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BP to sell 5pc stake in Australia’s Browse LNG project
BP to sell 5pc stake in Australia’s Browse LNG project
Sydney, 2 June (Argus) — BP will sell a 5pc stake in the $35bn Browse gas fields offshore Western Australia (WA), with South Korean private-sector firm GS Energy joining the project to help backfill the 14.3mn t/yr North West Shelf LNG terminal. BP will retain a 39.33pc working interest in Browse joint venture (JV) post-transaction, a BP spokesperson said on 2 June, describing GS as a "committed partner" that complements the substantial work already completed to advance the project as it progresses towards the front-end engineering and design (FEED) stage. The deal is conditional upon regulatory and JV approvals. Australian independent Woodside Energy is the operator and holds a 30.6pc stake in Browse alongside BP, Japan's Mimi — a joint venture between Mitsui and Mitsubishi — which owns 14.4pc, while state-owned PetroChina controls 10.67pc. PetroChina is planning to sell its share to Japanese firm Inpex, it said last month . Inpex already operates the 9.3mn t/yr Ichthys JV and holds a 17.5pc stake in the Shell-operated 3.6mn t/yr Prelude floating LNG facility, both of which are located in the Browse basin. South Korea is considered a critical energy partner for Australia. Australia was the top LNG exporter to South Korea in both 2024 and 2025, shipping 14.68mn t in 2025 , up by 29pc from 11.4mn t in 2024. South Korea was Australia's largest gasoil supplier in 2025, data from Australian Petroleum Statistics show, shipping about 150,000 b/d , mainly to the east coast. Australia also shipped about 10pc, or 20.5mn t , of its thermal coal exports to South Korea last year. At the same time, it imports around 30pc of its gasoil cargoes from South Korean refiners — a supply that is critical to keeping its mining and agriculture sectors operational, as it lacks domestic refining capacity to meet demand. The addition of Japanese and South Korean partners to the Browse JV may help spur progress on the controversial project, as north Asian importers seek to secure non-Middle East supplies in the wake of the US-Iran war, while Canberra similarly moves to lock-in oil product imports. Browse ‘critical': WA With a forecast production capacity of 11.4mn t/yr across LNG, LPG and domestic gas and a peak condensate production rate of 50,000 b/d, Browse is considered Australia's single largest untapped oil and gas project. But the JV's plans for the field are already facing headwinds from a national environmental campaign alleging potential damage from the project's emissions and to the nearby Scott Reef, a remote shoal system . Proponents include WA premier Roger Cook, who has warned that Browse is critical to the state's domestic gas supply, as the NWS project includes the 630 TJ/d capacity Karratha Gas Plant (KGP). Production at KGP has dipped since mid-2020 due to natural field depletion. Woodside's share of NWS' LNG production has also fallen to 2.94mn t in 2025, down from 3.64mn t a year earlier, after it retired a 2.5mn t/yr train at the terminal in late 2024. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Australia extends fuel stockpile relief to September
Australia extends fuel stockpile relief to September
Sydney, 1 June (Argus) — Australia will extend a 20pc reduction to its minimum stockpile obligation (MSO) for gasoil and gasoline by a further three months to 30 September, energy minister Chris Bowen said. The easing was first introduced in mid-March after supply concerns triggered a surge in demand following the start of the US-Iran war on 28 February, leaving some service stations short of fuel. Companies will be allowed to maintain lower stock levels only if they submit and implement updated written plans showing how they will coordinate with government to prioritise supply, particularly to regional areas, Bowen said in a press statement on 30 May. They must continue supplying regional distributors, service the wholesale spot market and respond to abnormal demand spikes to help prevent further disruptions. The extension also introduces a requirement to notify authorities of any such disruptions. Demand could rise again towards the end of June as fuel prices are expected to increase. Prices declined after the government cut the fuel excise to A$0.21/litre from A$0.53/litre for April-June, but Canberra has signalled the measure will not be prolonged. Anticipation of higher prices may prompt consumers to bring forward purchases, similar to behaviour seen in early March. Australia held the equivalent of 36 days of gasoil demand, 48 days of gasoline and 30 days of jet fuel as of 26 May, according to the Department of Climate Change, Energy, the Environment and Water (DCCEEW). Gasoil and gasoline inventories have risen significantly since late February, while jet fuel stocks have increased only modestly ( see graph ). Gasoil inventories began to recover after Export Finance Australia (EFA) was empowered to support imports through insurance, guarantees and financing arrangements. The first EFA-backed cargoes were announced on 16 May, including 570,000 bl of gasoil purchased by Viva Energy across two shipments, a day after a fire at its 120,000 b/d Geelong refinery . EFA has supported 17 shipments totalling 690mn litres (4.3mn bl) of gasoil and 150mn litres (943,000 bl) of jet fuel. The federal budget on 12 May allocated A$3.2bn to establish a 1bn litre government-owned strategic fuel reserve and increase MSO requirements for gasoil and jet fuel by a further 10 days, targeting 50 days of cover. By Tom Woodlock Australia extends fuel stockpile relief to September Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
CARB adopts cap‑and‑invest changes: Update
CARB adopts cap‑and‑invest changes: Update
Updates with final vote and details throughout Houston, 29 May (Argus) — The California Air Resources Board (CARB) late Friday adopted amendments to the state's cap-and-invest program, though not without first reaching a compromise on the next steps for a contentious proposal to help industry reduce emissions. The 9–4 board vote begins the process of implementing the long-awaited changes to the program that sets a declining limit on greenhouse gas (GHG) emissions from sources like power plants and transportation fuels. The board approved its decision resolution after hours of debate, largely focused on a proposed decarbonization incentive program for industry, potential impacts on state revenues and the timeline for implementation. "When I was appointed chair, it was a few weeks after governor Gavin Newsom signed the cap-and-invest extension into law, and this was one of the items I was most looked forward to deliberating on," CARB chair Lauren Sanchez said. "Little did I know ... how difficult the trade-offs would be." One element that drew the most scrutiny was a CARB staff proposal to take 118.3mn metric tonnes of carbon allowances originally slated for removal and instead use them as industrial incentives under the proposed Manufacturing Decarbonization Investment (MDI) program. The MDI program was part of an updated amendments package staff released in April , which also proposed increasing allowance allocations to state utilities and industrial entities from the original January draft . At least four board members questioned whether the program would deliver guaranteed emissions reductions and they raised concerns about its potential impact on state revenues that fund emissions-reduction programs. "I'm looking not just for teeth, but bigger and sharper teeth in terms of making sure that this program does what it's supposed to do," former assembly member Miguel Santiago (D) said. However, removing the MDI program — or reverting to the agency's January proposal — would trigger additional regulatory requirements under state law, according to CARB deputy executive director Rajinder Sahota. Both options would require a new 15-day public comment period and could necessitate further analysis under the California Environmental Quality Act (CEQA) and other state laws. That extra time would make the agency's planned 1 September implementation deadline unattainable. If the board had decided to remove the MDI, the allocation levels for industry, utilities and auctions would have stayed consistent with the April proposal — meaning there would not be any increase to the proposed number of allowances for state auctions, Sahota said. However, reverting to the January version would cut free allocations to utilities and industrial sectors. "Which would result in impacts to utilities and industrial entities that they were very opposed to in the January proposal," CARB executive officer Steven Cliff said. Balacing politics, economics Staff have framed the April amendments as a response to mounting political and economic pressure, aimed at ensuring the cap-and-invest program delivers emissions reductions while reducing the risk of industries relocating to less-regulated states. Sanchez said she had some concerns with the proposal as well, but sought a compromise with members on language for the board's resolution that would allow for development of MDI guardrails. The final resolution directs staff to return to the board prior to issuing MDI allowances. That step will allow for additional analysis of board and public concerns and further deliberations, which could inform a future rulemaking for changes to MDI regulations, Sanchez said. Much of the day's debate focused on whether to move forward now to provide regulatory certainty and stabilize allowance values, or to take more time to evaluate the latest staff proposal, including the MDI program, and risk running out the one-year clock on finishing the rulemaking. Or, alternatively, take a path that straddles both options, and allows board members to retain authority over the design of the MDI. Despite the revisions to the resolution, four board members voted against the proposal, citing public concerns raised by speakers on Thursday about the MDI program and the limited ability to influence the final amendment package. "I don't think we should be backed into a corner and expected to vote ‘yes' on something we have serious reservations about and lots of unanswered questions about," board member Lynda Hopkins, a Sonoma County supervisor, said before casting her "no" vote. Ultimately, the measure passed not because of overwhelming support for the amendments, but due to concerns that further delays could undermine market certainty and disrupt industry planning if the agency had to start over. "I am going to support moving forward," said board member John Balmes, a professor of medicine at the University of California, San Francisco. "As much as I'd like to dump MDI — and, if it were up to me, I would." By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US base oil exports down by 16pc in March: EIA
US base oil exports down by 16pc in March: EIA
Houston, 29 May (Argus) — US base oil exports declined by 16pc in March from year-earlier levels, according to Energy Information Administration (EIA) data. They tumbled by 21pc from February totals. Many US exports were curbed following the start of the US-Iran war because more refiners were focused on supplying term customers and held onto any surplus. Base oil exports to Mexico fell by 46pc in March from year-earlier levels. They ticked down by 2.1pc from February totals. US exports to Brazil fell by 27pc from March 2025 and by 24pc from February 2026 totals. Many US producers prioritized export opportunities to Europe and West coast South America because of term obligations and more attractive pricing. US exports to Ecuador, Chile and Peru — a proxy for west coast South America demand — rose by 21pc in March from year-earlier levels and by 37pc from month-earlier totals. Belgium, France and the Netherlands — a proxy for European demand — increased by 8.8pc in March from year-earlier levels. March totals also more than doubled from February levels. Demand in Europe most likely increased due to de facto closure of the strait of Hormuz which caused buyers to look to the US for alternative volumes in the second half of March. Exports to India spiked to 7,230 b/d in March from 71 b/d in February. By Karly Lamm US base oil exports b/d Country Mar-26 m-o-m±% y-o-y±% Mexico 28,900 -2.1 -46 Brazil 10,390 -24 -27 Belgium 9,940 116 -1.3 France 1,900 61 136 The Netherlands 70 -10 0 India 7,230 10,016 11 Ecuador 1,770 -24 0 Peru 3,480 122 83 Chile 4,250 40 0 Total 110,650 21 -16 *Total includes all countries, not just those listed Energy Information Administraion (EIA) Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.