MDN’s Energy Stories of Interest: Thu, Jul 10, 2025 [FREE ACCESS]
OTHER U.S. REGIONS: FERC issues notice to proceed with construction at Mississippi Hub; NATIONAL: Chevron preps quick closing of Hess deal and awaits result of Exxon dispute; Executives reveal where they see Henry Hub price landing in future; How rising renewable output complicates natural gas trading; Natural gas is green and hugely beneficial economically; Trump says wind and solar are ‘a blight on our country’; INTERNATIONAL: Oil holds gains despite US crude surge; Oil giant Saudi Aramco in talks with Commonwealth LNG for offtake agreement.
OTHER U.S. REGIONS
FERC issues notice to proceed with construction at Mississippi Hub
Enstor Gas
Emerald Storage Holdings LLC, the parent company of Enstor Gas, LLC and Mississippi Hub, LLC, has received approval from the Federal Energy Regulatory Commission (FERC) to proceed with the Mississippi Hub Expansion Project, a significant enhancement to its high-deliverability natural gas storage facility located on the Bond Salt Dome in Simpson County, Mississippi. The project involves constructing three new storage caverns, each with about 10 billion cubic feet (Bcf) of working storage capacity, and expanding the hub’s existing caverns, adding a total of 33.5 Bcf of new working gas capacity and up to 0.7 million dekatherms per day (MMDth/day) of injection capacity. Upon completion by 2028, the Mississippi Hub will have a total working gas storage capacity of 56.3 Bcf—2.5 times its current capacity—with an injection capacity of 1.90 MMDth/day and a withdrawal capacity of 2.40 MMDth/day. Enstor will commence construction immediately. [MDN: The interesting thing about this FERC-approved project to expand natural gas storage in Mississippi is that the mighty Transco pipeline connects to and uses storage at this facility. Transco flows M-U molecules, meaning more storage at this facility for our molecules when needed.]
NATIONAL
Chevron preps quick closing of Hess deal and awaits result of Exxon dispute
Reuters
Chevron is preparing to rapidly finalize its $53 billion acquisition of Hess, focusing on integrating the smaller oil producer’s operations, including a severance program for some of Hess’s 1,800 employees, as part of a broader restructuring that may cut up to 20% of its workforce. The deal’s completion hinges on the outcome of an arbitration dispute with Exxon Mobil and CNOOC, who claim a right of first refusal on Hess’s 30% stake in Guyana’s Stabroek oilfield, a key asset with over 11 billion barrels of oil equivalent critical for Chevron’s declining reserves. Chevron and Hess argue this right does not apply to the full company sale. Chevron aims to legally close the deal within 48 hours and fully integrate operations within 45 days post-arbitration resolution, a process typically taking months. A decision from the International Chamber of Commerce’s three-member panel is pending, which will determine the deal’s fate. [MDN: It appears the ICC has made a decision that has not (yet) been announced. And Chevron believes that decision will go in its favor. This particular sale doesn’t have much if anything to do with the M-U region, except that both Chevron and Hess once owned major assets in our region. It’s a big deal for O&G in this country that Chevron and Hess, both with huge holdings and assets in shale plays in this country, are merging.]
Executives reveal where they see Henry Hub price landing in future
Rigzone/Andreas Exarheas
The second quarter Dallas Fed Energy Survey, involving 116-133 oil and gas executives, forecasted Henry Hub natural gas prices at $3.66 per MMBtu in six months, $3.81 in one year, $4.12 in two years, and $4.50 in five years, slightly lower than the first quarter’s projections of $3.71, $3.98, $4.30, and $4.83, respectively. For the end of the year, 133 executives predicted an average of $3.66 per MMBtu, with forecasts ranging from $1.75 to $5, compared to the first quarter’s $3.78 average (range $2-$5.25). The survey’s average spot price was $3.30, down from $4.10 in Q1. Enverus Intelligence Research maintained its forecast at $3.60 per MMBtu for summer and $3.85 for winter, noting downside risks due to aggressive storage injections, potentially exceeding 4 trillion cubic feet by October, which could pressure prices. The Dallas Fed surveys about 200 firms in Texas, New Mexico, and Louisiana for economic and policy insights. [MDN: At least we’re staying above $3! That’s progress.]
How rising renewable output complicates natural gas trading
NGI’s Daily Gas Price Index/Andrew Baker
The rapid expansion of wind and solar energy has intensified the challenges of trading natural gas, a commodity already known for its volatility, primarily driven by unpredictable weather patterns. Renewable energy output, particularly from wind farms, is difficult to forecast and non-dispatchable, forcing grid operators to adjust natural gas power generation to stabilize the grid. During a June heat wave, high renewable generation led to lower natural gas demand compared to the previous year, as wind and solar displaced less efficient gas-fired plants. This trend contributed to robust natural gas storage builds and limited futures gains despite record temperatures. The U.S. Energy Information Administration projects a 34% increase in solar generation this summer, reducing natural gas use by 4% in 2025, with further renewable growth expected. In markets like ERCOT, where renewables supplied 40% of power in early 2025, the unpredictability of wind and solar heightens reliance on natural gas to manage grid stability, complicating trading strategies. [MDN: A very interesting article that points out how unreliable renewables make forecasting natgas usage for power generation the equivalent of “going to the craps table.” NGI’s articles and data and top notch. We recommend them highly. Find a trial to their articles here.]
Natural gas is green and hugely beneficial economically
RealClearEnergy/Benjamin Zycher
The article from RealClearEnergy, published July 9, 2025, argues that natural gas is a green and economically vital energy source, highlighted by Louisiana Governor Jeff Landry’s new law defining “green energy” as including hydrocarbons meeting EPA’s Clean Air Act standards. It emphasizes that natural gas, enabled by fracking and horizontal drilling, has driven a 79% increase in U.S. production, powering economic growth and energy independence. The piece counters environmentalist critiques, like those from DeSmog, which claim gas causes unreliable grids and pollution, by citing its high capacity factors and reliability compared to renewables. It also notes methane’s lesser role in radiative forcing compared to CO2, downplaying its climate impact. Economically, natural gas supports jobs and infrastructure, with the article dismissing green hydrogen and other renewables as costly and inefficient, advocating for pragmatic energy policies that prioritize natural gas for its affordability, reliability, and environmental benefits. [MDN: We love it! Landry has the right idea. Natural gas IS green and we should be comparing apples with apples when it comes to which energy sources are truly green (good for the environment), and which are not.]
Trump says wind and solar are ‘a blight on our country’
Forbes/David Blackmon
In a recent cabinet meeting, President Donald Trump criticized the wind and solar industries, calling them a “blight” and asserting they harm the U.S., as he pushes to marginalize these sectors in favor of oil, gas, and coal. Following the Biden administration’s support for renewables, Trump’s policies, including the One Big Beautiful Bill Act (OBBBA) signed on July 4, aim to revert energy policy to a 2019 stance, emphasizing energy security and “American Energy Dominance.” A new executive order signed on July 7 targets wind and solar by terminating tax credits, enforcing stricter subsidy regulations, and reviewing preferential treatments by the Department of Interior. The order also restricts equipment from countries like China, complicating supply chains for renewables. This rapid policy shift, contrary to expectations of gradual change, significantly challenges the wind and solar industries, signaling a return to fossil fuel prioritization with 42 months left in Trump’s term. [MDN: We could not agree more! Trump is right about wind and solar, as he typically is.]
INTERNATIONAL
Oil holds gains despite US crude surge
Bloomberg/Mia Gindis, Catherine Cartier
Oil prices remained stable as traders balanced a significant 7.1 million barrel increase in US crude stockpiles, the largest since January, against new US sanctions targeting 22 foreign entities involved in Iranian oil sales. West Texas Intermediate settled at $68.38 a barrel, while Brent reached $70.19. The sanctions aimed to curb Iranian exports, countering recent US policy ambiguity after President Trump encouraged China to continue purchasing Tehran’s crude. However, experts like Joe DeLaura from Rabobank suggest these measures may have limited impact, as sanctioned entities could rebrand to maintain oil flows. Renewed Houthi attacks in the Red Sea failed to significantly affect prices, as most ships already avoid the route. Despite earlier price surges during the Israel-Iran conflict, focus has shifted to OPEC+ supply increases and tight US diesel reserves, with Saudi Aramco forecasting steady global demand growth. [MDN: The real news here is amid all of the turmoil in the world, and all of the turmoil Big Media tries to scare people with, oil prices are remarkably stable. There are no wild gyrations in price—just a slow up and down, up and down.]
Oil giant Saudi Aramco in talks with Commonwealth LNG for offtake agreement
Reuters/Marwa Rashad, Curtis Williams
Saudi Aramco, the world’s largest oil producer, is negotiating with Commonwealth LNG to purchase 2 million tons per annum of liquefied natural gas (LNG) from its proposed facility in Cameron, Louisiana, aiming to bolster its position in the global LNG market, according to four sources cited by Reuters. The deal would help Commonwealth LNG, which has already secured 4 million tons in sales agreements and a non-binding 1 million ton deal, move closer to its target of selling 8 million tons of the plant’s 9.5 million ton capacity. Commonwealth LNG plans to finalize its investment decision for the Cameron plant by year-end, potentially reinforcing the U.S. as the world’s top LNG exporter. Aramco, seeking to expand its LNG portfolio amid a projected 50% global demand increase by 2030, has also engaged with other U.S. LNG projects, including NextDecade’s Rio Grande LNG, though neither Aramco nor Commonwealth LNG commented on the talks. [MDN: We don’t like it that the largest oil producer in OPEC is now trying to get its hooks into our LNG markets.]