LNG

Fracking in the Permian Basin has staged a record 11% annual rise in gas production, adding 2.7 bcf/d to reach 27.7 bcf/d, suppored by break-even prices as low as $61 per barrel in the Midland Basin, one of the Permian's largest oil and associated gas formations.

Energy Aspects remains bearish against JKM–TTF Q1 26 spreads amid dwindling freight rates. Some recent fixtures for two-stroke LNG vessels in the Atlantic basin fell below $100,000 per day, opening the arbitrage for US LNG heading to markets east of Suez via the Cape of Good Hope.

Argentina’s Vaca Muerta basin has seen shale oil production rise 35% yoy in the third quarter to 400,000 barrels per day (bpd) due to productivity gains. To sustain growth, the $2.5 billion Vaca Muerta Sur pipeline is being developed to expand takeaway capacity from the field to global markets.

Egypt’s state energy company EGAS has reduced its LNG imports to the Ain Sokhna regas terminal, chartered from Hoegh LNG, by more than a third to 500 million cubic feet per day (mmcf/d). Situated east of Cairo, the Hoegh Gallon FSRU is on an interim charter from the Norwegian shipping company Hoegh, and had been originally destined for Australia.