MDN’s Energy Stories of Interest: Tue, May 27, 2025 [FREE ACCESS]

OTHER U.S. REGIONS: QatarEnergy, ExxonMobil LNG project to start production this year; NATIONAL: Trump says he’s eyeing Russia sanctions, calls Putin ‘crazy’; WTI settles at $61.53 in light trade; Industry groups react to House passage of “one big beautiful bill”; Victory for energy freedom, the House (finally) limits IRA subsidies.

OTHER U.S. REGIONS

QatarEnergy, ExxonMobil LNG project to start production this year
Rigzone
The Golden Pass LNG project in Sabine Pass, Texas, a joint venture between QatarEnergy (70%) and ExxonMobil (30%), is set to begin production by the end of 2025, as announced by QatarEnergy CEO Saad Sherida Al-Kaabi. This project, combined with QatarEnergy’s North Field expansion projects, will more than double its LNG production capacity from 77 million metric tons per annum (MMtpa) to 160 MMtpa, positioning QatarEnergy as the largest single LNG exporter and Qatar as the second-largest LNG exporting country after the U.S. The North Field East expansion’s first liquefaction train is expected to start by mid-2026, while the North Field West is in the engineering phase, with construction planned for 2027. The U.S. Department of Energy extended the export operation deadline for Golden Pass LNG to March 2027, and on April 28, 2025, the Federal Energy Regulatory Commission approved commissioning of key systems, with further authorizations pending full compliance with safety and regulatory conditions. [MDN: M-U molecules flow to the Sabine Pass area, specifically to Cheniere Energy’s LNG export plant there. It stands to reason that our molecules will also flow to the Golden Pass project when it’s up and running later this year.]

NATIONAL

Trump says he’s eyeing Russia sanctions, calls Putin ‘crazy’
Bloomberg/Rigzone
President Donald Trump expressed frustration with Russian President Vladimir Putin and is considering new sanctions against Russia following Moscow’s largest drone attack on Ukraine, which involved a record number of drones and cruise missiles, injuring civilians and damaging infrastructure. The attacks, described as “retaliatory” by the Kremlin, followed Ukraine’s drone strikes on central Russia and came amid stalled ceasefire talks, with Trump failing to meet his 100-day deadline to end the conflict. Ukrainian President Volodymyr Zelenskiy and his aide Andriy Yermak called for increased sanctions and weapons to pressure Russia, while the EU’s Kaja Kallas condemned the “appalling” strikes and urged international action. Senate Republicans are prepared to impose severe tariffs on countries buying Russian energy if Putin does not engage in or breaches peace talks. Trump criticized both Putin and Zelenskiy, blaming them and former President Joe Biden for the ongoing war. [MDN: Putin IS crazy. Then again, so is Zelenskiy. It is past time we pulled out and stopped providing money and weapons to Ukraine. Maybe that will get Zelenskiy to the bargaining table, because if he doesn’t, he won’t have a country left.]

WTI settles at $61.53 in light trade
Bloomberg/Rigzone
Oil prices rose slightly in light pre-holiday trading, with West Texas Intermediate climbing 0.5% to settle above $61 a barrel, driven by fading hopes for a US-Iran nuclear deal and bolstered by strong US economic data. The fifth round of nuclear talks in Rome made limited progress, raising concerns about tighter sanctions on Iran, an OPEC member, which could restrict oil flows. Geopolitical tensions, including US intelligence reports of potential Israeli strikes on Iranian nuclear facilities, briefly pushed prices up earlier in the week. However, the oil market remains bearish, with crude prices down 14% this year, hitting a 2021 low last month due to OPEC+ easing supply curbs and US-led tariff threats impacting demand. Additional pressure came from rising US oil stockpiles and stalled trade talks, while a potential OPEC+ output hike looms. European calls to lower the Russian oil price cap to $50 further complicate the market outlook. [MDN: WTI for July delivery rose 0.5% to settle at $61.53 a barrel in New York. Brent for July settlement advanced 0.5% to settle at $64.78 a barrel. Still very good prices in our opinion.]

Industry groups react to House passage of “one big beautiful bill”
Rigzone
The American Petroleum Institute (API), Independent Petroleum Association of America (IPAA), and National Ocean Industries Association (NOIA) praised the House of Representatives for passing the One Big Beautiful Bill Act, which aims to bolster American energy dominance by preserving tax policies, reinstating oil and gas lease sales, reforming permitting processes, and delaying the Methane Emissions Reduction Program (MERP) for ten years. API President Mike Sommers and NOIA President Erik Milito emphasized the bill’s role in advancing energy innovation and maintaining the Gulf’s strategic energy hub status, urging the Senate to protect offshore energy tax credits. IPAA’s Jeff Eshelman, while supportive, expressed disappointment over the lack of a full MERP repeal. The bill, passing with a 215-214 vote, also reduces taxes, adjusts federal spending, and raises the debt limit. However, Democratic leaders and the Sierra Club criticized it for cutting Medicaid and food assistance while favoring wealthy tax cuts and weakening environmental protections. The bill awaits Senate approval and President Trump’s signature. [MDN: We are well on our way. Nobody gets everything they want. This bill is good enough for now. Let’s get it done, and later we can tweak and make changes.]

Victory for energy freedom, the House (finally) limits IRA subsidies
Energy Talking Points by Alex Epstein
In a significant win for energy freedom, the U.S. House passed a bill limiting the Inflation Reduction Act’s (IRA) massive subsidies for solar and wind projects, which were destabilizing the electrical grid and costing taxpayers hundreds of billions. Initially, Republicans planned to retain most IRA subsidies, but thanks to efforts by energy freedom advocates like Representatives Chip Roy and Josh Brecheen, the final bill imposed strict limits on new solar and wind subsidies, saving substantial funds and protecting grid reliability. Alex Epstein, an energy policy expert, played a key role in educating House members, countering misleading claims from special interest lobbyists. However, Epstein argues the cuts don’t go far enough, urging the Senate to further reduce subsidies and focus on reliable energy sources like nuclear and geothermal to foster a nuclear renaissance and ensure a stable, cost-effective energy future. He plans to continue advocating for these changes. [MDN: We’re working in the right direction. We’ll take half a loaf.]