MDN’s Energy Stories of Interest: Mon, May 12, 2025 [FREE ACCESS]

MARCELLUS/UTICA REGION: Shell’s chemical division, including Monaca, poised for rebound; Nighttime flaring at Shell plastics plant lit up Beaver County ‘like dawn’; 34 organizations sign letter urging Pa. to adopt measures to protect against shale drilling; Pennsylvania weighs how to manage power-hungry data centers; Shale coalition leader knows the drill, advocates for it; GOP lawmakers, energy stakeholders push for natural gas expansion to boost jobs, bolster grid; OTHER U.S. REGIONS: Mass. orders utilities to spend less ratepayer money on natural gas pipelines; Commonwealth LNG inks 20-year offtake; NATIONAL: Secretary of Energy Chris Wright claims he’s preaching ‘climate realism’; U.S. exports of natural gas liquids touch record high in April; Strong European demand pushes U.S. LNG exports up by 20%; US LNG exports surge to new highs on strong buying by Europe; DOE announces new leadership to tackle challenges of growing energy demand. [NOTE: We have not included comments on each story summary below in the interest of time. We’re still digging out from under a mountain of news that happened over the past nine days we’ve been away. MDN’s commentary will return tomorrow.]

MARCELLUS/UTICA REGION

Shell’s chemical division, including Monaca, poised for rebound
Pittsburgh (PA) Business Times
Shell PLC’s operations in the U.S., including the Shell Polymers Monaca plant in Beaver County, are currently experiencing minimal impact from the ongoing tariff war, according to CEO Wael Sawan during the company’s first-quarter earnings call. Sawan highlighted Shell’s significant U.S. assets, such as offshore oil production, liquefied natural gas, and the Monaca plant, noting that proactive measures have mitigated supply chain risks, particularly for projects like the Sparta deepwater oil development. However, he cautioned about potential “second-order impacts” on the economy and supply/demand, which may emerge by 2026. Shell reported $5.58 billion in earnings, down 28% from Q1 2024 but up from Q4 2024, and announced a $3.5 billion share buyback program. The chemicals division, including Monaca, anticipates 74-82% utilization in Q2, consistent with recent quarters, though margins are strained by a weak economy. Shell is considering divestitures in its chemical sector to focus on oil and gas.

Nighttime flaring at Shell plastics plant lit up Beaver County ‘like dawn’
Inside Climate News
On April 25, 2025, residents of Beaver County, Pennsylvania, experienced intense nighttime flaring from Shell’s ethane cracker plant, with the sky illuminated so brightly that it resembled dawn. This event was part of a pattern of malfunctions and pollution incidents since the plant began operations in late 2022. Despite Shell paying a $10 million fine in 2023 for air quality violations, locals report worsening conditions, including noise, light disturbances, and health concerns. The April flaring led to a notice of violation from the Pennsylvania Department of Environmental Protection. Residents, feeling the impact on their daily lives and well-being, continue to seek transparency and accountability from Shell regarding the plant’s operations and environmental compliance.

34 organizations sign letter urging Pa. to adopt measures to protect against shale drilling
PA Environment Digest Blog
On May 8, the Environmental Health Project (EHP) released a letter to Pennsylvania Governor Josh Shapiro, signed by 34 organizations and 104 individuals, urging the adoption of recommendations from EHP’s white paper, “Pennsylvania’s Shale Gas Boom: What the Shapiro Administration Can Do to Better Protect Public Health.” The white paper, launched April 1, calls for action to protect residents’ constitutional rights to clean air and water by transitioning to renewable energy, creating sustainable jobs, and reducing health risks from shale gas infrastructure. Recommendations include increasing setback distances, disclosing chemicals used in shale gas development, addressing cumulative emissions, and enhancing transparency with communities. EHP emphasizes the urgency of acting on existing evidence of health risks, noting that 1.5 million Pennsylvanians live near oil and gas wells, and all residents face climate change impacts worsened by fossil fuel pollution. The letter, sent April 29, requests a meeting with the governor to discuss these concerns.

Pennsylvania weighs how to manage power-hungry data centers
Harrisburg (PA) WITF-FM PBS
In Pennsylvania, utility regulators are addressing a surge in electricity demand driven by energy-intensive data centers, which power digital services like cloud storage, streaming, and AI. These centers, consuming up to 30% of some utilities’ peak loads, are prompting debates over fair cost allocation and grid reliability. Tech companies, including Google, argue against special fees or discriminatory rates for data centers, emphasizing their economic benefits, such as job creation. Conversely, utilities like Duquesne Light warn that the centers’ high demand could raise costs for other ratepayers without proper management, proposing that large users contribute their own generation. The Pennsylvania Public Utility Commission is tasked with balancing reliable service and reasonable rates, while PPL claims its infrastructure can handle new loads, potentially lowering rates. Rising electricity prices, driven by retiring plants and increased demand, further complicate the issue, with regional grid costs hitting a record $14.7 billion last year.

Shale coalition leader knows the drill, advocates for it
Washington (PA) Observer-Reporter
Jim Welty, president of the Marcellus Shale Coalition, emphasizes the critical role of natural gas in addressing growing energy concerns in Pennsylvania, a state atop the vast Marcellus Shale Basin. As the region’s electric grid faces challenges from increasing energy demands, forced retirements of fossil-fuel plants, data center growth, and infrastructure shortages, fears of power outages loom in the U.S. northeast. Welty highlights natural gas as a reliable, efficient, and clean energy source to bridge the 100-megawatt gap between demand and supply, powering the grid, data centers, and advanced manufacturing. Pennsylvania, the second-largest natural gas producer in the U.S., is well-positioned to leverage its resources, especially with the rise of AI-driven data centers requiring significant baseload power. However, the industry faces challenges, including infrastructure needs, pipeline issues, and policy setbacks. Welty advocates for streamlined policies and an “all-of-the-above” energy approach to meet national energy needs.

GOP lawmakers, energy stakeholders push for natural gas expansion to boost jobs, bolster grid
Pennsylvania Business Report
At a May 1, 2025, Pennsylvania House Republican Policy Committee hearing titled “Exploring Pennsylvania’s Energy Potential,” GOP lawmakers and industry leaders urged swift action to tap the state’s vast natural gas reserves, citing regulatory delays and barriers as threats to economic growth and job creation. Committee Chairman Rep. David Rowe emphasized the critical role of fossil fuel infrastructure, particularly natural gas, in meeting energy demands that renewables like solar cannot consistently fulfill. Industry stakeholders, including Mike Atchie of Williams Companies, highlighted the need for faster permitting and new pipeline infrastructure to meet rising energy demands, especially for data centers and manufacturing. Advocates like Tom Shepstone criticized regulatory overreach, while Matt Coday of the Oil and Gas Workers Association warned that Pennsylvania risks losing investment to states like Louisiana and Texas without a stable regulatory framework. Lawmakers stressed an “all-of-the-above” energy strategy and bipartisan cooperation to seize economic opportunities.

OTHER U.S. REGIONS

Mass. orders utilities to spend less ratepayer money on natural gas pipelines
Boston (MA) WBUR PBS
Massachusetts is reforming its Gas System Enhancement Plan (GSEP), a program criticized for inflating customer bills and incentivizing costly, unnecessary pipeline repairs. The state’s Department of Public Utilities has introduced changes to curb spending, which has surged 21% annually, costing ratepayers $6.2 billion over a decade. The overhaul aims to save money, reduce methane leaks—a potent climate pollutant—and maintain safety by prioritizing severe leaks, cutting annual spending, eliminating certain fees, and encouraging alternatives like electric heat pumps. This aligns with a 2022 law to phase out natural gas by mid-century. The reforms are expected to reduce the GSEP surcharge on bills by up to 17%. Critics, including state officials and environmental advocates, argue the program favored utility profits over cost-effective repairs. The changes are seen as a balanced approach to affordability, safety, and climate goals, with potential long-term savings for consumers.

Commonwealth LNG inks 20-year offtake
Rigzone
Commonwealth LNG has secured a 20-year agreement to supply 1 million metric tons per annum of LNG to a major, unnamed Asian energy corporation, marking a significant step toward its final investment decision expected in September 2025. The project, located on the Calcasieu River in Louisiana, has a planned capacity of 9.5 MMtpa and is anticipated to generate $11 billion in investment and $3.5 billion in annual export revenue, employing 2,000 workers during peak construction and 275 permanent staff by late 2029. In February 2025, the U.S. Department of Energy granted a conditional export permit to non-FTA countries, the first under President Trump’s second term, reversing Biden’s LNG export pause. The Federal Energy Regulatory Commission issued a draft Supplemental Environmental Impact Statement to address a court challenge regarding nitrogen dioxide emissions, with a public comment period ending April 7, 2025, and a final order expected in July 2025.

NATIONAL

Secretary of Energy Chris Wright claims he’s preaching ‘climate realism’
CPR News
Chris Wright, U.S. Secretary of Energy and former CEO of Liberty Energy, gained national attention after a 2020 dispute with The North Face, which refused to supply jackets to a fossil fuel company. Wright, a self-described “climate realist,” used the incident to highlight the essential role of hydrocarbons in modern products, including The North Face’s apparel, through viral campaigns and media appearances. Acknowledging climate change but downplaying its severity, Wright argues that fossil fuels are vital for human progress and that energy poverty is a greater threat than global warming. As Energy Secretary, he has reversed Biden-era policies, approving LNG export terminals and promoting alternative energy like geothermal and nuclear. Critics, including climate scientists and activists, argue his views underestimate climate risks, such as worsening wildfires, and prioritize fossil fuel interests over environmental concerns, accusing him of promoting a “lukewarmer” stance that minimizes the urgency of transitioning to renewable energy sources.

U.S. exports of natural gas liquids touch record high in April
Reuters/Yahoo! Finance
In April, U.S. natural gas liquids (NGLs) exports reached a record 2.9 million barrels per day, despite a trade war with China reducing shipments to the top buyer by 35% to 619,000 barrels per day, the lowest since November 2023. The trade tensions, which included a brief 125% tariff on U.S. ethane imports that China later waived, have impacted NGLs like ethane, propane, and butane, crucial for plastics, chemicals, heating, and cooking. While nearly half of U.S. ethane exports typically go to China, other countries like India, Brazil, and Japan significantly increased purchases, with India tripling its intake to 179,000 barrels per day. U.S. NGL production, driven by abundant shale gas, is projected to grow, with ethane output rising 3.6% in 2025. Major exporters like Enterprise Products and Energy Transfer reported robust transportation and export volumes, adapting to global demand shifts without significant disruptions.

Strong European demand pushes U.S. LNG exports up by 20%
OilPrice.com
Between January and April 2025, U.S. LNG exports surged by 20% compared to the previous year, reaching a record 34.6 million metric tons, driven by strong European demand amid a cold winter and depleted gas inventories. High European gas prices outpaced Asian LNG prices, diverting cargoes to Europe, where low renewable energy output and reduced competition from Asia further boosted imports. The U.S. saw increased supply from new facilities like Venture Global’s Plaquemines LNG and Cheniere’s Corpus Christi Stage 3, both starting operations in late 2024. U.S. LNG exports have grown annually since 2016, reaching 11.9 Bcf/d in 2024, making the U.S. the world’s top LNG exporter. The EIA projects a 19% rise to 14.2 Bcf/d in 2025 and a 15% increase to 16.4 Bcf/d in 2026, with new facilities like Plaquemines LNG Phase 2 and Golden Pass LNG potentially adding significant capacity.

US LNG exports surge to new highs on strong buying by Europe
Reuters
In 2025, U.S. liquefied natural gas (LNG) exports surged by over 20% from the previous year, reaching a record 34.6 million metric tons from January to April, driven primarily by European demand. Europe, accounting for 77% of U.S. LNG shipments (26.5 million tons), increased purchases by 49% compared to 2024, fueled by low gas inventories, high gas-fired power generation, and efforts to negotiate U.S. tariffs under President Trump. France, the UK, and the Netherlands were the top buyers, with France importing a record 4.8 million tons. Other European nations like Turkey, Spain, and Germany also boosted imports. Conversely, Asia’s LNG imports dropped 41% to 4.91 million tons, the lowest since 2019, due to high gas prices and economic slowdowns. While Europe will likely remain the primary U.S. LNG market, weak Asian demand and Europe’s clean energy shift pose long-term risks for U.S. exporters.

DOE announces new leadership to tackle challenges of growing energy demand
U.S. Department of Energy
The Department of Energy (DOE) has appointed new leadership to enhance the resilience and security of the U.S. energy system, critical for maintaining American leadership in AI. Alex Fitzsimmons, previously DOE Chief of Staff, will now lead the Office of Cybersecurity, Energy Security, and Emergency Response (CESER), leveraging his cybersecurity expertise and experience from the first Trump Administration. Carl Coe, who led the Department of Government Efficiency (DOGE) at DOE, will take over as Chief of Staff. This restructuring aims to address growing energy demands by upgrading existing infrastructure and building new, secure systems. Secretary of Energy Chris Wright emphasized the importance of reliable, affordable energy for AI dominance, likening it to a modern Manhattan Project. Fitzsimmons’ and Coe’s extensive backgrounds in energy policy and process improvement will drive DOE’s mission to fortify energy infrastructure against threats while ensuring efficiency and cost savings.