Google, DTE deal hints at new power framework

Spanish Market: Electricity, Natural gas
19/03/26

Google's contract with electric utility DTE Energy to power a 1GW data center in Michigan points to an emerging framework that shifts financial and capacity obligations on to large load customers.

Google signed a 20-year power supply agreement (PSA) with DTE that commits the tech giant to paying the full cost of adding 1600MW of renewable power and 480MW of battery storage for a data center supporting artificial intelligence (AI) in Van Buren Township, Michigan, according to a DTE filing this week with the state regulator Michigan Public Service Commission (MPSC). Google also agreed to provisions intended to minimize financial risks for the utility in case its plans change.

"The special contracts establish a balanced and protective framework that includes appropriate safeguards and minimizes the risks associated with service large load customers," DTE said in the filing.

Long-term power contracts of this length are rare, and DTE underscores in the filing that the Google PSA departs from standard tariffs by adding an "extended contract term" and other protections that don't exist in its normal large-customer service schedule.

The structure of the deal mirrors the "Ratepayer Protection Pledge" Google and other tech firms signed at the White House earlier this month, which commits hyperscalers to build, bring, or buy the power their data centers require and to cover the full cost of any grid upgrades so those expenses are not shifted onto households. The pledge comes in response to mounting public backlash against data center resource consumption and its affect on household electricity bills.

DTE currently generates most of its electricity from fossil fuels, with coal making up about 41pc of its fuel mix and 26pc coming from natural gas, according to its website.

Under the microscope

Google's choice to put its DTE contracts through the highest-scrutiny regulatory process also stands in contract with a previously announced data center deal between DTE and Oracle and OpenAI in Saline Township that has prompted a public outcry.

In that deal, Michigan Attorney General (AG) Dana Nessel accused DTE and regulators of rushing to approval in "back-room deals," after they received approval in a fast-tracked "ex-parte" process, which allows evidence from only one of the parties involved. Nessel has asked Michigan regulators to reopen the approval and called the companies involved "untrustworthy."

"Having obviously learned a lesson from the Oracle/Open AI boondoggle in Saline, Google made a direct commitment to me ...that they will pursue a contested case before the Public Service Commission over any utility contracts with DTE," Nessel said in a statement.

DTE has asked the MPSC to issue a decision by 10 September and expects service to start in December 2027, reaching full load in late 2028.

By Jasmina Kelemen

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19/03/26

UK’s Ithaca puts Cambo GHG emissions at 100mn t

London, 19 March (Argus) — UK North Sea producer Ithaca Energy has estimated greenhouse gas (GHG) emissions from its proposed Cambo field at up to 100mn t/CO2 equivalent (CO2e) over its lifetime, according to an updated environmental statement. The field's upstream GHG emissions are estimated to average around 130,300 t/yr of CO2e, once it is fully producing, from 2031-2055, Ithaca said. This would equal 1.1pc of annual UK oil and gas sector upstream emissions, in relation to 2024 figures, Ithaca said. The company estimated that the transportation, distribution and refining of hydrocarbons from Cambo would result in 18.9mn t/CO2e and the end-use emissions — those from burning the refined products — would reach 82mn t/CO2e. "The overall cumulative effect on global climate change of all Cambo emissions is minor and therefore may be considered as not significant", Ithaca said. GHG emissions from Cambo "are most likely to be in line with a climate pathway that limits warming to 2°C by 2100 but exceeds warming of 1.5°C during the 21st century", Ithaca said. The Paris climate agreement seeks to limit the global rise in temperature to "well below" 2°C above pre-industrial levels and pursues a 1.5°C threshold. Oil and gas companies seeking to develop UK fields must now submit estimates of scope 3, or end-use, GHG emissions in their environmental statements. Norway's Equinor, which is aiming to develop the nearby Rosebank field, estimated scope 3, or end-use, GHG emissions from Rosebank at 249mn t/CO2e over its lifetime . Ithaca plans to begin drilling in the third quarter of 2028, with first oil expected in the fourth quarter of 2030, it said. It anticipates that Cambo will produce hydrocarbons until 2055. Ithaca is sole owner of Cambo, having acquired Shell's 30pc stake in 2023. Its production licence for the field was extended last year until 30 September 2027. Cambo is the "second largest undeveloped oil and gas discovery in the UK North Sea", according to Ithaca, with around 170mn bl of oil equivalent of recoverable resources. The UK government has committed to ending new offshore oil and gas licensing, though it recognises a transitional role for oil and gas as the country decarbonises, and will permit some new wells, connected to existing infrastructure. The UK has a legally binding target of net zero GHGs by 2050. Ithaca said it would meet "all necessary legal and industry-wide agreed GHG removal requirements that may be implemented" to offset emissions produced after 2050. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US not considering oil and gas export restrictions

19/03/26

US not considering oil and gas export restrictions

New York, 19 March (Argus) — Restrictions on US oil and natural gas exports are not under consideration, according to an administration official, as the White House looks for ways to bring down energy prices that have surged on the back of the war with Iran. Industry officials had earlier sought to head off any potential calls for the reinstatement of crude export restrictions that the US lifted more than a decade ago. Groups like the American Petroleum Institute argue that such a move would cause chaos in global markets and hurt consumers, while others noted it could cut off energy supplies to allies when they need it most. US crude futures rose Thursday in intraday trading, with April Nymex WTI rising by $3.04/bl to $99.36/bl as of 12:30pm ET. May Ice Brent was up $3.12/bl at $110.50/bl. The White House on Wednesday approved a 60-day waiver of domestic shipping requirements under the Jones Act, in an effort to help ease a spike in commodity prices caused by the escalating conflict. It has also authorized a 172mn bl drawdown of crude from the US Strategic Petroleum Reserve over the next four months as part of the International Energy Agency's coordinated release of more than 400mn bl of oil. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

EU leaders debate energy, ETS reform

19/03/26

EU leaders debate energy, ETS reform

Brussels, 19 March (Argus) — EU leaders debated rising energy prices and the role of the bloc's emissions trading system (ETS) on Thursday, 19 March but remain divided over how exactly to adjust EU climate policy. Spanish prime minister Pedro Sanchez expressed strong support for the ETS. Pointing to Spain's low power prices, he said some governments are using the energy crisis to try to weaken climate policies. Finland's prime minister Petteri Orpo similarly called for the bloc to continue decarbonising, also noting Finnish clean energy investments pushing down the country's energy prices. Dutch prime minister Rob Jetten said he supports refining climate policies but will not scrap those crucial to long-term green resilience, highlighting that the ETS has saved "billions and billions" in fossil fuel imports. "The ETS, particularly ETS 1, is a good mechanism because it allows transition while preserving competitiveness," French president Emmanuel Macron said. But Macron is also calling for "flexibility" and "adaptability" in the current situation. The ETS 1 is operational and covers energy-intensive industry, power, maritime and aviation emissions, while the EU ETS 2 covering road transport and buildings is due to launch in 2028. The European Commission has incorporated large parts of proposals worked out with EU leaders in February, German chancellor Friedrich Merz said. Commission president Ursula von der Leyen earlier this week wrote to EU leaders announcing a proposal to increase the "firepower" of the market stability reserve (MSR), which could release ETS allowances to address "excessive" price volatility and "keep prices in check" in the short term. And von der Leyen now promises that the upcoming ETS revision, scheduled for July, will set out a "more realistic" decarbonisation trajectory beyond 2030. Swedish prime minister Ulf Kristersson said Sweden's low gas dependence shields it from price shocks. Kristersson added that it is "unacceptable" that other countries with transmission problems should now lay claim to Sweden's "large" congestion revenues. "We use these to expand the grid, but also to compensate Swedish electricity consumers," he said. Czech prime minister Andrej Babis said his country is among the "best" in terms of decarbonisation. Babis joined leaders from Austria, Bulgaria, Croatia, Greece, Hungary, Italy, Poland, Romania and Slovakia stating in a letter to the commission and European Council that the ETS pathway to 2034 is "too steep and overly ambitious". One of the 10 leaders, Austrian chancellor Christian Stocker, also wants the gas price "excluded" from ETS allowances. "This would also lead to a reduction in costs, and that is something our industry urgently needs," Stocker said. He also called for the merit order system setting power prices to be changed. "We generate around 90pc of our annual consumption from renewables, yet we pay the price for electricity as if it were produced by gas-fired power plants," Stocker said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

UK chemicals power use falls more slowly than output

19/03/26

UK chemicals power use falls more slowly than output

London, 19 March (Argus) — UK chemicals-sector electricity demand is falling more slowly than output and gas use, and could in future be supported by new hydrogen electrolysis load even without a recovery in traditional production. UK chemicals-sector electricity consumption was 14.7TWh in 2024, down by 7pc from 15.8TWh in 2019 before the pandemic, according to the latest data from the Department for Energy Security and Net Zero (Desnz), having fallen slowly but steadily over the period. The production for manufacture of chemicals and chemical products index fell by 27.2pc over the same period, according to data from the Office for National Statistics (ONS). This means output has fallen almost four times faster than electricity consumption, suggesting the remaining industrial base is more power-intensive ( see consumption and output graph ). Natural gas consumption in the chemicals sector has aligned more closely to the fall in output, with gas demand falling by 41pc between 2019 and 2024, to 12.3TWh. That divergence between the decline in gas and electricity consumption is consistent with natural gas often functioning as both feedstock and fuel in bulk chemicals. In ammonia production, gas typically accounts for most of the production cost, leaving domestic output vulnerable when UK costs rise above import parity. Recent closures and curtailments in some of the UK's most gas-intensive segments, including ammonia and ethylene, have resulted from higher gas prices. UK industrial natural gas prices excluding taxes rose from £20.50/MWh in 2019 to £52.30/MWh in 2024, around 20pc above the IEA median and higher than in France and Germany ( see industrial gas price graph ). Remaining base more resilient The operations that remain are the most electricity-intensive parts of the sector, with some better able to sustain power demand. Chlor-alkali production is highly power-intensive, with rising electricity costs reducing UK output to a negligible share of European capacity. And much of that capacity is currently off line, with Ineos Inovyn at Runcorn being the sole major UK chlorine producer. Other electricity-intensive activities that remain in the sector are tied to more diversified end markets than bulk chemicals. German firm Linde's subsidiary BOC operates seven air separation units across the UK and Ireland, serving customers in healthcare, food processing, metals and electronics — end markets broad enough to buffer sector-specific demand shocks. "The primary factor is their ability to pass through additional cost because of the cruciality of certain industrial gases for manufacturing processes," industry association the Energy Intensive Users Group director Arjan Geveke said. "Also, the trade intensity of certain industrial gases is low," he said. Unlike ammonia or ethylene, cryogenic gases such as oxygen and argon are not widely traded internationally, limiting the import competition that has hit commodity chemical producers. High electricity costs still weigh on the sector UK government support schemes have so far done little to change the sector's broader cost disadvantage. The pressure on producers reflects both structurally high input costs and weak demand. "For some chemical companies energy, as a proportion of their cost base, [is] 50, 60, 70pc," Chemical Industry Association (CIA) chief executive Stephen Elliott told Argus . Among CIA members, electricity accounted for a greater share of total energy spend than gas in 2024, despite members consuming roughly four times more gas, Elliott said. Schemes such as the British Industry Supercharger — a UK government initiative launched in 2023 to support the competitiveness of energy-intensive industries — had provided temporary relief for some sites. But under the recently proposed British Industrial Competitiveness Scheme aimed at cutting electricity costs for manufacturers in key growth sectors, "the relief will be far outweighed by the incoming increase in policy and network costs", Elliott said. And unless the full chemicals sector is covered, costs will be redistributed to non-eligible sites. Some companies benefiting from network-charge relief under existing arrangements will mean that "it's the rest of industry that pays for the relief", he added. Hydrogen may add some future demand New electrolysis projects could add some load later this decade, although the effect on chemicals demand is likely to be limited. Based on the nine active projects in the first hydrogen allocation round (HAR1), renewable hydrogen output could reach around 15,700 t/yr by the end of the decade, implying about 880 GWh/yr of electricity demand assuming electrolyser consumption of 56 kWh/kg ( see HAR1 projects table ). The build-out is expected to be gradual, with one active project from HAR1 due to enter service by 2027, four by 2028 and a further four by 2029. Not all of that new load would sit within chemicals, since some projects are aimed at a broader industrial base and some at users outside chemicals altogether. MorGen Energy's 20MW Milford Haven project is intended to supply customers in the industrial, chemical and port sectors, while beyond the first allocation round, Meld Energy's proposed 100MW Saltend Green Hydrogen Hub would supply users at Saltend Chemicals Park, and EdF Hynamics' planned 120MW Fawley project is intended to supply ExxonMobil's refinery and petrochemical complex. By Timothy Santonastaso HAR1 projects summary Project name Developer H2 output (MW HHV) Implied H2 output (t/yr) Implied electrical consumption (GWh/yr) Long stop date Active projects 106.15 15,721 878 Barrow Green Hydrogen Carlton Power & Schroders Greencoat 21.02 2,557 143 31 Mar 2029 Bradford Low Carbon Hydrogen Hygen Energy & N-Gen Energy 24.49 4,202 235 31 Dec 2028 Green Hydrogen 3 (Northfleet Green Hydrogen) Hyro (Octopus Energy Generation) 9.00 1,203 67 01 Dec 2028 HyBont Bridgend Green Hydrogen Hygen Energy 5.20 687 38 29 Jun 2029 HyMarnham Power GeoPura & JG Pears 9.30 1,774 99 26 May 2027 Langage Green Hydrogen Carlton Power & Schroders Greencoat 7.01 850 48 31 Mar 2029 Tees Green Hydrogen Hynamics (EdF) 5.51 1,059 59 31 Dec 2028 Trafford Green Hydrogen Carlton Power & Schroders Greencoat 10.52 1,524 85 31 Mar 2029 West Wales Hydrogen MorGen Energy (Trafigura) 14.10 1,865 104 31 Dec 2028 Paused projects 17.70 3,551 199 Cromarty Green Hydrogen ScottishPower & Storegga 10.60 2,131 119 26 Dec 2028 Whitelee Green Hydrogen ScottishPower 7.10 1,420 80 29 Dec 2028 — Low Carbon Contracts Company, Argus UK chemicals sector, output, electricity and gas consumption Indexed 2019=100 Industrial gas prices, excluding tax £/MWh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Europe, Asia gas surges on Ras Laffan strike: Update

19/03/26

Europe, Asia gas surges on Ras Laffan strike: Update

Adds latest ANEA LNG price in third paragraph Singapore, 19 March (Argus) — European and Asia-Pacific gas prices surged today, after Qatar's 77mn t/yr Ras Laffan liquefaction complex was hit by missile strikes in the early hours of 19 March. Front-month futures on the Dutch TTF gas hub, Europe's most liquid gas hub, were trading at €72/MWh at market opening, over 30pc higher than the previous day's close and the highest level since January 2023. Prices fell back to around €63.50/MWh at 7.15pm Singapore time (11:15 GMT). The Argus -assessed TTF front-month price stood at €54.59/MWh on 18 March. Northeast Asian prices for spot LNG deliveries also hit a three-year high today. The Argus northeast Asia (ANEA) price for the second-half April rose by $4.95/mn Btu or 25pc from the previous day to $25.165/mn Btu. Crude futures also rose sharply today. The front-month May Ice Brent contact increased by over 10pc to as high as $119.13/bl. Several LNG facilities at the Ras Laffan complex, the world's largest LNG production facility, were the subject of missile attacks overnight , causing sizeable fires and extensive further damage, operator QatarEnergy said. Production at the facility had already been halted on 2 March after the de-facto closure of the strait of Hormuz left the producer with no location to load its LNG. The facility had also been the target of a drone attack on that day. An attack on the Ras Laffan complex the day before on 18 March resulted in extensive damage to the Pearl GTL (gas-to-liquids) facility, QatarEnergy said. An unidentified vessel was also struck by an unknown projectile on 19 March around 4 nautical miles (7 kilometres) east of Ras Laffan, the UK Maritime Trade Operations (UKMTO) reported. By Antonio Peciccia and Naomi Ong Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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