Australia reconsiders methane emissions cut pledge
The Labor-led Australian federal government, which was elected last month, said it was looking at joining the global methane pledge that seeks a collective 30pc cut in methane emissions by 2030 relative to 2020 levels. The previous conservative coalition government rejected the pledge when it was unveiled last year.
The government will consult with industry and stakeholders, a spokesperson for Australian resources minister Madeline King told Argus. "We acknowledge that methane is a challenging issue for some industries, including in the agricultural and resources sectors."
Around 26pc of Australia's greenhouse gas (GHG) emissions in 2021 were from methane emissions, according to the latest GHG inventory data from the Australian Department of Industry, Science, Energy and Resources.
Most of Australia's sources of methane emissions come from its agricultural and energy sectors, with lobby groups that represent these industries opposed to Australia joining the methane pledge. Agricultural GHG emissions represents about 13pc of Australia's total emissions, while 42pc of the sector's emissions are from methane.
Most of this is the methane produced by cattle and other livestock through the fermentation of plants in their stomachs. Australia's expansion of LNG exports over the past decade to around 80mn t/yr have also seen an increased contribution to GHGs coming from methane emissions in the upstream sector.
Methane has attracted the attention of policymakers in seeking ways to reduce GHG emissions as it is a more potent source than carbon dioxide (CO2). Methane traps heat much more efficiently than CO2 but only over the course of around a decade with it broken down into CO2 and water afterwards. This potency is why methane has a greater global warming potential, which is 86 times higher than CO2 when averaged over 20 years and 28 times higher when averaged over 100 years.
The new Australian government has already deepened its GHG emissions reduction target to 43pc by 2030 from 2005 levels compared with the 26-28pc cut pledged by the previous administration.
Related news posts
BP inks another term deal to sell LNG to Korea's Kogas
BP inks another term deal to sell LNG to Korea's Kogas
Singapore, 29 April (Argus) — BP has signed another long-term LNG sales and purchase agreement with South Korean state-owned importer Kogas, the former said today. BP will provide Kogas with up to 9.8mn t/yr of LNG over 11 years from mid-2026 on a des basis. But other details regarding pricing and the origin of the contracted supplies were not available. This most recent deal is in addition to the existing long-term sales and purchase agreement between the two companies that was signed in 2022. Kogas on 22 April 2022 signed an 18-year LNG purchase agreement to buy 1.58mn t/yr of LNG from BP that will begin in 2025. Australian independent Woodside Energy and Kogas in February signed a sales and purchase deal for term supplies of LNG to South Korea. The deal for 500,000 t/yr on a des basis will start in 2026 and run for 10½ years. Kogas may be seeking more imported term supply as the firm has increased its downstream contractual supply deals. Kogas signed a series of deals to supply gas to subsidiaries of the country's state-controlled utility Kepco in December 2023. By Simone Tam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s QPM hikes gas reserves estimate
Australia’s QPM hikes gas reserves estimate
Sydney, 29 April (Argus) — The energy arm of Australian battery metals firm Queensland Pacific Metals (QPM) has announced its certified reserves have increased more than a third on previous estimates at its Moranbah gas project (MGP) in Queensland state. QPM Energy (QPME) reported a 38pc increase in its total proven and probable (2P) gas reserves to 331PJ (8.8bn m³) on 29 April compared with a March 2022 estimate of 240PJ, as it pivots towards its energy business and pauses spending on its proposed Townsville Energy Chemicals Hub (TECH) project . QPME's waste coal mine gas reserves will be developed along with 300MW of new gas-fired power generation at the firm's Moranbah facilities located in the Bowen basin, a metallurgical and thermal coal producing region. The company is also planning to build compressed natural gas and micro-LNG facilities to distribute gas to northern Queensland customers. The company will seek to increase its output by 25pc to 35 TJ/d (935,000 m³/d) by late 2024, up from October-December 2023's average of 28 TJ/d by drilling a further seven wells by the year's end. A rig has arrived on site for drilling the first well of its Teviot Brook South Well programme, QPM said on 24 April. Australian independent Blue Energy, which is developing the Sapphire pilot project with 59PJ of 2P reserves near MGP, said QPM has confirmed it intends on taking gas Blue makes available to the MGP, in line with an existing non-binding agreement signed in June last year. Blue and QPME's parent company QPM also have a separate non-binding deal for supply of 7 PJ/yr of gas over 15 years to the TECH project. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
High inventories pressure Brazil biodiesel prices
High inventories pressure Brazil biodiesel prices
Sao Paulo, 26 April (Argus) — Logistical differentials for Brazilian biodiesel contracts to supply fuel distributors in May and June fell from March and April values, reflecting higher inventories and a bumper crop of soybeans for crushing, which could increase vegetable oil production. The formula for the logistics differential of plants includes the quote of the soybean oil futures contract in Chicago, its differential for export cargoes in the port of Paranagua and the Brazilian real-US dollar exchange rate. It is the portion in the pricing linked to producers' margin. Negotiations for May and June started with plants seeking higher values to recover part of the losses incurred by unscheduled stops , the result of retailers' delays in collecting biodiesel. But the supply glut has not abated, leading to a drop in prices. With higher inventories in the market, fuel distributors stuck close to acquisition goals established by oil regulator ANP for the May-June period. Sales are expected to gain traction over the next two months, as blended diesel demand traditionally gets a seasonal boost from agricultural-sector consumption linked to grain and sugarcane crops. The distribution sector expects an extension of the current supply-demand imbalance, exacerbated by significant volumes of imported diesel at ports and lower-than-expected demand. The situation has generated concern among many participants, who see this trend as a potential sign of non-compliance with the biodiesel blending mandate. ANP data show that the compliance rate with the Brazilian B14 diesel specification dropped to 83.4pc in April from 95.2pc in March, reaching the lowest level since the 2016 start of monitoring. Non-compliance with the minimum biodiesel content accounted for 67pc of the infractions recorded during the period compared to a historical average rate of 47pc. The recent end to a special tax regime for fuel importing companies offered by northern Amapa state's secretary of finance should end a significant source of diesel price distortions and help rebalance supply in the country. Variations The steepest decline in differentials took place in northeastern Bahia state, where premiums for the period ranged from R600-830/m³ (44.35-61.35¢/USG), down from R730-1,020/m³ in the March-April period, according to a recent Argus survey. In the northern microregion of Goias-Tocantins states, the premium range also dropped by around R142/m³ to R300-535/m³ from R440-680/m³. By Alexandre Melo Brazil biodiesel plant differentials R/m³ May/June March/April ± Low High Low High Rio Grande do Sul 110 380 280 450 -120 Sorriso-Nova Mutum 50 340 220 350 -90 Cuiaba-Rondonopolis 80 405 280 450 -123 Northern of Goiás-Tocantins 300 535 440 680 -142 Southern of Goias 350 500 450 650 -125 Parana-Santa Catarina 150 450 400 480 -140 Bahia 600 830 730 1,120 -210 Source: Argus survey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Etanol hidratado impulsiona início da safra 2024-25
Etanol hidratado impulsiona início da safra 2024-25
Sao Paulo, 26 April (Argus) — A produção de etanol no Centro-Sul aumentou 7,2pc na primeira quinzena de abril em relação ao ano passado, com produtores ainda favorecendo o hidratado em meio à demanda crescente. As usinas da região entregaram 841.000m³ ao mercado na primeira quinzena da safra de 2024-25, em comparação com 784.000m³ no mesmo período do ano anterior, segundo os dados mais recentes da União da Indústria de Cana-de-Açúcar e Bioenergia (Unica). A produção de etanol hidratado subiu 39pc e impulsionou a alta anual, totalizando 693.000m³. Já o processamento de anidro, utilizado como mistura na gasolina, caiu 48pc, para 174.000m³. As usinas permanecem destinando mais matéria-prima para o E100, em um cenário de paridade favorável para o biocombustível frente à gasolina na bomba. O hidratado está mais vantajoso para os motoristas em 80pc do mercado de combustíveis leves, disse a Unica. As plantas do Centro-Sul venderam 1,3 milhão de m³ de etanol para o mercado doméstico em abril, salto de 41pc na variação anual. As vendas de hidratado representaram 902.355m³ deste total, alta de 61pc, enquanto as de anidro subiram 14pc, para 448.431m³. Já as exportações totalizaram 52.104m³, queda de 6,2pc. O mix de produção na quinzena foi de 56,4pc para o etanol e 43,6pc para o açúcar, em comparação com 62pc para o biocombustível no mesmo intervalo em 2023. No período, a moagem de cana-de-açúcar avançou 14pc, para 15,8 milhões de t, à medida que a temporada inicia suas operações. Até 16 de abril, 171 usinas estavam operando no ciclo de 2024-25, número maior do que as 166 no mesmo intervalo do ano anterior. A Unica espera que mais 54 unidades recomecem as atividades durante a segunda metade do mês. O etanol à base de milho representou 32pc do volume total produzido na primeira parte de abril, somando 270.500m³, crescimento de 12pc na comparação anual. Por Laura Guedes Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more