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Brazil court halts Renovabio sanctions
Brazil court halts Renovabio sanctions
Sao Paulo, 26 August (Argus) — A federal court in Sao Paulo has issued a preliminary ruling suspending sanctions imposed by the hydrocarbons regulator ANP under Brazil's national biofuels program Renovabio. The decision by the 3rd Regional Federal Court (TRF-3), issued on 21 August, blocks enforcement actions such as fines, license suspensions and the publication of non-compliance lists based on the so-called "new Cbio law," approved last year. The ruling highlights structural flaws in the Cbio decarbonization credit market, including speculative behavior and a lack of transparency in Cbio availability. It also questions the participation of non-obligated entities in Cbio trading and calls for the ANP to prove sufficient credit supply for obligated distributors. Cbio prices were falling even before the ruling was released due to a combination of factors, including a large supply of credits, low demand from distributors, and market uncertainty stemming from judicial and regulatory developments. Some market participants were aware the decision was coming in the last week, which contributed to the price downfall. The court ordered the ANP to halt sanctions and requested that the Brazilian stock exchange B3 provide data on Cbio transactions involving non-obligated parties. The decision adds to growing legal scrutiny of Renovabio's implementation and its impact on fuel distributors. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Australia’s Santos brings forward Alaska’s Pikka oil
Australia’s Santos brings forward Alaska’s Pikka oil
Sydney, 25 August (Argus) — Australian independent Santos' 80,000 b/d Pikka oil field in Alaska's North Slope region is now 91pc complete and will come on line in January-March 2026, the company said, ahead of the initial January-June target. The company has completed pipeline installation during its second winter program and drilled 21 wells with results in line with expectations, Santos said in its half-year results to 30 June released on 25 August. Santos in April announced the pipelay had been completed one year ahead of schedule . The 51pc-owned Pikka project is Santos' first in the US state of Alaska. Spanish energy firm Repsol owns the remaining 49pc. Santos is also on track for first gas from the Barossa project located in Australia's Timor Sea in the July-September quarter, backfilling its operated 3.7mn t/yr Darwin LNG terminal. Sanots' profit was 22pc lower on the year in the first half of 2025 because gas prices weighed on revenues ( see table ). Product sales were down by 5pc on the year. The firm in July reduced its 2025 guidance to 246,600-260,300 b/d of oil equivalent (boe) from 246,600-265,800 boe/d due to flooding in the onshore Cooper basin of South Australia. Santos' output was 44.1mn boe (244,000 boe/d) for the six months to 30 June, up slightly from 44mn boe (242,000 boe/d) a year earlier. Unit production cost guidance for 2025 narrowed to $7-7.40/boe from $7-7.50/boe. By Tom Major Santos financial results $mn 1H 2025 1H 2024 y-o-y % ± Total product sales 2,579 2,711 -5 Gas, ethane, LNG sales 2,170 2,222 -2 Underlying profit 508 654 -22 Unit production cost ($/boe) 7 8 -8 — Santos Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US exempts small refiners from biofuel quotas: Update
US exempts small refiners from biofuel quotas: Update
Updates throughout New York, 22 August (Argus) — The US Environmental Protection Agency (EPA) today fully or partially granted the majority of small refiners' requests for waivers from federal biofuel blend mandates, while limiting the windfall for newly exempt refiners. The agency fully accepted 63 petitions, offered 50pc relief in response to 77 petitions, denied 28 requests, and determined that 7 were ineligible. Program data shows 13 petitions still pending, mostly from the 2025 compliance year. The Renewable Fuel Standard requires oil refiners and importers to blend biofuels into the conventional fuel supply or buy Renewable Identification Number (RIN) credits from those that do. Refiners that process no more than 75,000 b/d can request hardship exemptions from the mandates, which they have long cast as financially onerous. President Donald Trump's administration had an unprecedented backlog of requests to decide after courts took issue with former president Joe Biden's reasoning for mass denials. While the number of exemptions frustrated biofuel and farm advocates, small refiners that lobbied officials for retroactive compensation were denied more sweeping relief. EPA said on Friday that it would return already-surrendered RINs to newly exempt companies but that only credits from 2023 and later could be used for future compliance. Returned older credits, effectively worthless, "are not expected to impact demand for biofuels", the agency said. Because the older credits have no value, EPA does not plan to force oil companies to blend more biofuels to account for those exemptions. But EPA signaled a different approach for more recent years, saying that it planned to account for actual exemptions in 2023 and 2024 and expected exemptions in 2025 when setting future biofuel quotas. The agency said it would "in the near future" submit a proposal to the White House Office of Management and Budget that will clarify its plan. EPA had already signaled that it would estimate future exemptions when setting biofuel mandates, but accounting for actual exemptions from active compliance years in addition would be a major shift that could increase costs for larger oil companies, if implemented. Program data show that affected small refiners have to submit about 1.4bn fewer RINs across 2023 and 2024 following Friday's exemptions — but companies without exemptions could have to make up that lost volume in the future depending on EPA's pending proposal. The total mandates in those years were 20.9bn RINs and 21.5bn RINs respectively. EPA said Friday it aimed to ensure stability in the often-volatile RIN market, noting that replacing expired credits with active ones would have flooded the market with 3bn more RINs. Current-year D6 ethanol credits rose 4pc and D4 biomass-based diesel credits rose 3pc on Friday, as traders saw EPA's solution to older-vintage credits as limiting supply increases. Biofuel groups, while frustrated that most eligible refiners won at least some relief, expressed cautious optimism about EPA's plan. Renewable Fuels Association president Geoff Cooper said Friday's exemptions "should have little or no effect on current and future levels of renewable fuel production and use". But companies will eagerly await more details about EPA's proposal to account for 2023 and 2024 waivers, which could come as soon as next week. EPA has signaled that it wants to finalize new biofuel mandates before November, but that timeline appears ambitious if the agency has to first take comment on a proposal that could drastically shift its formula for setting those mandates. Clean Fuels Alliance America, which represents biomass-based diesel producers, said that the new plan "will delay the finalization of the 2026 and 2027 rule". In a draft regulation earlier this year, EPA proposed record-high biofuel blending for those years. Court fights await Legal challenges are virtually guaranteed. The agency said that its decisions had "nationwide scope or effect" — an effort to steer litigation toward one federal circuit court rather than a hodgepodge of regional courts that might issue conflicting rulings. Small refiners denied full relief are likely to challenge the Trump administration's reasoning. EPA said it almost entirely relied on recommendations from the Department of Energy (DOE), which scores individual applications for "disproportionate economic hardship" and considers factors like a refiner's output of diesel compared to gasoline and its local market's acceptance of renewables. While EPA is legally required to consult with DOE, the new policy of largely deferring to that department's recommendations would be a major change from recent years. A 2022 study from the US Government Accountability Office concluded that DOE's methodology was "critically flawed", and EPA officials at the time told the watchdog agency that DOE's analysis no longer provided useful information. Accepting DOE scores appears to have led to some counterintuitive results, though specific details from applications are kept confidential. Par Pacific's 18,000 b/d Wyoming refinery earned full exemptions for three straight years before losing relief the next. Ergon's 23,000 b/d facility in West Virginia won partial exemptions for 2021 and 2024, but not the years in between. And EPA offered at least some relief to Suncor's 36,000 b/d Commerce City East refinery over six straight years — while denying any relief for four of those years to Suncor's 67,000 b/d Commerce City West refinery at the same Colorado site. "Not a lot of rhyme or reason to it", a refining source told Argus . The unpredictability of the exemptions — with essentially all refiners receiving different answers depending on the year — could also make it hard for EPA to estimate future waivers when finalizing biofuel quotas. The agency has received some exemption petitions for 2025 but has yet to decide any for that year or beyond. Large oil refiners will also hotly oppose any effort from EPA to raise their biofuel blending to compensate for their smaller competitors winning exemptions. While some oil companies joined with farm groups this year to push for higher biofuel mandates, the industry has more recently expressed frustration with Trump-backed biofuel policies that they say are boosting feedstock and fuel costs. "It is inexplicable that EPA is even considering adding more mandated biofuels on top of the largest and most expensive [Renewable Fuel Standard] mandate ever proposed by reallocating exempted volumes", the American Fuel and Petrochemical Manufacturers said. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Incentive to book German Rehden gas storage decreases
Incentive to book German Rehden gas storage decreases
London, 22 August (Argus) — The financial incentive to book capacity at the largest German gas storage site Rehden for the remainder of this storage year continues to decrease. Available injection capacity at Sefe's Rehden storage site in combination with maintenance in October have rendered bookings at the storage site unattractive, with a worse outlook each day that passes without additional bookings. Sefe has offered a doubled injection rate of 1.75 GWh/d since 16 July from 882 MWh/d in previous auctions. As of today, the firm had only sold 13.96TWh of capacity out of 44.68TWh of technical capacity. As a result of the increased injection rate on offer, Sefe can only sell 24.6TWh or 55pc of the site's technical capacity. The boosted injection rate did contribute to further bookings at first, but has not done so in recent auctions. It would take 64 days to completely fill a bundle, and given maintenance on 6-24 October at the storage site, if firms were to book capacity today and inject at the increased firm injection rate from Saturday, it would only fill the bundle by 8 November. Factoring in injection days in each month, the average THE spread to the first-quarter 2026 contract at the last close would be -€1.35/MWh. Market participants have indicated that a €1.80-2/MWh spread is needed for them to profitably book and make use of Rehden space. And every day that capacity is not booked brings the required injection period further into November, reducing the incentive. The THE November first-quarter 2026 spread is narrower than that of earlier months, closing at -€0.305/MWh at the last close, much tighter than the THE balance-of-August first-quarter 2026 spread of -€1.87/MWh. But if Sefe were to offer additional injection capacity, this would improve the incentive to book space at the site. Sefe could offer 3.11 GWh/d of injection capacity — which would further reduce the storage capacity it can offer — and still fill the site to 45pc of capacity, in line with Germany's national storage law. This would allow firms to fill a bundle in 36 days, before the start of October maintenance. If a firm were to book capacity today and inject at this rate from Saturday, it would fill the storage space by 28 September. Considering these injection days, the THE spread to the first-quarter 2026 contract at the last close would be -€1.81/MWh, bringing it within the profitable margin. Other storage sites currently more attractive Storage capacity at other storage sites in Germany is currently more attractive to book than at Rehden, when only considering injection rates. Space at the Etzel ESE (Uniper Energy Storage), Epe-L (RWE), Nuttermoor H-5 (EWE), Jemgum H (EWE) and Nuttermoor H-4 (EWE) storage sites is currently more attractive to book than Rehden based on their firm injection rates ( see table ). All these storage sites, where a total of 7.32TWh of capacity is available, currently offer higher firm injection rates per GWh of capacity than Rehden. This does not take into account additional or interruptible injection capacity that might be on offer at the sites. That said, EWE was unable to sell any capacity at Nuttermoor H-4 in an auction on Thursday, the firm told Argus today. The firm had offered 1.36TWh of gas for the remainder of the storage year. By Lucas Waelbroeck Boix and Martin Senior Injection rate per GWh of storage in Germany* TWh Storage site Booked capacity Available capacity Technical capacity Firm injection rate per day per GWh of storage Etzel ESE (Uniper Energy Storage) 8.10 2.97 11.07 0.039 Epe-L (RWE) 1.81 0.31 2.12 0.023 Nuttermoor H-5 0.78 0.48 1.26 0.020 Jemgum H (EWE) 2.99 0.41 3.39 0.016 Nuttermoor H4 0.50 3.15 3.65 0.016 Rehden** 13.96 30.72 44.68 0.016 Stassfurt 5.36 0.56 5.92 0.015 Etzel Erdgas Lager EGL 9.52 1.07 10.59 0.015 EWE H-Gas Zone 3.34 0.81 4.15 0.013 Wolfersberg 0.00 4.13 4.13 0.009 Inzenham-West 1.15 3.65 4.80 0.009 Frankenthal 0.23 0.74 0.97 0.007 Breitbrunn 6.80 4.72 11.52 0.006 *only includes storage site with more than 200GWh available **Rehden injection rate corresponds to the most recent on offer in auctions — Respective storage firms' websites Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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