Golar plans southern Brazil regas terminal

: Electricity, Natural gas
18/08/23

Bermuda-based shipowner Golar is seeking a permit to install a 15mn m3/d regasification terminal in the southern Brazilian state of Santa Catarina.

Regional subsidiary Golar Power Latam has begun an environmental licensing process for the installation of a floating storage and regasification unit (FSRU) and gas pipeline that will connect to an existing pipeline that now brings Bolivian gas to Brazil.

The project, dubbed Terminal Gas Sul (TSG), aims to meet growing gas demand in southern Brazil, which is currently limited to receiving Bolivian supply. With the 2019 expiry of Brazilian state-controlled Petrobras' supply contract with Bolivia and the company's decision to exit the gas market, gas distributors across Brazil are scrambling to find alternatives.

Golar has proposed building the TSG project in Babitonga bay, in the municipality of Sao Francisco do Sul in the north of Santa Catarina.

A 160,000m3 FSRU would be tethered 300m from the coast in water depths of 13m. Golar estimates that the FSRU would receive two cargoes of LNG per month, according to the company's environmental filing.

The project features a 2km underwater pipeline, which would connect to a planned 31km onshore gas pipeline that would run along the existing Santa Catarina-Parana oil pipeline (Ospar), facilitating the construction and environmental licensing process. This pipeline would then connect to the Bolivia-Brazil gas pipeline, which would be reversed to supply gas to inland regions of the country. Golar estimates that construction of the pipeline would take six months.

Golar hopes to receive an initial environmental license for TSG this year and authorization from oil regulator ANP in 2019, which would allow construction to begin in the third quarter of next year. Commissioning would begin in first quarter 2021 and commercial operations in the following quarter.

The Santa Catarina state institute has scheduled public hearings to discuss the project for 3 September, but the hearings could be cancelled after a public defender in the state filed a petition to suspend the licensing process, alleging that federal environmental authority Ibama should be responsible for issuing the permit.

Although the TSG project does not currently have any firm buyers, Golar recently met with representatives from Santa Catarina's gas distribution company SCGas. SCGas is participating in a joint tender offer with five other gas distributors in the region, which are seeking a total of 9.7mn m3/d of supply for five years. Of that total, SCGas is seeking 4mn m3/d.

Golar also met recently with representatives from the local subsidiary of French utility Engie, which has received environmental clearance to build a 600MW gas-fired thermoelectric plant in northern Santa Catarina state. For the plant to move ahead, it needs to secure gas supplies. The project is expected to participate in next week's power generation auction.

If TSG moves ahead, it would be Golar's second regasification project in Brazil. The company is also a partner in Centrais Eletricas de Sergipe (Celse), which is installing an FSRU along with the 1,551MW Porto de Sergipe power plant, located in Sergipe state in northern Brazil.

Celse signed a 26-year charter agreement for the 170,000m3 Golar Nanook FSRU.

Celse expects the R5bn ($1.24bn) project to start commissioning next year and begin commercial operations in January 2020.

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26/04/04

Israel’s Leviathan gas output restarts after shutdown

London, 4 April (Argus) — Israel's Leviathan gas field resumed operations on 31 March after a month-long security-related shutdown, project partner NewMed said on 3 April. Israel's energy ministry ordered Chevron, operator of the 12bn m³/yr field, to halt production on 2 March following the outbreak of the US-Israeli war with Iran two days earlier. NewMed said Chevron received regulatory clearance on 31 March to carry out preparations to restart output, and "regular production" resumed on 2 April. The shutdown led Chevron to declare force majeure and pushed Egypt — which receives Leviathan gas by pipeline — to step up LNG imports. Egypt's LNG receipts tripled year on year in the first quarter of 2026 and rose by 4pc from the previous quarter, according to Kpler data. Most volumes came from the US, but Equatorial Guinea also contributed, shipping its first LNG cargo to Egypt since June 2025. The Tenergy LNG tanker arrived in Ain Sukhna on 1 April, Kpler data show. By Andrey Telegin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US fighter jet shot down over Iran: Tasnim

26/04/03

US fighter jet shot down over Iran: Tasnim

Washington, 3 April (Argus) — Iran's military has shot down a US F-15 fighter jet over Iran, Iranian news agency Tasnim said on Friday. In a development that could spark a major escalation of the US-Israeli war with Iran and upend the White House's timetable for the conflict, the Iranian Army's Air Defense Unit shot down the fighter jet, Tasnim reported. The fate of the F-15 crew members was not immediately clear. In a conflicting report, Iranian state news agency Irna posted images on X of what it described as an "F-35 fighter jet" that it said had been destroyed by the Islamic Revolutionary Guard Corps. Neither the White House nor US Central Command responded immediately to enquiries, while the Pentagon referred questions to Central Command. President Donald Trump has not posted on his social media platform about the incident. But at around 3:30pm ET he did post, "KEEP THE OIL, ANYONE?" And earlier in the day, Trump posted: "With a little more time, we can easily OPEN THE HORMUZ STRAIT, TAKE THE OIL, & MAKE A FORTUNE. IT WOULD BE A 'GUSHER' FOR THE WORLD???" During his prime time address to the US public about the war on 1 April, Trump claimed that the Iranians "have no anti-aircraft equipment", adding: "Their radar is 100pc annihilated. We are unstoppable as a military force." A second US war plane, an A-10 Warthog attack plane, crashed near the strait of Hormuz about the same time as the F-15, the New York Times reported on Friday. By David Ivanovich Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Iranian done hits Kuwaiti power and desalination plant

26/04/03

Iranian done hits Kuwaiti power and desalination plant

Dubai, 3 April (Argus) — A power and water desalination plant in Kuwait sustained "material damage" as a result of an Iranian attack in the early hours of Friday, the country's electricity ministry said. The ministry did not disclose which specific facility was hit, saying only that "some components" were damaged in the attack. The ministry did not immediately respond to a request for comment. Kuwait has eight major power plants dotted along its coast, the majority of which also include desalination units that supply a significant portion of the emirate's fresh water. This is the second attack on Kuwait's power and desalination facilities in less than a week. A service building at an unnamed power and water desalination plant sustained "significant material damage" in an attack in the early hours of Monday . Iran has been responding to US and Israeli strikes on its territory, facilities and infrastructure by launching missiles and drones against targets in Israel and across the Mideast Gulf. Iran's armed forces regularly claim they are targeting regional assets and facilities that have links with Israel or the US, but many of the targets being hit clearly do not. Kuwait, in particular, has been experiencing a spike in hits on its critical infrastructure in recent days. The 346,000 b/d Mina al-Ahmadi refinery came under attack for the third time in two weeks early on Friday. The country's 454,000 b/d Mina Abdullah refinery was also struck in the middle of March. Kuwait International Airport has also been repeatedly struck by Iranian drones over the past month. Fuel depots were most recently hit on 1 April and 25 March, while the airport's radar system was struck on 28 March. Kuwaiti airspace has been closed since the start of hostilities on 28 February. Seven overhead power lines in several parts of Kuwait were also taken out of service late last week after debris falling from intercepted drones damaged the network. This caused partial power outages in some parts of the country. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

New furnaces to support Italian steel power demand

26/04/02

New furnaces to support Italian steel power demand

London, 2 April (Argus) — Rising steel demand and upcoming furnace expansions within Italy's highly electrified steel sector could increase the country's industrial power consumption. But high energy prices in the wake of the US-Iran conflict may limit sector growth. Italy is the second-largest steel producer in Europe, after Germany. It has the most electrified steel industry in the region, with 90pc of production coming from secondary steel made from scrap processed in electric arc furnaces in 2024, compared with an EU average of 45pc, according to steel association Federacciai. The country had 26 electric arc furnaces with a combined capacity of 23.9mn t/yr at the end of 2025, according to independent research body Global Iron and Steel Tracker ( see capacity graph ). Italy's wholesale power prices are consistently among the highest in Europe and prices have risen further since the onset of the US-Iran conflict, owing to Italy's strong gas marginality. Italy's second and third quarter power contracts were up by 39pc at the end of March compared with the end of February. Italian firms are constructing new electric furnaces that are expected to start operating in the next few years, which could increase steel sector electricity demand. Producer Acciaierie Venete announced a new 100t electric arc furnace in Padova, expected to be operational by this summer and projected to produce 750,000 t/yr of steel. This furnace alone would consume about 500 GWh/yr of power, assuming energy consumption of modern electric arc furnaces is around 670 kWh/t, based on steel output and power demand recorded in 2025. Fellow Italian steel producer Metinvest aims to break ground at a site in Piombino in central Italy by mid-2026. The new mill will have two electric arc furnaces and 2.7mn t/yr of hot-rolling capacity for low-emissions hot-rolled products, with production targeted for 2029. These furnaces would add a further 1.8 TWh/yr of power demand. And steelmaker Acciaierie d'Italia plans to phase out Italy's only coal-fired blast furnaces at its Taranto plant and replace them with electric furnaces. The firm's Taranto facility has operated below full capacity for more than 10 years and was placed under extraordinary administration in February 2024. The Italian government has put the Taranto assets up for tender, requiring any buyer to commit to replacing the furnaces with electric ones, with authorisation for 6mn t/yr. Private equity firm Flacks Group has been selected as the preferred bidder, proposing a plan for 4mn t/yr. The switch to electric furnaces was scheduled for 2027, but doubt has been case over the future of the Taranto site owing to production issues and a court order mandating a shutdown because of health concerns. State of play Italy's steel sector accounted for 42.4pc of total power demand from energy-intensive sectors in 2025, at 13.8TWh. This marks a 3.7pc increase from the previous year, according to transmission system operator Terna ( see sectoral graph ). Italy's crude steel output rose by 3.6pc to 20.7mn t in 2025, Federacciai data show. Steel power demand fell by 10pc on the year in 2022 and was stagnant over 2023-24 but turned to growth in 2025 ( see long-term demand graph ). Monthly power demand has consistently increased year on year since July 2025, driven by increased production in anticipation of higher steel demand in 2026 ( see monthly graph ). Steel sector power demand reached 1.3TWh in February, up by 3.7pc on the year, mirroring a 2.6pc increase in crude steel output to 1.9mn t. EU steel demand is forecast to rise by 1.3pc to around 134mn t in 2026, according to European sector association Eurofer. And the EU plans to cut import quotas for flat steel from 1 July. Italy is a major importer of flat steel so the lower quota could boost domestic production. Energy efficiency in the sector increased over 2015-21, with consumption falling from roughly 800 kWh/t to below 700 kWh/t, data from Federacciai show. But power demand per ton of output has been slowly edging up since 2021. Geopolitical worries The Italian government has taken steps to insulate industry from power price increases, but geopolitical risks continue to influence prices. Italy launched its Energy Release Scheme late last year, offering electricity to energy-intensive users at a fixed price of €65/MWh in exchange for commitments to develop renewable capacity and return equivalent power over 20 years. But high energy costs will continue to weigh on steelmakers this year, Eurofer director-general Axel Eggert said, pointing to the impact of the Middle East war on gas markets after the Dutch TTF benchmark moved above €50/MWh in early March. Italian steel and scrap association Assofermet flagged the conflict as a source of potential additional cost pressures in an already volatile market. "Operating complexity and growing concerns related to the Carbon Border Adjustment Mechanism (CBAM) and the upcoming entry into force of the new safeguard measure are significantly weighing on the market," it said. The rollout of the CBAM — which raises import costs — will be accompanied by a gradual reduction of free allowances under the Emissions Trading System, from which energy intensive industries have long benefited. As free allocations decline, steelmakers will need to buy more allowances, adding further cost burdens. By Ilenia Reale Electric arc furnace capacity by country mn t/yr Sectoral breakdown of industry power demand % Steel power demand, 12-month trailing average TWh/m Power demand vs steel output, monthly Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Carbon - In focus: UK ETS widens discount to EU in Q1

26/04/02

Carbon - In focus: UK ETS widens discount to EU in Q1

London, 2 April (Argus) — The benchmark front-year contract under the UK emissions trading scheme (ETS) significantly widened its discount to the EU throughout the first quarter of this year, as scant signs of progress on efforts to link the two systems reduced previous optimism of an impending price convergence, and the UK supply-demand balance remained more relaxed than the EU's. The UK ETS front-year contract closed on average around £14.75/t of CO2 equivalent (CO2e) below its EU counterpart in Argus assessments over January-March, having widened from a low of £6.85/t CO2e in mid-January to a high of £25/t CO2e this week. This compares with an average discount of £13.50/t CO2e in the fourth quarter of last year, within a narrower range of £8.80-17.70/t CO2e, and is the widest average discount for any quarter since the first quarter of last year's £21.80/t CO2e. Linkage plans squeeze spread The UK's discount to the EU began to narrow significantly after the UK government said in a statement in March 2025 that it was "actively considering" linking its ETS back to the EU's, a position confirmed by both sides as part of their common understanding agreement concluded between the UK and EU at a summit in May last year. The markets separated in 2021 as part of Brexit, and while the EU-UK trade and co-operation agreement signed as part of that process committed the two sides to giving "serious consideration" to linking the schemes, no meaningful steps towards a link had previously been taken. The news dramatically narrowed the spread between the two markets, with the UK front year's discount to the EU squeezed to an average of £9.90/t CO2e in the second quarter of 2025. A linkage would logically lead to a convergence of UK and EU ETS prices, as the allowances issued under the two schemes would be fungible. Momentum on the issue continued over the remainder of the year and early 2026, as the European Commission set out in July its recommendation for the legal basis for linkage negotiations, approved by member states in November , and the first round of negotiations kicked off in January . But while the EU and UK said that they aimed to complete talks on the linkage before the next UK-EU summit in 2026, no date for the meeting has been set, and updates on negotiations have in recent months been notable by their absence. Recent events have likely pushed ETS linkage down the political agenda, whether on the domestic front — Keir Starmer's position as UK prime minister came under pressure in February — or internationally, most notably as the US-Iran war sparked a renewed energy crisis. EU supply-demand balance tightens Changes to key fundamentals have also tightened the EU ETS supply-demand balance this year in a way that hasn't been seen in the UK ETS, further widening the spread between the markets. Both the maritime and aviation sectors will have to pay for 100pc of their 2026 emissions covered by the EU ETS, after shipping was phased gradually into the system over the previous two years and free allocations for airlines were phased out. Free allocations for industrial sectors covered by the EU's carbon border adjustment mechanism (CBAM) are also scheduled to start decreasing from this year alongside the measure's introduction, and some CBAM-exposed firms have begun purchasing EU ETS allowances to hedge their expected costs. The UK also ended free allocations for aviation under its ETS this year. But the maritime sector will not be included at all until July this year, and then will only apply to domestic voyages until at least 2028. And the UK CBAM does not launch until 2027. The UK ETS authority also opted late last year not to introduce a supply adjustment mechanism to the scheme, which could otherwise have reduced allowance auction volumes if the total number of allowances in circulation surpassed a certain level. Short-term fundamentals diverge The US-Iran war has prompted further divergence between the markets. EU ETS prices rallied in tandem with natural gas prices on the expectation that more coal plants would come on line, increasing the carbon intensity of the bloc's generation mix and therefore compliance demand for allowances. The UK, by contrast, has no operational coal-fired units. This has seen carbon costs even for power generators become consistently cheaper in the UK than the EU for the first time since February last year, despite the UK's additional £18/t CO2e carbon price support (CPS) charge on the sector. The discount of the UK ETS to the EU including the CPS stood at an average of around £3.25/t CO2e in March. UK ETS prices could find some support over the coming weeks from last-minute buying in the run-up to the scheme's annual compliance deadline on 30 April, upward pressure that will not be seen in the EU ETS with its 30 September deadline, which could narrow the spread between the markets in the short term. But participants will otherwise be awaiting more clarity on linkage. And with the Middle East conflict dragging on, the approach of local elections in the UK and the planned EU ETS review in July, plenty of factors could slow completion of the talks. By Victoria Hatherick EU, UK ETS front-year contract £/t CO2e Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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