US energy transition path will pressure Mexico: Update
Adds meeting remarks in fourth, fifth paragraphs.
US president Joe Biden's energy transition plans will put pressure on Mexico to keep up with its larger neighbor's policies regardless of President Andres Manuel Lopez Obrador's preferences, a senior US official said.
Biden today hosted Lopez Obrador and Canadian prime minister Justin Trudeau for a North American leaders summit, reviving a format that lay dormant for four years. With Biden's election, the US and Canada are aligned on decarbonization goals, but Mexico under Lopez Obrador has moved in the opposite direction with a set of policies designed to extend fossil fuels' prevalence in the country's energy mix.
"When we think about North America in that regard, it is as partners," the US official said ahead of Biden's meeting with his Mexican counterpart. "And what we want to lay out are kind of the opportunities and the opportunity costs of certain decisions."
The shared vision for North America is one where problems are solved together, particularly ending the Covid-19 pandemic, solving the climate crisis, and taking effective actions for immigrants in the region, Biden said during the combined 20-minute message offered by the continent's three heads of state.
Neither Lopez Obrador nor Trudeau touched on the energy issues that are a of vital importance for the Biden administration in the initial message before the private meeting. Lopez Obrador asked president Biden to stop rejecting migrants and push back against prejudices and myths to grow the labor force of the region.
The US is monitoring Mexico's electricity sector overhaul that would restore state power company CFE's market dominance and shutter the country's energy regulators — actions that critics say are designed to protect Mexico's fossil fuel-powered generation.
"Given where the US economy is going to be going over the course of this administration and the priority that this president has placed on addressing the climate emergency," the US hopes to have Mexico on its side, the official said.
US investors are concerned that "attempts to favor state-owned enterprises at the expense of renewable and other private energy providers only undermine investment certainty" and put shared climate change goals at risk, US business group the Chamber of Commerce said ahead of the presidents' meeting.
Mexico is a major importer of US natural gas — US exports by pipeline averaged 6 Bcf/d in January-August, up by 12pc on the year, Energy Information Administration data show.
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India’s Chhara LNG terminal faces commissioning delay
India’s Chhara LNG terminal faces commissioning delay
Mumbai, 23 April (Argus) — Indian state-owned refiner HPCL's 5mn t/yr Chhara LNG import terminal is again facing delays in receiving and unloading its commissioning cargo, a market source told Argus . Fender failure at the terminal has caused problems in berthing the LNG vessel. The fender acts as a buffer or cushion between the ship hull and the dock, and prevents damage as a result of contact between the two surfaces. HPCL on 22 April issued a tender offering the commissioning LNG cargo , which is onboard the 160,000m³ Maran Gas Mystras. The vessel is currently laden offshore the terminal and ready to redeliver to another Indian LNG terminal on 25-30 April, according to HPCL. The company is seeking bids at a fixed price, and custom duty has already been paid by the firm. Indian firm Gujarat State Petroleum (GSPC) facilitate HPCL's purchase of the cargo on 26 March, with the cargo for delivery over 9-12 April. HPCL has put up the commissioning cargo for auction, and it can be discharged from any alternative port in India. LNG terminals closer to Chhara include Indian state-controlled importer Petronet's 17.5mn t/yr Dahej, Shell's 5.2mn t/yr Hazira or state-owned gas distributor Gail's 5mn t/yr Dhabol LNG terminal. HPCL also has not awarded a tender that is seeking another early-May delivery cargo , which closed on 19 April. Commissioning of the Chhara LNG terminal has been delayed since September 2022 owing to pipeline issues. The terminal is the country's eighth LNG import facility, which would lift total regasification capacity to 52.7mn t/yr from 47.7mn t/yr currently. The pipeline runs from the terminal and connects the city gas distribution network from Lothpur to Somnath district in Gujarat. There has been a delay in opening the pipeline as it passes through the eco-sensitive zone of the Gir wildlife sanctuary for 25.816km, a government document shows. The facility was completed in February, but is set to be closed from 15 May-15 September ahead of the completion of a breakwater facility , which is required to ensure safe LNG tanker berthing during India's monsoon season. No specific timeline has been given for building the breakwater, but the terminal will be able to operate year-round once it is completed. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
TotalEnergies to fully own Malaysian gas firm SapuraOMV
TotalEnergies to fully own Malaysian gas firm SapuraOMV
Singapore, 23 April (Argus) — TotalEnergies has signed an agreement to acquire Sapura Upstream Assets' 50pc stake in Malaysian private gas producer and operator SapuraOMV, which will take TotalEnergies' total stake to 100pc. The acquisition will cost $530mn, subject to closing adjustments, with closing expected to take place in the second half of this year, said TotalEnergies. This latest deal follows a previous agreement that TotalEnergies signed in January with Austrian firm OMV to acquire its 50pc interest in SapuraOMV. This means TotalEnergies will own 100pc of SapuraOMV once both transactions are completed. "Following the transaction with OMV announced two months ago and this new transaction with Sapura Upstream Assets, TotalEnergies will have full ownership of SapuraOMV and become a significant gas operator in Malaysia," said TotalEnergies' chairman and chief executive officer Patrick Pouyanné. "The SapuraOMV assets are fully in line with our strategy to grow our gas production to meet demand growth, focusing our portfolio on low-cost and low-emission assets," he added. SapuraOMV in 2023 produced 500mn ft³ of gas, which was used to feed the Bintulu LNG plant operated by state-controlled Petronas, as well as 7,000 b/d of condensates. SapuraOMV holds 40pc and 30pc operating interests, respectively, in blocks SK408 and SK310, which are offshore Sarawak, Malaysia. Block SK408's Jerun gas field, which could hold up to 84.9bn m³, is on track to start up in the second half of this year. SapuraOMV also has interests in exploration licences in Malaysia, Australia, New Zealand, and Mexico, where there was a discovery on block 30 last year, with estimated resources of 200mn-300mn bl of oil equivalent. TotalEnergies holds interests in two production sharing contracts in Malaysia. It in June last year signed an agreement with Petronas and Japanese trading firm Mitsui to jointly develop a carbon capture and storage project in Malaysia as well as assess maturing depleted fields and saline aquifers for storage. The firms hope to develop a CO2 merchant storage service to help industrial customers in Asia decarbonise. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Tamboran agrees NT gas sales deal
Australia’s Tamboran agrees NT gas sales deal
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