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News03/13/24Cop 28 text to inform upcoming climate plans: DenmarkCop 28 text to inform upcoming climate plans: DenmarkEdinburgh, 13 March (Argus) — Denmark's climate minister Dan Jorgensen told FT climate summit delegates that there is a risk that decisions taken during the UN Cop 28 climate summit in Dubai could be treated as a menu, but warned that they will have to be at the heart of countries' new climate plans due in 2025. Cop 28 delivered at the end of last year an energy package centred on transitioning away from fossil fuels and tripling renewable capacity by 2030, which was hailed as an "historic" consensus. Saudi energy minister Prince Abdulaziz bin Salman said in January during the Future Minerals Forum that the eight points under the energy section of the text were "choices", calling it an "a la carte menu". The Cop 28 text was the conclusion of the UN Framework Convention on Climate Change's (UNFCCC) first global stocktake — a five-yearly undertaking measuring progress against the goals of the Paris Agreement. Prince Abdulaziz had said that the menu, referring to the Cop 28 text, "was something we were willing to agree to because this is something we are doing", including transitioning away from fossil fuels domestically. But he also said that the extra crude from lower domestic consumption would be exported, asking developed countries that are pushing to phase down fossil fuels production to take the lead. Jorgensen said today that countries' upcoming Nationally Determined Contributions (NDCs) — emission reduction plans — "have to be informed by the decisions in Dubai and will be measured on their meaning". He said that Cop decisions often face criticism, citing the Paris Agreement which was described as "not being legally binding enough" or weak, as only voluntary. "But I don't think many people would argue today that the Paris agreement hasn't had an influence. It sets the norm," Jorgensen added. The Paris accord seeks to limit global warming to "well below" 2°C above the pre-industrial average and preferably to 1.5°C. Denmark, the largest oil producer in the EU, decided to end all new oil and gas extraction in the country by 2050, although the country faced some criticism after authorising a gas output increase from already licensed fields to curb Copenhagen's reliance on Russian supplies . Asked whether countries such as the UAE, China and Saudi Arabia, which are not considered as developed countries under the UNFCCC framework should contribute to the new climate finance goal set to replace the $100bn/yr by 2020 commitment, Jorgensen said: "If we look at the biggest emitters in the world many of them are categorised as developing countries and they are also going through a phase of steep economic growth, so it would be fair if they were to contribute". He pointed out that the UAE was the first contributor of the new loss and damage fund — to tackle the unavoidable and irreversible effects of climate change — created during Cop 28. "That was a completely new thing and hopefully it can pave the way for more of those sources of donations," he said. The new climate finance goal will be under discussion at the next UN climate talks, which will take place in Azerbaijan in November. Cop 29 president-designate Mukhtar Babayev said previously that he is seeking quantifiable targets from developed countries . By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.Read more
NewsBolivia imports its first crude cargo ever03/12/24News03/12/24Bolivia imports its first crude cargo everHouston, 12 March (Argus) — Bolivian state-owned YPFB imported its first ever crude cargo on 7 March in an effort to increase domestic fuel production and reduce spending on imports. The vessel arrived with 150,000 bl in Arica, Chile, at the Sica Sica terminal, which is managed by YPFB. The crude will be moved to storage tanks in Arica and further transported to YPFB's refineries in landlocked Bolivia for processing. It is the first of eight crude-laden tankers expected to arrive this year for a total of 1.6mn bl. A second vessel will deliver crude in April and the remaining six will arrive by the end of the year. "It is a saving for the state because we will spend $240mn less on fuel imports and it will allow YPFB Refining greater production of diesel, gasoline, LPG and other byproducts," YPFB president Armin Dorgathen Tapia said. Processing imported crude guarantees supplies of gasoline and diesel for Bolivia, Tapia said. YPFB's goal is to become less reliant on fuel imports as demand for products increases and outstrips shrinking domestic crude supplies. YPFB purchased the crude through Botrading. The vessel departed Argentina and although the crude origin is unknown, market participants in Argentina suggest it could be Hidra crude. Hidra is a light sweet grade produced by PanAmerican Energy (PAE), Total and Wintershall in Argentina's southern Austral Basin and is transported from the Rio Cullen port. By Giovann Rosales Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.NewsCanadian heavies rise on TMX fill, refining demand03/12/24News03/12/24Canadian heavies rise on TMX fill, refining demandHouston, 12 March (Argus) — Heavy sour Canadian crude in Hardisty, Alberta, has narrowed its discount to Nymex crude futures on demand to fill a new pipeline and the anticipated restart of a major Indiana refinery. The Western Canadian Select (WCS) Hardisty assessment narrowed to a $15.23/bl discount to the CMA Nymex WTI on 11 March, the smallest discount since August last year. So far in the April Canadian trade cycle, WCS Hardisty has averaged around a $15.90/bl discount to the CMA Nymex, compared with an average of $19.17/bl below the basis in the March trade cycle. Liquidity peaks during the roughly two-week period that runs from the first calendar day prior to the month of delivery until nominations are due for Enbridge's 3mn b/d mainline system, or 1-14 March in the current cycle. Demand is rising as the operator of Canada's 590,000 b/d Trans Mountain Expansion (TMX) pipeline has called for 2.1mn bl of crude for April to fill the new line, with another 2.1mn bl requested for May, according to Canadian producer MEG Energy, a committed shipper on TMX. Additionally, traders expect downstream demand to recover in April as BP's 435,000 b/d Whiting, Indiana, refinery heads towards a restart following a major power outage on 1 February. BP said on 4 March that it is continuing a "phased restart" of the plant. Whiting is a major taker of heavy crude from Canada. The refinery imported 230,000 b/d of such quality crude on average in January-July last year, according to the EIA. Heavy crude prices in the US have been steadier relative to crude futures. The WCS Cushing assessment is so far averaging around a $7.20/bl discount to the CMA Nymex for April delivery, or about 15¢/bl stronger than March trade. By Scott Phillips Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.NewsHaiti's fuel supplies crippled by political unrest03/12/24News03/12/24Haiti's fuel supplies crippled by political unrestKingston, 12 March (Argus) — Fuel supplies in Haiti have reached "a dangerously low level" because of continuing political unrest and violence in the Caribbean country, petrol station owners' federation Anapross told Argus . Many retail stations have run out of supplies and others have been looted of what is available, and the situation is fueling a growing black market, it said. The unrest has also disrupted feedstock supplies to the country's power sector, increasing the frequency and length of blackouts that have traditionally plagued the country. Both independent power producers that burn diesel and state-owned power utility EdH that backs up its hydropower plants with oil-fired generators have been hurt, Anapross said. The unrest has also interrupted access to the 43mn US gallon Varreux fuel terminal through which about 70pc of the country's supplies are imported, it said. Haiti produces no crude or natural gas and has no refinery. The country imports products from the US to meet demand of 60,000 b/d, according to official figures. The unrest is led by the G9 gang led by Jimmy "Barbecue" Cherizier, who has been demanding the resignation of prime minister Ariel Henry. Henry resigned yesterday, Guyana's president Irfaan Ali told a summit of regional trade group Caricom in Kingston that discussed the situation in Haiti. A transitional presidential council has been established which will be responsible for naming an interim prime minister ahead of a national election to determine a new head of government, Ali said. "But there is no guarantee that Henry's resignation will bring an early end to the violence and a resolution to the country's unrest," a Caribbean diplomat who left Haiti last week because of the violence told Argus today. "There is no indication that the gangs that are in charge in many parts of the country will quietly retire," the source said. "We expect further demands from them." The fuel shortage has also led to increased smuggling from the Dominican Republic that shares a border with Haiti, the Dominican energy ministry told Argus . Border crossing are being policed "as the government is concerned that the smuggling could lead to shortages and higher prices from a black market here," it said. "But it is difficult to eliminate this problem." By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
