MDN’s Energy Stories of Interest: Wed, Jun 25, 2025 [FREE ACCESS]

MARCELLUS/UTICA REGION: Delaware estuary now under pressure from Trump administration; OTHER U.S. REGIONS: Cheniere makes positive FID on Corpus Christi Trains 8 & 9 project; NATIONAL: Biden EPA press aide joins climate think tank; U.S. LNG feedgas drops but likely to rise this week; Senate parliamentarian rejects offshore oil, gas drilling provisions in GOP megabill; AEA launches six-figure advocacy initiative to end the IRA credits; INTERNATIONAL: Oil prices plunge on Trump ceasefire push; Oil market concerns almost exclusively focused on Strait of Hormuz; One-fifth of global LNG trade flows through the Strait of Hormuz; US energy expert Robert Bryce warns Australia is ‘acting like an energy weakling’; LNG freight rates hit 8-mth top on tight tanker availability, Mideast conflict.

MARCELLUS/UTICA REGION

Delaware estuary now under pressure from Trump administration
NJ Spotlight
Critics are concerned that the Delaware River Basin Commission’s (DRBC) recent 4-0 vote to eliminate federal funding for diversity, equity, inclusion, and climate change programs signals a broader dismantling of environmental protections under the Trump administration. The decision, supported by representatives from New York, New Jersey, Pennsylvania, and Delaware, aligns with Trump’s executive orders to cut federal programs deemed inefficient, including those addressing climate change. The DRBC, which manages the Delaware River watershed serving 14 million people, has historically supported climate resilience and clean water initiatives. Environmentalists fear this move prioritizes cost-cutting over ecological health, potentially weakening protections for the Delaware Estuary’s wetlands, water quality, and biodiversity. The Partnership for the Delaware Estuary and other advocates argue that defunding these programs could exacerbate issues like sea-level rise and pollution, threatening the region’s environmental and economic stability. The decision has sparked debate about balancing fiscal efficiency with long-term environmental sustainability. [MDN: Here’s the bottom line…lefties are saying a vote to end reverse discrimination, which is what DEI is, will somehow harm the environment. They are, as usual, full of bullcrapus.]

OTHER U.S. REGIONS

Cheniere makes positive FID on Corpus Christi Trains 8 & 9 project
Cheniere Energy, Inc.
Cheniere Energy, Inc. announced that its Board of Directors has made a positive Final Investment Decision (“FID”) with respect to the Corpus Christi Midscale Trains 8 & 9 and Debottlenecking Project and has issued full notice to proceed to Bechtel Energy, Inc. for construction of CCL Midscale Trains 8 & 9. CCL Midscale Trains 8 & 9 is being built adjacent to the Corpus Christi Stage 3 Project and consists of two midscale trains with an expected total liquefaction capacity of over 3 million tonnes per annum (“mtpa”) of LNG and other debottlenecking infrastructure. Upon completion of CCL Midscale Trains 8 & 9, and together with expected debottlenecking and CCL Stage 3, the Corpus Christi LNG terminal is expected to reach over 30 mtpa in total liquefaction capacity later this decade. [MDN: Massive facility from the country’s largest LNG exporter. We think it likely that at least some M-U molecules make their way to the Corpus Christi facility.]

NATIONAL

Biden EPA press aide joins climate think tank
POLITICO Pro/E&E News
A former top press official at EPA is joining a prominent environmental policy think tank. Tim Carroll has started as senior press secretary at the Center for Climate and Energy Solutions. The organization, a 501(c)(3) nonprofit group, researches policies to build climate resilience and works with companies to find market solutions for global warming. Carroll said in a statement he was “thrilled” to join the center to help protect clean energy across the country. “As C2ES grows, we are extremely well-positioned to engage leading businesses and accelerate climate progress,” Carroll said. He added, “That’s why I’m especially looking forward to working closely with the press corps again to share more about our efforts to secure a safe, stable climate and a thriving, just, and resilient economy.” The think tank has pushed back against the Trump administration’s targeting of spending under former President Joe Biden’s signature climate law, the Inflation Reduction Act. [MDN: Another Biden administration liar joins a Big Green NGO dedicated to destroying fossil energy. Surprised? We aren’t.]

U.S. LNG feedgas drops but likely to rise this week
RBN Energy/Lisa Shidler
Last week, U.S. LNG feedgas demand dipped slightly, averaging 13.53 Bcf/d, due to a brief unplanned outage at Freeport LNG’s Train 3 on June 17 and marginally lower intake at other terminals like Cameron LNG, which saw a one-day drop on June 19. Despite this, Freeport quickly resumed full operations, and feedgas demand is expected to rebound toward 15 Bcf/d this week, driven by Sabine Pass restarting after maintenance. Sabine Pass, where two trains were offline throughout June, saw feedgas climb above 4 Bcf/d on Monday, the highest since late May. Other terminals, including Corpus Christi, Calcasieu Pass, and the commissioning Plaquemines terminal, experienced minor reductions in feedgas but operated within normal ranges. With Sabine Pass nearing full utilization, total U.S. feedgas demand is poised to surge, reflecting robust operational recovery across key LNG facilities. [MDN: It goes up, it goes down, it goes up again. That’s how it rolls.]

Senate parliamentarian rejects offshore oil, gas drilling provisions in GOP megabill
Washington (DC) The Hill/Alexander Bolton
The Senate parliamentarian, Elizabeth MacDonough, has ruled against key provisions in the GOP’s megabill aimed at advancing President Trump’s agenda, dealing a setback to Senate Republican Leader John Thune and providing Democrats with a procedural victory. The rejected provisions included measures to fast-track offshore oil and gas projects by deeming them compliant with the National Environmental Policy Act, effectively bypassing environmental reviews, and a requirement for the Interior Secretary to issue offshore oil and gas leases within 90 days of a sale. Additionally, a section mandating the construction of Ambler Road in Alaska to facilitate mining development was struck down. These rulings, based on violations of the Byrd Rule, require the provisions to be removed as they cannot pass with a simple majority via budget reconciliation. This development complicates the GOP’s efforts to meet Trump’s July 4 deadline for passing the megabill, which already faces challenges in the Senate after a narrow House approval. [MDN: We’re not up to speed on the intricacies of parliamentarian procedures, but can’t the GOP just float those things in a separate bill?]

AEA launches six-figure advocacy initiative to end the IRA credits
American Energy Alliance
The American Energy Alliance has launched a six-figure advocacy campaign targeting Senators in Utah, Alaska, Idaho, and Washington, D.C., to push for the elimination of the Inflation Reduction Act’s (IRA) costly green energy subsidies in the Senate’s reconciliation bill. The House recently passed a reconciliation bill that significantly reduces these subsidies, projected to cost taxpayers between $936 billion and $1.97 trillion over a decade, with potential liabilities up to $4.7 trillion by 2050. While Senators John Curtis and Lisa Murkowski, who initially opposed the IRA in 2022, are now working to preserve these programs, Senators Mike Lee and Mike Crapo are praised for their efforts to eliminate them. AEA President Tom Pyle criticized the IRA as a “trillion-dollar boondoggle” and urged the Senate to prioritize energy security and affordability by dismantling the subsidies, emphasizing market-driven solutions over special interest handouts. [MDN: The AEA is doing the Lord’s work in attempting to pressure Senators to eliminate the horrible IRA and it’s Big Green giveaways of taxpayer money. Top priority for the GOP is to get Lisa Murkowski out of office next time around. We need to primary her and dump her. She’s not a real Republican.]

INTERNATIONAL

Oil prices plunge on Trump ceasefire push
Bloomberg/Rigzone
Oil prices plummeted for the second consecutive day, with West Texas Intermediate crude falling nearly 15% to $64.37 per barrel and Brent settling at $67.14, following a US-brokered ceasefire between Iran and Israel that de-escalated tensions in the Middle East. President Trump’s social media remarks encouraging continued Iranian oil exports, alongside hopes of increased US oil sales to China, contributed to the sharp decline. This marks a shift from previous US efforts to restrict Iranian oil exports, with prices dropping despite recent US strikes on Iran’s nuclear sites and retaliatory Iranian missile attacks on US bases in Qatar. The US shale boom has reduced reliance on Middle Eastern oil, mitigating the price impacts, while a looming global oil surplus from OPEC+ and non-OPEC+ producers, outpacing demand growth, further pressures prices. The fading geopolitical risk premium and narrowing Brent spreads signal a market refocusing on economic factors, potentially easing inflation concerns but challenging producer economies. [MDN: Huh. Look at that. The price of oil right back in the $60s within a week. Who woulda thunk? Oh, that’s right. We did!]

Oil market concerns almost exclusively focused on Strait of Hormuz
Rigzone/Andreas Exarheas
Over the past week, oil market concerns centered on the Strait of Hormuz due to Middle East hostilities, particularly the potential for short-term supply disruptions, according to a Standard Chartered Bank report. Analysts noted that the market focused on Hormuz and potential damage to Iran’s export infrastructure, like Kharg Island, rather than broader geopolitical risks. A ceasefire between Israel and Iran, combined with a perceived shift in U.S. policy toward a less interventionist stance, led to a sharp decline in Brent crude prices, dropping $13.50 from a high of $81.40 per barrel after U.S. bombings of Iranian nuclear targets on June 22. Despite the ceasefire, market volatility spiked, with tight U.S. inventories and fragile Middle East ceasefires posing upside risks. However, bearish investor sentiment, OPEC+ production uncertainties, and U.S. economic policy concerns present downside risks. Rystad Energy and Macquarie reports suggest oil prices may stabilize near $70 per barrel if the ceasefire holds, though a Hormuz blockade could theoretically spike prices significantly. [MDN: Prices near $70 are just fine. It certainly looks like the price of oil is heading for “lower for longer.”]

One-fifth of global LNG trade flows through the Strait of Hormuz
U.S. Energy Information Administration – Today in Energy
In 2024, approximately 20% of global liquefied natural gas (LNG) trade, primarily from Qatar, passed through the Strait of Hormuz, a vital chokepoint for both LNG and oil. Qatar exported 9.3 billion cubic feet per day (Bcf/d) of LNG through the strait, while the UAE contributed 0.7 Bcf/d, representing nearly all Persian Gulf LNG flows via Hormuz. About 83% of this LNG was destined for Asian markets, with China, India, and South Korea accounting for 52% of the total. Disruptions in the Bab al-Mandeb Strait and increased U.S. LNG exports to Europe shifted Qatar’s LNG exports toward Asia. Meanwhile, Kuwait, the UAE, and Bahrain (which began operating an LNG import terminal in April 2025) imported LNG from non-Persian Gulf sources, including the U.S. and West Africa, with Bahrain receiving U.S. cargoes in April and June 2025 via Hormuz. [MDN: It wouldn’t hurt our feelings at all if Iran blocked shipping through the Strait of Hormuz. It would knock out Qatar’s LNG exports, meaning the world would be begging for U.S. LNG exports.]

US energy expert Robert Bryce warns Australia is ‘acting like an energy weakling’
Sky News Australia/Conor Breslin
US energy expert Robert Bryce has criticized Australia’s energy policies, labeling the country an “energy weakling” despite its vast natural resources, as reported by Sky News Australia. Speaking to Peta Credlin, Bryce argued that Australia’s pursuit of net-zero emissions is economically harmful, driving up power prices and impacting households and industries, from construction to groceries. He highlighted the nation’s abundant coal, gas, and uranium reserves, suggesting that embracing nuclear power, as countries like Poland, France, and Germany are doing, could secure energy stability and affordability. Bryce questioned why Australian policymakers are not leveraging these resources, warning that the current trajectory prioritizes ideological goals over prosperity. His critique aligns with sentiments on X, where users echo concerns about soaring energy costs and the neglect of Australia’s resource potential, urging a shift toward more practical energy solutions like natural gas and nuclear power. [MDN: Bryce is right. Australia is committing energy suicide by pursuing net-zero nonsense. It’s good for the U.S. and our LNG exports, but bad for Australia.]

LNG freight rates hit 8-mth top on tight tanker availability, Mideast conflict
Reuters/Emily Chow, Marwa Rashad
Liquefied natural gas (LNG) shipping costs have surged to an eight-month high due to tight tanker availability and escalating Middle East conflict, according to a Reuters report. Atlantic freight rates for standard LNG vessels reached $51,750 per day, while Pacific rates hit $36,750, the highest since October 2024, driven by a shift in U.S. cargoes to Asia as pricing became equally profitable for both regions. Longer voyages via the Cape of Good Hope, prompted by the Israel-Iran conflict raising fears of Strait of Hormuz closure, have reduced available tankers. Insurance costs for vessels transiting the Strait, through which 20% of global oil and gas flows, have spiked, with war risk premiums increasing up to fivefold. Egypt’s tender for 160 LNG cargoes through 2026 further strained vessel supply, exacerbating the rate hike amid heightened market sentiment. [MDN: An interesting development, that the unrest in the Middle East is causing higher rates for LNG cargo carriers.]