MDN’s Energy Stories of Interest: Tue, May 20, 2025 [FREE ACCESS]
OTHER U.S. REGIONS: Dominion Energy awards grants to 352 nonprofits across multiple states; US natgas prices at Waha hub in Texas fall into negative territory; Venture Global exported record LNG in Q1; NATIONAL: CFACT’s Myers challenges BlackRock’s board on ESG; Backlog for natural gas turbines expands on surging demand, supply constraints; INTERNATIONAL: Oil ends higher after volatile day; Spain boosts gas power to secure grid after blackout; UK, EU agree to link carbon markets in post-Brexit reset; A new IEA report and the Iberian blackout end dreams of an ‘energy transition’; China has secretly installed kill switches in solar panels sold to the West; EU faces extra €10bn bill to refill gas stores after cold winter.
OTHER U.S. REGIONS
Dominion Energy awards grants to 352 nonprofits across multiple states
Dominion Energy
The Dominion Energy Charitable Foundation recently distributed $10 million in grants to 352 nonprofit organizations across multiple states, including 190 in Virginia, to support diverse community initiatives. These shareholder-funded grants bolster programs such as providing healthy meals for seniors, improving nature trail accessibility, offering mental health services, expanding homeownership education, and supporting therapeutic art programs for military members, veterans, and their families. Notable recipients include Rx Partnership in Richmond, which enhances medication access for the uninsured, ForKids in Chesapeake, supporting a housing crisis hotline, and The Friends of Dyke Marsh in Alexandria, focusing on habitat restoration. According to Hunter A. Applewhite, President of the Foundation, these grants aim to amplify the impactful work of nonprofits in areas where Dominion Energy operates, including Virginia, South Carolina, northeastern North Carolina, West Virginia, Connecticut, and Rhode Island. The next grant application period is set for August 4 to September 15, 2025. [MDN: Dominion does this each year. Nonprofits that want to apply should check out this page.]
US natgas prices at Waha hub in Texas fall into negative territory
Reuters
In the Permian shale basin of West Texas, the largest oil-producing region in the U.S., natural gas prices turned negative on Monday due to spring pipeline maintenance and infrastructure constraints, trapping excess gas. LSEG reported a decline in U.S. Lower 48 gas output to 103.9 billion cubic feet per day in May from 105.8 bcfd in April, partly due to maintenance on Kinder Morgan’s Permian Highway, reducing its capacity to 2.2 bcfd through May 26. This led to a 260% price drop at the Waha Hub, hitting a six-month low of minus $1.52 per mmBtu, the fourth negative pricing event in 2025. Negative prices, a recurring issue since 2019, signal insufficient pipeline capacity. While new pipelines like Kinder Morgan’s Gulf Coast Express expansion are under construction, they won’t be operational until 2026. Despite low gas prices, energy firms offset losses with oil profits, though declining crude prices may reduce future drilling investments. [MDN: When there’s not enough pipeline capacity, natural gas prices crash. That has been the story of the Marcellus/Utica for years. In the Permian with associated gas, prices actually turn negative. That is, oil producers with natural gas to get rid of will pay customers to take the gas!]
Venture Global exported record LNG in Q1
Rigzone
In Q1 2025, Venture Global Inc. achieved a record-breaking export of 233.6 trillion British thermal units (TBtu) of liquefied natural gas (LNG), a 62% increase from Q1 2024, with sales volumes also rising 62% to 228.3 TBtu and revenue surging 105% to $2.89 billion. Despite this, net profit dropped 39% to $396 million due to non-cash factors like unfavorable interest rate swap changes. Operating income grew 75% to $1.08 billion, and adjusted EBITDA increased 94% to $1.35 billion, driven by higher sales volumes and prices, though offset by rising operating costs from the Plaquemines Project ramp-up and Calcasieu Project preparations. Plaquemines LNG’s phase 1 began exports in December 2024, with phase 2 expected in 2025. Calcasieu Pass LNG started commercial operations in April 2025, delivering to all foundational customers. The CP2 LNG project received a favorable environmental review from FERC, with export projections for 2025 set at 145–150 cargos from Calcasieu and 222–239 from Plaquemines. [MDN: Too bad Venture Global’s business model includes screwing over its contracted customers for YEARS by not shipping them LNG under contractual prices from both Calcasieu and Plaquemines. We don’t celebrate this accomplishment.]
NATIONAL
CFACT’s Myers challenges BlackRock’s board on ESG
Committee For A Constructive Tomorrow (CFACT)
BlackRock, Inc., the world’s largest asset manager with a $11.5 trillion portfolio, held its annual shareholders meeting, highlighting its controversial reputation under CEO Larry Fink, a World Economic Forum board member known for promoting renewable energy, DEI, and ESG policies. Recently, BlackRock has faced political pressure, particularly after Donald Trump’s reelection and red states severing ties, prompting the company to exit the Net Zero Asset Managers initiative, scale back DEI and ESG rhetoric, halt new ESG-themed funds in the U.S., and soften diversity targets. Despite these shifts, a shareholder proposal by the Boyer Research Group, supported by CFACT, questioning BlackRock’s move toward stakeholder capitalism, received only 1% support. During the Q&A, CFACT challenged BlackRock’s climate disclosure policies as veiled ESG activism. John Roe, Head of Investment Stewardship, emphasized BlackRock’s fiduciary duty to clients, focusing on navigating climate risks for long-term financial returns, suggesting a disconnect between public retreat and internal climate priorities. [MDN: In other words, while BlackRock has changed its public comments, it continues to try and force the companies it owns and invests large sums in to divest from fossil energy. BlackRock is still peddling ESG nonsense. We will never knowingly do business with BlackRock and suggest you don’t, either.]
Backlog for natural gas turbines expands on surging demand, supply constraints
RBN Energy
The RBN Energy article discusses the surging demand for natural gas-fired turbines, driven by the power generation industry’s need to support rapidly expanding data centers and rising electricity consumption. However, supply-chain bottlenecks, labor shortages, and manufacturing constraints have created backlogs stretching up to five years, making it challenging to meet this demand. Gas turbines, essential for converting natural gas into electricity through a high-speed combustion process, are critical for reliable, 24/7 power, especially for data centers operated by tech giants like Amazon, Google, and Microsoft. While renewables and nuclear options are considered, natural gas remains a key solution due to its reliability. The article highlights the complexity of turbine manufacturing, which requires specialized components and skilled labor, exacerbating delays. Major gas producers and midstream companies are planning to serve new gas-fired plants, but the turbine shortage remains a significant hurdle for meeting the growing energy needs. [MDN: Getting enough turbines quickly is a problem holding back more electric generation and more sales of shale gas.]
INTERNATIONAL
Oil ends higher after volatile day
Bloomberg/Rigzone
Oil prices edged higher after a volatile trading session, with Brent futures settling at $65.54 and WTI at $62.69, as investors monitored Russia-Ukraine truce talks and Iran nuclear deal developments. President Trump announced immediate talks between Russia and Ukraine, raising hopes for a ceasefire, which some traders viewed as slightly bearish for oil. However, uncertainty over Iran’s nuclear ambitions, with President Pezeshkian insisting on pursuing civilian nuclear energy, added market volatility, as a potential deal could increase global oil supply. A US credit rating downgrade by Moody’s raised concerns about economic slowdown and oil demand, while bullish signals emerged from strong buying in the North Sea market and bids for US crude. Despite recent price rebounds driven by US-Iran tensions and Middle East conflicts, oil futures remain down over 10% this year amid Trump’s trade war and anticipated oversupply from OPEC+ production increases. [MDN: Crude continues to sit comfortably in the $60s, right where it should be.]
Spain boosts gas power to secure grid after blackout
Bloomberg/Rigzone
Following a massive blackout on April 28 that left millions in Spain, Portugal, and southern France without power, Spain has significantly increased its reliance on costlier gas-fired power plants to stabilize its electricity grid. Data from grid operator Red Electrica shows a 37% surge in combined-cycle gas turbine (CCGT) output in the two weeks post-blackout, with their share of the power mix rising from 12% to 18%. The blackout, which disrupted electricity, communication, and transportation, is still under investigation, with some analysts pointing to solar farms’ lack of grid-forming inverters as a potential cause, though Deputy Prime Minister Sara Aagesen called this view simplistic. Red Electrica is incorporating CCGTs to manage voltage fluctuations, adding an estimated €5-€10 per megawatt-hour to costs, which may impact consumer bills. Despite prior discussions on grid upgrades, the government claims the blackout was unforeseen, highlighting ongoing challenges in balancing renewable energy integration with grid stability. [MDN: It was obviously a bitter pill for Bloomberg reporters to swallow to have to report that Spain is turning to natural gas to save the day following a massive blackout because solar was not up to the task, so the article is littered with references that natgas is more “costly” than solar (roughly 8-16% more). Here’s a question: Would you rather pay a few extra Euros for gas-fired electricity, or sit in the dark?! Plus, Spain is not converting all of its electricity to natgas—just using it as a backup.]
UK, EU agree to link carbon markets in post-Brexit reset
Bloomberg/Rigzone
The UK and EU have agreed to link their carbon markets to enhance climate cooperation and reduce post-Brexit trade tensions, as announced during a UK-EU summit aimed at improving relations five years after Brexit. This linkage will prevent border levies on carbon-intensive goods like steel and cement, boosting market liquidity and protecting small businesses from the EU’s carbon border adjustment mechanism. UK carbon futures surged 8.4% to £52.40 per ton, while EU prices dipped slightly. The move aligns with the EU’s goal to cut emissions by 55% by 2030 and counters global trade disruptions from US tariffs and deregulation. Although the UK’s carbon market must match the EU’s ambition, no timeline for integration was specified, and challenges like regulatory alignment and ECJ oversight remain. The agreement also includes defense, security, and potential UK participation in the EU’s internal power market to enhance energy efficiency and decarbonization. [MDN: There’s no fixing stupid. The UK has just linked itself to the climate crazies of the EU. Good luck with that.]
A new IEA report and the Iberian blackout end dreams of an ‘energy transition’
RealClearPolicy
Mark P. Mills argues that the notion of a global energy transition away from fossil fuels is faltering due to three critical events. First, the International Energy Agency’s (IEA) “Energy and AI” report highlights the immense power demands of AI data centers, equivalent to millions of households, with fossil fuels—natural gas in the U.S. and coal in China—projected to meet half of this demand, despite the IEA’s optimistic framing of renewables. Second, the April 2025 Iberian blackout, which left 55 million people without power, exposed the vulnerabilities of grids overly reliant on unreliable solar and wind energy. Third, the Republican “Big Beautiful Bill” aims to cut subsidies and mandates for the energy transition, potentially halting efforts to abandon fossil fuels. Mills contends that these events underscore the physical and economic limitations of renewables, with countries like Germany and the U.K. facing de-industrialization and energy poverty, while China dominates solar and wind supply chains. [MDN: The so-called energy transition is dead. We will have fossil energy for the next 50-100 years, as we’ve been saying since 2009.]
China has secretly installed kill switches in solar panels sold to the West
London (UK) Daily Mail
Engineers have uncovered “kill switches” in Chinese-manufactured components within American solar farms, raising concerns that Beijing could remotely disrupt or destroy power grids in the US, UK, and Europe, according to a Daily Mail article. These unauthorized communication devices, found in solar power inverters and batteries, can bypass firewalls, potentially allowing remote shutdowns or settings changes that could destabilize energy infrastructure and cause widespread blackouts. The discovery has prompted fears about China’s influence over Western renewable energy systems, given their reliance on Chinese parts. In the UK, shadow energy minister Andrew Bowie urged Energy Secretary Ed Miliband to pause the green energy transition for a security review, as it’s unclear if UK solar or wind farms contain these devices. China dismissed the claims as a smear, but the findings have sparked urgent calls for scrutiny of Chinese-made renewable energy equipment. [MDN: No more solar panels from China, period. Time to end this madness before we are taken over by the Chinese Communists. (We’d argue AOC, Bernie Sanders, and many other radical Democrats already work for the ChiComs.)]
EU faces extra €10bn bill to refill gas stores after cold winter
Financial Times
The European Union faces a €10bn increase in costs to refill its heavily depleted gas reserves ahead of winter, following a cold season that left storage two-thirds empty by March 2025. After Russia’s 2022 invasion of Ukraine, the EU mandated refilling gas storage to 90% capacity each summer to ensure supply stability. This year’s refilling, estimated at €26bn compared to €16bn last year, is driven by higher gas consumption due to a harsh winter and reduced wind power generation. Lower demand from China has kept gas prices down, but analysts warn that delayed refilling could spike prices later in the summer. EU countries, led by Germany, have pushed for more flexible storage targets, potentially reducing the goal by 7%, though changes may not apply before summer. Increased LNG imports and competition with Asian buyers, particularly China, could further elevate prices, with Morgan Stanley predicting a 10% rise over the summer. [MDN: Let’s ensure a significant portion of that money is spent on American LNG.]