MDN’s Energy Stories of Interest: Mon, Jun 16, 2025 [FREE ACCESS]
MARCELLUS/UTICA REGION: Trump to headline PA energy and AI summit at Carnegie Mellon next month; Amazon wants to install 72 diesel generators in Bucks County, PA; OTHER U.S. REGIONS: Trump overturns California phaseout of fossil fuel cars; NATIONAL: NRG expects to line up new US data center deals this quarter; U.S. natural gas storage capacity increased in 2024; U.S. natural gas storage improves, but long-term challenges remain; INTERNATIONAL: Oil spikes as Israel’s attacks on Iran stoke fears of wider war; European gas prices rise on Middle East supply risks.
MARCELLUS/UTICA REGION
Trump to headline PA energy and AI summit at Carnegie Mellon next month
Pittsburgh (PA) Business Times/Paul Gough
President Donald J. Trump will speak at the Pennsylvania Energy and Innovation Summit on July 15, 2025, at Carnegie Mellon University, hosted by U.S. Sen. Dave McCormick. The event will bring together global leaders in AI and energy, investors, union officials, and government representatives to discuss Pennsylvania’s growing role in these sectors. As the second-largest natural gas producer in the U.S., Pennsylvania is seeing significant investments in data centers and generative AI facilities, including a $20 billion commitment from Amazon for data centers across the state. Other projects include a data center/AI campus at the former Homer City coal plant, potentially powered by a major natural gas facility, and a smaller data center campus in Washington County. The summit aims to highlight Pennsylvania’s potential to drive economic growth, create jobs, and enhance national security through advancements in energy and AI infrastructure. [MDN: No doubt the Marcellus will be a big topic at this event. Very cool that Dave McCormick has put this together at a liberal university (must stick in their craw!). Look for protests by dunderheads.]
Amazon wants to install 72 diesel generators in Bucks County, PA
PA Environment Digest Blog/David Hess
The Department of Environmental Protection invites comments on an Air Quality Plan Approval Permit covering the installation of 72 – 2.5 MW diesel-fired emergency generators (180 MW total) and two 750 kW diesel-fired house emergency generator engines at the new Amazon Data Services Inc. data center in Falls Township, Bucks County. (PA Bulletin, page 4078) DEP will accept comments on the application for 30 days from the date of this notice. Any individual wishing to request a hearing may do so during the 30-day comment period. A public hearing may be held, if DEP, in its discretion, decides that a hearing is warranted based on the information received. Read the entire PA Bulletin notice for more information. Questions should be directed to Jame Beach, New Source Review Chief, DEP Southeast Regional Office, at 484-250-5920. For more information on environmental programs in Pennsylvania, visit DEP’s website. [MDN: Interesting that Amazon wants to use dirty diesel generators instead of clean-burning natural gas generators. We wonder why?]
OTHER U.S. REGIONS
Trump overturns California phaseout of fossil fuel cars
Rigzone
On June 12, 2025, President Donald Trump signed three congressional resolutions (H.J. Res. 87, 88, and 89) that overturned California’s clean transportation regulations—Advanced Clean Trucks, Advanced Clean Cars II, and Heavy-Duty Omnibus—aimed at reducing vehicle emissions and phasing out new fossil fuel vehicle sales by 2035. These regulations, supported by waivers granted by the Biden-era EPA, allowed California to set stricter standards than federal ones to address its air quality issues. California, joined by ten other states, filed a lawsuit in the U.S. District Court for the Northern District of California to challenge the use of the Congressional Review Act to cancel these waivers, arguing it was federal overreach. California’s Attorney General Rob Bonta vowed to defend the state’s environmental policies, while EPA Administrator Lee Zeldin criticized the waivers for imposing high costs and limiting consumer choice, claiming their reversal would boost the auto industry. The regulations were projected to save billions in health and maintenance costs while significantly reducing pollutants. [MDN: This is excellent news for freedom-loving residents of California, and the country. Congress pass the resolutions, and Trump signed them. No doubt the left will launch a sleazy lawfare attack to try and overturn the will of the people, but we predict this will stand, as it should.]
NATIONAL
NRG expects to line up new US data center deals this quarter
Bloomberg/Naureen Malik, Alix Steel, Romaine Bostick
NRG Energy Inc., a Houston-based independent power generator, is actively securing deals to supply electricity to data centers across the United States, with details to be disclosed during its second-quarter results, according to CEO Larry Coben. These complex agreements are driven by surging electricity demand from data centers, particularly for artificial intelligence, boosting the stock performance of power generators previously overlooked by investors. Coben emphasized that meeting this demand will require a diverse energy mix, including natural gas, nuclear, solar, wind, hydro, and batteries. NRG is well-positioned to capitalize on this trend, leveraging recent turbine orders for natural gas plants and a $12 billion acquisition deal with LS Power Equity Advisors LLC. Coben noted that while skepticism about the viability of data center deals persists, recent agreements confirm their reality, signaling a robust future for NRG in powering the tech industry’s expanding infrastructure. [MDN: Sounds promising. We can’t wait to hear about their deals, no doubt many of which will involve Marcellus/Utica gas as fuel.]
U.S. natural gas storage capacity increased in 2024
U.S. Energy Information Administration – Today in Energy
In 2024, underground working natural gas storage capacity in the Lower 48 states increased, as reported by recent data, with both demonstrated peak capacity and working gas design capacity showing gains. Demonstrated peak capacity, reflecting the highest volume of gas stored over the past five years, rose 1.7% (70 Bcf) to 4,277 Bcf, driven by greater utilization and infrastructure expansions, particularly in the Mountain region, due to high demand during the 2023–24 winter. Working gas design capacity, based on a facility’s theoretical capacity, grew slightly by 0.1% (3 Bcf), with a 7 Bcf increase in the Mountain region offsetting declines elsewhere, notably in the South Central and East regions due to base gas adjustments. A significant regulatory change in California boosted the Aliso Canyon facility’s capacity by 67% to 69 Bcf, enhancing the Pacific region’s demonstrated peak capacity. These changes help balance U.S. energy needs during peak demand. [MDN: Yet more evidence that the natural gas sector is expanding, not shrinking as anti-fossil fuel nutters claim.]
U.S. natural gas storage improves, but long-term challenges remain
Wall Street Journal/Anthony Harrup
U.S. natural gas storage levels have rebounded from a colder-than-expected winter that left inventories 12% below the five-year average, with mild spring weather and robust injections creating a 5.4% surplus by early June. However, concerns persist due to rapidly growing liquefied natural gas (LNG) exports, projected to double capacity by 2030, which could drive prices above $5 per million British thermal units in the second half of 2025. Analysts predict storage will dip below average by October, reaching a 22% deficit by March 2026, as summer cooling demand and new LNG terminals strain supply. Limited production growth, constrained by lower crude-oil output, exacerbates the issue. LNG terminals’ operational needs, including potential gas shedding during outages, are reshaping storage dynamics, with projects like NeuVentus’ Texas Gulf Coast caverns targeting LNG demand. U.S. LNG’s global role is expanding, supported by favorable policies and trade deals, potentially aligning U.S. prices closer to higher global benchmarks. [MDN: Domestic factors like storage levels are combining with international factors like trade policies and war. It’s never been easy to predict the price of natural gas. It’s even harder now.]
INTERNATIONAL
Oil spikes as Israel’s attacks on Iran stoke fears of wider war
Bloomberg/Jack Wittels, Mia Gindis, Catherine Cartier
Oil prices surged over 7% to near $73 a barrel, the largest one-day jump since March 2022, after Israel conducted airstrikes on Iran, including its Natanz nuclear site, escalating fears of a wider Middle East conflict that could disrupt a third of global crude production. The strikes, targeting Iran’s nuclear and missile programs, prompted Iran to launch over 100 drones in retaliation, with further missile attacks expected. The conflict threatens oil flows through the Strait of Hormuz, potentially cutting over 2.1 million barrels daily. European natural gas and gold prices also rose, while shipping rates for Middle East crude spiked 15%. Despite OPEC+ spare capacity and potential IEA stockpile releases, market indicators like Brent futures and options showed bullish sentiment. Iran’s vow for forceful retaliation and ongoing Israeli operations suggest prolonged volatility, though traders aren’t yet pricing in a worst-case scenario. [MDN: West Texas Intermediate for July delivery surged 7.3% to settle at $72.98 a barrel in New York. Brent for August rallied 7% to settle at $74.23 a barrel. We’ve left perfect price territory for now. Keep an eye on what the price does today and this week. We think it will settle back down, likely falling back into the $60s once jittery traders see that the apocalypse isn’t here just yet.]
European gas prices rise on Middle East supply risks
Wall Street Journal
European natural-gas prices rise in early trade as escalating tensions between Israel and Iran threaten energy flows in the region. The benchmark Dutch TTF contract is up 1.7% to 38.53 euros a megawatt hour. “Iran doesn’t export any meaningful supplies of natural gas, as its gas operations meet its domestic requirements,” ANZ Research analysts say. “However, the Strait of Hormuz is an important waterway for LNG. It handles about a fifth of the world’s LNG supply, mostly from Qatar.” Meanwhile, Israel shut down production at its biggest natural-gas field, the Leviathan, a key source of LNG supplies for Egypt. Analysts warn this could prompt Egypt to increase purchases on the spot market in order to meet its domestic demand, tightening global supplies. [MDN: The current conflict (war) between Israel and Iran will distrupt certain sectors, like LNG. However, it’s necessary. Iran must NOT get a nuclear bomb—ever.]