IEA, World Bank plan clean cooking bond for Africa

Spanish Market: LPG
12/10/26

The IEA and the World Bank are preparing a clean cooking bond scheme to bridge Africa's funding gap, with LPG seen as the most efficient fuel, IEA executive director Fatih Birol told Argus in an exclusive interview.

The initiative remains in its early stages, with the main challenge being how to scale the model and convert it into investment across the region. The IEA estimates that Africa requires around $2bn/yr in upfront investment to close its clean cooking access gap by 2040. The agency is supporting the World Bank in identifying suitable partners and investments across supply chains.

The bank promised to deliver an ambitious package at the IEA's rescheduled summit on clean cooking in Africa, to be held in Nairobi, Kenya, in late January.

A well-designed bond scheme could complement pledges from governments and the private sector by mobilising finance for clean-cooking projects, Birol said. Backers pledged $2.2bn for clean cooking in Africa during an inaugural summit the IEA hosted in Paris in 2024. Of this amount, $740mn has already been disbursed to 28 countries. The online event in July resulted in a further $900mn in pledges for the cause.

But more resources are needed to prevent about 840,000 premature deaths every year in sub-Saharan Africa caused by indoor air pollution primarily from traditional cooking methods.

LPG is the primary driver of the expansion, accounting for three-quarters of access gained in the past 15 years. IEA analysis across countries and fuels shows LPG is the most accessible and cost-effective clean cooking solution, Birol said.

The agency has joined forces with the LPG industry to expand access, with Birol serving as the keynote speaker at the World Liquid Gas Association's Liquid Gas Week in Istanbul this week. The conference will be one of the latest events to put clean cooking under the spotlight following the UN General Assembly's first high-level meeting on the issue on 22 September.

The collaboration has resulted in the Clean Cooking Security Programme, which aims to help countries improve the resilience of their supply routes for clean cooking fuels. The initiative, launched at the IEA-WLGA LPG Leadership forum, will draw on the IEA's expertise in energy security and policy design to establish emergency-response frameworks, Birol said. The IEA has been at the forefront of the response to the closure of the strait of Hormuz, co-ordinating its largest-ever release of emergency oil stocks.

The Mideast Gulf LPG supply disruption has exposed clean cooking consumers in developing countries, triggering product shortages and price hikes. LPG markets are particularly exposed because of the lack of strategic reserves, with at least 30 significant consuming countries holding less than 15 days of supply, according to the IEA. LPG users in Africa and Asia have been the most affected by the Iran War, Birol said.

by Waldemar Jaszczyk

The full version of our interview with IEA executive director Fatih Birol will be published in next week's issue of LPG World.

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12/10/26

Oil sands producers prime the pump for pending boom

Calgary, 12 October (Argus) — Two leading Canadian energy companies last week made more bold, strategic changes in favour of core oil sands operations as new federal energy policy becomes clearer. The asset shuffle comes in anticipation of a potential increase in upstream development to a level not seen for over a decade, with operators focused more on long-term legislative support than current high oil prices. Cenovus Energy signed a C$5.7bn ($4bn) deal to acquire smaller rival Athabasca Oil , less than two years after swallowing MEG Energy for C$8.6bn. The deal is "strategically sound", even though Cenovus is paying full value and it may not provide immediate gratification for investors, bank RBC Capital Markets says. "Athabasca is like an oil sands unicorn — one of the last remaining (mostly) pure-play public oil sands producers," it says. "Cenovus recognises this scarcity." Athabasca brings 40,000 b/d of production, but more importantly it offers over 75 years of oil reserves near existing Cenovus assets. The buyer says it could nearly triple Athabasca's output to 115,000 b/d by 2032, which is also the earliest that Canada's planned 1mn b/d Pacific Link pipeline to the west coast could enter service. Included in future plans is Athabasca's undeveloped Corner asset, which could become the first greenfield oil sands project to be realised since 2013. Suncor Energy, meanwhile, has cashed out of some interests offshore Atlantic Canada for C$1.2bn to UK independent Ithaca Energy, as it restructures its balance sheet to focus on oil sands operations. Suncor has regulatory approval to produce 160,000 b/d of bitumen at its proposed Lewis project near Fort McMurray, Alberta. The company this year also applied to increase the capacity of its Firebag steam-assisted gravity drainage project to 700,000 b/d from 331,500 b/d. The strategic moves by Cenovus and Suncor come just days after Canadian prime minister Mark Carney deemed Pacific Link a project of national interest, ensuring its application receives fast-track treatment by the federal Major Projects Office. Giving Alberta's energy industry further reason for optimism is pending legislation such as the Building Canada Strong Act, or Bill C-39. This will overhaul the federal regulatory process, and in turn give prospective project developers more certainty and a sign Ottawa is listening. And Canada's proposed Productivity Mega Deduction — which would allow firms to immediately depreciate spending on large capital projects — has drawn plaudits from the industry. Pieces falling into place These pending changes to the federal fiscal framework for oil sands operators are "not immaterial", Cenovus chief executive Jon McKenzie said while announcing the Athabasca deal. He also expects to soon see new growth incentives relating to Alberta's royalty structure. "All of that fits together to draw capital back into the resource... and probably accelerate growth," McKenzie said. Enbridge, Canada's largest pipeline company, also gave Ottawa credit for encouraging private-sector investment by lightening the regulatory burdens his industry has endured for years. "These reforms send an important signal: Canada is now serious about getting projects built again," chief executive Greg Ebel said. Enbridge sank $600mn into the proposed Northern Gateway pipeline before Ottawa ultimately rejected it in 2016. Carney said his government is now signalling its interest in major projects earlier, so investors have more clarity. The Alberta Energy Regulator sees a steady climb in the province's capital expenditure over the next decade to C$40.9bn by 2035, up by 29pc from C$31.8bn in 2025 — the latter already a 10-year high. Like their US counterparts, oil sands operators remain cautious with their capital expenditure, despite this year's higher profits and cash flow, according to a Deloitte report released on 8 October. By Brett Holmes Capital expenditures in Alberta C$bn Oil sands Oil and gas Total 2015 22.9 16.3 39.2 2020 7.3 8.5 15.8 2025* 14.7 17.1 31.8 2030* 17.8 20.2 38.0 2035* 18.2 22.7 40.9 * estimates — AER, Capp Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Tanker hit in Mideast Gulf: UKMTO

07/10/26

Tanker hit in Mideast Gulf: UKMTO

New York, 7 October (Argus) — An unnamed tanker was hit by multiple projectiles off the Qatar coast in the Mideast Gulf on Wednesday in an incident in which "casualties have been reported", the UK Maritime Trade Operations (UKMTO) said. The incident took place at 19:00 GMT, 51 nautical miles north of Madinat ash Shamal, Qatar, a city about 100km north of the capital Doha and 54km from Ras Laffan. "For the first time since 9 September, Iran has struck a ship in the Gulf, away from the strait of Hormuz," former head of intelligence at EOS Risk Group Martin Kelly said in a social media post. No group has claimed responsibility for the attack, nor were details of seafarers' nationalities disclosed by the UKMTO. The attack follows an attack on 6 October against Panama-flagged Long Range 2 tanker On Peace off the coast of Oman while transiting the strait of Hormuz. There have been five attacks against vessels along the coast of Oman since 3 October. Authorities are investigating and vessels are advised to transit with caution, the UKMTO said. By Delfina Marchese Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Turkey expands LPG reach as output, exports rise

06/10/26

Turkey expands LPG reach as output, exports rise

The country's extensive LPG infrastructure and rising output are a strong foundation for growing trade, write Matt Scotland and Efcharis Sgourou London, 6 October (Argus) — Turkey's LPG production and exports grew strongly in the first seven months of this year, opening up new regional trade opportunities as the industry expands beyond the mature domestic market, according to leading distributors. The country's LPG demand declined by 3.1pc on the year to 2.2mn t in January-July, as the downward trend since 2023 continued, data from energy regulator EPDK show. But production — from Turkey's fleet of five refineries — rose by more than 12pc to 655,000t, while exports rose by 12pc to 414,000t. Imports edged higher to 1.97mn t, to bolster net supply. The growth in output was mainly linked to increased refinery capacity following recent investments, as well as higher throughput, according to Ipragaz supply manager Kumru Ekmenci. The softening in demand and stable imports have enabled the sector to redirect more supply overseas, she says. Turkey's extensive LPG infrastructure, large autogas fleet and growing domestic supply provide a strong foundation for the industry to target regional trade, according to Aygaz chief executive Melih Poyraz. "The market is increasingly creating value, not only through local consumption but through logistics, trading and export-related activities," Poyraz says. Aygaz in July outlined the opportunities it was targeting beyond the domestic market , including a $353mn investment in three new VLGCs this year. "We currently trade 2.4mn-2.5mn t/yr [of LPG], but we want to reach 5mn t/yr in the next 10 years. We want to grow, especially in Africa and southeast Asia, which are our target markets," Poyraz said at the time. Autogas accounts for 80-85pc of Turkish LPG demand, while cylinder gas represents around 14pc and bulk LPG makes up the remainder. Autogas sales fell to a four-year low of 1.8mn t in January-July, while cylinder sales declined to 301,300t, their lowest since at least 2017. The Turkish industry is grappling with higher prices and inflationary pressures. But the weakness this year is more a reflection of market maturity rather than structural decline, according to Poyraz. Cylinder demand has gradually contracted as Turkey has expanded its natural gas network, while autogas retains a significant price advantage over gasoline and diesel. "The market is expected to remain broadly stable, supported by LPG's cost advantage, a large autogas vehicle fleet and its [continued] role in the energy mix." Turkey's economic pressures have affected fuel consumption and autogas vehicle conversion rates, Ekmenci says. But she too highlighted LPG's competitive position domestically. "Turkey remains the world's largest autogas market, and LPG continues to maintain a pump-price advantage over gasoline," she says. The petrochemical sector could provide another source of longer-term LPG demand. Turkish producer Petkim has awarded an engineering contract for a 1.2mn t/yr mixed-feed ethylene cracker and polymer units at Aliaga, which are due for completion in late 2027. The feedstock mix has not been disclosed. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Q&A: DCC Energy urges support for BioLPG in RED IV

06/10/26

Q&A: DCC Energy urges support for BioLPG in RED IV

London, 6 October (Argus) — Renewable liquid gases such as bioLPG could play a greater role in decarbonising heating and industry, particularly in sectors where electrification is difficult or costly, but stronger demand signals and long-term policy certainty are needed to support investment and production growth, according to Dublin-based LPG distributor DCC Energy. Argus' Evelina Lungu spoke with Emmanuel Mannooretonil, director of sustainable gas at DCC Energy and a board member of Liquid Gas Europe, about bioLPG supply growth, renewable heating policy and the outlook for renewable liquid gases in Europe. Edited highlights follow. To what extent does the current Renewable Energy Directive (RED) framework support investment in renewable liquid gases, and where are the remaining gaps? RED III sets clear and ambitious targets for renewable energy in transport fuels, which have facilitated significant investment in production over recent years. However its provisions for renewable liquid and gaseous fuels in buildings and industry are framed more as indicative targets for member states. The challenge has been to translate these targets into predictable market signals, ideally at European level, while giving member states sufficient flexibility to deploy the solutions best suited to their national circumstances, including renewable liquid and gaseous fuels. Greater long-term certainty around the role of these fuels would help support investment in large-scale production projects. As well as demand-side policy, supply-side incentives — such as the UK's Revenue Certainty Mechanism being designed for sustainable aviation fuel (SAF) producers — will also be necessary in order to de-risk investment for producers. This is especially true when considering production growth from technologies not yet available at commercial scale. How do you see BioLPG fitting into the EU's broader decarbonisation strategy for heating and industry, particularly alongside the strong policy push towards electrification? We strongly believe that electrification will be a key pathway for decarbonisation of heating, and indeed DCC Energy is rapidly growing its presence in this segment, including through our solar offer for commercial and industrial customers in multiple European markets. However there are LPG market segments, such as heating for buildings off the gas grid and industries requiring high temperature process heat, where electrification may not be the most practical or cost-effective decarbonisation solution. In these cases bioLPG is an alternative to electrification which can be deployed rapidly, with no changes required to existing equipment and distribution infrastructure. It can deliver greenhouse gas reductions of 80pc or more compared to fossil LPG, and recent research by Frontier Economics found that this can come at a Total Cost of Ownership which is comparable to or even better than electrification. In parallel bioLPG, when produced from locally sourced feedstocks, will contribute to reducing Europe's dependence on imported fossil fuels. European policy should therefore not fall into the trap of focusing on electrification alone as it risks making decarbonisation less accessible for many of the millions of households and thousands of businesses in Europe who rely on LPG today for heating, cooking and hot water. Supply is often cited as a constraint for BioLPG — what progress have you seen in scaling production, and how quickly can volumes realistically grow? Currently most bioLPG is produced as a byproduct of hydrotreated vegetable oil (HVO) and SAF production, and so as production of these grows in response to RED III and ReFuelEU Aviation mandates, production of bioLPG will also grow. We however see that, in the absence of firm demand signals for bioLPG, refiners may see stronger incentives to consume bioLPG internally rather than releasing to market, which can limit availability for consumers. Liquid Gas Europe's 2025 analysis finds that supply of renewable liquid gases in Europe could reach between 2mn t and 7mn t by 2040, all derived from locally available feedstocks. These could substitute up to 50pc of current LPG consumption, but reaching these levels is highly dependent on the level of policy support available. Ireland's experience with biomethane policy highlights some of the challenges around EU rules — what lessons should governments take when designing national support schemes? DCC Energy fully supports policy design centred around technology neutrality and equal access for producers of renewable fuels to markets across the EU. However a ‘one size fits all' approach may not be the right solution for all markets, especially those at early stages of development. For example, it is currently uncertain whether biomethane imported into Ireland via the connected UK gas grid will be recognised as counting towards the forthcoming Renewable Heat Obligation (RHO). This means that domestically produced biomethane may be the only eligible substitute for natural gas under the RHO. In this case, the proposed certificate multiplier for domestically produced biomethane would have been a significant factor in the rapid scale up of Ireland's nascent local production to achieve the RHO's objectives. We would urge national governments and the EU to take full account of specific local circumstances in policy design and seek creative and pragmatic solutions which can remove roadblocks to scaling renewable fuels while respecting the principles of technology neutrality and the integrity of the single market. The recently leaked RED IV impact assessment appears to move away from post-2030 heating and cooling sub-targets in favour of technology-specific indicators for heat pumps, geothermal and solar thermal, while a broader heating fuel obligation was discarded. How does DCC Energy view this direction of travel? We see the lack of firm demand signals as the most significant factor holding back investment in and growth of renewable liquid gas production. We recognise that the impact assessment does not necessarily present a final legislative proposal, and believe that there remains a strong case for the commission to revisit the role that renewable liquid and gaseous fuels can play in heating beyond 2030 to complement those technologies named in the leaked impact assessment. Renewable Heating Obligations remain a key part of our recommended approach, whether set at EU level or by national governments — such as are already under development in Ireland and Germany — but we would welcome other measures which create credible demand for renewable liquid and gaseous fuels in applications where electrification is difficult or disproportionately costly. Demand-side measures will also need to be complemented by enabling measures, such as targeted production cost support. Updates to mass-balance and chain-of-custody rules would also be required to recognise the highly decentralised nature of liquid gas supply chains and facilitate the scaling of renewable fuels across the single market — while maintaining robust tracking and certification of sustainability credentials. Providing this combination of long-term demand certainty, national flexibility and robust market rules through RED IV and related policy instruments will be important if Europe is to realise the potential of renewable liquid gases to contribute to its 2040 decarbonisation objectives. Are there specific technologies — such as bioLPG, DME, or waste-to-energy — that you are prioritising with capital allocation, and why? DCC Energy is not an energy producer, but together with SHV Energy we have been collaborating with multiple technology providers and developers to identify production pathways for renewable liquid gases which have the potential to be deployed at scale and made available for long-term offtake by distributors. These might include renewable DME via gasification of biogenic wastes and bioLPG via alcohol-to-fuel processes. We believe that a few different pathways will be required to achieve the industry's growth potential, building on the availability of bioLPG via HVO and SAF production. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Hormuz crude, products flows average 14mn b/d: Vitol

06/10/26

Hormuz crude, products flows average 14mn b/d: Vitol

London, 6 October (Argus) — Crude and refined product flows through the strait of Hormuz are averaging about 14mn b/d, trading firm Vitol's chief executive Russell Hardy said. Hardy estimated around 12mn b/d of crude and 2mn b/d of products exited the strait in the past 7-10 days, speaking at the Energy Intelligence Forum in London. "That's an important lifeline because most of that crude oil is going to go to Asia and keeping refining runs solid and fill some of the gap China need to fill," Hardy said. Flows of crude and product out of the strait of Hormuz were around 20mn b/d before the US-Iran war disrupted exports from the region. Hardy said it is essential these flows continue to "keep things in balance as we go through the winter" because "there aren't any more inventories to drain in the west." Mideast Gulf producers have boosted exports in the past few months by shuttling oil through the southern Hormuz route and carrying out ship to ship (STS) transfers off Oman and India. But transits through the waterway have become significantly riskier in recent days as Iran has resumed attacks on shipping. "There are more shipowners willing to enter [the strait] and national fleets enter, but obviously there continues to be a huge amount of risk… there is conflict most nights," Hardy said. He said shuttling oil through the strait is very inefficient, requiring numerous tankers and resulting in "parabolic pricing on shipping." By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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