MDN’s Energy Stories of Interest: Thu, Jun 12, 2025 [FREE ACCESS]
NATIONAL: Kimmeridge cements plan to build integrated natural-gas company; EPA to save more than $1B per year after scrapping Biden-era emissions standards; INTERNATIONAL: Oil surges as USA orders partial evacuation of Iraqi embassy; Rising Asia temperatures bode well for US LNG export prospects.
NATIONAL
Kimmeridge cements plan to build integrated natural-gas company
Wall Street Journal/Luis Garcia
Kimmeridge Energy Management, backed by Abu Dhabi’s Mubadala Energy, is advancing its plan to create an integrated U.S. natural gas company, combining upstream production with LNG exports. The strategy involves Kimmeridge Texas Gas (KTG), which produces over 500 MMcfe/d in the Eagle Ford Shale, and Commonwealth LNG, a 9.3 MTPA LNG export facility in Louisiana targeting a final investment decision in Q3 2025 and first production in 2029. Unlike export-focused nations like Qatar, U.S. gas producers have historically avoided integration due to a robust domestic market, but Kimmeridge aims to capitalize on global LNG demand, projected to grow significantly by 2050. Mubadala’s 24.1% stake in SoTex HoldCo, KTG’s parent, marks its U.S. entry, while deals with Glencore for 2 MTPA LNG offtake strengthen the project’s commercial viability. Kimmeridge’s “wellhead-to-water” model emphasizes low-cost, environmentally responsible energy delivery. [MDN: An interesting concept to build a company that does everything from extracting the gas to flowing it to processing it and turning it into LNG and then shipping it. That’s what Kimmeridge is trying to do. Too bad they’re using money from the United Arab Emirates to do it.]
EPA to save more than $1B per year after scrapping Biden-era emissions standards
New York (NY) Post/Josh Christenson
The Environmental Protection Agency (EPA), under Administrator Lee Zeldin, is proposing to repeal Biden administration greenhouse gas regulations targeting coal and natural gas power plants, which were projected to cost the energy industry $1.3 billion annually and increase energy costs by nearly $20 billion over two decades. The move aims to provide cheaper electricity, boost U.S. energy independence, and meet rising demand from manufacturers and AI companies, while reducing reliance on imports. Zeldin criticized the regulations as an attempt to eliminate coal, oil, and gas industries, noting that U.S. coal and gas plants contribute only a fraction of global emissions. The repealed standards included a carbon-capture mandate for coal plants by 2039 and gas plants by 2032, and 2024 Mercury and Air Toxics Standards amendments, which offered minimal emission reductions. The repeal is expected to save the EPA $1.2 billion over a decade, with a 45-day public comment period before finalization. [MDN: A great move by Lee Zeldin. Make electricity cheaper and save the EPA’s own budget in the process. What a breath of fresh air is blowing through the EPA!]
INTERNATIONAL
Oil surges as USA orders partial evacuation of Iraqi embassy
Bloomberg/Mia Gindis
Oil prices surged, with West Texas Intermediate futures rising 4.9% to settle above $68 a barrel, driven by heightened geopolitical tensions in the Middle East. The U.S. ordered a partial evacuation of its embassy in Iraq and allowed military families to leave due to escalating security risks, while the UK Navy warned of potential shipping disruptions. Iran’s threats to target U.S. military bases further fueled fears of supply disruptions, amplified by the possibility of Israeli military action if negotiations with Iran fail. Despite earlier concerns about a U.S.-China trade war and increased OPEC+ supplies weighing on demand, recent easing of trade tensions and optimism for summer demand supported the price recovery. The U.S. Energy Information Administration highlighted market uncertainties, forecasting a supply surplus but noting limited U.S. crude production growth. The futures market also signaled tightening conditions, with the WTI spread flipping to backwardation, reflecting reduced oversupply concerns. [MDN: WTI for July delivery gained 4.9% to settle at $68.15 a barrel in New York. Brent for August settlement rose 4.3% to settle at $69.77 a barrel. Still in the $60s and still at a perfect price.]
Rising Asia temperatures bode well for US LNG export prospects
Reuters/Gavin Maguire
In 2025, U.S. LNG exports are hitting record highs, driven by strong European demand, but forecasts of above-average temperatures in key Asian markets like Japan, South Korea, and China through August could further boost exports. These high temperatures, coupled with humidity, are expected to increase air conditioning use, straining power grids and increasing reliance on natural gas plants fueled by imported LNG. Asian utilities typically ramp up LNG imports during summer, with U.S. exports to Asia averaging 7.8 million metric tons monthly from May to July between 2021 and 2024, compared to a yearly average of 2.23 million tons. While Europe has dominated U.S. LNG exports (70% in 2025), a potential summer slowdown in European purchases, due to varying gas storage strategies, could lower prices, making LNG more attractive to Asian buyers. This dynamic suggests robust U.S. LNG export volumes in the near term, regardless of the buyer. [MDN: This is good news for U.S. LNG exports.]