Puerto Rican watchdog oks revised LNG contract with NFE
Puerto Rico’s financial oversight board has approved a revised LNG supply agreement between Puerto Rico Electric Power Authority (PREPA) and New Fortress Energy affiliate NFEnergía. The revision is expected to save the country more than $4 billion in fuel costs over the duration of the contract.
Strong US gas storage build-out provides flexibility for LNG exports
Midstream operators in the US have announced fresh investment in gas storage capacity to provide flexibility as the LNG build-out progresses into 2026. Enbrige just took FID on new storage facilities in Texas and Louisiana while Energy Transfer started to build a cavern storage at Bethel.
Mercuria signs term LNG deal with Guangzhou Gas Group
Switzerland-based Mercuria Energy Trading has entered into a long-term LNG sales and purchase agreement (SPA) with Guangzhou Gas Group. Mercuria called the deal a "pragmatic commercial collaboration and sustainable supply chain development," but fell short of disclosing financial terms or volumes.
“This long-term agreement enhances Guangzhou Gas Group’s capacity to secure stable gas resources, optimize the local energy mix, and reduce carbon emissions — enabling high-quality regional economic development,” Mercuria said in a statement.
Though prices and volumes were not made public, Mercuria stressed this agreement enhances its role as a strategic LNG partner in China and across Asia-Pacific, consolidating the foundation of its global LNG portfolio.
SPA with Oman LNG
The latest SPA follows Mercuria’s earlier deal with Oman LNG in February, under which Oman LNG will supply the Swiss trading company with 800,000 metric tons of LNG annually over a 10-year period on a free-on-board (FOB) basis.
Earlier this month, Mercuria also sealed offtake agreement with Cowboy Clean Fuels, a Wyoming-based company specializing in renewable natural gas (RNG). The deal marks the first commercial sale of RNG produced using CCF’s proprietary biomass carbon removal and storage methodology at its Triangle Unit Project near Gillette, Wyoming.
Mercuria describes itself as one of the world’s largest independent energy and commodity groups. Over 50% of its new investments are dedicated to renewables and transitional energy.
Stable Russia-Ukraine peace deal undermines US LNG projects
Financial close on US LNG export projects could be at risk by a stable peace deal between Russian and Ukraine, analysts warn. Europe would subsequently rush to accommodate more Russian pipeline gas imports of up to 50 bcm per year, while the lifting of sanctions on Russian LNG would raise exports to 12 mtpa – undermining the economics of US LNG.
In the event of a ‘stable peace’, Wood Mackenzie expects European gas prices at the TTF trading hub to fall well below the US$8-9 per mmbtu that are forecast for 2028/29.
A collapse in TTF prices, in return, would lead to years of US LNG capacity underutilisation and delays to several expected FIDs on well-advanced LNG export projects.
US LNG projects may become collateral damage
As a knock effect, Henry Hub gas prices would plunge since the lower-than-expected LNG exports create a length in gas supply in the United States. This oversupply supports greater gas-burn for power generation and may well reduce wholesale electricity prices to the benefit of American households and industries.
But Wood Mac’s vice president of Gas and LNG research, Massimo Di-Odoardo warned that with an average of 25 mtpa of liquefaction capacity in the United States and Mexico at risk of underutilisation over the next five years, “US LNG would be the collateral damage,”
More shipments needed in event of no peace
On the other hand, a failure to reach an agreement would results in "stronger for longer" gas prices as even less Russian supply comes to market.
“A continuation of the war could see the EU double down on sanctions, pushing even harder to achieve its ambition of independence from Russian energy - banning LNG imports from the Yamal LNG project and the 15 bcm a year TurkStream pipeline,” Di-Odoardo noted.
This scenario strengthens the need for more LNG supply, with US and Qatar capitalising on more investment opportunities.
"The outcome of ongoing negotiations for a peace agreement between Russia and Ukraine remains highly uncertain,” he said, concluding: “All scenarios are possible, including potential combinations of them, however, recent development suggest a peace agreement where the US and EU take different approaches to lifting sanctions, appears more likely.”
