortages and price spikes. A multi-seed crush facility under construction in Mitchell, South Dakota — which will be able to process up to 96,000 bu/d of soybeans — is scheduled to start up this October, South Dakota Soybean Processors chief executive Tom Kersting told Argus. US crush company Ag Processing similarly said that a new 137,000 bu/d soybean crush plant in David City, Nebraska, will open "later this year". In Canada, Cargill confirmed that a 121,000 bu/d canola processing plant in Regina, Saskatchewan is also on track to open this year. In the first half of next year, French agribusiness Louis Dreyfus said it plans to complete two major projects in North America. The company plans to open a 151,000 bu/d soybean crush plant in Upper Sandusky, Ohio, and to double capacity to more than 240,000 bu/d at a canola crush facility in Yorkton, Saskatchewan. US soybean oil futures have climbed by 12pc in the past month on recent policy shifts, providing more incentive for processors — already crushing more soybeans than ever before — to expand production. The US recently proposed record-high biofuel blend mandates for the next two years, projecting that domestic soybean oil production could increase by 250mn USG/yr. And President Donald Trump over the weekend signed legislation that retools a crucial US tax credit to increase subsidies for crop-based fuels. Canadian canola processors, which depend on US incentives because Canada's biofuel sector is far smaller, benefit less from some of these policy shifts. While US fuels made from Canadian feedstocks can still claim the tax incentive next year, the Trump administration has proposed halving credits generated under the biofuel blend mandate for fuels made from foreign feedstocks. That makes US soybean oil a far more attractive input for US refiners than Canadian canola oil. A Canadian farm cooperative earlier this year paused plans for a combined canola crush and renewable diesel plant in Regina, Saskatchewan, citing "regulatory and political uncertainty". And Bunge was vague about its plans for building the world's largest canola crush plant in the same city, which was initially envisioned to start up last year. The US-based agribusiness, which recently took over the project with its acquisition of Viterra, told Argus it was "focused on integration to ensure a smooth transition for our customers" and "may be able to provide an update in the near future". Even then, canola oil stands to benefit from increased demand from food companies if more US soybean oil is diverted to fuel markets. And despite recent struggles for other Canadian biorefineries, ExxonMobil subsidiary Imperial Oil has plans to soon open a 20,000 b/d renewable diesel plant in Alberta that will draw on canola oil. Canadian policymakers have taken steps to assuage local feedstock suppliers and refiners, including a domestic renewable fuel mandate in British Columbia and a proposed mandate in Ontario. Biofuel production and oilseed crush margins also will depend on interactions with other policies, including a temporary tax break through 2026 in the US for small biodiesel producers — historically more reliant on vegetable oils than more versatile renewable diesel plants — as well as low-carbon fuel standards in the US west coast region and Canada. The perennial risk for any company is that policy, especially around biofuels, often swings unexpectedly. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nigeria eyes 2mn b/d Opec+ quota for 2027

10/07/25

Nigeria eyes 2mn b/d Opec+ quota for 2027

Vienna, 10 July (Argus) — Nigeria is hoping to win an increase of its Opec+ crude production target to 2mn b/d from 2027 in upcoming talks over updated country capacities, the chief executive of state-owned NNPC, Bashir Ojulari, said today. Nigeria's current crude quota is 1.5mn b/d, but Ojulari said current production today is slightly below that at around 1.4mn b/d. Including around 250,000 b/d of liquids, that takes current oil output to around 1.65mn b/d, just shy of the country's current oil production capacity. Argus estimated Nigeria's crude output at just shy of 1.6mn b/d in May, the latest month for which estimates are available, although that figure includes production of Nigerian light sweet Agbami, which Nigeria itself classes as condensate. By 2027, NNPC is targeting capacity of around 2.4mn b/d, and production of 2mn b/d, Ojulari said. Of this production, around 1.7mn b/d will be crude and the 300,000 b/d balance, condensate. And within three years, the company is aiming for production of 3mn b/d, comprising crude output of 2.5mn b/d and condensate production of 500,000 b/d. Capacity will be around 3.5mn b/d. Nigeria's plans come as the Opec+ group embarks on a new campaign to update and refresh each member country's maximum sustainable production capacity, which would then be used to determine new production baselines, or quotas, for members from which output targets for 2027 will be calculated. The Opec secretariat was in late May instructed by the alliance to start developing a framework to present to the ministers at the next full Opec+ ministerial conference on 30 November. Nigeria has on several occasions in recent years attempted to request an upward revision to its Opec+ production baseline, the level from which production quotas are calculated, but with no success. This was primarily due to the country largely failing to meet even existing targets because of infrastructure and operational problems. But with those issues now largely behind it, Nigeria is looking to make a renewed attempt to argue its case to be allowed to produce more, particularly in light of the significant additional oil refining capacity that the country has added, and will add, over the coming 12-18 months. "We believe that with the increased demand being created in-country, we are now in a better position to also seek from Opec to increase our production quota," Ojulari said. Nigeria recently commissioned the 600,000 b/d Dangote refinery while 500,000 b/d of modular refining capacity that are at "different stages of progress", Ojulari said. "So you can imagine, over the next two years, we will be talking of [additional] refining capacity of around 1mn b/d of just Nigerian local consumption." At present, Nigeria is having to adhere to an Opec+ crude quota of 1.5mn b/d which, barring any change in policy over the coming months, is due to hold until the end of 2026. Ojulari said he will be lobbying for a 25pc increase in the production quota by 2027, and remains hopeful that this time Nigeria's request will be granted. "What I want to have by 2027 is 2mn b/d; that is what we will be asking," he said. "What the outcome of that conversation will be will depend on how successful we are in our discussions and interactions. But that is what we are gunning for." By Nader Itayim, Aydin Calik and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nigeria's NNPC reviewing refinery rehabilitation plans

10/07/25

Nigeria's NNPC reviewing refinery rehabilitation plans

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EU ministers discuss 2035, 2040 climate target setting

10/07/25

EU ministers discuss 2035, 2040 climate target setting

Brussels, 10 July (Argus) — The EU needs to set its 2040 climate target and derive its 2035 nationally determined contribution (NDC) — climate plan — to the Paris climate agreement from it, European climate commissioner Wopke Hoekstra reiterated today. But France and Hungary's environment ministers have suggested focusing on the EU's 2035 climate target first. European climate commissioner Wopke Hoekstra has repeated the need to first have a "conversation" on setting the bloc's 2040 climate target and only then deriving the EU's 2035 NDC. "That is the way we will approach it," Hoekstra said before an informal meeting of environment and climate ministers in Denmark. This comes after members of the European Parliament rejected the idea of a fast-track procedure for the 2040 target on 9 July . France's environment minister, Agnes Pannier-Runacher, said that the first topic to discuss was the EU's NDC, ahead of the UN Cop 30 climate talks in Belem, Brazil, in November. There is "the question as well of our [2040] objective under the renegotiation of the climate law", she said. Asked about a two-step approach for the setting of the 2040 target and the 2035 goal, Pannier-Runacher said she was "open to all discussions as long as the agenda on competitivity is clear" and goes beyond words. This comes after French president Emmanuel Macron said at the end of last month that setting an EU target for 2040 is not a must for the Belem climate talks. Pannier-Runnacher said that the 2035 target was between 66.5pc, if derived from current efforts to reduce greenhouse gas (GHG) emissions, and 71.5pc, if taking into account the European Commission's proposal to cut GHG emissions by 90pc by 2040 from 1990 levels, accounting for "flexibilities". The commission's proposal includes several flexibilities for the 2040 target, including allowing a "limited" contribution of international carbon credits issued under Article 6 of the Paris agreement to count towards the goal from 2036, and the use of domestic permanent carbon removals in the EU emissions trading system. Hungary's environment state secretary Aniko Raisz said discussions on the NDC and the 2040 climate goal should be separated, because the latter "cannot be rushed" and "the issue won't be finished by the end of September as it needs a "thorough impact assessment". NDCs need to be submitted to the UN by September to be counted in a synthesis report set to ground climate discussions in Belem. Drawing a line between the EU's 2030 and 2050 targets, the 2035 goal for emissions reductions could be over 66pc, Raisz said, adding that NDCs were non-binding commitments. German climate action minister Carsten Schneider did not seem phased by a short timeline to reach an agreement on a 2040 goal and an NDC, which is Berlin's preference. "If the time is long, decisions are postponed," he said. "If Europe is not able to manage that nobody will," he said, citing China, Brazil, India and the US. "We think there's a logic in setting the 2040 target and out of that extracting the 2035 target," Danish climate minister Lars Aagaard Moller said. "That is still the basis for the discussion." Moller chairs meetings of EU climate ministers until the end of December. By Dafydd ab Iago and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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