Oil sands producers plan CCS network, hub

: Crude oil, Electricity, Emissions, Hydrogen, Pipe and tube
24/03/25

A group of Canadian oil sands companies are planning to build a massive C$16.5bn ($12.2bn) carbon capture and storage (CCS) project to decarbonize operations.

Canadian Natural Resources (CNRL), on behalf of the Pathways Alliance consortium, filed plans for the project with the Alberta Energy Regulator (AER) last week to store 10mn-12mn t/yr of carbon dioxide (CO2) equivalent in the oil sands region of northeast Alberta.

The Pathways Alliance also includes Cenovus, Suncor, Imperial Oil, ConocoPhillips Canada and MEG Energy, which account for about 95pc of the province's roughly 3.3mn b/d of oil sands production.

Construction of the project is expected to begin as early as the fourth quarter 2025 with operations starting in 2029 or 2030.

The main CO2 transportation pipeline will be 24-36-inches in diameter and stretch about 400km (249 miles). It will initially tap into 13 oil sands facilities from north of Fort McMurray to the Cold Lake region, where the CO2 will be stored underground.

"When you have that concentration of emission sources, technologies like carbon capture and storage become very, very technically viable," Pathways Alliance president Kendall Dilling told the CERAWeek by S&P Global conference in Houston, Texas, earlier this month.

Oil sands crude producers have been criticized for being particularly carbon intensive. The Pathways Alliance is their answer to driving operations to net zero by 2050. The CCS project and "a host of other technologies" represent Phase 1 of the Pathways Alliance's efforts and will reduce oil sands emissions by about 25pc by 2030, according to Dilling. The CCS project itself accounts for about half of this reduction.

Phase 2 is planned for between 2031 to 2040 and would tie in at least another eight oil sands projects, while also ramping up alternative energy initiatives related to hydrogen, electrification and small modular nuclear reactors.

By Brett Holmes

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25/05/11

India, Pakistan reach US-mediated, fragile ceasefire

Dubai, 11 May (Argus) — A US-mediated ceasefire reached on Saturday between nuclear-armed neighbours India and Pakistan is still holding, following four days of intense fighting. "After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a FULL AND IMMEDIATE CEASEFIRE," US president Donald Trump posted on his social media platform Truth Social on Saturday. India and Pakistan will now start negotiations on a broad set of issues at a neutral site, US secretary of state Marco Rubio said on social media platform X. India's military on 7 May launched attacks against targets in Pakistan and Pakistan-administered Kashmir in retaliation for an April terrorist attack that killed dozens. But by Saturday, the two countries seemed to be edging toward all-out war, as their militaries targeted each other's bases. India's foreign minister Subrahmanyam Jaishankar confirmed the ceasefire, saying on X that "India has consistently maintained a firm and uncompromising stance against terrorism in all its forms and manifestations. It will continue to do so." Pakistan "responded positively to the ceasefire proposal for regional and global peace, and its people and I hope that dialogue will now be chosen for resolution of water and Kashmir disputes," Pakistan's prime minister Shehbaz Sharif said in a televised address. Trump also praised leaders of both countries for agreeing to halt the aggression and said he would "substantially" increase trade with them, although this was "not even discussed". Kashmir is a contested area between India and Pakistan, and the two have twice gone to a war over the region. Fear of the conflict spreading roiled global financial markets. India is the region's second-biggest oil buyer after China — importing around 4.5mn b/d last year — and a major customer for other commodities, including LNG and coal. Pakistan also imports fertilizers, coal, oil products and LNG. The escalation between the two severely limited direct trade between them. Airlines in the region as well as some Mideast Gulf carriers rerouted or cancelled flights to avoid Pakistani airspace. But the Pakistan Airports Authority said on Saturday that "Pakistan's airspace has been fully reopened for all types of flights." By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Iraq edging towards compliance under Opec+ pressure

25/05/09

Iraq edging towards compliance under Opec+ pressure

Dubai, 9 May (Argus) — Iraq managed to produce just below its formal Opec+ crude production target in April for the second month in a row, following intense pressure from other members of the group to improve on its historically poor compliance record. But the country still has much to do to compensate for past overproduction. Over the last 16 months, Iraq has been among the Opec+ group's most prolific quota-busters, alongside Kazakhstan and, to a lesser degree, Russia. Argus estimates the country's output averaged over 130,000 b/d above its 4mn b/d target last year. This non-compliance has strained unity within Opec+ and was the driving force behind the group's recent decision to unwind production cuts at a much faster pace than originally planned. Iraq has made some progress on improving compliance this year, reducing production by around 190,000 b/d in the first four months of 2025 compared with the same period last year, according to Argus assessments. Output stood at 3.94mn b/d in April, which was more than 70,000 b/d below Baghdad's formal 4.01mn b/d quota for the month. And in March, Iraq was 20,000 b/d below its then 4mn b/d quota. But this is far from mission accomplished. Along with other overproducers, Iraq has agreed a plan to compensate for exceeding formal quotas since the start of 2024, yet it has fallen short of its commitments in that regard. April's output was almost 50,000 b/d above its 3.89mn b/d effective quota for the month, taking into account the compensation plan. Iraq attributes its compliance issues to ongoing disagreements with the semi-autonomous Kurdish region over crude production levels. The oil ministry claims it lost oversight of the Kurdish region's production since the Iraq-Turkey Pipeline (ITP) was closed in March 2023. Despite the pipeline closure shutting Kurdish producers out of international export markets, Argus assesses current output in the Kurdistan region ranges between 250,000 b/d and 300,000 b/d, of which considerable volumes are smuggled into Iran and Turkey at hefty discounts to market prices. An understanding between Baghdad and the Kurdistan Regional Government (KRG), when implemented, would see Kurdish production average 300,000 b/d, with 185,000 b/d shipped through the ITP and the rest directed to local refineries. Peer pressure Despite the challenges, it is hard to argue that Iraq is not heading in the right direction. Pressure from the Opec Secretariat and the Opec+ alliance's de-facto leader, Saudi Arabia, has pushed Baghdad to take some tough decisions to rein in production, which include cutting crude exports and limiting crude intake at domestic refineries. Kpler data show Iraqi crude exports, excluding the Kurdish region, fell to 3.34mn b/d in January-April from 3.42mn b/d a year earlier, while cuts to domestic refinery runs have prompted Baghdad to increase gasoil imports to ensure it has enough fuel for power generation. Fearing revenue constraints, Iraq is trying to persuade Opec+ to increase its output quota, motivated by a previous upward revision to the UAE's target. Baghdad's budget for 2022-25 includes plans to spend $153bn/yr. But this is based on a crude price assumption of $70/bl and projected oil exports of 3.5mn b/d, both of which now look out of date. By Bachar Halabi and James Keates Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

White House ends use of carbon cost

25/05/09

White House ends use of carbon cost

Washington, 9 May (Argus) — The US is ending its use of a metric for estimating the economic damages from greenhouse gas (GHG) emissions, the latest reversal of climate change policies supported by President Donald Trump's predecessors. The White House Office of Management and Budget (OMB) this week directed federal agencies to stop using the social cost of carbon as part of any regulatory or decision-making practices, except in cases where it is required by law, citing the need "remove any barriers put in place by previous administrations" that restrict the ability of the US to get the most benefit "from our abundant natural resources". "Under this guidance, the circumstances where agencies will need to engage in monetized greenhouse gas emission analysis will be few to none," OMB said in a 5 May memo to federal agencies. In cases where such an analysis is required by law, agencies should limit their work "to the minimum consideration required" and address only the domestic effects, unless required by law. OMB said these steps are needed to ensure sound regulatory decisions and avoid misleading the public because the uncertainties of such analyses "are too great". The budget office issued the guidance in response to an executive order Trump issued on his first day in office, which also disbanded an interagency working group on the social cost of carbon and called for faster permitting for domestic oil and gas production and the termination of various orders issued by former president Joe Biden related to combating climate change. The metric, first established by the administration of former US president Barack Obama, has been subject to a tug of war between Democrats and Republicans. Trump, in his first term, slashed the value of the social cost of carbon, a move Biden later reversed . Biden then directed agencies to fold the metric into their procurement processes and environmental reviews. The US began relying on the cost estimate in 2010, offering a way to estimate the full costs and benefits of climate-related regulations. The Biden administration estimated the global cost of emitting CO2 at $120-$340/metric tonne and included it in rules related to cars, trucks, residential appliances, ozone standards, methane emission rules, refineries and federal oil and gas leases. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Carbon credit method may limit Australia's ACCU supply

25/05/09

Carbon credit method may limit Australia's ACCU supply

Sydney, 9 May (Argus) — A potentially ineffective design of the long-delayed Integrated Farm and Land Management (IFLM) method developed by the Australian federal government might exclude thousands of landowners from the Australian Carbon Credit Unit (ACCU) market, curbing potential supply, industry participants have warned. The IFLM method, the first in Australia to combine multiple activities that store carbon in soil and vegetation in a single method , could be potentially set with a "binary framework" classifying land types as either cleared or uncleared, following a recent update from the Department of Climate Change, Energy, the Environment and Water (DCCEEW). But focusing on a single binary factor misses a broad range of other important influences, such as fire, over grazing, soil disturbance, feral animal impacts and climate events, co-chief executive of carbon project developer Climate Friendly, Skye Glenday, told Argus . It would particularly affect rangeland areas which cover around 70pc of Australia and include a large proportion of the Indigenous Estate, she added. The cleared/uncleared definition overlooks large areas of degraded land in Australia and is "not helpful" in understanding why the land is in that condition, carbon developer Australian Integrated Carbon (Ai Carbon) chief executive Adam Townley told delegates this week at lobby group Carbon Market Institute (CMI)'s Carbon Farming Industry Forum in New South Wales. A narrow definition of cleared and uncleared land effectively locks out large portions of the carbon market, decimating Western Australia, South Australia and the Northern Territory, Townley said. A CMI taskforce led by Glenday and Townley is recommending that the DCCEEW instead use the Vegetation Assets, States and Transitions (VAST) framework, which is already used by the Australian government to classify and report on the condition of native vegetation in its flagship State of Environment reports. This condition-based approach would allow developers to establish projects in large areas of existing native vegetation that are significantly degraded because of Australia's land-use history, but which still have forests and woodlands, according to the taskforce. The projects would then be able to restore health and increase carbon storage within these areas, the taskforce claims. Transition potential The right framework could incentivise between two-thirds and three-quarters of the registered land projects in eligible methods to transition to the future IFLM method, according to Glenday. Eligible methods would start with the key human-induced regeneration (HIR) ACCU method, which expired on 30 September 2023, as well as the Environmental Plantings (EP) and soil carbon methods. There are around 2,000 land-based projects registered, with about 400-500 in HIR, 50-100 in environmental plantings, and around 700 or more in soil. The number of projects that will transition will likely depend on the final transition rules and the package of activities each land manager wants to undertake, Glenday told Argus . Carbon developer Regenco will explore the potential of migrating all its HIR projects into the IFLM method, managing director and chief executive Greg Noonan told Argus on the sidelines of the CMI event. Transitioning to the new method would allow existing projects to have much larger land areas accountable for carbon sequestration, compared with around just 20pc on average under the HIR method, although decisions would depend on the additional ACCU generation potential for each project to compensate for migrating costs, Noonan said. Some developers said they will also consider transitioning their projects, but others expressed frustration and scepticism over the timeframe and final determination of the method, which was first proposed in 2019. There is a clear urgency in discussing new ACCU methods under consideration to address a current shortfall in availability of land-based methods that is restricting industry investment and engagement, CMI chief executive John Connor said. But delegates welcomed the policy certainty provided by the re-election of the Labor government , he added. "We're very hopeful that the IFLM method is legislated this year, and that's what we're working towards with all the stakeholders," Glenday said. But it would take at least up to nearly three years for the first IFLM projects to go from implementation to first ACCU issuances, she added. ACCU generic, generic (No AD) and HIR spot prices ended the week to 9 May at A$35 ($22.50), dropping slightly from a week earlier as the market failed to receive a boost from the Labor party's re-election. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian firms flag coal phase-out timeline concerns

25/05/09

Australian firms flag coal phase-out timeline concerns

Sydney, 9 May (Argus) — Energy utilities raised concerns that Australia's coal-fired power generation phase-out might be running on an unrealistic timeline, according to submissions to the National Electricity Market (NEM) review consultation process. Utilities AGL Energy, Alinta Energy, Delta Energy, Energy Australia, Origin Energy and Stanwell — which operate 10 of the 20 coal-fired power plants in Australia (see table) — submitted separate recommendations to the consultation launched late last year looking at wholesale market settings. This came after the conclusion of the Capacity Investment Scheme (CIS) tenders in 2027, and as Australia transitions to more renewables from its aging coal-fired plants. The Australian Energy Market Operator (Aemo) forecast the country will exit all coal-fired generation by 2038 in its Integrated System Plan (ISP) published in 2024. But Delta Energy predicts that this timeline will not be met, and views ISP's priority as emissions reduction targets rather than a realistic timeline. Insufficient capacity to replace the coal plants was a common issue flagged by these companies, with AGL saying this is partly because of uncertainty in the market leading to less investments. The utility plans to close all its coal plants by the end of June 2035. AGL was Australia's largest emitter of greenhouse gas emissions in the 2024 financial year, according to the Clean Energy Regulator (CER), followed by Stanwell, Energy Australia and Origin Energy. The transition could be supported using flexible dispatchable resources, according to Origin Energy. The coal phase-out means more variable renewable energy (VRE) is required, but VRE output will not necessarily match demand. "The NEM review must also consider the actions to facilitate the planned retirement of coal-fired power stations from the energy system, which will still be occurring in the NEM beyond the CIS," Stanwell warned. "The urgency of developing solutions cannot be overstated, as any indecision now would result in increased government intervention later, and a disorderly and costly NEM beyond the CIS." Gas-fired generation A few firms view gas-powered generation as critical in the transition away from thermal coal and in maintaining system reliability. It will provide back-up in times of renewable droughts, said Stanwell and AGL, and should be noted in discussions of the forward strategy. But Alinta Energy is cautious of the costs of gas-fired power plants, believing them to be the least costly for customers but not economically viable because of their exposure to global gas market prices. Alinta's suggestion is to reduce the market's dependence on high-cost facilities including gas-fired facilities. Mixed views on capacity market Some companies mentioned a capacity mechanism as a solution. Coal-fired facilities should be allowed to continue until they can be replaced, said Alinta Energy, and gas power plants are necessary. Energy Australia and Delta are calling for the NEM to stay technologically neutral in this process, keeping thermal coal exits in mind. A capacity market needs to be sustainable without government subsidies, Alinta Energy said, and exit strategies for government intervention should be clear from the beginning. But capacity markets can lead to higher costs for customers, according to AGL, because of potential over-procured capacity. "If a capacity mechanism was implemented, it would be important to consider the impact of any capacity incentive on the operation of the NEM and the appropriate level of the market price settings — a balance that may be difficult to strike," AGL noted. The expert independent panel leading the review will continue carrying out consultation, and is expected to make final recommendations to energy and climate ministers in late 2025. By Susannah Cornford Australia coal-fired power plant closures in NEM Plant Capacity ( MW ) Owner Closure date State Emissions CER 2023/24 year Scope 1 & 2 of CO2e Eraring 2,880.0 Origin 2027 NSW 13,550,220.0 Yallourn 1,480.0 Energy australia 2029 Vic 10,502,080.0 Callide B 700.0 CS Energy 2029 Qld 4,028,161.0 Total by 2030 5,060.0 28,080,461.0 Coal plant closures in NEM after 2030 Bayswater 2,640.0 AGL 2030-33 NSW 13,712,719.0 Vales Point 1,320.0 Delta 2033 NSW 7,111,963.0 Stanwell 1,460.0 stanwell 2035 Qld 6,982,204.0 Tarong 1,843.0 Stanwell 2035 Qld 10,936,021.0 Kogan 740.0 CS Energy 2035 Qld 4,522,472.0 Callide C 825.0 CS Energy 2035 Qld 688,038.0 Loy Yang A 2,210.0 AGL 2035 Vic 18,723,707.0 Subtotal 11,038.0 62,677,124.0 Total by 2030 16,098.0 90,757,585.0 — CER Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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