MDN’s Energy Stories of Interest: Wed, Aug 13, 2025 [FREE ACCESS]
OTHER U.S. REGIONS: NextDecade secures $1.8 billion from TotalEnergies, GIP for Rio Grande LNG project; NY Climate Action Council member letter to the PSC; NATIONAL: Potential for ‘coolest August’ in eight years knocks natgas futures down; Wind and solar troubles – economics, not ideology; Tech giants may be the surest bets for data center power demand; INTERNATIONAL: Oil falls as China tariff truce extended; German gas drive fuels fears of climate backsliding.
OTHER U.S. REGIONS
NextDecade secures $1.8 billion from TotalEnergies, GIP for Rio Grande LNG project
Reuters/Arunima Kumar, Curtis Williams
NextDecade, a U.S. liquefied natural gas developer, has secured up to $1.8 billion in equity commitments from TotalEnergies and Global Infrastructure Partners (GIP) to fund construction of Train 4—a 5.4 million metric tons per annum liquefaction unit—at its Rio Grande LNG export facility in Texas, moving the project closer to a positive financial investment decision (FID). TotalEnergies will invest approximately $300 million for a 10% stake in the Train 4 joint venture, while GIP will contribute up to $1.5 billion for an initial 50% interest, which may decline to 30% after certain return thresholds are met; NextDecade, through its subsidiaries, will provide up to $1.2 billion for a 40% interest, potentially rising to 60% post-GIP return target. The firm is awaiting a final FERC order on remand—expected by November 20—and has awarded Bechtel a fixed-price $4.77 billion contract for Train 4, valid until September 15. [MDN: NextDecade has already signed deals to sell LNG for Train 5, which means Train 4 must be on the cusp of an FID. Rio Grande is located in the Port of Brownsville (Texas), which is on the border of Texas and Mexico.]
NY Climate Action Council member letter to the PSC
Pragmatic Environmentalist of New York/Roger Caiazza
Two Climate Action Council members, Donna DeCarolis and Dennis Elsenbeck, have submitted a formal letter to Rory Christian, Chair & CEO of the New York State Public Service Commission (PSC), urging the PSC to initiate a hearing to consider modifying and extending the Renewable Energy Program timelines established under the Climate Leadership and Community Protection Act; they argue that “there are more than sufficient circumstances to warrant the PSC commencing” such a process, invoking the hearing mandate tied to unmet or exceeded conditions under the legislation—an issue the blog’s author has been tracking since early 2022 and wishes to highlight; the article underscores the author’s long-standing concern that reliance solely on wind, solar, and energy storage in implementing the Climate Act’s net-zero mandates poses reliability and affordability risks. [MDN: This is notable for those of us living in NY. The Climate Action Council is a 22-member appointed body that prepared a Scoping Plan to serve as the roadmap to achieve the State’s idiotic clean energy and climate goals. The state climate law established a New York “Net Zero” target (85% reduction in GHG emissions and 15% offset of emissions) by 2050 and has two electric sector targets: 70% of the electricity must come from renewable energy by 2030, and all electricity must be generated by “zero-emissions” resources by 2040. The official experts to guide us there are saying to the PSC, those timelines ain’t gonna happen. Already the left is backtracking. The real solution is to overturn the Climate Act law.]
NATIONAL
Potential for ‘coolest August’ in eight years knocks natgas futures down
NGI’s Daily Gas Price Index/Chris Newman
Natural gas futures tumbled to their lowest level in nine months on Tuesday as forecasts and a developing Atlantic hurricane laid out courses to potentially cool down summer and depress gas-fired power demand. The September Nymex contract fell 14.6 cents to settle at $2.808/MMBtu. Similarly, NGI’s Spot Gas National Avg. shed 13.0 cents to $2.760. Prices were led lower by sharp drops in the Northeast with its heat projected to ease as a cold front moves in Wednesday to Thursday. The September contract fell to an intraday low of $2.780, or the lowest level for the prompt-month price series since November. The contract bounced above technical support in the $2.75-2.77 area, according to NGI’s Patrick Rau, senior vice president of research and analysis. [MDN: Gas closed at $2.81 yesterday. Yuck. But not unexpected. Keep an eye for even lower prices in the near-term.]
Wind and solar troubles – economics, not ideology
Institute for Energy Research/Robert L. Bradley, Jr.
The article critiques Robinson Meyer’s New York Times op-ed, which claims the Trump administration opposes wind and solar energy out of partisan hostility toward Democrats. The author argues Meyer dismisses the need to understand and rebut opposing arguments, ignoring decades of unmet promises from the renewable industry. Historical records show that in the 1980s and 1990s, industry groups and media predicted solar and wind would become competitive with temporary tax credits and R&D support, yet they remain dependent after numerous tax credit extensions. The piece attributes this to basic energy physics: fossil fuels are dense, reliable, and cost-effective, while wind and solar are dilute, intermittent, and fragile. It also highlights ecological downsides, including land use, wildlife harm, and local opposition to large projects, alongside financial troubles for rooftop solar firms. The author rejects fears of losing a technological edge, arguing renewables are on “life support” and should face free-market competition without taxpayer subsidies. [MDN: Bradley’s point is that the defenders of renewables accuse those of us who criticize them as being motivated by politics instead of science and economics. The simple fact is that solar and wind can’t make it without massive, ongoing taxpayer funding. Solar and wind should be allowed to survive, or die, in the free market.]
Tech giants may be the surest bets for data center power demand
RBN Energy/Lisa Shidler
The article outlines the massive data center expansion efforts by four tech giants—Microsoft, Amazon, Alphabet (Google), and Meta—highlighting their financial commitments and electricity demands as they race to meet soaring AI and cloud computing needs. Microsoft is adding over 2 GW of capacity globally, with $80 billion earmarked for data centers in FY 2025 (over $40 billion in the U.S.), including large projects in Indiana, Iowa, Washington, and Wisconsin. Amazon’s Project Rainier in Indiana could demand 2.2 GW, and it is also investing heavily in developments in Mississippi, North Carolina, Ohio, and Pennsylvania—including a long-term nuclear-powered supply. Alphabet raised its 2025 capex to $85 billion to accelerate data center builds, with projects in Arizona, Arkansas, Indiana, and Nebraska, some paired with renewable energy agreements. Meta plans data center spending of $66–72 billion, including a 2 GW-plus, $10 billion Hyperion campus in Louisiana powered by gas turbines and solar, along with sizeable developments in Ohio, South Carolina, and Texas. Google reported 30.8 million MWh of electricity use in 2024—more than double that of 2020—while the others have not disclosed total consumption, making future demand growth uncertain. [MDN: All of the tech giants plan data centers (which will need gas-fired power) in regions where M-U molecules flow. At least one, and sometimes multiple locations in the M-U.]
INTERNATIONAL
Oil falls as China tariff truce extended
Bloomberg/Julia Fanzeres, Alex Longley
Oil prices declined as investors weighed U.S. President Donald Trump’s 90-day extension of tariff relief on China against potential developments from his upcoming meeting with Russian President Vladimir Putin. West Texas Intermediate (WTI) fell 79 cents to $63.17 a barrel, near a two-month low, while Brent dropped 51 cents to $66.12. U.S. inflation data fueled speculation that the Federal Reserve may soon cut interest rates. Traders are eyeing the Trump-Putin summit for clues on possible easing of sanctions on Russia, though Trump downplayed expectations for a Ukraine peace deal. Trading volumes for Brent remain below average, signaling caution amid uncertainty. Oil prices have fallen over 8% this month as trade and geopolitical tensions eased, with analysts warning of a looming supply glut. The U.S. now projects domestic oil output will fall next year, while the EIA forecasts a surplus of 1.7 million barrels per day in 2026. [MDN: We’re liking these prices. It gives consumers a break at the gas pump.]
German gas drive fuels fears of climate backsliding
Paris (France) AFP/France24
Chancellor Friedrich Merz’s coalition, led by the CDU with the SPD as junior partner, is prioritizing economic revival by boosting energy security, planning around 20 gigawatts of new gas-fired power capacity by 2030—about double previous targets. Economy Minister Katherina Reiche, a former energy executive, argues rapid construction is vital to back up renewables when solar and wind fall short, especially after Germany’s nuclear shutdown and planned coal phaseout. Supporters say natural gas, while emitting greenhouse gases, is cleaner than coal and a necessary bridge until renewables reach 80% of electricity consumption by 2030 (55% in 2024). Critics, including the Greens, environmentalists, and some conservatives, warn the move risks a “dramatic setback” for climate policy and could raise power costs. Concerns also include overcapacity—think tank Agora Energiewende estimates only 10 GW is needed—plus EU approval and construction timelines. The government insists the plants will be decarbonised long-term, potentially via green hydrogen. [MDN: The article (and headline) uses the word “backsliding,” which is a uniquely religious term that means leaving the path of righteousness and returning to one’s sinful ways. Which is a perfect illustration of a point we’ve long made: That the so-called environmental movement is a religious movement. The faithful are zealots who believe in their god of man-caused global warming, and anyone who challenges that god is an apostate.]