LNG

The Alaska LNG project has emerged as South Korea’s likely first U.S. investment under a $200 billion trade deal, with Seoul signalling a possible announcement in late August or early September.

Investors are seeking better incentives for integrated LNG and power projects in Vietnam as guaranteed electricity offtake levels are still too low to make projects break even. Developers said Power Purchase Agreements (PPAs) with 25-year tenures or a higher minimum offtake level, ideally 85-90%, would help secure predictable cash flows and attract international lenders.

Lower oil prices are eroding profit margins of global oil and gas companies, forcing deeper structural cost cuts and threatening share buyback programs. If oil prices stay below $70 per barrel, supermajors’ free cash flow could plunge by up to 30 percent in 2026, Wood Mackenzie forecasts.

Unfavourable market conditions for renewables and other low-carbon energy sources have prompted Shell, BP, TotalEnergies and Eni to bolster their core upstream operations. Reserve replacement should support future cash flows, Fitch Ratings reckons.

Saudi Armaco, the world’s largest oil producer, is reportedly preparing to divest up to five plants that currently power its refineries. The sale could generate around $4 billion and is part of the Government’s strategy to streamline Aramco’s operations, cut costs and diversify assets.

Chevron has sold a 70% stake in its East Texas gas assets to an affiliate of TG Natural Resources (TGNR), owned by Tokyo Gas and Castellon Commodities International for $525 million, with $75 million paid in cash and $450 million as capital carry to fund Chevron’s Haynesville development.

The transaction is anticipated to generate over $1.2 billion in value to Chevron at current Henry Hub prices, to US oil major said in a statement.

“This transaction supports Chevron’s previously announced plans to divest $10-15 billion of assets by 2028 in order to optimize its global energy portfolio,” the US oil major said in a statement.

Upon closure of the deal, Chevron will retain a 30% non-operated working interest in a joint venture with TGNR and an overriding royalty interest in the assets.

Financing models of the U.S. shale oil & gas industry has for long been characterised by negative free cash flow as expectations of rising production and cost improvements led to continuous overspending in the sector. Over the last few month, however, IEA analysts have notice a “notable improvement in financial condition,” though the overall health of the industry remains fragile.