Latest news with #HenryHub
Yahoo
11-07-2025
- Business
- Yahoo
BP Sees Higher Oil Production, Trading Helping to Offset Lower Energy Prices
BP said it anticipates higher oil production and trading revenue in the second quarter, helping to offset falling fuel prices. The energy giant predicted upstream oil production will be higher than in the first quarter. BP and other energy firms have noted oil and gas prices have declined in Q2.U.S.-listed shares of BP (BP) rose Friday after the energy giant predicted increased oil production and trading revenue in the current quarter, helping to offset lower fuel prices. The London-based firm estimated that second-quarter upstream oil production will be better than in the first quarter because of higher output and operations, especially in the U.S. In Q1, upstream oil production was 2.24 million barrels of oil equivalent per day, and BP said at the time it anticipated about the same in Q2. As with other rivals, including ExxonMobil (XOM) and Shell (SHEL), BP pointed out that its performance would be impacted by falling prices. It noted that in Q2 the price of Brent crude averaged $67.88 per barrel, down from $75.73 per barrel in Q1, and U.S. gas Henry Hub first of month index averaged $3.44 million British Thermal Units (mmBtu), versus $3.65 mmBtu in the first quarter. In today's update, the company added that the oil trading result "is expected to be strong." The company is scheduled to release its financial report Aug. 5. Including today's 2% gains, BP's U.S.-listed shares are up about 9% year-to-date. Read the original article on Investopedia
Yahoo
08-07-2025
- Business
- Yahoo
Canada's gas market 'about to turn the corner,' say analysts eyeing up to 7 years of excess demand
Canada's battered natural gas market is 'about to turn the corner' into a new era of higher prices, according to BMO Capital Markets veteran commodities analyst Randy Ollenberger. He and his peers see new LNG export projects spurring higher prices for Canadian producers for years to come as demand outstrips supply. The first delivery of liquefied natural gas (LNG) produced at the LNG Canada terminal near Kitimat, B.C. left port for a storage and regasification terminal in Incheon, South Korea last week. Prior to this, Canada's only export market has been the United States via pipeline. The Shell PLC-led (SHEL) joint venture provides long-awaited access to higher prices for Canadian gas in Asia. 'Long-suffering Canadian gas companies (and investors) are poised to benefit from several structural changes, including: the start-up of LNG Canada, declining production in several major U.S. basins, and growing demand from AI and data centres,' Ollenberger wrote in a recent note to clients. '[The] Canadian gas market [is] about to turn the corner.' The first phase of LNG Canada will export from two processing units with a total capacity of 14 million tonnes per annum (mtpa). A second phase under consideration would double that. Meanwhile, two additional projects in Canada have reached their final investment decision: Cedar LNG and Woodfibre LNG. A new analysis by Deloitte Canada published on Monday estimates Canada will not fill the demand created by current LNG export projects for four to seven years. 'This likely will mean the strengthening of the AECO benchmark, enabling Canadian producers to achieve more favourable value for their gas,' Deloitte Canada researchers led by energy, resources and industrials partner Andrew Botterill wrote in the report. 'In this period where production is growing to meet demand, natural gas prices should see a narrowing of the differential relative to Henry Hub that lasts for multiple years once exports ramp up from LNG Canada.' Canada is the world's fifth-largest producer of natural gas, and the fourth-largest global exporter. Producers faced tough times in 2024 as prices fell to their lowest levels in more than 40 years. According to Statistics Canada, higher production and storage, coupled with weaker-than-expected winter demand, caused prices to plummet in the second half of the year. Deloitte Canada sees AECO prices averaging $2.20 per million BTUs in 2025, up from $1.39 in 2024. In 2026, the firm says AECO prices are expected to average $3.45, before plateauing at $3.50 until 2032. 'We're bullish on natural gas,' Bay Street fund manager Eric Nuttall wrote in his firm's recently released 2025 mid-year outlook. The partner and senior portfolio manager at Toronto-based Nine Point Partners says 75 per cent of his firm's oil and gas fund has been allocated to natural gas investments since the end of May. 'We expect natural gas prices to strengthen to between $4 and $5 over the coming year, and as Canada increases its LNG capacity, we think the current discount on Canadian natural gas should fall from about $2 today to between $1.10 and $1.30,' Nuttall added. 'This poses a big opportunity for Canadian companies.' LNG has been touted as a 'bridge' or 'transition' fuel to replace coal power in emerging economies. With new export-focused capacity ramping up around the world from the United States to Qatar, observers including the International Energy Agency have raised concerns about a glut of supply hitting the market. While Deloitte Canada estimates four to seven years of excess demand when LNG Canada is fully operational, other analysts have floated shorter timeframes. 'We believe this will significantly impact the current Western Canadian gas balance, and estimate it will take around two years for supply to catch up with demand,' Ollenberger wrote. Last month, TD Cowen analyst Tristan Margot called for the global LNG market to flip to oversupplied conditions after winter 2026. 'Our analysts see the incremental demand for WCSB natural gas from LNG Canada Phase 1 to be largely filled in real time,' he wrote in a June 12 research report. 'This dynamic is likely to result in continued weakness in natural gas prices through year-end,' Margot added. 'This is likely to dampen the optimism that LNG Canada Phase 1 startup is the inflection point to historically weak WCSB gas pricing. However, with producer supply-restraint in 2026+, we see a path to continued basin growth and stronger WCSB natural gas pricing.' Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android.
Wall Street Journal
02-07-2025
- Business
- Wall Street Journal
U.S. Natural Gas Futures Recover Some Ground
0941 ET – U.S. natural gas futures pick up after falling the previous two sessions on cooler temperature outlooks that could limit summer demand. Repricing continues after last week's heat wave failed to lift Henry Hub spot prices above $3.51, Eli Rubin of EBW Analytics says in a note. 'Still, it remains too early to call the end of summer before the 4th of July,' he says, noting LNG feedgas flows well above the June average and the likelihood of another heat wave 'at some point this summer.' Nymex natural gas is up 2.2% at $3.489/mmBtu. (
Yahoo
26-06-2025
- Business
- Yahoo
Energy Transfer expands LNG supply agreement with Chevron
Energy Transfer has expanded its liquefied natural gas (LNG) supply agreement with Chevron, increasing the total contracted volume to three million tonnes per annum (mtpa). Subsidiary Energy Transfer LNG Export has signed a 20-year incremental sale and purchase agreement (SPA) for an additional 1mtpa from its Lake Charles LNG export facility. This deal follows the initial 2mtpa agreement signed in December 2024. The LNG will be supplied to Chevron on a free-on-board basis, with the purchase price comprising a fixed liquefaction charge and a component indexed to the Henry Hub benchmark. The obligations of Energy Transfer LNG under the SPA are contingent upon the company taking a positive final investment decision and meeting other conditions precedent. Energy Transfer LNG president Tom Mason said: 'This agreement marks a significant milestone in our growing partnership with Chevron and underscores the increasing global demand for reliable, long-term LNG supply. 'With Energy Transfer's strategic infrastructure and connectivity to key production basins, Lake Charles LNG is poised to be a premier export facility, providing long-term value to our partners and the industry." The recent SPA is part of Energy Transfer's strategy to secure long-term commitments for the Lake Charles LNG project. The company has also entered into a heads of agreement with MidOcean Energy for approximately 5mtpa and an SPA with Kyushu Electric Power Company for 1mtpa. Lake Charles LNG is due to be constructed on the site of an existing brownfield regasification facility, utilising four existing LNG storage tanks, two deep-water berths, and other infrastructure. The facility will benefit from a direct connection to Energy Transfer's Trunkline pipeline system, which provides access to multiple natural gas-producing basins including the Haynesville, the Permian and the Marcellus Shale. Chevron Global Gas president Freeman Shaheen said: 'This expanded LNG agreement reflects the growing strength of Chevron's global gas business. 'With a diverse, reliable and flexible supply network, we are committed to delivering affordable, reliable and ever-cleaner energy to meet global demand and the evolving needs of our customers.' "Energy Transfer expands LNG supply agreement with Chevron" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
Energy Transfer Expands LNG Supply Agreement With Chevron by 1.0 Million Tonnes Per Annum From Lake Charles LNG
Total Commitment from Chevron Now at 3.0 Million Tonnes Per Annum DALLAS, June 25, 2025--(BUSINESS WIRE)--Energy Transfer LP (NYSE: ET) today announced its subsidiary, Energy Transfer LNG Export, LLC (Energy Transfer LNG), has signed an incremental Sale and Purchase Agreement (SPA) with Chevron U.S.A. Inc. (Chevron) for additional LNG supply from its Lake Charles LNG export facility. The 20-year agreement for 1.0 million tonnes per annum (mtpa) increases Chevron's total contracted volume from Energy Transfer LNG to 3.0 mtpa, following the initial 2.0 mtpa agreement signed in December 2024. As with the first SPA, the LNG will be supplied to Chevron on a free-on-board (FOB) basis and the purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark. The obligations of Energy Transfer LNG under the SPA remain subject to Energy Transfer LNG taking a positive final investment decision (FID) as well as the satisfaction of other conditions precedent. "This agreement marks a significant milestone in our growing partnership with Chevron and underscores the increasing global demand for reliable, long-term LNG supply," said Tom Mason, President of Energy Transfer LNG. "With Energy Transfer's strategic infrastructure and connectivity to key production basins, Lake Charles LNG is poised to be a premier export facility, providing long-term value to our partners and the industry." "This expanded LNG agreement reflects the growing strength of Chevron's global gas business," said Freeman Shaheen, President, Chevron Global Gas. "With a diverse, reliable, and flexible supply network, we're committed to delivering affordable, reliable, and ever-cleaner energy to meet global demand and the evolving needs of our customers." The latest SPA with Chevron builds on Energy Transfer's momentum in securing long-term LNG commitments for Lake Charles LNG. Recent agreements also include a Heads of Agreement (HOA) with MidOcean Energy for approximately 5.0 mtpa and an SPA with Kyushu Electric Power Company for 1.0 mtpa. The Lake Charles LNG export facility would be constructed on the existing brownfield regasification facility site to capitalize on four existing LNG storage tanks, two deep water berths and other LNG infrastructure. Lake Charles LNG would also benefit from its direct connection to Energy Transfer's existing Trunkline pipeline system that in turn provides connections to multiple intrastate and interstate pipelines. These pipelines allow access to multiple natural gas producing basins, including the Haynesville, the Permian and the Marcellus Shale. Energy Transfer is one of the largest and most diversified midstream energy companies in North America, with a strategic footprint in all of the major U.S. production basins. About Energy Transfer Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with more than 130,000 miles of pipeline and associated energy infrastructure. Energy Transfer's strategic network spans 44 states with assets in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids ("NGL") and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and approximately 21% of the outstanding common units of Sunoco LP (NYSE: SUN), and the general partner interests and approximately 39% of the outstanding common units of USA Compression Partners, LP (NYSE: USAC). For more information, visit the Energy Transfer LP website at Forward Looking Statements This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control, including (i) Energy Transfer's ultimate financial investment decision with respect to the Lake Charles LNG facility, (ii) whether Lake Charles LNG Export Company, LLC will receive certain regulatory approvals, (iii) Lake Charles LNG's ability to secure long-term contractual arrangements for the remaining volume of offtake of LNG which in turn will be dependent upon supply and demand factors affecting the price of LNG in foreign markets, and (iv) the financial viability of the LNG export project, which is dependent upon a number of other factors. An extensive list of additional factors that can affect the LNG export project and Energy Transfer's future results are discussed in the Energy Transfer's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events. The information contained in this press release is available on our website at View source version on Contacts Media Relations Vicki Granado or Jeff Tieszen214-840-5820media@ Investor Relations Bill Baerg, Brent Ratliff or Lyndsay Hannah214-981-0795 Chevron Media Relations Christine Dobbyn281-906-1499Christinedobbyn@
