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Urgent action needed for UK to hit net zero goals: CCC

  • : Crude oil, Emissions, Natural gas
  • 24/07/18

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.

The new government has placed strong focus on decarbonising electricity in its first days in office, 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.


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25/06/12

Malaysia’s oil, gas projects to emit 4bn t GHG: CREA

Malaysia’s oil, gas projects to emit 4bn t GHG: CREA

Singapore, 12 June (Argus) — Malaysia's continued extraction and use of its oil and gas resources could emit around 4bn t of greenhouse gases (GHGs), according to a report by the Helsinki-based Centre for Research on Energy and Clean Air (CREA). Malaysia holds about 9.84bn bl of oil equivalent (boe) in committed fossil fuel reserves, of which 82pc is gas, stated the report, which was written in collaboration with environmental think-tank RimbaWatch. This figure only includes projects with proven reserves that are covered by a production commitment such as production sharing contracts. These committed reserves would also emit an estimated 4.15bn t of CO2 equivalent (CO2e), which is equivalent to 13 years of Malaysia's annual emissions. The emissions will also consist of 10.9mn t of methane, which is a much more potent GHG than CO2. Malaysia's remaining commercially recoverable reserves are estimated at over 17bn boe over more than 400 fields, with gas comprising about 75pc of this. Malaysia launched its national energy transition roadmap (NETR) in 2023, detailing initiatives to achieve its 2050 net zero carbon emissions target, such as renewable energy development, hydrogen and carbon capture, utilisation and storage (CCUS). The country aims to reduce its economy-wide carbon emissions by 45pc in 2030 compared with 2005 levels, under its nationally determined contribution — climate plan — to meet the goal of the Paris Agreement. But at the same time, the country is seeking to maximise its fossil fuel production to ensure energy security. State-owned Petronas raised its total oil and gas production in 2024 to 2.4mn b/d of oil equivalent (boe/d), up by 1pc on the year. Of this, oil production fell by 4.4pc on the year to 813,000 boe/d, while gas output rose by 3.6pc to 1.64mn boe/d. More than 80pc of Malaysia's power was generated from fossil fuels in 2024. The NETR plans to increase the share of gas in total primary energy supply by 16pc from 2023 to 57pc in 2050, with gas viewed as a transition fuel for decarbonisation. But "referring to gas as sustainable, and claiming that Malaysia can achieve net-zero emissions through growing gas, are oxymorons," stated the report. Petronas' Scope 1 and 2 greenhouse gas emissions totalled 46.04mn t of CO2e across its Malaysian operations in 2024, surpassing its target of 49.5mn t of CO2e for the year. In comparison, the firm recorded 45.6mn t of Scope 1 and 2 GHG emissions in 2023. But the firm's net zero pathway excludes its Scope 3 emissions, which make up about 80pc of a fossil fuel entity's emissions, according to the report. Additionally, its CCUS plans are aimed at enabling sour gas extraction, hence exacerbating fossil fuel production and emissions. Malaysia should instead set a sectoral carbon budget for the domestic energy sector in line with its net zero goals, taking into account both production and consumption, and cement this budget in the country's upcoming Climate Change bill, stated the report. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Jera signs LNG supply agreements with the US


25/06/12
25/06/12

Japan’s Jera signs LNG supply agreements with the US

Singapore, 12 June (Argus) — Japanese power producer Jera has signed multiple long-term LNG supply agreements with US partners over the past two months, to procure up to 5.5mn t/yr of LNG supply from the US over 20 years, the firm announced on 12 June. The agreements include a 2mn t/yr sales and purchase agreement (SPA) with US LNG firm NextDecade on 28 April, and a 1mn t/yr SPA with US developer Commonwealth LNG on 30 May. Jera has also signed non-binding interim agreements with Sempra Infrastructure — a subsidiary of US energy firm Sempra — for 1.5mn t/yr on 29 May, and with developer Cheniere for 1mn t/yr on 11 June. The deals offer competitive pricing and flexible contract terms. All supply will be delivered on a fob basis priced to the US' Henry Hub, allowing Jera to optimise shipping routes and respond flexibly to domestic demand and market conditions, the company said. If the four deals are considered as a single package of 5.5mn t/yr of supply, it is Jera's largest contract to date, senior managing executive officer Ryosuke Tsugaru said. The new agreements add to Jera's existing offtake contracts with the US, which include a combined 3.5mn t/yr of LNG from Texas' Freeport LNG and Louisiana's Cameron LNG, and approximately 1mn t/yr of LNG from developer Venture Global's CP2 project in Louisiana. US supplies could account for 30pc of Jera's long-term LNG portfolio in 2035, up from 10pc at present, a Jera spokesman told Argus . But Jera does not intend to increase its planned LNG handling volume of no less than 35mn t/yr up to the April 2035-March 2036 fiscal year, as some of its existing contracts are set expired in the middle of the 2030-31 fiscal year, Tsugaru said. The potential increase in Japan's US LNG procurement should help reduce the US' trade deficit with Japan, which could aid Tokyo's negotiations over import tariffs with the US administration. But Jera emphasised that neither Tokyo or Washington had requested or pressured it to sign the new supply contracts. The deals were Jera's decision to ensure stable supplies to Japan, Jera said. The Japanese government could use the US' proposed 20mn t/yr Alaska LNG export project as part of its tariff negotiations, as Alaska's proximity to Japan and its ample resources make it a promising import source for the east Asian country. Jera is waiting for more details to be announced about the project before it makes a decision on whether to step into an offtake deal, Tsugaru said. Jera dose not plan to invest in the development of the project, he added. Japan's LNG imports from the US rose by 15pc on the year to 6.34mn t in 2024. By Motoko Hasegawa and Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EIA raises US 2026 renewables outlook


25/06/11
25/06/11

EIA raises US 2026 renewables outlook

Houston, 11 June (Argus) — The US renewable energy fleet remains on track to provide an increasing portion of the country's total electricity over the next two years, even with some changes in the US Energy Information Administration's (EIA) latest projections. Renewable energy is on track to supply almost 1.1bn MWh in 2025 and 1.2bn MWh in 2026, enough to account for roughly 25pc and 27pc of all US generation in those years, EIA said Tuesday in its monthly Short-Term Energy Outlook report. The 2025 estimate is less than 1pc lower than the agency's forecast in May, while the 2026 outlook is about 2pc higher. Renewables in 2024 generated almost 948mn MWh, about 23pc of all US generation. EIA attributes the higher share from renewables to projects coming on line through the end of 2026. The agency expects developers to add about 32,500MW of utility-scale solar to the grid this year, which would surpass the record high of 30,000MW in 2024. EIA anticipates about 7,700MW of new capacity from the wind sector this year. Wind capacity in 2024 expanded by about 5,100MW, its lowest showing since 2014. The month-over-month change in the larger renewables outlook corresponds with higher expectations for wind and solar generation next year. Wind farms are now on track to provide about 506mn MWh in 2026, while utility-scale solar farms will generate around 350mn MWh, each about 2pc higher from May's outlook. If the solar projection bears out, it would surpass hydropower in 2025 as the second most prevalent form of renewable generation in the US. In the Electric Reliability Council of Texas (ERCOT) territory, EIA expects non-hydropower renewable generators are on pace to supply nearly 179mn MWh in 2025, down by less than 1pc from last month's outlook. But the 216mn MWh now anticipated from the sector in 2026 marks an almost 10pc increase from May's predictions for the Texas grid. EIA's lowered its predictions for non-hydropower renewables in the New York Independent System Operator's footprint by less than 1pc for 2025 and by 4pc for 2026, to 11.5mn MWh and just under 13mn MWh, respectively. Revisions to other regional forecasts were minimal. EIA increased its expectations for non-hydropower renewables in the areas managed by the PJM Interconnection, ISO-New England and Midcontinent Independent System Operator by less than 1pc for both 2025 and 2026. Renewable energy resources for EIA's purposes include conventional hydropower, wind, solar projects larger than 1MW, geothermal and certain forms of biomass. By Patrick Zemanek Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU eyes flexible 90pc GHG cut target by 2040


25/06/11
25/06/11

EU eyes flexible 90pc GHG cut target by 2040

London, 11 June (Argus) — EU commission's climate director general Kurt Vandenberghe suggested today that the commission's proposal next month for a 2040 net greenhouse gas (GHG) reduction could offer more flexibility, without providing details. The 90pc target, compared with 1990 levels, will "hopefully" be agreed with the "necessary flexibilities", he added. He did not say what a more flexible 2040 goal would entail. The proposal to update to the European Climate Law with a headline GHG target for 2040 is due on 2 July . This will be followed up, in 2026, with legal proposals detailing the post-2030 climate architecture, including a revision of the bloc's emissions trading system (ETS) directive. Vandenberghe pointed to the need to ensure ETS revenues from heavy industries go back "at least partially" for their sector's decarbonisation. The commission is also seeking to reassure people that it is "sufficiently pragmatic" about moving to a 90pc GHG cut target, Vanderberghe said. Centre-right EPP's Radan Kanev also wants an "ambitious and realistic" 2040 target around 90pc. But the Bulgarian member of the European parliament notes changes in political majorities for climate action compared to when the bloc's 55pc GHG reduction target and other Green Deal objectives were set for 2030. "At present, we don't have such a majority in parliament," Kanev said. He indicated that few EU states have a local majority for the 90pc target for 2040 and public opinion in Europe was "far from" such a position. The commission is "very attentive" as to fears arising from the extension of the ETS to road transport and heating fuels, Vanderberghe said. "We would not be well served with an ETS extension that leads suddenly to peaks in carbon prices," he said. The commission is also eyeing the agri-food sector for the next decade, which, Vandenberghe said is "notoriously difficult, sensitive." "This is not climate against agri-food, this must be climate with the agri-food sector," he said. The European Scientific Advisory Board on Climate Change (ESABCC) last week called for a 90–95pc domestic reduction target for 2040. A lower target would undermine the bloc's sustainability, long-term competitiveness and energy security, the scientists said. Vanderberghe talked of more flexibility and less prescriptiveness in terms of targets, sub-targets, and detailed rules for 2040. "We may have been overly prescriptive in our framework for the emission reduction target by 2030," he said. He also reiterated the need for carbon removals to achieve net zero by 2050. If ongoing work on the implementation of Paris Agreement's Article 6 works well, "we think we should not deprive ourselves of the possibility of working with international credits as part of our 90pc target," Vanderberghe said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EQT signs 10-year gas deals with Duke, Southern


25/06/11
25/06/11

EQT signs 10-year gas deals with Duke, Southern

New York, 11 June (Argus) — US natural gas producer EQT has signed 10-year firm supply deals with US utilities Duke Energy and Southern Company for a combined 1.2 Bcf/d of gas beginning in 2027. EQT previously disclosed it struck deals to sell 800mn cf/d and 400mn cf/d of gas to "investment-grade utilities" in the southeastern US, but it has not disclosed the buyers. Those previously unnamed utilities are North Carolina-based Duke, which has contracted for 800mn cf/d from EQT, and Georgia-based Southern, which has contracted for 400mn cf/d, according to people with knowledge of the matter. EQT declined to comment for this story. Duke and Southern did not immediately respond to requests for comment. The deals represent about 20pc of EQT's production and allow EQT to take advantage of contracted capacity it holds on Mountain Valley Pipeline, which ferries gas from West Virginia to Virginia. EQT, the second-largest US gas producer by volume, has been the owner of Mountain Valley Pipeline since acquiring its previous owner Equitrans Midstream in July 2024. The gas supply deals are "two of the largest long-term physical supply deals ever executed in the North American natural gas market," EQT chief executive Toby Rice said in October 2023. The deals also underpin EQT's broader strategy of trying to sell more gas directly to large end users, including utilities, LNG export terminals and data centers, instead of selling into the volatile US spot gas market with the use of financial hedges. The deals also give EQT more exposure to pricing hubs in the southeastern US, where gas trades at a premium to gas sold within the Appalachian production region, where EQT operates. For Duke and Southern, the long-term agreements guarantee available gas supply as the utilities convert coal-fired power generation facilities to gas-fired generators while scrambling to meet surging power demand from planned data centers running artificial intelligence software. Those drivers of gas demand are also behind US pipeline companies Williams, Kinder Morgan and Boardwalk Pipeline Partners trying to build out more gas transportation capacity into the southeast, FactSet manager of natural gas research Connor McLean told Argus . Duke Energy plans to add 5GW of new gas-fired power generation through 2029 across its territory, the company said earlier this month. Duke Energy Carolinas and Southern Company hold most of the contracted capacity on Williams' planned 1.6 Bcf/d Southeast Supply Enhancement expansion of its Transcontinental (Transco) pipeline, which is expected to enter service in the fourth quarter of 2027, US Federal Energy Regulatory Commission filings show. That expansion project will make available new gas transportation capacity from the terminus of the Mountain Valley Pipeline in Virginia to end markets in Virginia, North Carolina, South Carolina, Georgia and Alabama. Duke Energy Carolinas, whose service territory includes North Carolina and South Carolina, holds 1 Bcf/d of contracted capacity on Southeast Supply Enhancement. Southern Company, whose service territory includes Georgia and Alabama, holds 400mn cf/d. By selling into those regions, EQT will be taking 1.2 Bcf/d of gas it was previously selling into the comparatively low-priced Tetco M-2 market and selling it instead into the higher priced Transco zone 4 and 5 South markets. The spot price for gas in the Transco zone 5 South region — which covers gas downstream from compressor station 165 near the terminus of Mountain Valley Pipeline in Virginia to the Georgia-South Carolina border — in 2024 averaged $2.69/mmBtu, and the Transco zone 4 index — spanning Georgia, Alabama and Mississippi — averaged $2.41/mmBtu. The Tetco M-2 receipts index over the period averaged $1.67/mmBtu. The supply deals with Duke and Southern are "the main driver" behind EQT's anticipated corporate gas price differential — or the average price at which it sells its gas relative to the US benchmark price — tightening to around 30¢/mmBtu in 2028 from an anticipated 60¢/mmBtu this year, EQT's Rice said in April. EQT is also in talks with a dozen proposed power projects in the Appalachian production region, he said. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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