LNG angst seeps from consumers to producers 27 Mar 2024 A few years ago, supplies of liquefied natural gas were scarce and prices sky-high. Extra capacity arriving this decade means there could soon be a price-sapping glut. Big suppliers like Qatar and Shell have long-term contracts that can ease the pain, but only up to a point.
A $35 bln gas reunion tracks a topsy-turvy market 11 Mar 2024 Gas producer EQT spun off its midstream unit in 2018 to sate activists. The argument was that pipelines return cash while gas firms spend it. But that’s no longer true and the operational logic was thin. Striking amid low gas prices invites scrutiny, but recombining makes sense.
Shale twins’ $26 bln deal can afford to be pricey 12 Feb 2024 Permian producer Diamondback is buying a smaller version of itself in Endeavor, from overlapping acreage to neighboring offices. That implies the price is maybe $1 bln over the odds. Given unique savings the duo can reap in the heart of the US oil boom, the buyer can afford it.
Chesapeake $7.4 bln deal finds safety in numbers 11 Jan 2024 The gas company’s bid for Southwestern looks investor-friendly, with a low premium, cost savings and the prospect of cash payouts. Amid a wider energy M&A rush, boss Nick Dell’Osso can also take comfort from being neither the first nor surely the last to take an acquisitive leap.
Exxon $60 bln deal would mark shale’s middle age 6 Oct 2023 Buying Pioneer, a huge producer of oil in the US Permian, would be a mega-acquisition even for Exxon, but a rational one. It could offer a reasonable return, and the ability to exploit future oil-price spikes. For a maturing Pioneer, now isn’t a bad time to settle down.
Double defensive gas deal offers relative cleaning 6 Sep 2023 Canadian pipeline firm Enbridge wants to reduce dependence on transporting oil. Dominion Energy wants to concentrate on clean electricity. Selling retail gas distribution businesses for $9.4 bln to Enbridge doesn’t directly reduce emissions. But it does make both look cleaner.
European gas security rests on a fragile balance 14 Jul 2023 Mindful of last summer’s mad price rally, EU states have lots of the fossil fuel in storage. This, plus higher Chinese purchases, may keep European contracts below Asian ones. But that may prompt US cargoes of liquefied gas to head East, lifting European gas prices again.
Oil AGMs presage awkward investor decoupling 28 Apr 2023 BP sailed through its annual shareholder meeting without much blowback on how it had backtracked on climate goals. That will embolden competitors to dismiss pro-green investors’ concerns, and give more to the opposite camp. It is becoming harder to please both sides.
UAE gas IPO’s $50 bln valuation looks like a floor 22 Feb 2023 The Emirates’ energy giant ADNOC is selling at least 4% of its gas processing arm via an Abu Dhabi listing. As with Saudi Aramco, buyers will have to put up with minimal say on strategy. Unlike Aramco’s IPO, the mooted $50 bln valuation may be an underestimate.
China energy rethink can keep Europe warm 7 Feb 2023 A post-Covid economic rebound will increase Beijing’s appetite for liquefied gas. Yet a government push to use more coal and higher imports of pipeline gas from countries like Russia should keep demand 14% below a 2021 peak. That could ease the energy pain for gas-hungry Europe.
Global energy prices face a turbulent 2023 12 Jan 2023 The cost of natural gas has halved from a peak last year thanks to warmer weather and bulky European stores. In this Viewsroom podcast, Breakingviews columnists discuss why it’s too early for companies and households to rule out further supply shocks and price volatility.
Cheaper gas is temporary salve for Europe Inc 9 Jan 2023 Warm winter days and enough reserves to offset Russian imports have halved the fuel’s cost. Yet Europe’s energy security also hinges on abundant liquefied natural gas purchases. As China’s fuel-guzzling economy reopens post-Covid, industrial giants like BASF may still suffer.
Energy crises speed up the green transition 22 Nov 2022 In 2022, war and power shortages have led to more fossil fuel use. But they also act as a catalyst for the rollout of renewable energy. In this edition of The Exchange podcast, ex-Snam boss Marco Alverà tells George Hay how Europe’s leaders can capitalise on this dynamic.
Time for Europe to tame its energy cravings 19 Oct 2022 After paying through the nose to fill its gas storage reserves to 92%, the bloc is seeking to secure more affordable fuel. Measures like curbing price volatility, club purchases or flexible caps will be no panacea. While supply is tight, curbing demand is the key.
Europe’s energy crisis nears winter of discontent 18 Oct 2022 Germany, Italy and others have scrambled to replace Russian gas and pipeline attacks have become a concern. The Oxford Institute for Energy Studies’ Jack Sharples tells The Exchange podcast Europe must learn to live with less power. Next year may be even more challenging.
Total’s Russia foot-dragging is investor problem 18 Oct 2022 The French energy giant owns a stake in gas group Novatek, and is in theory entitled to a $430 mln dividend. CEO Patrick Pouyanné won’t say whether he’s selling. He may hope that long-held Kremlin ties can secure a clean exit, but the uncertainty is a shareholder concern.
Abu Dhabi would be a logical owner for Gunvor 4 Oct 2022 ADNOC, the emirate’s huge oil company, is interested in the privately held commodities trader. Gunvor’s valuation involves guesswork, and it used to be owned by a target of U.S. sanctions. But the UAE could use the group’s roster of gas client relationships, and it has the cash.
Europe can shrug off Putin’s Chinese gas Plan B 14 Sep 2022 With exports to its key European market shrinking fast, Moscow hopes to hike gas exports to the People’s Republic. But last year these were just 7% of EU sales, and logistics and sanctions complicate the shift. It need not deter Europe’s talk of a Russian gas price cap.
Europe energy fallout will cascade down the years 12 Sep 2022 The gas crisis is a long-term problem which will make the region poorer and less competitive while saddling it with higher public debt. Dealing with this as well as high inflation will cause further political ructions which will cascade down the years, says Hugo Dixon.
The consequences of Europe’s energy crisis 8 Sep 2022 As Russian President Vladimir Putin cuts off gas through a key pipeline, Breakingviews columnists discuss the response from UK and European governments, how the shutdown could have some longer-term benefits, and when Russia will feel the squeeze of lost revenue.