Clearance of goods from customs to be accelerated

TEHRAN – The Iranian market regulation headquarters has approved six new directives aiming to enhance the clearance of goods at the country’s customs.

As reported by IRIB, the mentioned directives cover a variety of areas including the value of the goods, weight tolerance, abandoned goods, banned goods, and foreign transit.

Based on the mentioned directives, the Ministry of Industry, Mining and Trade, the Islamic Republic of Iran Customs Administration (IRICA), and the Central Bank of Iran (CBI) are to accept a weight tolerance of 1.5 percent for essential commodities that are imported in bulk or in containers; while for other goods, including basic goods, a maximum of three percent of weight tolerance is acceptable and should be considered as a criterion.

Also, to prevent the deposition of goods in special economic zones and customs, the IRICA is given the authority to take the necessary actions to clear basic and essential goods for transit, without requiring the owners to place order registration.

The issue of abandonment of basic goods in the country’s customs was the subject of another directive, based on which a meeting was set to be scheduled for proposing executive solutions to the mentioned headquarters.

Considering some IRICA reports regarding the decay of some banned commodity items in the country’s ports and customs, it was also decided that a meeting should be held with the presence of CBI, IRICA, and the market regulation headquarter representatives to make the necessary decisions in this regard.

Earlier in January, Iranian Industry, Mining, and Trade Minister Alireza Razm-Hosseini had said that his ministry is going to take necessary measures to accelerate the clearance of goods at customs to help regulate domestic markets.

“We will follow up on the necessary approvals and directives to reduce the deposit of goods at customs and to accelerate the clearance processes,” Razm-Hosseini said on the sidelines of a market regulation headquarters’ meeting.

Source: https://www.tehrantimes.com/news/458143/Clearance-of-goods-from-customs-to-be-accelerated

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The future of LNG, post-pandemic

As energy consumption rises, particularly in Asia, and the world shifts towards cleaner fuels, global demand for liquefied natural gas (LNG) is expected to double to 700 MMt by 2040.1 However, despite the belief that LNG will play a significant role in shaping a lower-carbon future, with around 80% of global energy demand growth forecast to be met by renewables and gas, there is no denying the impact that Covid-19 has had on the large-scale LNG sector.

Fig. 1. LNG carriers sit idle in port after significant demand disruption resulted in over 100 canceled U.S. cargoes, as prices for the fuel collapsed to record lows in Europe and Asia.

Fig. 1. LNG carriers sit idle in port after significant demand disruption resulted in over 100 canceled U.S. cargoes, as prices for the fuel collapsed to record lows in Europe and Asia.

So far this year, after demand fell in relation to the Covid-19 pandemic, LNG buyers around the world have cancelled more than 100 U.S. cargoes, as prices for the fuel collapsed to record lows in Europe and Asia. What’s more, there have only been orders for six LNG carriers (LNGCs) placed this year, Fig. 1. However, with the rate of cancellations on the decline and an increase in orders expected, it is prospected that the sector will emerge from the crisis in a healthier state than it was prior to the pandemic.

LNG FORECAST

As seen previously, the LNG industry is cyclical, and 2020 is likely to mark the lowest point of LNG in its current cycle. The industry is expected to come back strong, with forecasts predicting that LNG prices will rebound, and economic activity will begin to normalize.

LNG demand is set to increase incrementally into the future, which will help to stabilize excess supply across the market. Based on current estimations, global liquefaction capacity is set to see a near-70 Mtpa (95-Bcm) expansion in the period up to 2024, should all projects in the pipeline pan out as planned, including those in planning and pre-final investment decision (FID) phases.2

Key markets. Asia will remain the front-runner in the LNG market and with prices at such a low level, this will provide an opportunity for these markets to move away from more pollutive energy to more sustainable sources, such as LNG. In addition, the use of floating storage regasification units (FSRUs) will further decrease the barriers faced by emerging markets moving toward LNG, as well as reduce upfront costs and risks associated with onshore LNG developments, Fig. 2.

Fig. 2. FSRUs are a vital component for transiting and transferring LNG through oceanic channels.

Fig. 2. FSRUs are a vital component for transiting and transferring LNG through oceanic channels.

In addition, there has been a recent race for territory in the Caribbean, with a market starting to open up for smaller parcels of LNG to be distributed from larger hubs. The Atlantic basin has the potential to be fed from a number of sources, some pre-existing, and some quite novel.

The recent Exmar floating liquified natural gas (FLNG) project in Argentina, the New Fortress Energy projects, and now even LNG directly supplied from barges from the U.S., have the potential to provide LNG to the Caribbean islands, so long as the necessary infrastructure is available. In some cases, this can begin with containerized parcels, or direct LNG-produced ship-to-shore power infrastructure, until more permanent facilities are constructed.

This island distribution model not only works in the Caribbean, but in many other places globally where smaller-scale distribution networks can be leveraged off localized large-scale hubs. Japan has used this satellite model previously to distribute parcels of LNG based from a fixed FSU asset, and many projects in Asia have looked at implementing similar smaller-scale distribution, or power solution models.

It is clear that LNG will be around for a long time. However, in the not-too-distant future, the operation space may not be as it is currently, and it is feasible that the sheer quantity of new smaller-scale projects could overtake LNG’s large-scale project infrastructure.

LNG: The link-up. The quality of LNGC builds can vary from one designed simply to do the job it is commissioned for, and one which is designed for a lifetime extension. While the latter option may be more expensive, the plant is well-suited for use for conversion to FSU, FSRU or LNGC.

The safe, efficient transportation and transfer of LNG as a cargo has an enviable track record over its 40-plus-year history. To continue this, ports, terminals and vessels must take a smarter approach to interfaces between units in LNG transfer, which can have a huge impact on overall efficiency.

Fig. 3. Going forward, it’s imperative to upgrade the safety chain and emergency shutdown equipment during liquid transfer to ensure efficient, future-proofed operations.

Fig. 3. Going forward, it’s imperative to upgrade the safety chain and emergency shutdown equipment during liquid transfer to ensure efficient, future-proofed operations.

When managing FSRU operations, the ship-to-shore interfaces for gas output, and interfaces between LNGC and FSRU for liquid transfer, are mission-critical. The ship-shore link (SSL) is part of the emergency shutdown (ESD) and safety chain across this interface, carrying communications and data between ship and shore or floating assets, Fig. 3.

Next-generation SSLs accommodate these potential changes of use, so upgrading to this sort of model during a plant’s trading life not only makes the operation more streamlined, it also makes the transition to any future mode of operation a lot simpler.

Case study: Upgrade to future-proof. During 2020, an LNG carrier owned by a leading LNG cargo transportation company reached a mandatory drydock and refit period, which became an opportunity to extend the useful life of the vessel and its critical safety systems. The vessel’s original, conventional SSL system required an upgrade solution.

The replacement SSL is part of Trelleborg’s SmartPort portfolio, which powers the critical interface between ship and port, on land and sea. It connects port operations, allowing operators to analyze performance and use data to improve decision-making. The system integrates assets like fenders, mooring equipment, ship performance monitoring, and navigation systems, underpinned by cloud technologies.

In order for the vessel’s SSL system to be supported well into the future, the most significant aspect of the upgrade was to the SSL’s cabinet, typically installed in the ship’s control room. A new SSL cabinet replaced all the electronic components and associated hardware, providing new operator interfaces and the latest software. It mimicked the original installation to ensure the critical ESD path, telecommunications and mooring load monitoring functions were maintained. It is a platform that is capable of allowing simpler conversion to alternate trading modes, such as FSRU, FSU and FLNG.

The upgrade consisted of new electronic components that can support future replacements, repairs or spare parts, ensuring that it is future-proofed for continued support. The new components are smaller, creating space and enabling easier access for maintenance. It also allows for easy integration or combination of other systems.

The updated software featured refreshed operator interfaces that were familiar, yet improved. The design of the new system will create a baseline for future innovations, such as integrating it to a network that could provide the ability for live, remote assistance.

The other aspects of the upgrade included replacing components that had suffered heavy use and exposure to the harsh marine environment on the ship’s deck. This included ship-side connection boxes. The connectors housed within them connect the ship SSL system to the shore SSL system, when loading and unloading LNG cargo.

A cable passes across to the ship from the shore, and an operator on the deck physically manhandles the cable and plugs it in to the ship-side box. As LNG is a hazardous liquid and electric signals are passed through the area to enable communication, connectors have to be explosion-proof. This means that they are designed and built, so that if a spark is created by an electric signal, it cannot escape the connector in a potentially hazardous environment, causing ignition.

Additionally, repeated mating of connectors can wear out mating surfaces, degrading link quality, which can lead to intermittent or permanent fault or failure. Umbilical cables—shore projects, not on the ship—can be worn out by multiple winding and unwinding. Rough handling cannot only affect operability but compromise hazardous area safety.

New equivalents that ensure the SSL’s connection integrity without compromising any of the original compatibility, crucial for trading LNG vessels worldwide, easily replace hazardous area-certified connectors. By utilizing existing footprints and cabling, commissioning engineers, working closely with ship and yard staff, were able to complete the onboard installation within a matter of days, to ensure minimum impact during the drydock period. This vessel is one of a series that will be reaching significant drydock periods in the coming years, and this upgrade philosophy will be utilized again to ensure smooth replacement of the conventional SSL systems installed fleet-wide.

Source: https://www.worldoil.com/magazine/2021/january-2021/features/the-future-of-lng-post-pandemic

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Net zero regulation: Russia will replace all the U.S. oil Biden wants to ban

(Bloomberg) –U.S. President Joe Biden’s push to slash carbon emissions may inadvertently give a short-term boost to energy companies in one of the world’s biggest polluters.

Investors are betting that Russian oil giants such as Lukoil PJSC, Rosneft PJSC and Tatneft PJSC will rally as they mop up market share from rivals in the U.S. and and other countries seeking to switch to clean energy. An index of Russian energy stocks has returned 8% in dollar terms so far this year as crude prices rallied, compared with 2% for European oil and gas companies.

“Governments will likely limit global companies’ capacities to drill and extract resources,” said Eduard Kharin, who helps oversee $1 billion of assets at Alfa Capital Asset Management in Moscow. “The global majors are entering a new market, a new industry where there are a lot of unknowns, and the return on capital is unclear.”

Russia is the world’s fourth-biggest carbon emitter, but unlike other major polluters, the government doesn’t have a plan to transition away from fossil fuels. Instead, its state-owned energy companies benefit from some of the world’s lowest production costs and tax breaks, making them well placed to gain in the short term.

Global oil companies will stop investing in exploration and shift to clean energy, “but somebody still needs to produce oil,” said Ekaterina Iliouchenko, a money manager at Union Investment Privatfonds GmbH in Frankfurt, who increased exposure to Russian oil stocks last year. “That’ll be the Russians and Saudi Aramco.”

Rosneft and Lukoil have been among the best performers in Russia’s benchmark equity index so far this year, handing investors total returns of 15% and 12% in dollar terms. They’ve also outperformed an index of global energy stocks.

Of course, any benefits will be short lived if major economies are serious about speeding up the shift to clean energy to limit global warming. Biden is planning to set a net-zero target for the U.S. for 2050, meaning that 70% of the world economy will soon have made commitments to be carbon neutral by the middle of the century.

Many international funds are also coming under increasing pressure to cut companies that contribute to global warming from their portfolios. President Vladimir Putin was quizzed at an online investment forum late last year over how his country plans to cut emissions, and Swedbank Robur subsequently excluded oil and gas companies from its Russia and Eastern Europe funds.

Rosneft this month signed an agreement with BP Plc to cooperate to produce “low-carbon solutions,” but critics pointed out that the plan is at odds with the Russian company’s focus on expanding hydrocarbon production.

Climate Targets

Biden signed an executive order late last month suspending new oil and gas leases on public lands, directing federal agencies to purchase electric cars by the thousands and seeking to end fossil-fuel subsidies. The move could hurt U.S. shale producers, whose output helped put a cap on gains in global oil prices in recent years.

A raft of European oil companies have recently set climate targets, with BP stunning investors by promising to eliminate emissions from its operations by 2050.

“Investors are unlikely to be attracted to the shares of a company that intends to kill its current core business and invest its full future value into something of which it has little expertise or understanding,” analysts at Russia state bank VTB Capital wrote in a note in November.

Source: https://www.worldoil.com/news/2021/2/9/net-zero-regulation-russia-will-replace-all-the-us-oil-biden-wants-to-ban

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Iran petrochemical output capacity to reach 100m tons by 2022

Tehran, Feb 7, IRNA – Iranian Petroleum Minister Baijan Zanganeh said on Sunday that Iran’s petrochemical output capacity will reach 100 million tons a year by 2022.

Zanganeh made the remarks at the inauguration ceremony of the 14th Int’l Exhibit of Plastic Industry in Tehran.

He said that Iran’s petrochemical revenues would reach 25 billion dollars per year by 2022, adding that plans got underway to bring the amount to $37b by 2026 with the output capacity growth to around 133 million tons per year.

“As we had promised earlier, 19 petrochemical projects will come on stream in the second leap with a value of $11.4 billion with 25 million tons output capacity,” he said.

“Since the beginning of the current Iranian year which began on March 21, five petrochemical projects with an investment of $3 billion have been inaugurated by Iranian President Hassan Rouhani,” Zangeneh said

The International Exhibition of Plastics, Rubber, Machinery and Equipment opened on Sunday in presence of Iranian Petroleum Minister Bijan Zanganeh, heads of parliamentary commissions on energy, industries and mines and foreign envoys. The International ‘Iran Plast Exhibition’ is the biggest plastic industry event in the region.

Ambassadors of Russia, Syria, Tajikistan, Iraq, Armenia, Kenya, Bangladesh, Thailand, Afghanistan and Venezuela attended the event.

Some 67 companies in raw materials, 26 ones in machinery and equipment, 97 in products and 10 others in technical and engineering services participated in the exhibition.

Simultaneous with ‘Iran Plast’ a virtual exhibit is also underway for three weeks in presence of 73 domestic and 2 foreign companies.

The International Exhibition of Plastics, Rubber, Machinery and Equipment will work until February 10 in Tehran International Trade Fair.

Source: en.irna.ir/news/84220778

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TCCIMA, Iraqi embassy agree to form joint trade committee

TEHRAN – Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) and the Commercial Department of the Iraqi Embassy in Tehran have agreed on forming a joint trade committee in the near future, the TCCIMA portal reported.

As reported, the decision was made in a meeting between the TCCIMA Head Masoud Khansari and the Iraqi Ambassador to Tehran Nasir Abdul Mohsen Abdullah on Monday.

Based on the proposal made by the TCCIMA head during the meeting, this joint committee will examine and assess the problems and demands of the two countries’ businessmen and offer solutions accordingly to facilitate economic cooperation between the two sides.

Referring to the establishment of joint trade committees between the TCCIMA and some of the embassies of neighboring countries, including Pakistan, Afghanistan, and Armenia, Khansari stated that despite the high level of Iran’s economic relations with Iraq, there are still some problems and obstacles in the way of the two countries’ traders, and establishing a joint trade committee between the TCCIMA and the Iraqi embassy will improve the level of trade by addressing such problems.

Khansari also announced TCCIMA’s readiness to set up a desk in the Iraqi embassy to facilitate economic relations between the businessmen of the two countries and reminded that TCCIMA is also ready to establish a corresponding desk for the commercial department of the Iraqi embassy in TCCIMA.

The official also announced the Tehran chamber’s preparations for hosting an Iraqi trade delegation headed by the chairman of Baghdad Chamber of Commerce in the coming months.

“Issues and solutions for improving the economic relations between the two countries’ private sectors will be discussed in a meeting with the head of the Iraqi Chamber of Commerce,” he said.

“One of the suggestions of the Tehran chamber in this meeting will be to create a joint virtual exhibition to introduce and identify the production and economic capabilities of the two countries,” he added.

Abdullah for his part expressed the full readiness of his embassy to cooperate with TCCIMA in order to resolve the existing problems and obstacles in the way of economic and trade cooperation between the two countries.

“According to the agreement between the governments of the two countries for increasing the volume of trade between the two countries to $20 billion, the private sectors of the two countries can be the means for this leap.”

Source: https://www.tehrantimes.com/news/457915/TCCIMA-Iraqi-embassy-agree-to-form-joint-trade-committee

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Iran, Turkey negotiating to renew gas accord

Tehran, Feb 8, IRNA – The deputy petroleum minister for international and commercial affairs said on Monday that the present agreement for gas export to Turkey is valid until 2026 and the talks for extending the accord has started by National Iranian Gas Company.

Speaking in the 3rd Specialized Summit on Presenting Qeshm Free Zone Investment Opportunities in Oil and Energy Sectors, Amir Hossein Zamaninia said  that according to the studies of International Energy Forum (IEF), Iran will keep its 8th place among natural gas producers until 2040 and will still be the biggest reservoir in the world.

He said that the biggest growth rates in gas export belong to Qatar, Russia, the US, Australia, Canada, and Algeria, adding that Iran needs to make some changes in domestic use of natural gas.

Source: en.irna.ir/news/84222540

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Gilan Customs opens gate to Eurasia

Rasht, Feb 7, IRNA – Gilan Customs has always played the role of gateway to Europe and the artery connecting north to south of the country because of its strategic and geopolitical location throughout history.

The supervisor of Gilan Customs Administration Abolghasem Yousefinejad said that 24 percent of the weight and 37 percent of the total value of exports to Eurasian countries are through the customs of Gilan province, adding that Anzali Customs share of these exports is 26 percent by weight and 36 percent in dollar value.

Referring to the importance of Astara Customs, he noted that most customs procedures of the sea, rail, and land are carried out in this way and Astara Customs is a complete custom that requires more investment.

He reiterated that the export trend in Gilan Customs has been increasing in 2019 and the largest volume of exports has been done from Astara.

In 2016, Iran proposed to the Eurasian Economic Commission the creation of a free trade zone between Iran and the Union; a proposal that was welcomed by its members, and during two years of numerous negotiations and quantitative and qualitative evaluation of items and amount of preferential tariffs, the agreement was finally signed on May 17, 2018, in Astana, Kazakhstan.

The Eurasian Economic Union’s initial formation agreement was signed on May 29, 2014, between Russia, Belarus, and Kazakhstan, replacing the Eurasian Customs Union, and then Armenia and Kyrgyzstan joined afterward.

The union officially began its work on January 1, 2015. Eurasian member-states now has an area of ​​20 million square kilometers and a population of more than 183 million, accounting for 2.5 percent of the world’s population. On the day of implementation of the agreement, Russian President Vladimir Putin announced that “today we have created a powerful and attractive economic growth center”; a regional market that connects more than 180 million people.

The objectives of this economic union can be facilitated by trade, the creation of a common market in the CIS, the gradual elimination of customs rules within the Union, the establishment of a common foreign tariff among member-states, and the harmonization of customs formalities.

Joining the union has many economic advantages for Iran, including tariff discounts for Iranian exporters to the Eurasian Economic Union. Also, since the Eurasian Union increased its share of national currency trade payments by 70 percent by reducing the use of the dollar, there can be optimism on reducing the use of the dollar in trade, which is promising in the current sanctions situation for Iranian businessmen.

In recent years, Iran’s accession to the Eurasian Customs Economic Agreement helped develop the province’s trade and production, imported goods into the province’s foreign trade commodity basket so that achieving the $600 million target by the end of this year will be achieved in the export, import, revenue, unloading and loading sectors.

Source: en.irna.ir/news/84221179

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Keppel to end oil and gas rig building, turns focus to renewables

Keppel Corporation announced that amidst the global energy transition and major disruptions facing the oil industry, the Company will carry out a comprehensive transformation of its wholly-owned subsidiary, Keppel Offshore & Marine (Keppel O&M), to better align it to Keppel’s Vision 2030. This is part of Keppel’s strategic review of its offshore and marine (O&M) business, with the goal of creating a slimmer, and more competitive Keppel O&M that is well-placed to support the energy transition, even as Keppel continues to explore inorganic options.

Reflecting Keppel’s commitment to sustainability and combating climate change, Keppel O&M will exit the offshore rig building business, after completing the existing rigs under construction. In line with the Group’s more disciplined approach towards capital allocation, Keppel O&M will not undertake any new project requiring large upfront capex or without milestone payments. It will also progressively exit low value-adding repairs and other activities with low bottom line contribution, and focus on higher value-adding work.

Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel O&M said, “The share of renewables and new energy solutions in the global energy mix has been growing rapidly, driven by environmental concerns as well as technological advancements and the declining cost of renewables. Natural gas, as a transitional fuel, is also projected to overtake oil as the world’s largest energy source in the years to come. To seize opportunities in this fast-changing environment, we are making bold and decisive moves to transform Keppel O&M to ensure that it remains relevant and competitive, and fully aligned to Keppel’s Vision 2030.

“We are also exploring inorganic options for the O&M business, but there is no assurance that any transaction will materialize. In the meantime, we believe that our organic restructuring of Keppel O&M will not only enhance its competitiveness, but also its attractiveness, if we were to undertake any inorganic action.”

Restructuring of Keppel O&M

As part of the transformation, Keppel O&M’s business will be restructured into three parts: a Rig Co and a Development Co (Dev Co), which will be transient entities created to hold its approximately S$2.9 billion worth of completed and uncompleted rig assets; and most importantly, an Operating Co (Op Co), comprising the rest of Keppel O&M, which will be transformed into an asset-light and people-light developer and integrator of offshore energy and infrastructure assets. With a healthy balance sheet and undistracted by its stranded rig assets, the Op Co, which has a strong net order book of S$3.3 billion, 82% of which is in renewables and gas solutions, will seize opportunities in the energy transition, and is expected to be self-sustaining, financially independent and profitable over time.

Rig Co: Keppel O&M’s completed rigs will be placed under the Rig Co, which will put the completed rigs to work, or sell them if there are suitable opportunities. A dedicated team will be appointed to support its chartering and marketing activities. This will only be a transitional arrangement. As the oil market recovers, utilization and day rates improve, and the rigs generate steady cashflow, the Rig Co will sell the rigs or collaborate with Keppel Capital to seek funding from external investors. A cash flow generating Rig Co can be monetized or spun off in the future. The Rig Co is expected to be self-sustaining and would only require limited initial funding to maintain the rigs.

Dev Co: Uncompleted rigs will come under the Dev Co, which will focus on completing the rigs, while prudently managing cashflow. Priority will be given to completing rigs that have firm contracts with customers. The Dev Co will be wound up, once the rigs have been completed and delivered to customers, or transferred to the Rig Co, where they will be put to work or sold. The Dev Co would require some initial funding from Keppel, after which it is expected to operate independently.

The Rig Co and Dev Co are collectively expected to require about S$500 million in net funding, mainly for the latter to complete the rigs. This will be provided progressively by Keppel Corporation and repaid over time.

Op Co: The Op Co, comprising the rest of Keppel O&M, will progressively transit to a developer and integrator role, focusing on design, engineering and procurement. It will be people-light and asset-light, with fabrication work subcontracted to its eco-system of contractors, including other yards. Keppel O&M’s yard operations will be streamlined, including repurposing or divesting part of its global network of yards. At the same time, the Op Co will invest in capability building as it seizes new opportunities.

The Op Co will exit the offshore rig building business, and progressively exit low value-adding repairs and other activities with low bottom line contribution. It will seek opportunities in floating infrastructure and infrastructure-like projects that can deliver predictable streams of cashflow, including renewables projects such as offshore wind farms and solar farms, gas solutions, production assets and new energy solutions such as hydrogen and tidal energy. It will collaborate with other Keppel business units and harness the synergies of the Group to provide diverse solutions for sustainable urbanisation, such as offshore and nearshore infrastructure and floating data centre parks, and also explore how Keppel O&M’s offshore rig technology can be repurposed for other uses.

Mr Loh Chin Hua added, “A key goal of the restructuring is to create a more competitive, asset-light and people-light Keppel O&M, focused on seizing opportunities with higher value capture as a developer and integrator of offshore energy and infrastructure assets. At the same time, the Rig Co and Dev Co will ring-fence Keppel O&M’s non-core rig assets, contain any further capital outflow beyond the initial funding, and work towards resolving this legacy issue. Through these changes, we aim to create a nimble industry leader that is well-positioned for the global energy transition and can be a strong contributor to Keppel’s target ROE of 15% as we progress towards Vision 2030.”

The restructuring will commence with immediate effect and is expected to be executed over the next two to three years. Reflecting its new focus, Keppel O&M will carry out a rebranding exercise and refine its vision and purpose.

The restructuring is expected to significantly enhance the competitiveness and relevance of Keppel O&M in the longer run but is not expected to have any material impact on the net tangible assets per share or earnings per share of the Company for the current financial year.

Source: https://www.worldoil.com/news/2021/1/29/keppel-to-end-oil-and-gas-rig-building-turns-focus-to-renewables

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Biden’s oil and gas ban immediately challenged in Federal court

(Bloomberg) –The Biden administration’s moratorium of oil and gas leasing on federal public land faced an immediate legal attack from an energy industry group.

Western Energy Alliance, which says it represents 200 oil and natural gas companies, said the administration’s suspension of leases is “unsupported and unnecessary,” and an overreach by the U.S. Bureau of Land Management, according to a petition filed Wednesday in Wyoming federal court.

“Presidents don’t have authority to ban leasing on public lands,” Western Energy Alliance President Kathleen Sgamma said in a statement. “Drying up new leasing puts future development as well as existing projects at risk,” she said, adding that the move will cost tens of thousands and perhaps millions of jobs.

The administration moratorium issued Wednesday buys time for a broad review of whether fossil fuels should be extracted from lands under the U.S. government’s control. Environmentalists want President Joe Biden to make the suspension of leasing permanent. But even if he doesn’t, future leasing could encompass far less terrain and come with higher costs and environmental limits.

Although Biden has directed the Interior Department to pause new leases for oil and natural gas from public land and coastal waters, it will not affect ongoing operations on existing leases. And drilling permits for existing leases will keep flowing; more than two dozen have been issued already since Biden took office.

Beyond its two-page court petition, Western Energy Alliance said in its statement that the president’s order is a violation of the Mineral Leasing Act, the National Environmental Policy Act and the Federal Lands Policy and Management Act.

The group successfully challenged former President Barack Obama’s rule governing gas venting and flaring on federal land and also tangled with the Obama administration over fracking restrictions on public lands.

Wednesday’s suspension drew sharp criticism from other energy industry lobbyists, including the New Mexico Oil and Gas Association, which said one third of the state’s revenue comes from the oil and gas industry.

“This is a punch in the gut to our people and our economy,” Jim Wilcox, president of the Wyoming County Commissioners Association, said in a statement.

The case is Western Energy Alliance v. Biden, 21-cv-00013, U.S. District Court, District of Wyoming.

Source: https://www.worldoil.com/news/2021/1/27/biden-s-oil-and-gas-ban-immediately-challenged-in-federal-court

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4m tons of basic commodities imported in 10 months

TEHRAN- Iran has imported four million tons of basic goods during the first ten months of the current Iranian calendar year (March 20, 2020-January 19, 2021), according to the deputy managing director of Government Trading Corporation of Iran (GTC).

Amir Talebi said that 194 ships carrying basic goods have been docked and unloaded in Iranian ports during the 10-month period to supply the country’s strategic reserves.

These goods have been imported to the country from the southern and northern ports, and the share of Imam Khomeini Port is more than other ports, the official stated.

“The process of importing the basic goods, from order registration, purchase, transportation, unloading, loading and warehousing to regulating the market and providing the strategic reserves has been done in the difficult condition of sanctions and the outbreak of coronavirus, and we are in good condition in terms of the strategic reserves”, he pointed out.

In early October 2020, the Central Bank of Iran (CBI) announced that $5.267 billion was supplied for importing basic commodities in the first half of the current Iranian calendar year (March 20-September 21, 2020).

Iran imported 25 million tons of basic goods during the previous Iranian calendar year, based on the data released by the Islamic Republic of Iran Customs Administration (IRICA).

According to the IRICA Head Mehdi Mirashrafi, 35 million tons of commodities were imported into the country in the mentioned year, of which 25 million tons were basic goods.

“This year, the trend [of trade] has slowed down, and we hope that with the measures taken by the central bank, Industry, Mining, and Trade Ministry, and IRICA, we will be able to minimize the deposition of goods in the customs before and after clearance”, Mirashrafi said in last June.

Source: https://www.tehrantimes.com/news/457336/4m-tons-of-basic-commodities-imported-in-10-months

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