LNG

The decade of structurally cheap US gas is drawing to a close, with Henry Hub prices forecast to rise towards $5 per MMBtu by 2035 from below $3 per MMBtu, as LNG demand growth tightens domestic balances, Wood Mackenzie said.

Japan’s JERA has launched a vertically integrated unit – JERA Global Energy Solutions – to consolidate and optimise its LNG portfolio across upstream, LNG, lower-carbon fuels, and shipping. The new entity will work closely with JERA’s LNG trading platform JERA Global Market to coordinate physical supply with trading strategies.

Italy’s energy major Eni has agreed to acquire a 32% interest in three upstream blocks in the Vaca Muerta basin, designated as feedstock for an Argentine LNG export project. Argentina’s state oil company YPF, together with Eni and the Abu Dhabi-based investment firm XRG are working intensively to reach FID on the 12 mtpa Argentina LNG project during the second half of 2026.

Abu Dhabi National Oil Company’s (ADNOC) is exploring investments in Canada’s upstream and LNG sectors through its affiliate XRG, upstream CEO Musabbeh Al Kaabi said at the at the Global Energy Show in Calgary this week.

Caturus has taken a final investment decision (FID) on its 9.5 mtpa Commonwealth LNG export project in Louisiana, supported by $9.75 billion in total financing and several long-term offtake agreements. Construction just begun, with first LNG targeted in late 2029 and full operations by 2030.

BP posted strong first quarter 2026 results, with higher Gulf of Mexico output offsetting Middle East disruptions and a North Sea divestment. Adjusted net profit hit $3.2 billion, more than double the nearly $1.4 billion a year earlier, the London-based company announced today.

Substantial upstream investment in Vaca Muerte shale is meant to help Argentina evolve from seasonal floating liquefaction to a multi-phase LNG exporter. To that end, state-controlled YPF plans to channel $3.3 billion into Vaca Muerta shale, with recent FIDs on two FLNG units in the Gulf of San Matías and associated infrastructure.

Russia's largest LNG producer Novatek has reported a sharp 63% drop in net profit, citing lower commodity prices, Western sanctions, and operational disruptions at its Ust-Luga terminal following a Ukrainian drone attack. 2025 net profits fell to 183 billion roubles ($2.37 billion), down from 493 billion roubles in the previous year.

Private capital from Asian exploration and production (E&P) investor are flocking to the North American market in search for LNG-linked assets. Deal flow is shaped by a ‘merger of equals’ as consolidation among Canada’s Montney shale producers accelerates, and Asian buyers seek to get their hands on shale and LNG-linked assets in the US.

LNG is driving the bulk of US gas demand growth with Gulf Coast capacity additions pushing exports from 15.5 billion cubic feet per day towards 25 Bcf/d by 2028. Henry Hub prices indicate healthy but tightening upstream‑to‑LNG margins from Haynesville, and especially Permian associated gas.