LNG

Gazprom’s latest cooperation push with CNPC is accelerating the ramp-up of Russian pipeline gas exports to China, capping the country’s LNG demand. Gazprom aims to increase exports via additional pipeline routes such as the Power of Siberia 2 pipeline.

Global LNG fleet growth is lagging behind upcoming export capacity, although IMO data indicates that 2026 deliveries will mark a record year. Yet the 234 newbuild LNG carriers scheduled for 2026–2030 could fall short of transporting the 229 mtpa of new liquefaction capacity due online by 2030, particularly if vessel retirements accelerate. 

Japan’s largest utility JERA has signed a long-term LNG sale and purchase agreement (SPA) with Hokkaido Gas, with deliveries starting in 2027. Under the seven-year contract, JERA will deliver two to cargoes per year - equivalent to roughly 130,000 to 200,000 metric tonnes of LNG. Deliveries will be scheduled flexibly to align with Hokkaido Gas’ seasonal demand patterns.

Australian oil giant Santos is targeting a roughly US$27 billion capital spend for its integrated Papua LNG–PNG LNG expansion hub in Papua New Guinea, with up to three-fifths to be covered by debt finance.

Energy import-dependent Japan has again lowered LNG-burn for power generation to the lowest levels in a decade due to high fuel prices and robust recovery of nuclear baseload power. Japan’s nuclear reactors generated the highest electricity output since the 2011 Fukushima disaster while gas-fired generation fell 25% in the first half this year.

Santos CEO Kevin Gallagher has indicated a “significant” part of the multi-billion Papua LNG development will be funded by project financing, backed by the strong performance of the nearby PNG LNG project, whose debt was repaid six months ahead of schedule.

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.

Pembina Pipeline Corp has signed a 12-year LNG offtake agreement with Ovintiv for 0.5 mtpa from the planned Cedar LNG project. The deal completes the remarketing of Pembina’s 1.5 mtpa of capacity at the floating LNG export terminal in Kitimat, British Columbia.

CSE Global has secured three contracts to design, build and supply electrification and control systems for LNG terminals. The contracts, with a combined US$124.6 million, are scheduled for delivery between 2026 and 2028, the company said.

Intercontinental Exchange (IEC) is preparing to extend trading hours for European gas and power futures to match the 22-hour cycles of US and Asian markets. The move enables seamless LNG cross-basin trade and hedging between TTF, Henry Hub, and JKM benchmarks in aligned hours and US$ pricing.