LNG

South Korea and the US are expected to hold a video conference "in the next one or two days" to discuss co-operation on an LNG project in Alaska, acting President, Han Duck-soo, said on Monday.

Click to Download

Click to Download

US LNG exports were the largest source of natural gas demand growth in the Energy Information Administration’s (EIA) March, 2025 Short-Term Energy Outlook (STEO).

Mitsubishi Corp has become one of the latest companies to mull over investing in the $44 bill Alaska LNG project, Mitsubishi’s CEO, Katsuya Nakanishi told Reuters last week.

North America’s LNG boom will not only threaten to increase consumer bills but also jeopardise the long-term stability of the continent’s gas and electricity markets, a new report has suggested.

Shandong Order Group, a Chinese second-tier gas company, has signed a medium-term LNG supply agreement with Glencore Singapore, with pricing linked to Platts JKM.

This agreement, signed on 25th March in Beijing, is a move to secure clean energy resources amid China's efforts to reduce carbon emissions, the Chinese company said on its official website, without disclosing further details of the deal.

Trade sources told S&P Global that the contract involves the supply of three cargoes per year for three years on an ex-ship (DES) basis, with the contract price set at a discount to Platts JKM.

In 2024, the two companies were involved in trades, as Shandong participated in spot trading activity.

JKM has increasingly been adopted as a reference in Chinese term deals in recent years, Platts said. Notable examples included a contract signed by China National Offshore Oil Corp (CNOOC) and ADNOC in late 2023 for 12 cargoes to be delivered during the 2024/25, priced at a JKM discount.

In addition, JKM was incorporated into China's downstream city-gas pricing mechanism between 2022/24, with part of non-residential gas volumes linked to JKM prices.

"It is easier to hedge with JKM," a Chinese trade source said talking about the contract, highlighting the advantages of using JKM in risk management strategies.

Australian supplies

Glencore Singapore had also signed a medium-term LNG supply contract with Australia's Santos in September, 2024 for 19 cargoes or up to 500,000 tonnes per year of LNG for three years plus a quarter.

This contract was oil-indexed and was due to commence in the fourth quarter of this year.

The Shandong Order Group deal aligns with Glencore's broader strategy to penetrate China's LNG market through partnerships with second-tier gas companies, which are increasingly sourcing imported LNG through LNG terminals operated by state-owned infrastructure giant PipeChina, the Singapore based trader said.

In addition to Shandong, Glencore Singapore had also signed a medium- to long-term LNG sales and purchase agreement (SPA) with Chinese second-tier gas company, Shenzhen Energy Group, in July, 2024.

This calls for the supply of about 500,000 tonnes per year for five to 10 years, with pricing linked to Henry Hub. Deliveries were expected to begin in late 2026 or early 2027.

Based in Shandong province, the group primarily distributes city gas. It is involved in gas pipeline construction, LNG trading, distributed energy, and vehicle gas.

According to local Chinese media, its partnership with Glencore marks a shift toward securing direct LNG imports, reducing reliance on domestic suppliers, such as state-owned PetroChina and Sinopec. 

NextDecade Corp has signed a 20-year LNG sale and purchase agreement (SPA) with a subsidiary of Saudi energy giant Aramco for offtake from Train 4 at the Rio Grande LNG Facility.

On 2nd April, the LNGC, ‘Maran Gas Roxana’, became the first vessel to berth at LNG Canada’s resurrected Kitimat terminal in British Columbia.

Texas has long been the US’ energy capital, with its LNG industry leading the way in exports and innovation.

But thanks to outdated maritime laws and political gridlock, Texas is missing out on a prime opportunity to expand its market and boost its economy. That opportunity? Puerto Rico, claimed Javier Hernández.*

If President Trump signs a draft executive order granting Puerto Rico its independence, Texas LNG companies stand to gain tremendously.

A sovereign Puerto Rico — free from the constraints of the Jones Act, which currently blocks direct LNG shipments from Texas to the island — would become a major new market for Texas natural gas exports.

In Puerto Rico, support for national sovereignty (either via independence or free association) currently stands at an historic 43% and is the island-nation’s fastest growing political status option, particularly among the youth and professionals.

Supporting Puerto Rican independence would be a smart economic move that would inject billions into the Texas economy.

Jones Act barrier

Under current US law, the Jones Act requires that any shipment between two US ports must be carried on American-built, owned, and crewed ships. But here’s the problem - there’s only one Jones Act compliant LNGC in the US.

Without access to Texas LNG, Puerto Rico has been importing from countries, such as Trinidad and Tobago, Brazil, Nigeria, Oman, and Spain.

This is deemed unacceptable. Puerto Rico is a US colonial territory, yet it has been forced to rely on foreign energy sources, while Texas energy companies are locked out of the market. But independence would change everything.

Puerto Rico’s LNG demand in September, 2024 alone was 3.49 bill cu ft, or around 41.88 bill cu ft annually. Texas, as a major LNG producer, could easily supply Puerto Rico’s entire demand once freed from Jones Act restrictions.

Companies like Cheniere Energy, Freeport LNG, and Golden Pass LNG are among the top Texan exporters that could immediately benefit from this policy shift.

By signing the draft executive order for Puerto Rico’s independence, which has been circulating in congressional offices, the White House, and among DC insiders, Trump would not only unlock billions in economic potential for Texas, while advancing America First policies in energy and trade, but also save the US over $617 bill in federal spending – funds that could be better spent in Texas. 

*This is part of an article written by Javier Hernández who is a Puerto Rican writer, educator, linguist, former US Foreign Service specialist-federal law enforcement officer, and pro-sovereignty activist, strategist, and advisor.