Sabine Pass LNG to place sixth train in service

: Natural gas
22/02/07

The US' 33mn t/yr Sabine Pass LNG export facility in Louisiana has received regulatory approval to place its sixth liquefaction train into service.

Permission from the Federal Energy Regulatory Commission on 4 February signals the end of commissioning and start of normal production. The operator requested approval on 1 February. Long-term supply contracts associated with the unit will probably come into force once the train comes into service.

Train 6 loaded its first cargo in early December, having produced its first LNG on 23 November, and was expected to enter long-term service during the current quarter.

Ferc's approval could support loadings from Sabine Pass this month, as the new train ramps up to capacity after its commissioning period. But commissioning cargoes from the train had already probably buoyed exports from the site in December-January. Given the spread between US domestic gas prices and global LNG prices, there is ample incentive for strong production at the facility.

By Samuel Good

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25/05/06

Trump to end military campaign in Yemen: Update

Updates with details throughout, including Houthi response. Washington, 6 May (Argus) — President Donald Trump said today he will end the US military campaign against Yemen's Houthis, claiming that the militant group pledged to stop attacks on commercial ships passing through the Red Sea. The Houthis reached out with a request to stop the US bombing campaign, and the US will do so immediately, Trump told reporters at the beginning of his meeting with Canada's prime minister Mark Carney on Tuesday. "They don't want to fight anymore," Trump said. "They have capitulated ... And I will accept their word, and we are going to stop the bombing of the Houthis effective immediately." US secretary of state Marco Rubio, who also attended the meeting with Carney, added that if the Houthi attacks "are going to stop, then we can stop." Oman mediated a ceasefire agreement between the US and the Houthis, Oman's foreign minister Badr Albusaidi said in a social media post following Trump's remarks. "In the future, neither side will target the other, including American vessels, in the Red Sea and Bab al-Mandab Strait, ensuring freedom of navigation and the smooth flow of international commercial shipping." It was not clear from Albusaidi's statement whether the Houthis committed to stop their attacks on all vessels passing near Yemen's coastline. The Houthis claimed in late 2023 that, out of solidarity with Gaza's Palestinian population, they would attack any ship that was owned by an Israeli company or made calls at an Israeli port. But the Houthi attacks were indiscriminate, effectively crippling the regular passage of oil, LNG and other commercial vessel traffic through Red Sea waterways. The militant group paused its attacks on commercial shipping following the ceasefire in Gaza in January, but resumed them in March, after Israel stopped allowing humanitarian aid into Gaza. The Houthis also launched attacks against Israel, drawing retaliatory strikes by the Israeli Air Force, and on US naval vessels in the Red Sea. There was no explicit confirmation of a ceasefire from Houthi-controlled information outlets. A Houthi spokesman reposted a social media post suggesting that "America stopped its aggression in Yemen" and that "the one who retreated is America." Another media channel used by the group said that "the Israeli and American aggression will not pass without a response and will not deter Yemen from continuing its position in support of Gaza". US president Donald Trump's administration listed its military campaign against Yemen-based Houthis, which began on 15 March, as a key foreign policy accomplishment in his first 100 days in office even though the militant group continued to launch missile and drone attacks — most recently on 4 May against Israel's main airport. Israel responded to the 4 May attack with air strikes on Yemen's port of Hodeidah and, today, on the main airport in Yemen's capital Sanaa. Israel also vowed to retaliate against Tehran, which is the main provider of weapons to the Houthis. The US separately warned Iran to discontinue its military support for the Yemeni militant group. The Trump administration is engaged in talks with Iran to address Tehran's nuclear program, with Iranian officials hoping to use the diplomatic negotiations to press for relief of oil and other sanctions against Iran. Trump said he will visit Saudi Arabia, the UAE and Qatar next week and is widely expected to also visit Israel on the same trip. "Before then, we're going to have a very, very big announcement to make, like, as big as it gets, and I won't tell you on what," Trump said. "But it will be one of the most important announcements that have been made in many years about a certain subject, very important subject." By Haik Gugarats, Nader Itayim and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US onshore crude output likely peaked: Diamondback

25/05/06

US onshore crude output likely peaked: Diamondback

New York, 6 May (Argus) — US onshore crude production has likely peaked as activity slows in response to the recent decline in oil prices, according to Diamondback Energy. The leading US independent estimates that the US hydraulic fracturing crew count is already down 15pc this year, while the frack crew count in the Permian basin has fallen by about 20pc from its January peak. Moreover, the US oil rig count is expected to be almost 10pc lower by the end of the second quarter with further declines seen. "As a result of these activity cuts, it is likely that U.S. onshore oil production has peaked and will begin to decline this quarter," Diamondback's chief executive officer Travis Stice said in a letter to shareholders. Given the shale sector has matured from the rapid growth seen in the early days of the shale boom, "this is not one of the types of declines that can be offset by improved efficiencies," Stice later told analysts on a conference call. Diamondback Energy also set out plans to cut spending and drill and complete fewer wells in the aftermath of the price slump, which has been driven by the economic fall-out over President Donald Trump's sweeping tariff policy, as well as the Opec+ group's plan to accelerate the return of barrels to the market. Capital spending is now seen at $3.4bn-$3.8bn this year, a decline of 10pc from the midpoint of previous expectations. The company will drop three rigs and one full-time completion crew in the second quarter, and expects to hold steady at those levels through most of the third quarter. If oil prices remain weak or fall further, Diamondback could reduce activity further. Or if prices rebound above $65, it could ramp activity back to previous levels. Under normal circumstances, it would use a period of lower service costs to build more drilled but uncompleted wells. But well casing, its biggest drilling input cost, has increased by 10pc in the last quarter due to steel tariffs. "To use a driving analogy, we are taking our foot off the accelerator as we approach a red light," said Stice. "If the light turns green before we get to the stoplight, we will hit the gas again, but we are also prepared to brake if needed." The impact on oil output is expected to be minimal given volumes have outperformed year to date. The company now sees annual oil production in a range of 480,000-495,000 b/d, down just 1pc from the midpoint of prior guidance. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to end military campaign in Yemen

25/05/06

Trump to end military campaign in Yemen

Washington, 6 May (Argus) — President Donald Trump said today he will end the US military campaign against Yemen's Houthis, claiming that the militant group pledged to stop attacks on commercial ships passing through the Red Sea. The Houthis reached out with a request to stop the US bombing campaign, and the US will do so immediately, Trump told reporters at the beginning of his meeting with Canada's prime minister Mark Carney. "They don't want to fight anymore," Trump said. "We will honor that and we will stop the bombings. They have capitulated." There was no immediate statement by the Houthi group to confirm Trump's comment. US president Donald Trump's administration listed its military campaign against Yemen-based Houthis, which began on 15 March, as a key foreign policy accomplishment in his first 100 days in office even though the militant group continued to launch missile and drone attacks — most recently on 4 May against Israel's main airport. The Houthis resumed attacks on commercial shipping through Red Sea waterways in early March, after a self-declared ceasefire. They also launched attacks against Israel, drawing retaliatory strikes by the Israeli Air Force, and on US naval vessels in the Red Sea. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US EIA will not release international outlook in 2025

25/05/06

US EIA will not release international outlook in 2025

Washington, 6 May (Argus) — The US Energy Information Administration (EIA) no longer expects to publish one of its major energy reports this year after losing some of its staff through President Donald Trump's efforts to downsize the federal workforce. The EIA does not plan to publish its International Energy Outlook (IEA) — which models long-term global trends in energy supply and demand — this year because of a loss of staff responsible for producing the report, according to an internal email initially reported by the news outlet ProPublica . The EIA confirmed the authenticity of the email. "At this point, you can assume that we will not be releasing the IEO this year," the EIA's Office of Energy Analysis assistant administrator Angelina LaRose wrote in the 16 April email. "This was a difficult decision based on the loss of key resources." Oil and gas producers, traders, utility companies, federal regulators and foreign governments have come to rely on the data and models from the EIA, an independent agency within the US Department of Energy. The 2025 version of the IEO might still be published early next year, the EIA said. The agency for now is focusing on trying to "preserve as much institutional knowledge as possible" with an "all hands-on deck" effort under which remaining staff will document models and procedures on long-term modeling, LaRose wrote in the email. Trump and his administration have worked to cut the size of the government's workforce through voluntary buyouts and a process known as a reduction in force. The EIA has yet to say how many personnel it has lost, but about a third of the agency's 350 staffers have accepted voluntary buyouts, according to a person familiar with the situation. The White House last week proposed an 18pc budget cut for the non-nuclear portions of the Department of Energy, but has yet to say if it is seeking to cut spending at the EIA. Last month, the EIA released its premier report, the Annual Energy Outlook , but omitted its traditional in-depth analysis. A technical issue on 1 May delayed the release of a key natural gas storage report by more than three hours, the EIA said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s election gives LNG, fuels sector certainty

25/05/05

Australia’s election gives LNG, fuels sector certainty

Sydney, 5 May (Argus) — Australia's governing Labor party's second majority term could mean that changes to the offshore permitting regime promised last year are signed into law, while east coast LNG businesses will avoid a planned reservation system proposed by the opposition. Labor's victory at the 3 May election combined with the election of fewer members from the Greens party and climate-focused independents, could mean it faces less pressure to cancel fossil fuel projects. But it will remain reliant on the Greens to pass laws through the nation's upper house — the senate — meaning Labor may need to negotiate the passage of bills with the leftist party if the Liberal-National-based coalition opposes its measures. The Greens ran on a promise to ban new coal, oil and gas projects but won fewer seats than in 2022 because of preference flows. A federal decision on the lifetime extension of the Woodside Energy-operated 14.4mn t/yr North West Shelf (NWS) LNG delayed by Labor, is now looking more positive for the firm. The firm sees approval as vital to progressing its Browse gas development offshore northwestern Australia. Voters' rejection of the opposition Coalition on the nation's east coast means its policy to reserve a further 50-100PJ (1.34bn-2.68bn m³/yr) from the Gladstone-based LNG exporters will not proceed. The result provides an opportunity for certainty and stability for the energy sector, upstream lobby Australian Energy Producers said. The group urged the government to focus on new supply as Australia's gas reserves for domestic use rapidly deplete. The government will need to specify exactly how it aims to secure supplies to ensure stable supply, once coal-fired generators retire at the end of the 2020s and into the 2030s. This is because the nation's integrated system plan is based on Labor's policy of reaching 82pc renewable energy in the power grid, backed up by about 15GW of gas-fired power. Industry will await further direction stemming from the Future Gas Strategy which canvassed solutions to Australia's declining gas supply including new pipelines, storage and seasonal LNG imports. Permitting concerns In the government's previous three-year term, a series of court-ordered requirements to consult with affected Aboriginal groups briefly disrupted multi-billion dollar LNG developments. Labor promised to specify through new laws exactly which groups must be consulted before approvals could be granted. But these were dropped from the agenda in early 2024 following opposition by the Greens. Labor's resources minister Madeleine King blamed the Greens for obstructionist manoeuvres on this legislation, but it remains unclear if and when Labor might introduce such laws. Conversely, the Coalition promised to end government support for anti-gas lobbies such as law group the Environmental Defenders Office — set to continue under Labor. In liquid fuels, Labor's victory should boost Australia's electric vehicle (EV) sales, with emissions standards laws set to remain enforced. The Coalition had said it would soften the laws because of concern over cost of living pressures. Plans to temporarily cut the fuel excise will also not progress. Australia's EV take-up has stalled, and industry has blamed this on poor investment in recharging infrastructure and other policy settings, including the removal of the fringe benefits tax exemption for plug-in hybrid car models. A re-elected Labor government is likely to further policy towards a mandate for sustainable aviation fuel or renewable diesel, given the growing share of Australia's emissions projected to come from the transport industry. It pledged A$250mn ($162mn) for low-carbon liquid fuels development in March , for low-carbon liquid fuels development in March, as part of its commitment to the nascent sector. Local market participants are optimistic that further biofuels support will be provided as urgency to meet net zero ambitions builds, including a 2030 target of 43pc lower emissions based on 2005 levels. About A$6bn/yr of feedstocks like canola, tallow and used cooking oil are exported from Australia, while existing ethanol and biodiesel producers are running underutilised plants, making about 175mn litres/yr at present, because of poorly-enforced blending mandates. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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