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Singapore plans global maritime decarbonisation centre

  • : Natural gas, Oil products
  • 21/04/19

Singapore's Maritime and Port Authority (MPA) plans to set up a global maritime decarbonisation centre in the country and launch a maritime decarbonisation blueprint to 2050, outlining long-term strategies for the sector.

The port of Singapore is the world's largest bunkering hub, and the city-state is positioning itself as a leader in the race to decarbonise the maritime sector.

One of the proposals from the International Advisory Panel on Maritime Decarbonisation — which was set up by the private sector-led Singapore Maritime Foundation with support from the MPA — was to establish a global maritime decarbonisation centre where "a cluster of like-minded stakeholders can coordinate, drive and cataylse maritime decarbonisation solutions", said transport minister Ong Ye Kung at the 15th Singapore Maritime Week, which begins today.

The centre will be set up by the MPA, with support from industry participants.

The MPA will also launch a public consultation exercise by the end of this year to collect views on the maritime decarbonisation blueprint 2050. "The blueprint will outline Singapore's long-term strategies for a sustainable maritime Singapore," Kung said.

Separately, Kung said that Singapore supports a global action plan to introduce a non-discriminatory levy on marine fuel consumption to fund research into cleaner marine fuels and maritime decarbonisation.

He also reiterated that Singapore will continue to invest in LNG bunkering as it is the most practical transitional fuel, with zero-carbon fuels such as ammonia and hydrogen "quite a distance away".

Demand for alternative, low-carbon bunker fuels is expected to rise substantially in the coming years with the International Maritime Organization's goal of at least a 40pc reduction in CO2 emissions by 2030 and 70pc by 2050 compared with 2008 levels.


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24/07/19

Weather sparks uncertainty for Vietnam’s bitumen demand

Weather sparks uncertainty for Vietnam’s bitumen demand

Mumbai, 19 July (Argus) — Expectations of Vietnam's bitumen consumption in July-August are mixed, given an easing in the monsoon season in some regions but an upcoming typhoon season in other parts. The mixed expectations will likely keep importers uncertain about future seaborne purchases. Consumption in Vietnam has been lower than normal in the last quarter because of unfavourable weather, political uncertainties, a lack of new paving projects and delays in disbursement of project funds, according to market participants. The lower consumption kept inventories higher and weighed on demand for spot seaborne volumes, with many importers only focused on taking delivery of their term contract shipments. Some importers in Vietnam are cautious and did not report consumption rising noticeably as weather in the key consuming south and central regions continues to be wet and not suitable for road paving, while the country is also set to experience typhoons next month. Consumption will stay low until September because the typhoon season starts next month, and the first region to get hit is the north before moving towards the south, a key importer told Argus . It is raining in the south and central regions, according to the importer. "The north is alright now but there is no good pick up [in consumption]," the importer said, adding that imported cargo inventories in the region are still notably higher. This is in contrast to expectations from other Vietnamese importers and some Asian traders, which said that consumption and demand for seaborne bitumen are expected to be higher in July and August as compared to previous months this year, given favourable weather in north Vietnam and more enquiries for Singapore cargoes, to restock in August. Consumption in the south and central regions are stable-to-weak, but overall demand in July and August are set to pick up as some new road projects are in the pipeline, a market participant said. Inventories are falling in some parts of the region and there is a need to replenish stocks now, while the domestic selling price is also expected to increase, participants said. "Demand in Haiphong and north Vietnam is good, and we are able to sell more than last month," another importer told Argus . "If the weather continues to be good, then demand will improve further in the coming weeks and that can increase import appetite." Vietnam is a net importer and typically secures most of its seaborne volumes from Singapore, Thailand, Taiwan, and China. Vietnam imported 1.04mn t of bitumen in 2023, up by 20pc from 866,000t imported in 2022, according to GTT data. Singapore cargoes accounted for about 32pc of Vietnam's total imports last year, while Thailand, Taiwan, and China together accounted for about 35pc of the total imports, the data showed. This compared to a 33pc and 40pc share, respectively, in 2022. Middle East penetration Some importers are worried that domestic prices are unlikely to rise in the near term, because of increased availability of relatively cheaper Middle East-origin cargoes in the region. They noted that this would cut domestic appetite for Asian cargoes and would in turn weigh on imports. Vietnam imported about 252,000t of bitumen from the Middle East in 2023, accounting for about 24pc of the total imports, show GTT data. This compared to 135,000t imported in 2022, which accounted for about 16pc of the total imports. Imports from the Middle East totalled 156,000t over January-May, nearly tripling from 55,000t imported during the same period last year. The region's imports from Singapore during the five-month period this year totalled 135,000t, down from 150,000t a year earlier. Imports from the Middle East increased as the inter-regional price arbitrage with Singapore was wide open. The Argus assessed ABX 1 fob Singapore prices averaged $421.50/t for the week of 12 July, while fob Iran bulk prices averaged $294.50/t for that week. Vietnam importers noted that Middle East-origin bulk cargoes were priced at low-$400s/t on a cfr basis, which was still lower than prevailing fob Singapore levels during the period. By Sathya Narayanan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australian Enterprise gas drives Beach’s Apr-Jun output


24/07/19
24/07/19

Australian Enterprise gas drives Beach’s Apr-Jun output

Sydney, 19 July (Argus) — Australian independent Beach Energy produced more gas and liquids during April-June than the previous quarter but ended its 2023-24 fiscal year to 30 June with output down against a year earlier. April-June sales gas production of 20.2PJ (539mn m³) was 10pc higher than the previous quarter's 18.3PJ and up on April-June 2023's 19.6PJ as it commissioned its Enterprise field in Victoria state's Otway basin. Beach's total 2023-24 production of 18.5mn bl of oil equivalent (boe) was 5pc down on the 19.5mn boe achieved in 2022-23, with natural field decline and rainfall resulting in Beach's oil output falling by 11pc from the previous quarter to 7,400 b/d from 8,300 b/d in January-March. The firm shipped a second 79,000t Waitsia cargo from the Woodside-operated 16.9mn t/yr North West Shelf LNG terminal during the quarter, consisting of Xyris gas plant production and third-party surplus gas sourced through swaps. It expects to achieve the first gas at its delayed 250 TJ/d (6.7mn m³/d) Waitsia gas plant in Western Australia's onshore Perth basin in early 2025 ahead of a 3-4 month ramp-up period. The firm has released a wider than usual production guidance for 2024-25 of 17.5mn-21.5mn boe, to account for uncertainty on the timing of Waitsia commissioning and output growth. Beach identified A$135mn ($90.5mn) in field operating cost savings and sustaining capital expenditure reductions as part of its strategic review findings released on 18 June. Beach confirmed it expects to recognise an A$365mn-400mn pre-tax impairment charge in its full-year results following reassessment of its Bass basin assets in Australia and Taranaki basin project in New Zealand. It is targeting new gas supplies of 150 TJ/d over the coming 12-18 months from the Enterprise, Thylacine West and Waitsia fields. By Tom Major Beach Energy results (mn boe) Apr-Jun '24 Jan-Mar '24 Apr-Jun '23 2022-23 2023-24 Production 4.8 4.5 5.0 19.5 18.2 Sales 5.4 4.8 5.7 20.7 21.3 Sales revenue (A$) 433 392 450 1,617 1,766 Realised gas price (A$/GJ) 10.30 9.70 9.50 8.80 9.50 Source: Beach Energy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US gas producers may struggle to meet LNG demand


24/07/18
24/07/18

US gas producers may struggle to meet LNG demand

New York, 18 July (Argus) — US natural gas producers looking to become the primary suppliers to increasingly dependent overseas markets may still need to overcome tight pipeline capacity, volatility in oil markets and even growing competition from the US power sector. Large producers such as EQT and Chesapeake Energy are banking that the rapid buildout of LNG export capacity will connect the US to higher-priced markets and provide an outlet for a glut of US supply. At the same time, European buyers are depending on US gas to help wean the continent off Russian supplies since the Russia-Ukraine war broke out in 2022. But questions remain about the ability of US producers to feed the rapid expansion. The US already leads the world in LNG exports and is on pace to double that capacity later this decade. US baseload LNG export capacity was forecast to increase to 21.1 Bcf/d by the end of 2027, about one fifth of today's total lower-48 US gas production, according to the US Energy Information Administration (EIA). By 2030, Shell expects US LNG production will meet about 5pc of global gas demand and 30pc of global LNG demand. But to satisfy a world that much more reliant on US shipments of gas, US producers have to significantly grow output and build the pipelines needed to connect subterranean shale basins to the US Gulf coast, where almost all the US liquefaction capacity will be located. East Daley Analytics director Jack Weixel said regulatory challenges to permitting those pipelines threaten the US' ability to rapidly boost its LNG exports regardless of who is elected president in November. Growing pains There are unique challenges to raising production in all three of the US' biggest gas-producing formations — the Appalachian basins, the Permian basin of west Texas and southeast New Mexico, and the Haynesville shale of east Texas and northern Louisiana. In Appalachia, developers have almost entirely lost faith in their ability to secure the permits necessary to build new interstate pipelines, so incremental LNG demand will probably not be met by Appalachian gas. The Permian is the US' most prolific oil field, making it an unreliable associated gas producer; a dim outlook for crude prices would mechanically slash gas output. And in the less mature Haynesville, there are "a lot of open questions on how deep that inventory is and how much (it) can actually grow," Citi equity analyst Paul Diamond said. The threat to building new pipelines is not solely the domain of regulators, either, but can even come from within the industry itself, as US midstream giant Energy Transfer has shown over the past year by trying to block several new pipelines out of the Haynesville. Some of Energy Transfer's opponents have warned the legal dispute could hamper the gas production growth needed in the Haynesville to meet the US' coming LNG boom. Permitting aside, some analysts consulted by Argus expressed concern about the integrity of the US gas pipeline network itself, whether due to accidents or ransomware attacks, such as that which targeted the Colonial oil products pipeline in May 2021, disrupting fuel deliveries into the eastern US. Powerful competition Meeting booming LNG demand could be even harder if domestic gas needs exceed expectations. Gas producers and power generators eager to serve data centers running emergent artificial intelligence software have indicated that might be the case. EQT, the largest US gas producer by volume, in its most aggressive data center build-out scenario envisioned an 18 Bcf/d (510mn m³/d) increase in gas demand to generate electricity through 2030, while US gas pipeline operator Kinder Morgan forecast an increase between 7-10 Bcf/d. Goldman Sachs and consultancy Enverus forecast more modest increases of 3.3 Bcf/d and 2 Bcf/d, respectively. The US power sector consumed a record-high 35.4 Bcf/d of gas in 2023, the EIA said. About 43pc of US utility-scale electricity was generated by gas. EQT may be biased. But if its forecast is accurate, US gas producers may not be able to meet all that new demand while also exporting double what the US is exporting today, FactSet analyst Connor McLean said. In that case, a high-demand scenario like EQT's could leave the US gas market undersupplied, boosting US gas prices and closing the spot price arbitrage between US pipeline gas and global LNG, which has mostly been wide open for years. In response to elevated prices at the US gas benchmark, Henry Hub, overseas buyers might find themselves canceling US cargoes — if their supply contracts allow for it — eating the requisite liquefaction fee and taking delivery of a cargo from Qatar or Russia instead. Not so fast The caveat to risks of an undersupplied US gas market is that official timelines of when LNG export terminals are expected to enter service on the US Gulf coast may be overly optimistic. Texas' planned 18.1mn t/yr Golden Pass LNG delaying first LNG on the heels of its lead contractor going bankrupt is just one recent example of this. "All that does is give producers a little bit more time to get production to where it needs to be," Weixel said. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's flood-hit airport to resume flights in Oct


24/07/18
24/07/18

Brazil's flood-hit airport to resume flights in Oct

Sao Paulo, 18 July (Argus) — The Salgado Filho international airport in Porto Alegre, in flood-hit Rio Grande do Sul state, will begin receiving some flights in October, Brazil's port and airport ministry said. The airport, which is managed by Germany's Fraport, will initially receive roughly 50 flights/d, with the goal of resuming full capacity by year-end. Prior to the floods, the airport had forecast that it would have 5,404 domestic and international flights (180 flights/d) and transport over 608,000 passengers in April. But it was forced to shut in late April after the record floods that hit the state. The economy of Rio Grande do Sul state contracted by 9pc in May from the previous month, according to preliminary estimates by Brazil's central bank. The floods have left at least 182 dead and nearly 600,000 people displaced, according to the state's civil defense. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

'Urgent action' needed for UK to hit net zero goals


24/07/18
24/07/18

'Urgent action' needed for UK to hit net zero goals

London, 18 July (Argus) — The UK increased the rate at which it reduced greenhouse gas (GHG) emissions last year, but "urgent action" is needed for the country to meet its targets in 2030 and beyond, independent advisory body Climate Change Committee (CCC) said in its progress report published today. The report assesses the UK's progress towards its net zero goals against policy set out by the previous Conservative government. The new Labour government, which has been in power since 5 July, has already set the scene for a stronger decarbonisation agenda , but it "will have to act fast to hit the country's commitments", the report says. The committee tracked progress on 28 key indicators. Of the 22 that have a benchmark or target, only five are assessed as being "on track". The UK's GHG emissions last year stood at 393mn t/CO2 equivalent (CO2e), down on the year by 5.4pc, or 22mn t/CO2e, provisional data show. This estimate excludes contributions from international aviation and shipping, as these are not included in the UK's 2030 target of a 68pc cut in GHG emissions from a 1990 baseline. And last year's reduced emissions resulted primarily from a drop in gas demand, the CCC says. Combined gas demand in 2023 averaged 156mn m³/d, down from nearly 175mn m³/d a year earlier. While progress has been made, the previous administration "signalled a slowing of pace and reversed or delayed key policies", the report says. The reduction in emissions last year is "roughly in line with the annual pace of change needed" to reach the 2030 target, but the average annual rate over the previous seven years is "insufficient", the committee says. In its first days in office, the new government placed a strong emphasis on decarbonising electricity, but this is "not enough on its own", CCC acting chief executive James Richardson said. The average annual rate of GHG reduction outside the electricity supply sector over the previous seven years was 6.3mn t/CO2e, but this will need to more than double until 2030 if the UK is to meet its targets, the CCC says. In order to reach targets, "annual offshore wind installations must increase by at least three times, onshore wind installations will need to double and solar installations must increase by five times" by 2030. By comparison, oil and gas use should be "rapidly" reduced and the expansion of the production of fossil fuels should be limited, according to the report. The CCC also recommended that about 10pc of UK homes will need to be heated by a heat pump by 2030, in comparison with about 1pc today. The committee criticised the exemption of 20pc of properties from the 2035 phase-out gas boiler plan, saying it is "unclear" how the exemption would reduce costs as fewer consumers would have to pay to maintain the distribution grid. Gas-fired power generation in recent months has dropped on the back of high wind output and brisk power imports. Power-sector gas burn was 25mn m³/d in March-June, roughly half of the three-year average for the period. But if UK power demand increases with electrification, gas-fired power generation could maintain its role in the country's power mix, particularly if it is combined with carbon capture, use and storage technology, for which fast development and scale-up will need to happen this decade, the CCC says. "Biases" towards the use of natural gas or hydrogen must be removed where electrification is the most economical decarbonisation solution in an industry sector. Power prices need to be reduced "to a level that incentivises industrial electrification". Oil, gas industry to meet climate goals The UK's oil and gas sector "is on track to meet its own climate goals and is not slowing down", offshore industries association OEUK said today in reaction to the CCC's report. The UK needs a plan for reducing oil and gas demand and cutting its reliance on imports, according to OEUK chief executive David Whitehouse. "We should be prioritising our homegrown energy production," he said. The sector reduced its emissions by 24pc in 2022 from 2018, meaning it met its target to reduce emissions by 10pc by 2025 early. The industry halved its flaring and venting and cut methane emissions by 45pc in 2022 compared with 2018, Whitehouse said. OEUK plans to reduce emissions by a quarter by 2027 and by half by 2030 against 2018 levels. And it aims to achieve net zero by 2050. By Georgia Gratton and Jana Cervinkova Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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