US Senate hits obstacles on energy permitting bill

  • : Crude oil, Electricity, Emissions, Natural gas, Oil products
  • 22/09/20

Democrats in the US Senate are struggling to lock down the votes to pass a bill that would expedite energy infrastructure permitting and keep the government funded after the end of this month.

That bill needs bipartisan support to achieve a filibuster-proof 60 votes, particularly because some of the 50 senators who caucus with Democrats plan to vote against the measure. But US senator Joe Manchin (D-West Virginia), who plans to release permitting bill text on Wednesday, said "revenge politics" by Republican leadership could derail a bill that rank-and-file members in the party would probably otherwise support.

"If they're willing to say we're going to close down the government because of a personal attack on me — or basically not looking at the good of the country — this is what makes people sick about politics," Manchin said.

Senate Republicans have said they are waiting for permitting bill text before taking a position. But they have largely rallied behind a more aggressive bill from US senator Shelley Moore Capito (R-West Virginia) that would codify permitting rule changes made under former president Donald Trump and effectively allow states to take over all oil and gas development on federal land.

Manchin said he has heard that Senate Republican leadership is "upset" with him and do not want to give him a win after he voted with Democrats last month to enact a bill with $369bn in climate-related funding. During negotiations on the bill, Manchin won a promise from Senate Democratic leaders to attach his permitting bill to a short-term funding measure needed to prevent a government shutdown after 30 September.

Senate Democrats intend to hold a vote on the combined government funding bill and the permitting bill next week, Manchin said. If the bill passes, it will still need to be taken up by the Democratic-controlled US House of Representatives before it could be enacted.

The permitting bill is expedited to fast-track a permitting process that can stretch for years for major natural gas pipelines, electric transmission lines, renewable energy projects and mines. The measure will set time limits on environmental reviews, limit the power of states to veto development and support the completion of the long-delayed $6.6bn Mountain Valley natural gas pipeline that begins in West Virginia, Manchin's office has said.

Manchin said his bill differs from Capito's permitting bill because it will not "bypass any of the environmental reviews" but instead accelerate that process. Even so, environmentalists and some Democrats strongly oppose the measure because they say it will expedite the development of fossil fuels and restrict community input into development.

Congressional Democrats want to avoid the risk of a government shutdown before the midterm elections on 8 November. If the combined funding and permitting bill fails, Democrats could still strip out the permitting language and seek a vote on the funding measure.

Manchin said the bill is the best near-term chance to expedite energy permitting, a long-term goal of Republicans who say red tape is unnecessarily restricting oil and gas development and increasing prices for consumers. Republicans were unable to enact permitting changes in 2017-18 when they held control of the White House and both chambers of Congress.


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24/04/29

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


24/04/26
24/04/26

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.

Lyondell Houston refinery to run at 95pc in 2Q


24/04/26
24/04/26

Lyondell Houston refinery to run at 95pc in 2Q

Houston, 26 April (Argus) — LyondellBasell plans to run its 264,000 b/d Houston, Texas, refinery at average utilization rates of 95pc in the second quarter and may convert its hydrotreaters to petrochemical production when the plant shuts down in early 2025. The company's sole crude refinery ran at an average 79pc utilization rate in the first quarter due to planned maintenance on a coking unit , the company said in earnings released today . "We are evaluating options for the potential reuse of the hydrotreaters at our Houston refinery to purify recycled and renewable cracker feedstocks," chief executive Peter Vanacker said on a conference call today discussing earnings. Lyondell said last year a conversion would feed the company's two 930,000 metric tonnes (t)/yr steam crackers at its Channelview petrochemicals complex. The company today said it plans to make a final investment decision on the conversion in 2025. Hydrotreater conversions — such as one Chevron completed last year at its 269,000 b/d El Segundo, California, refinery — allow the unit to produce renewable diesel, which creates renewable naphtha as a byproduct. Renewable naphtha can be used as a gasoline blending component, steam cracker feed or feed for hydrogen producing units, according to engineering firm Topsoe. Lyondell last year said the Houston refinery will continue to run until early 2025, delaying a previously announced plan to stop crude processing by the end of 2023. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Azerbaijan wants certainty from EU on gas needs


24/04/26
24/04/26

Azerbaijan wants certainty from EU on gas needs

London, 26 April (Argus) — Azerbaijan needs long-term guarantees and available financial instruments to invest in gas production growth, its president Ilham Aliyev said earlier this week. Azerbaijan and the EU signed a strategic partnership agreement in 2022, in which Azerbaijan committed to increasing its supply to the EU to 20bn m³/yr by 2027 from 8bn m³ in 2021. This is a "target that we are moving towards" and exports to Europe will be around 12bn m³ this year, Aliyev said on 23 April at the Cop 29 and Green Vision for Azerbaijan forum ( see Azeri gas production graph ). But Azerbaijan needs investments to reach this export target, and restrictions from financing institutions on fossil fuel projects make them harder to realise, Alyiev said. The European Investment Bank has removed fossil fuel projects from its portfolio and the European Bank for Reconstruction and Development has only a small share of such projects, Aliyev said. Corporations tend to finance 30pc of gas production or infrastructure projects on their own and the remainder through loans, he said. The other issue is a need to receive long-term guarantees for Azeri gas supply, as "Azerbaijan cannot invest billions only for 5-10 years and not be able to recover the costs", Aliyev said. Azerbaijan is still paying back loans for the Southern Gas Corridor and Shah Deniz Stage 2 projects, he said. A long-proposed Ionian-Adriatic pipeline that could provide the Balkan region with Azeri gas is yet to materialise because it lacks EU funding support and gas consumption in the countries involved is low, particularly considering the challenges involved with building a pipeline in a mountainous region, Aliyev said. But Azeri gas can already reach Croatia, Bosnia Herzegovina and Montenegro through Hungary, while it can flow to Serbia through Bulgaria, he said. Aliyev said he believes that the Croatian and Azeri governments are already in consultation about this. Referring to a long-mooted project to build a pipeline across the Caspian Sea to deliver Turkmen gas to Europe, Aliyev said that Azerbaijan has "received no messages from Turkmenistan". Azerbaijan as a transit country cannot become the initiator or co-ordinator of a trans-Caspian pipeline project, Aliyev said. The Southern Gas Corridor is fully booked, meaning that infrastructure developments are needed to transport more gas to Europe, which is "under discussion", Aliyev said. Azerbaijan plans renewables build-out Azerbaijan is targeting 5GW of additional renewable generation capacity, which it aims to substitute for gas, releasing this supply for export to Europe, Aliyev said. Azerbaijan's first 240MW solar plant was inaugurated in 2023. It plans to add four new 1.3GW solar and wind projects this year and is considering some offshore and onshore wind projects as well as solar and hydropower plants. Azeri gas consumption for power generation and heating needs increased to 6.6bn m³ in 2022 from 6.1bn m³ in 2020, and made up almost half of domestic consumption in 2022 ( see data and download ). Azerbaijan is in the last phase of a feasibility study for a green energy cable from the Caspian Sea to the Black Sea and then further down to Europe. The project aims to initially connect the Georgian Black Sea to the Romanian coast, and plans to expand it further down to the eastern Caspian and Kazakhstan, according to Aliyev. The state plans to keep investing to strengthen the energy grid to allow it to cope with the renewables build-out. Foreign investors are mainly involved with renewables projects. Oil and gas makes up less than half of Azerbaijan's GDP today, but 95pc of its exports, Aliyev said. By Victoria Dovgal Azeri gas production bn m³ Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US M&A deals dip after record 1Q: Enverus


24/04/26
24/04/26

US M&A deals dip after record 1Q: Enverus

New York, 26 April (Argus) — US oil and gas sector mergers and acquisitions (M&A) are likely to slow for the rest of the year following a record $51bn in deals in the first quarter, consultancy Enverus says. Following an unprecedented $192bn of upstream deals last year, the Permian shale basin continued to dominate first-quarter M&A as firms competed for the remaining high-quality inventory on offer. Acquisitions were led by Diamondback Energy's $26bn takeover of Endeavor Energy Resources. Other private operators, such as Mewbourne Oil and Fasken Oil & Ranch, would be highly sought after if they decided to put themselves up for sale, Enverus says. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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