Japan's power utilities keep LNG stocks steady

: Electricity, Natural gas
26/02/25

LNG inventories at Japan's main power utilities remained steady in the week to 22 February, given that softer electricity demand reduced gas-fired power generation.

The utilities held 2mn t of LNG stocks on 22 February, unchanged from the previous week, according to a weekly survey by Japan's trade and industry ministry Meti. This was 3.6pc higher than the 1.93mn t recorded on 23 February 2025, but 6.5pc lower than the 2021-25 end-February average of 2.14mn t.

Warmer weather capped heating demand, leading to a 5.9pc weekly decline in Japan's power demand to an average of 106GW during 16-22 February, according to nationwide transmission system operator the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto). Temperatures in the country's 10 main cities averaged at 8.2°C, up by 1.1°C over the same period, data from the Japan Meteorological Agency show.

Japan's gas-fired output averaged at 33GW over 16-22 February, down by 16pc from a week earlier, Occto data show. Base-load coal-fired generation fell by 7.1pc to 32GW and peak-load oil-fired generation dropped by 33pc to 539MW.

Japan imported 1.36mn t of LNG over 16-22 February, including volumes for city gas production, down from 1.47mn t a week earlier, according to data from oil analytics firm Vortexa. Lower imports may have prevented inventories from being replenished despite reduced gas-fired generation.

By Motoko Hasegawa

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26/02/26

Norway oil, gas power use set for sharp rise by 2030

London, 26 February (Argus) — Power consumption from oil and gas production on Norway's continental shelf (NCS) is expected to increase sharply by 2030 as operators electrify fields and processing sites to reduce emissions, industry body Offshore Norway told Argus , but doing so with power from shore is attracting significant political interest. Operational consumption from fully or partially electrified production reached about 10TWh in 2025, according to Offshore Norway data. Consumption is expected to grow slowly to 2029, averaging 670 GWh/yr in new operational capacity. But from 2030, NCS electrification is forecast to take a substantial leap forward, as significant projects such as the 350MW Hammerfest LNG plant come on line ( see power demand graph ). Consumption will reach as much as 17.9 TWh/yr, with 17.2 TWh/yr operational or holding a grid reservation, according to Offshore Norway data, before tapering as oil and gas production declines towards the end of the next decade ( see hydrocarbon output graphs ). But the 2030 rise is likely to be less dramatic than forecast, with Equinor having decided to cancel electrification works on the Halten Bank and Tampen fields — which were included in Offshore Norway's 2025 modelling — citing project economics late last year. That leaves several electrification projects under construction, but just one in the planning phase, according to the Norwegian Offshore Directorate (NOD) — Equinor's Grane-Balder project . The major is targeting a 120MW grid connection for the two offshore oil and gas fields. Electrifying away emissions Electrifying oil and gas installations with power from shore is the measure operators consider most important for reducing emissions, Offshore Norway told Argus , and helps the industry meet its legislated 50pc Scope 1 emissions reduction by 2030 from 1990 levels. Norway now has 39 fields partly or wholly operated with power from shore or with final investment decisions (FIDs) to electrify, according to the NOD, up from 16 in 2020. That has reduced the industry's greenhouse gas emissions to about 11mn t of CO2 equivalent (CO2e) in 2024 from 13.6mn t/CO2e in 2005, Offshore Norway said. And if all operator measures are realised, the industry expects emissions to fall by 47pc by 2030 compared with 2005. Shore power is expected to reduce emissions by 3mn t/CO2e by 2030, according to data from Norwegian petroleum industry association KonKraft. Electrifying the entire NCS has never been a goal per se, Offshore Norway said. Instead, "the objective is to eliminate emissions from key hubs on the shelf", to "maintain the competitiveness of the NCS", which faces significant pressure from EU emissions trading system and other carbon costs, the group said. The government agreed, with state secretary Snorre Skjevrak telling Argus "broad electrification…has never been a priority". Instead, the "aim is to reduce emissions from the production of oil and gas". This lowers the "high price on carbon" operators face, which is "much higher than in other oil and gas-producing countries". But given that high price, operators have broadly "assessed which installations" are best suited for "conversion to power to shore", Skjevrak said, which means the "best projects are already in operation or in the execution phase", explaining why there is no new wave of conversion projects coming despite electrification already proving useful in "enabling tie-ins of new discoveries" and "extending the operational lifetime of existing fields", Svjevrak added. Offshore Norway acknowledged that the "remaining electrification projects are dependent on cost efficiency", in line with the government's assessment, but also pointed to the "ongoing debate" about NCS electrification and "who should have access to power". Power politics The Norwegian government approved Equinor's plans to electrify gas processing at the Hammerfest LNG terminal in 2023 , marking "Norway's largest climate initiative", KonKraft said. But late last year the parliamentary energy committee brought forward several motions to halt or delay the plan. Parliamentarians questioned whether a tightening power situation , which is "completely different" from when Norway approved the first projects, is appropriate for further electrification, noting that Offshore Norway's forecast of 18TWh consumption by 2032 is equivalent to 11pc of national output. The initiatives would have ended the electrification process at Hammerfest, blocked further NCS electrification with mainland power and required oil and gas producers to power their assets using offshore wind and gas with carbon capture. The plans, which the government and industry opposed, risked the "stable framework conditions" required to deliver a "balanced energy transition", Equinor chief executive Anders Opedal said . Demanding supply Parliament's focus on offshore electrification and the power balance comes despite project cancellations and complex economics hampering the growth outlook, and more pressing demand sources elsewhere. Norwegian petroleum projects with a grid reservation totalled about 901MW across four bidding areas. Last year, KonKraft forecast an additional 2 TWh/yr in incremental demand from power-from-shore projects approaching an FID, but two of those three projects have since been cancelled. Petroleum industry enquiries for grid connections are small relative to other sectors, Offshore Norway told Argus , with grid operator Statnett data suggesting that the sector is well behind data centres and heavy industry in terms of both firm reservations and projects in the queue ( see grid queue graph ). And Statnett's future scenarios forecast that the sector's power consumption will fall to the fourth largest by 2040, and be overtaken by data centres and hydrogen production by 2050 . By Daniel Craig NCS forecast power demand, 2026-40 TWh NCS production historic vs forecast mn m³ oil equivalent/yr NCS production forecast by resource category mn m³ oil equivalent/yr Norwegian grid requests by type, technology GW Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Rubio calls for Caribbean energy ties despite tensions

26/02/25

Rubio calls for Caribbean energy ties despite tensions

Houston, 25 February (Argus) — US secretary of state Marco Rubio strongly defended the US intervention in Venezuela to a gathering of Caribbean nations today, also calling for stronger energy ties in the region in comments delivered as Cuba reported a firefight with a US-flagged vessel. "I will tell you this without any apology or without any apprehension: Venezuela is better off today than it was eight weeks ago," Rubio told members of the Caribbean Community (Caricom) on Wednesday in a summit in St Kitts and Nevis. Caricom has 15 members and six associate members, but does not include Cuba or Venezuela. The US will continue to drive for fair, democratic elections in Venezuela, Rubio said, after leaving it in the hands of collaborators of former President Nicolas Maduro, whom the US captured on 3 January. The initial priorities of preventing mass migration and spillover violence in the wake of Maduro's seizure were achieved, he said. More broadly in the region, the US hopes to help ensure economic development and better access to energy, Rubio said. "Many of the countries represented here today have energy resources that I know you seek to explore responsibly, safely, but in a way that generates wealth and prosperity for your people and your countries, and we want to be your partner in that regard," Rubio said. Cuba confrontation The Caribbean meeting came as Cuba reported on the same day that it killed four of 10 passengers on a Florida-flagged speedboat that invaded its territorial waters and opened fire on an approaching Cuban coast guard vessel. The coast guard shot back, also wounding six of the passengers who are now receiving medical care, the interior ministry said. "Cuba ratifies its will to protect its territorial waters," the ministry said. The US has not confirmed the incident but it is "a situation we're monitoring, hopefully it's not as bad as we fear it could be. But I can't say more," vice-president JD Vance said on Wednesday afternoon. The ship was about one nautical mile offshore from the city of Corralillo on the northern coast of Cuba, according to Cuba's account. It had a hull identification number of FL7726SH, Cuba said. This indicates it was not likely a military vessel, which Florida's boat registration authority lists as exempt from state titling. By Carla Bass Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

German heating proposals 'jeopardise climate targets'

26/02/25

German heating proposals 'jeopardise climate targets'

Berlin, 25 February (Argus) — Germany's proposed new heating law will jeopardise the country's climate targets in the building sector, environmental groups and energy associations have warned. The law, proposed yesterday evening by ruling parties the CDU/CSU and SPD, would include a rising green gas or green oil quota, termed "bio-stairs", to enable households to stick with gas or oil heating systems. The so-called buildings modernisation act will ensure that "new heating systems will be predominantly CO2-free in future", the parties said. Economy and energy minister Katherina Reiche of the CDU said the proposals offer "free choice of heating" compared with the legislation that they will replace. The buildings energy act passed under the previous Greens-led economy ministry includes a mandatory 65pc renewables share for new heating systems. The proposed new rules call for a 1pc admixture of carbon-neutral fuels from 2028, with new gas and oil heating systems to use at least 10pc of the equivalent biofuel from 2029. The quota would then rise in three stages until 2040. The text mentions biomethane, hydrogen, synthetic fuels and bio-oil as potential fuels to meet the quotas. For hydrogen, it suggests an openness to various production pathways, specifically renewable hydrogen, hydrogen made from natural gas with carbon capture and storage or through pyrolysis, and waste-based hydrogen. The parties expect savings of 2mn t CO2 equivalent (CO2e) by 2030 through these measures. The CDU/CSU and SPD will present the final details of the proposed system in the summer, by which point they aim to have a government draft passed by parliament, with the law scheduled to enter force on 1 July. Existing funding programmes will continue until at least 2029. Critical thinking Environmental group DUH's managing director Barbara Metz said scrapping the 65pc renewables rule will make climate neutrality in the building sector "effectively unattainable". Metz flagged a recent high administrative court ruling calling for more climate action , particularly in the country's buildings and transport sectors. The CDU/CSU and SPD have stressed that the targets under Germany's climate action law will continue to apply. Should an evaluation in 2030 show that the building sector is not meeting its target, "corrective measures will be taken", they said. But allowing gas and "even" oil heating systems to be installed with initially "relatively low" biofuel content, while at the same time abolishing the 65pc requirement, would jeopardise Germany's climate targets, energy and water association BDEW managing director Kerstin Andreae said. And "ambitious" green fuel quotas will be needed to have an emissions-saving effect, but such high quotas will in turn drive up heating prices, penalising tenants in particular, think-tank Agora Energiewende's Julia Blaesius warned. Green fuels are "scarce" and it remains unclear how demand for them will develop, she said. The CDU/CSU and SPD paper argues that gas and oil suppliers already offer tariffs with an organic component. And the carbon price under Germany's domestic carbon market — expected to be replaced by the future EU emissions trading system for the buildings and transport sectors (ETS 2) from 2028 — does not apply to the climate-friendly fuel component, which will have a cost-cutting effect, they said. Germany's buildings sector emitted around 109mn t CO2e last year, according to federal environment office UBA. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

UN launches SE Asia energy transition initiative

26/02/25

UN launches SE Asia energy transition initiative

Singapore, 25 February (Argus) — The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has launched a new regional initiative to accelerate the energy transition in southeast Asian countries, with initial funding of over $4mn. The Energy Transition for Green Growth and Prosperity (ETGGP) is a three-year initiative that begins in 2026. Initial funds pledged so far amount to over $4mn from philanthropic foundations. The initiative focuses on three key areas — supporting regional power connectivity through green power corridors; mobilising green finance to create enabling conditions, build investable pipelines and facilitate larger-scale capital flow; and analytical work to support long-term planning for energy, economy and industry. The ETGGP will work with energy, finance, transport, environment and social development ministries, while also bringing together development partners and financial institutions to come up with policy solutions. Through this initiative, the UN expects an improvement in policy co-ordination, greater investment readiness and better access to public and private finance for clean energy. "The launch comes at a critical time," said UNESCAP, as the Asia-Pacific region accounts for around 60pc of global greenhouse gas emissions and 80pc of global coal supply. The region's energy demand is expected to rise by about a third by 2035 and two-thirds by 2050, according to the IEA, with just under half of this demand growth to be met by fossil fuels. The Association of Southeast Asian Nations last year endorsed a regional energy plan for 2026-30 targeting a 30pc share of renewables in the primary energy mix, and a 45pc share in installed power capacity by the end of this period. A key part of this plan is the Asean power grid , with the bloc acknowledging the importance of creating green power corridors to ensure a secure and interconnected low-carbon energy future. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Trump upbeat on economy despite tariff setback

26/02/25

Trump upbeat on economy despite tariff setback

Washington, 24 February (Argus) — President Donald Trump, facing curbs on his tariff authority and concerns about his military threats against Iran, stuck to his familiar upbeat take on the US economy and the success of his foreign and trade policy during his State of the Union address on Tuesday. "After just one year, I can say with dignity and pride that we have achieved a transformation like no one has ever seen before, and a turnaround for the ages," Trump told the joint session of Congress. "America is respected again like never before." Trump credited the economic "turnaround" to his tariffs, which he said brought in "hundreds of billions of dollars" after he forced foreign countries to sign trade and investment deals. "Everything was working well," he said. "We were making a lot of money. There was no inflation, tremendous growth." Trump railed against the "disappointing" decision by the US Supreme Court on 20 February to strike down his emergency tariffs, which he said made foreign countries "happy". Trump insisted that the trade deals he negotiated under the threat of the now-invalidated tariffs will remain in place, because, he said, the foreign governments know about "the legal power that I, as president, have to make a new deal that could be far worse for them". At least one of those deals has now stalled, because the European Parliament has paused the ratification of the US-EU deal that involved a promise to scale up US crude and LNG supply to Europe. Trump on Tuesday imposed a new, 10pc tariff on all US imports — with exemptions for energy and some other products — for a period of 150 days to give his administration a chance to reverse engineer some of the tariffs struck down by the Supreme Court. He has threatened to raise those tariffs to 15pc. Trump used the speech to tout his "energy dominance" agenda, which he credits with increasing fossil fuel production and lower energy prices. US crude production increased by 600,000 b/d during his first year in office, Trump said. The actual increase in the past year is closer to 500,000 b/d, according to data from the Energy Information Administration (EIA), which also expects production to decline in 2027. Trump cited gasoline prices as low as $1.99/USG at a handful of retail stations as proof that his policies were working. But consumers faced higher prices for electricity and natural gas over the same period, eating into savings on motor fuel. Natural gas prices at the Henry Hub benchmark rose by more than 60pc last year, and EIA expects those prices will continue to rise, driven by higher demand from LNG exports and data center power demand. Democrats say that Trump's attacks on wind and solar projects, and phase-out of clean energy tax credits, will result in consumers facing far higher prices in the coming years as data center power demand surges. To address concerns about data center-driven price increases, Trump unveiled what he called a "ratepayer protection pledge", under which technology companies seeking to build new data centers can build new, dedicated power plants rather than connect to existing power grids. Data centers developers already have turned to building "behind-the-meter" power plants, which allows them to bypass the complex regulatory process for approving new generation and transmission infrastructure. Iran in Trump's sights Trump during his speech accused Iran of trying to restart its nuclear weapons program, even though he said the bombing raid he ordered in June 2025 "obliterated" that program. Despite ongoing negotiations with Tehran, "we haven't heard those secret words, 'We will never have a nuclear weapon'", Trump said. "My preference is to solve this problem through diplomacy, but one thing is certain, I will never allow the world's number one sponsor of terror, which they are by far, to have a nuclear weapon." The US military buildup in the region near Iran is the largest in decades, but the administration did not brief lawmakers on the possible military options Trump is considering until shortly before his speech. Top Democratic lawmakers, after a classified briefing by secretary of state Marco Rubio on Tuesday, expressed concerns about what Trump is planning to do and urged him to clearly articulate the potential risks of his actions. "It is incumbent upon the president to make the case on what our country's goals are, what our interests are, and how we are going to protect our interests in the region," senator Mark Warner (Virginia), the senior Democrat on the Senate Select Committee on Intelligence, said after the briefing. "Wars in the Middle East don't go well for presidents, for the country, and we have not heard a single good reason for why now is the moment to launch yet another war in the Middle East," representative Jim Himes (Connecticut), the top Democrat on the House intelligence panel, said. By Haik Gugarats and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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