Reports related to this article:
Plant(s): View 2 related plants in PECWeb
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--From the steps of the White House to the corporate boardroom, the sentiment in the natural gas sector is high, countering the mood in the oil patch.
"In less than ten months, President Trump's administration is redefining what it means to unleash American energy by approving record new LNG exports," Kyle Haustveit, the assistant secretary of the Office of Fossil Energy, said Tuesday.
The office was commenting on the permit given to Venture Global *(Arlington, Virginia) to deliver liquefied natural gas (LNG) from the second phase of an export facility under construction in Calcasieu Pass, Louisiana, to countries lacking a U.S free trade agreement--a so-called non-FTA permit.
President Donald Trump has taken a decidedly pro-fossil fuels approach to his second, non-consecutive term in office, sanctioning a handful of new LNG facilities and dusting off older ones, such as a long-planned plant in Alaska that would need hundreds of miles of new pipe to be completed.
The non-FTA permit allows Venture Global to deliver some 28 million metric tons per annum (MTPA), or around 4 billion cubic feet per day (Bcf/d), from the facility planned for the southern Louisiana coast.
Combined with the initial phase, Venture Global should be able to deliver as much as 30 MTPA of gas in the liquid form. Phase 2 should be in service by late 2027.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can see a plant profile of the initial phase here, and click here for Phase 2.
The Trump administration claims that it's authorized more than 13.8 Bcf/d of liquid gas exports since January. Exports, the White House said, are about 24% higher than year-ago levels already.
The United States during the early stages of the Russian war on Ukraine emerged as the top LNG exporter in the world, supported by its vast inland natural gas reserves. Both levels are on pace to increase by next year.
That may be resonating with private-sector developments. EQT Corporation (Pittsburgh, Pennsylvania) on Tuesday said natural gas sales volumes were at the high end of its guidance, while capital spending was 10% less than planned during the third quarter.
"Simply put, our execution machine is firing on all cylinders, and the benefits are accruing to shareholders via significant free cash flow outperformance relative to both internal and consensus expectations," President and Chief Executive Officer Toby Rice said.
Subscribers can see a profile of EQT here.
Rice's company reported adjusted net income over the three-month period ending September 30 of $407 million, compared with a year-ago loss of $297 million.
The mood appears upbeat, and commodity prices are supportive of growth. Henry Hub, the U.S. benchmark for the price of natural gas, averaged $2.20 per million British thermal units (MMBtu) last year and should climb to nearly $4 per MMBtu by next year.
The same can't be said for companies with a primary focus on crude oil, or for those in the upstream services industry. West Texas Intermediate, the U.S. benchmark for the price of oil, is expected to average $65 per barrel this year and fall to $48.50 by 2026, well below the point at which shale drillers can make a profit.
While the Trump administration is supporting the energy sector on the political level, economics may be creating headwinds. Though energy itself was spared from his aggressive tariff policies, import taxes on aluminum and steel are problematic for a U.S. industry that doesn't make its own pipelines.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
"In less than ten months, President Trump's administration is redefining what it means to unleash American energy by approving record new LNG exports," Kyle Haustveit, the assistant secretary of the Office of Fossil Energy, said Tuesday.
The office was commenting on the permit given to Venture Global *(Arlington, Virginia) to deliver liquefied natural gas (LNG) from the second phase of an export facility under construction in Calcasieu Pass, Louisiana, to countries lacking a U.S free trade agreement--a so-called non-FTA permit.
The non-FTA permit allows Venture Global to deliver some 28 million metric tons per annum (MTPA), or around 4 billion cubic feet per day (Bcf/d), from the facility planned for the southern Louisiana coast.
Combined with the initial phase, Venture Global should be able to deliver as much as 30 MTPA of gas in the liquid form. Phase 2 should be in service by late 2027.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can see a plant profile of the initial phase here, and click here for Phase 2.
The Trump administration claims that it's authorized more than 13.8 Bcf/d of liquid gas exports since January. Exports, the White House said, are about 24% higher than year-ago levels already.
The United States during the early stages of the Russian war on Ukraine emerged as the top LNG exporter in the world, supported by its vast inland natural gas reserves. Both levels are on pace to increase by next year.
That may be resonating with private-sector developments. EQT Corporation (Pittsburgh, Pennsylvania) on Tuesday said natural gas sales volumes were at the high end of its guidance, while capital spending was 10% less than planned during the third quarter.
"Simply put, our execution machine is firing on all cylinders, and the benefits are accruing to shareholders via significant free cash flow outperformance relative to both internal and consensus expectations," President and Chief Executive Officer Toby Rice said.
Subscribers can see a profile of EQT here.
Rice's company reported adjusted net income over the three-month period ending September 30 of $407 million, compared with a year-ago loss of $297 million.
The mood appears upbeat, and commodity prices are supportive of growth. Henry Hub, the U.S. benchmark for the price of natural gas, averaged $2.20 per million British thermal units (MMBtu) last year and should climb to nearly $4 per MMBtu by next year.
The same can't be said for companies with a primary focus on crude oil, or for those in the upstream services industry. West Texas Intermediate, the U.S. benchmark for the price of oil, is expected to average $65 per barrel this year and fall to $48.50 by 2026, well below the point at which shale drillers can make a profit.
While the Trump administration is supporting the energy sector on the political level, economics may be creating headwinds. Though energy itself was spared from his aggressive tariff policies, import taxes on aluminum and steel are problematic for a U.S. industry that doesn't make its own pipelines.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
