Japanese power producer Jera said this week that it has signed multiple long-term LNG supply agreements with US partners over the past two months, to procure up to 5.5mn t/yr over 20 years. This includes 2mn t/yr from NextDecade and 1mn t/yr from Commonwealth LNG. It also signed non-binding interim agreements with Sempra Infrastructure for 1.5mn t/yr and with developer Cheniere for 1mn t/yr. The deals offer competitive pricing and flexible contract terms. All supply will be delivered on a fob basis priced against the US' Henry Hub, allowing Jera to optimise shipping routes and respond flexibly to domestic demand and market conditions, the company said.
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Tight presidential runoff in store for Brazil
Tight presidential runoff in store for Brazil
Sao Paulo, 23 October (Argus) — Brazilian president Luiz Inacio Lula da Silva has been narrowing the gap to senator Flavio Bolsonaro's lead in polls, but Lula still lags his challenger just days before the presidential election runoff set for 25 October. Opinion polls indicate that the contest remains close, with right-wing Bolsonaro holding a narrow advantage. A 21 October average of multiple polls by independent polling tracker Votendi put Bolsonaro at 51.2pc and Lula at 48.8pc, a 2.4 percentage-point gap. The margin of error is of 2.2 percentage points. Bolsonaro finished the first round of votes with 47pc, ahead of Lula's 45.16pc, leaving the two separated by about 2.2mn votes. Lula has aimed at undecided voters to narrow the gap, with more than 33mn Brazilians not voting in the first round. He sought to broaden his appeal since the first round by embracing several proposals aimed at conservative-leaning voters, including tax amnesty, debt renegotiation for microentrepreneurs and a lower age of criminal responsibility. He also proposed free weekend bus travel and earlier payment of the federal social welfare program, ideas that might appeal more to his left-wing base. Labor policy has been one of the clearest dividing lines of the campaign. Lula has championed a recently approved reduction in working hours, while Bolsonaro's allies have argued for greater labor-market flexibility, including wider use of hourly employment contracts. Meanwhile, Bolsonaro has focused on the economy. He promises to cut R200bn-250bn ($39.8bn-49.7bn) from the federal budget, which financial markets view favorably. He has also promised to allow individuals to suspend repayments on personal debts for six months and for businesses to hold off for as long as a year. While the election campaigns have featured little debate over energy , investors remain focused on potential implications. A Lula victory would likely reinforce the government's approach to energy transition policies, including support for biofuels and renewable energy investment. Bolsonaro has generally favoured fewer environmental restrictions and could seek to accelerate licensing processes for agriculture, mining and oil. Energy markets are unlikely to face immediate disruptions under either candidate, given Brazil's importance as a major exporter, but differences in environmental policy and infrastructure investment could influence longer-term prospects. Corruption standoff Corruption allegations have dominated the campaign's final stretch. Bolsonaro has focused on the Operation Car Wash anti-corruption probe, which sent Lula to jail in 2018 on money laundering and corruption counts. He was later acquitted and freed in 2019. Lula's campaign has accused Bolsonaro of money laundering and corruption scandals during the Covid-19 pandemic — when his father Jair Bolsonaro was president. It also has tried to tie him to Rio de Janeiro's militia — illegal mafia-like vigilante paramilitary groups. Bolsonaro denies any wrongdoing, saying there is no material evidence of participation in criminal schemes, extortion or the command of paramilitary groups. Lula has further challenged Bolsonaro to disclose his banking and telephone records to prove he is clean, saying he would do the same. Bolsonaro responded by demanding records for people close to the president. Lula obliged. A recent Quaest survey found that 52pc of voters disapproved of Bolsonaro, compared with 47pc for Lula. The same polling shows that 44pc of voters fear a Bolsonaro return to power, against 42pc who fear a Lula re-election. Institutional impact The runoff's result will have lasting consequences for Brazil's institutions, as Bolsonaro promises to revamp the judicial system and the constitution. Changes would include abolishing the right to re-election for executive branch offices and extending presidential and gubernatorial terms to five or six years from the current four. He says he would also promote changes to the supreme court's structure and powers, redefining the relationship between branches of government. Overhauling the judicial system or parts of the constitution would require the backing of large congressional majorities. Brazil also held legislative elections on 4 October, with Bolsonaro's Liberal party securing sweeping victories . It will hold 121 seats in the 513-member lower house and 28 in the 81-member senate. Therefore, Bolsonaro would likely face little resistance to enact changes. The next president will nominate four or five supreme court justices. One seat is vacant, three others will retire by 2030 and judge Alexandre de Moraes could face impeachment pressure from the right-leaning congress. Moraes is seen as a Lula ally and emerged as a leading figure in the judiciary, especially for his role in high-profile investigations involving Bolsonaro and his allies. Those included the one that sent Jair Bolsonaro to jail for 27 years for attempting to overturn the result of the 2022 election following his defeat to Lula. Flavio Balsonaro would also likely attempt to win amnesty for his father in case he wins. Foreign policy Bolsonaro would probably pursue closer relations with US president Donald Trump after tariffs strained ties under Lula. His victory would add Brazil to a regional shift towards the right, following conservative electoral gains elsewhere including in Argentina, Chile, Colombia, Peru and Ecuador. But it could weaken Brazil's claim to leadership in developing economies globally and diminish its role in international climate negotiations. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Singapore selects firms to import, supply biomethane
Singapore selects firms to import, supply biomethane
Singapore, 23 October (Argus) — The Singapore Economic Development Board (EDB) has appointed energy firms Keppel Energy, Sembcorp Utilities and Tuas Power Generation as biomethane aggregators to import and supply biomethane, EDB said today. The firms are expected to import their first biomethane supplies by the end of 2028. The firms will import biomethane needed to generate up to 300MW of power, equivalent to roughly 600,000 households' annual energy needs in Singapore, from regional and international sources, and supply it to data centres and industrial manufacturers in Singapore. The biomethane can be supplied as biomethane gas or biomethane-derived electricity. The initiative to import and supply biomethane is the first of its kind in southeast Asia, and will help Singapore explore biomethane as a decarbonisation pathway, EDB said. This initiative is carried out under Singapore's 300MW regulatory sandbox, a pilot project, which will run for 15 years. The sandbox will test the commercial, regulatory and operational arrangements needed to import biomethane and help to shape its frameworks for wider adoption, according to EDB. Biomethane is chemically identical to fossil-derived methane which is the main component of natural gas. It acts as "direct drop-in replacement" for fossil natural gas so it can utilise existing gas infrastructure and be consumed without modifications to equipment or industrial processes. This makes it one of the most practical near-term decarbonisation options available, especially as natural gas accounts for around 95pc of Singapore's electricity generation, EDB said. By Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil PPSA plans 1.8mn m³/d gas auction for 2027
Brazil PPSA plans 1.8mn m³/d gas auction for 2027
Sao Paulo, 22 October (Argus) — Brazil's state-owned commodity trading firm PPSA plans to offer 1.8mn m³/d of natural gas to industrial consumers in a new auction around mid-2027, more than 50pc above the volume sold in the first auction held on 22 October. The announcement follows demand that exceeded the volumes offered across all five industrial segments in 22 October's first auction, in which 1.1mn m³/d gas was sold. Total demand was 39pc above supply, national oil, gas and biofuels secretary Renato Dutra said after the auction. Demand in some segments reached nearly three times the volumes available, according to PPSA president Luis Fernando Paroli. The government plans to announce the next auction further in advance to give industrial consumers more time to prepare and could adjust the rules to broaden participation, Paroli said. The first auction took place as some companies were finalizing their existing gas supply contracts, which limited their ability to participate, he added. The government expects to advance the rules for the next auction after concluding the current process, Dutra said. A group of 23 companies among 36 industries authorized to participate in the auction bought all 1.1mn m³/d offered in the first auction, eliminating the need for a second bidding round. The contracts will generate R376mn ($74mn) for the government over their 10-month term, PPSA estimates. The average gas price resulting from the auction was $5.83/mmBtu, based on the average September benchmark Henry Hub gas price , according to Paroli. The auction pricing formula consists of 115pc of Henry Hub plus the B coefficient offered by each bidder and monthly pricing will use the previous month's average. The average winning B coefficient was $0.64/mmBtu above the $1.80/mmBtu minimum set for the auction. Mines and energy ministry MME estimates the resulting gas prices represent reductions of 38pc for glassmakers, 56pc for ceramics producers, 46pc for steel, metals and mining companies, 56pc for chemical and petrochemical producers and 57pc for fertilizer producers compared with prices currently paid by those industries. The comparisons were based on the average prices currently paid by each sector for contracted gas volumes. Dutra said some industrial users currently pay around $12/mmBtu for natural gas. The auction price includes infrastructure costs such as outflow pipeline access and processing plants, known locally as SIE and SIP, Dutra and Paroli said. Those prices cover only the gas molecule component (PM) and exclude any transport costs stemming from the pipeline network. The winning companies will be responsible for arranging transportation and may choose to hire trading companies to handle the process. The government has been discussing how to establish adequate remuneration for that infrastructure as part of its Gas for Jobs program, while hydrocarbons regulator ANP is also considering the issue . Some successful bidders are not registered gas shippers and will rely on gas trading firms to arrange transportation from the Itaborai delivery point to their facilities. Paroli said all such buyers had already identified a trading firm and had preliminary arrangements in place to qualify to compete in the tender. They must submit their contracts with those companies by 27 November. PPSA will monitor whether the gas reaches winning industrial consumers, and that consumption must match their current gas demand. Buyers or the trading companies they hired will be subject to penalties if consumption mismatches the requirements. PPSA said players can swap volumes with auction participants in extraordinary situations such as maintenance periods and other emergencies. But winning companies must swap volumes under the auction's own framework , without profiting from it. Officials also argued that the program should continue regardless of the outcome of Brazil's 2026 presidential election , which will head to a second round of voting on 25 October. Dutra described the gas agenda as a "state policy" rather than a government program and said its backing by energy policy council CNPE reinforces its long-term nature. Paroli said state participation in strategic sectors including oil, gas and power gives the government tools to support industrial competitiveness. He expects lower gas costs to improve Brazilian industrial competitiveness, potentially supporting domestic production and exports. By Marcos Mortari, Maria Frazatto and Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Italy nears gas liquidity service, gas cap for power
Italy nears gas liquidity service, gas cap for power
London, 22 October (Argus) — As energy regulator Arera is expected to rule imminently on the implementation of the liquidity mechanism, market participants question if it may have less of an impact on power prices than initially envisaged, as well as how it will interact with a parallel proposal to cap gas prices for power generators. The liquidity service is designed to flatten the spread between prices at the Dutch TTF hub and Italy's PSV by compensating selected firms for importing extra marginal volumes at Passo Gries on the border with Switzerland. The entry point is one of Italy's main sources of marginal supply, and the accumulation of entry-exit tariffs, as well as the regulatory discontinuity caused by transit through Switzerland, has been viewed historically as the root cause of the long-established PSV premium. The PSV everyday price has been at a €2.16/MWh premium to the TTF so far this year. Under the initial plan, presented in June by Arera, selected firms would pledge to offer to the market a certain volume of supply, within a €0.50/MWh premium cap to the TTF, or "volatility fee", set by the regulator. Participating firms would be selected in advance by a competitive auction on the basis of their requested fee for providing the service. A final decree implementing the service is expected to be published imminently, after Arera concluded the relevant discussions on 20 October. But there could be significant changes to the mechanism's final form, according to market participants. Arera initially said it would only apply the service to unbooked capacity limiting the service to the German route through Switzerland. But some market participants reported that Arera would extend the service to the French route as well, currently fully booked, although another market participant said this was not correct. The government has backed the scheme with €200mn, which according to Argus ' estimates would be enough for the mechanism to last no longer than 6-8 months. But if the French route were included, it could exhaust the available budget more quickly, limiting the impact of the mechanism to the first quarter, one power trader said. A reduction in the PSV-TTF spread through the liquidity service would also feed through to the power single national price (Pun), but market participants expect the effect to be limited, cutting only a few €/MWh at most on the power curve. Under the energy decree, Italy is also planning to introduce a cap on gas prices for power generators to cut energy bills similar to the one implemented by Spain and Portugal in 2022, known as the "Iberian exception". Italy recently reached a preliminary agreement with the European Commission to cap wholesale prices at about €60/MWh for at least one year starting in January. The Pun has cleared at an average of €177.81/MWh so far this year, but the implementation of the gas cap could cut prices by 20-25pc compared with recent delivery prices, according to a power trader. This would bring the Pun closer to but not below last year's delivery of €133.36/MWh over 1 January-23 October. But if the Pun falls, Italy could import less electricity and burn more gas domestically, potentially supporting the PSV-TTF spread and counteracting the desired effect of the liquidity service. Also, if thermal generators were reimbursed against PSV, their net gas cost would remain at €60/MWh regardless of prompt gas prices. Any PSV reduction from the liquidity service would therefore cut reimbursement costs rather than lower the Pun, reducing the benefit to consumers, Banco Energia analyst Claudio Savoldelli told Argus . If reimbursement is linked to the TTF instead, the PSV-TTF spread would remain in generators' fuel costs, and the liquidity service would continue to pressure the Pun. "This is most relevant in the third quarter, when the spread is around €2/MWh, implying a net gas cost closer to €62/MWh than €60/MWh," Savoldelli added. Market participants are sceptical that the liquidity service and gas cap will be implemented in January, hence why the market appears to be pricing in only a partial compression of prices. Any news of delays or potential opposition from the commission would likely trigger a repricing of the first and second quarters of 2027, according to market participants. The PSV-TTF January basis market rose on Wednesday to +€1.40/MWh, up from +€1.23/MWh the previous day, after the conclusion of Arera's discussions on 20 October was followed by rumours of a delay to its start date, market participants told Argus . Similarly on the power curve, January gained €9.50/MWh, rising faster than November and December's respective €3.60/MWh and €3.80/MWh increases. By Ilenia Reale and Alex Ferguson Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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