Tag Archives: Energy (Heritage)

Petrobras Brasil, the government approved the rules for a potential Sepia, Atapu sale | Instant News


FILE PHOTO: The Petrobras logo is seen in front of the company’s headquarters in Sao Paulo 23 April 2015. REUTERS / Paulo Whitaker / File Photo

RIO DE JANEIRO (Reuters) – The board of Brazil’s state-owned oil company Petrobras has agreed a deal with the government on compensation to be paid to Petrobras in the event of an auction of reserves in two offshore oil regions, the company said. on Friday.

Petroleo Brasileiro SA, the company’s official title, will receive $ 3.253 billion if the reserves from the Atapu field are auctioned off, and $ 3.2 billion if the reserves from Sepia are sold. Payments will be made for roughly a decade.

The government tried and failed to auction off reserves in the offshore Atapu and Sepia oil blocks in 2019, although officials want to try again. Since Petrobras has carried out exploration and development work in the area, the company is entitled to compensation.

Reporting by Gram Slattery; Edited by Leslie Adler and Aurora Ellis

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Copagaz Brasil launches imports of gas for cooking from TGS Argentina | Instant News


April 7 (Reuters) – Copagaz has signed an agreement to become Brazil’s first private distributor to import cooking gas, or liquefied petroleum gas (LPG), by boat in a deal with Argentina’s Transportadora de Gas del Sur (TGS), an executive told Reuters. .

The move reflects a shift in Brazil’s fuel market as state-controlled company Petroleo Brasileiro SA, known as Petrobras, sells assets and reduces its dominance in the country.

Copagaz, Brazil’s biggest cooking gas distributor, will buy 7,600 tonnes of LPG in three cargoes for delivery between April 8 and May 1 at the Tergasul terminal in the state of Rio Grande do Sul, said the company’s vice president of operations, Agnaldo Inojosa.

In 2019, Copagaz was the first private company to import cooking gas from Bolívia, using trucks. Previously, Petrobras, which will sell eight oil refineries, was the only Brazilian company that has so far imported petroleum cargoes. (Reporting by Marta Nogueira, written by Sabrina Valle Editing by Marguerita Choy)

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Germany allows a carbon tax exemption for industry, with strings | Instant News


FRANKFURT (Reuters) – Germany’s cabinet on Wednesday issued regulations to exempt part of a new emission tax for industry, which will collectively save companies 270 million euros ($ 317 million) this year and 330 million euros by 2022.

The bill allows companies operating internationally to be compensated when paying taxes imposed since January 1 on greenhouse gas emissions by German suppliers or consumers of heating and transportation fuel.

Under the terms, companies that benefit from the exemption must make the most of the savings generated to decarbonize their operations.

Officials say the bill is based on recognition that the global focus of industrial groups such as steel, chemicals or carmakers makes it difficult for them to raise prices to recover taxes without losing their competitiveness against foreign rivals.

“It is important that Germany remains an attractive location for industry,” said Environment Minister Svenja Schulze.

The level of individual compensation under the Carbon Leakage Bill is assessed according to the emission intensity of each company.

The tax sets a price equivalent to carbon dioxide (CO2) emissions for consumption of gasoline, diesel, heating oil, coal and natural gas, sectors not previously included in the European Emissions Trading Scheme (ETS).

By collecting the initial equivalent of 25 euros per tonne of CO2, the government expects to collect 7.4 billion euros in taxes this year. Then it will increase every year to reach 55 euros per tonne by 2025, after which pollution permits will be auctioned off.

The money will be used to limit renewable energy support costs imposed on retail electricity, compensate passengers for increased travel costs, and offset industry losses.

The bill will be submitted to parliament for approval and must pass the European Commission’s scrutiny regarding the prevention of state aid.

($ 1 = 0.8518 euros)

Reporting by Vera Eckert and Markus Wacket; Edited by Jan Harvey

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Germany’s energy drive has been criticized for cost, risk | Instant News


* Federal audit office report has not been published

* Germany’s ‘Energiewende’ transition among the most ambitious in Europe

* Europe’s highest household electricity bill

* Warns of risk of shortages after reactor shuts down

* The network will need about 85 billion euros by 2030

FRANKFURT, March 30 (Reuters) – Germany’s energy transition is proving too costly and an underestimating risk to supply, according to a federal audit office report seen by Reuters.

Reforms are needed for state taxes and fees to fix a system that has left Germany with the highest retail electricity prices in Europe and at risk of a grid outage, the unpublished report said.

Chancellor Angela Merkel’s decision to abandon nuclear power in 2022 following Japan’s Fukushima nuclear disaster in 2011 has forced the sector to radically restructure.

The audit office’s report is a warning about the state of that transition and comes as Germany prepares to go to the polls in September.

Economy Minister Peter Altmaier likes to underline Germany’s role in shifting to green energy under his leadership.

“There is a risk of losing Germany’s competitiveness and acceptance of the energy transition,” the report said.

Germany’s energy-intensive industries, including such as steelmaker Thyssenkrupp and chemicals company BASF, enjoy partial exemptions from part of the costs of supporting wind and solar power rollouts.

However, more than 50% of the household electricity bill consists of taxes and fees, most of which support the transition from coal, gas and nuclear power.

This makes them 43% more expensive than the 27 EU country average.

THE RISK OF THE APPROACH

The audit office also warned of looming energy shortages as utilities prepare to shut down their last nuclear reactor and the government pushes for a withdrawal from coal.

There could be a 4.5 gigawatt (GW) shortage, the equivalent of 10 large coal-fired power plants, on the grid between 2022 and 2025, the audit office reported.

The report said the economy ministry’s approach had been “overly optimistic and (the assumptions) partly implausible” and had tip-to-tip tackling worst-case scenarios, a view echoed by network operators.

The government’s strategy calls for increasing cross-border flows to spread the risk of local and temporary supplies, but its neighbors are doing the same.

Network investment is estimated at 85 billion euros ($ 99.77 billion) by 2030, being refinanced through publicly paid network fees.

The government’s strategy calls for increasing cross-border flows to spread the risk of local and temporary supplies, but its neighbors are doing the same.

By certified international standards, German network disruption is currently minimal.

Network investment is estimated at 85 billion euros ($ 99.77 billion) by 2030, being refinanced through publicly paid network fees.

A spokesman said the economy ministry had contributed to the audit office’s report and was studying the final version.

$ 1 = 0.8519 euros Reporting by Markus Wacket, written by Vera Eckert, editing by Jason Neely

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Column: Resource-rich Australia shows the strangeness of any super commodity cycle | Instant News


LAUNCESTON, Australia (Reuters) – For those looking for evidence of a new commodity supercycle, and for those skeptical of a sustainable resource boom, Australian government forecasters have covered it.

An autonomous truck prepares to load iron ore at Fortescue Metals Group (FMG) Chichester Hub Australia, which includes the Christmas Creek iron ore mine, in the Pilbara region, southeast of the coastal city of Port Hedland in Western Australia, 29 November 2018. REUTERS / Melanie Burton

The government’s latest Quarterly Resources and Energy Report, released on Monday, describes how some commodities surged during last year’s coronavirus pandemic, as well as how the gains were not comprehensive and may not be easily sustained.

The headline that caught the media’s attention was that the country’s resource and energy exports would hit a record A $ 296 billion ($ 226 billion) in the fiscal year to June 30, 2021.

Australia is the world’s largest exporter of iron ore, liquefied natural gas (LNG) and coking coal, which is used to make steel.

Indonesia ranks second behind Indonesia for thermal coal and third in copper ore shipments, and is a major producer of aluminum and alumina, the raw materials used to make refined metals.

Australia is also the third largest gold producer in the world and the largest net exporter of precious metals, and is a major supplier of battery metals such as nickel and lithium.

The outstanding performance for the country’s resource sector this fiscal year was driven largely by the top iron ore exports, which were estimated at A $ 136 billion, or just under half, of the total export value, according to a report compiled by the Office. Chief Economist of the Ministry of Industry, Science, Energy and Resources.

This is up from the A $ 104 billion iron ore exports in fiscal 2019/20, which was achieved at higher volumes (up 4%) and prices (up 41%).

The massive boom in iron ore revenue is largely a story fabricated in China, the world’s largest importer of steel spent on boosting its economy after being hit by the lockdown imposed to stop the spread of COVID-19.

The Chinese impact can be seen in several other Australian commodities, with copper export revenues up 20% to A $ 12 billion despite volumes shipped slightly lower.

However, it should be noted that apart from iron ore and copper, only the export value of gold increased in 2020/21, to A $ 29 billion from A $ 25 billion.

Australia’s other major resource and energy exports have declined, including LNG, crude oil, alumina, aluminum, zinc, lithium and both types of coal.

Lower prices for most of the fiscal year were largely to blame, although these have started to recover over the past few months.

SUPERCYCLE, WHAT SUPERCYCLE?

Much of the commodity super cycle story is built around high demand for resources from China, coupled with a synchronous boost from many other parts of the world as countries act to increase growth through infrastructure spending.

There are also expectations that supply for key commodities will struggle to keep pace, given weak investment spending by producers in response to sharp falls in prices in the early stages of the pandemic.

The Australian government report lends credibility to the demand side of the supercycle vision, but only for the commodities most exposed to China’s industrial strengths, namely iron ore and copper.

While others, including battery metals, are also showing signs of recovery, energy products have been underpinned by temporary factors, such as a reduction in producer production in the case of crude oil and a cold northern winter for LNG.

Where the report becomes more interesting is in its long-term view, which doesn’t see much of a demand-driven super cycle, with Australian energy resources and exports expected to rise to A $ 321.1 billion by 2025/26, a growth rate. a combined annual rate of only 1.7%.

It’s going to be a solid, unspectacular result, albeit far from being a supercycle story.

Digging into the breakdown shows that the commodity reports are expected to be most correlated with the energy transition, with export revenues from lithium expected to surge by about 440% from the current fiscal year to A $ 5.4 billion in 2025/26, while nickel will nearly double fold. to A $ 6.5 billion, and copper up 33% to A $ 16 billion.

In contrast, iron ore, this year’s star to the end of June, is expected to fade by then to A $ 104 billion – the same level as in 2019/20 – while LNG will remain relatively stable and both coal values ​​will decline. .

Overall, the report points out two things, first that the evidence for the emerging commodity supercycle is somewhat mixed, and second that while some commodities are likely to perform well in the coming years, profits will not extend to all.

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