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Business Times
21-05-2025
- Business
- Business Times
US LNG loses ground in Asia as tariffs, politics stall Alaska megaproject
[SINGAPORE] Asian energy buyers are rethinking their long-term bets on US liquefied natural gas (LNG) – increasingly seen as a geopolitical lever – as tariffs, political risk and volatile costs cloud the appeal of the US as a reliable trading partner. Experts say this shift could open the door to rival exporters, as Asia moves to diversify its supply sources. Underscoring this is a once-flagship US$44 billion Alaska LNG project – revived under US President Donald Trump and pitched as a fast-track export route to Asia – which is struggling to secure regional backing, despite being used as a bargaining chip during the 90-day tariff pause since Apr 9. While reports indicate that US' allies such as Japan and South Korea have expressed interest in participating in the project, no financial commitments have yet been made by any Asian buyer. This underscores broader hesitancy amid Washington's protectionist turn and rising infrastructure costs, experts say. Sanjeev Gupta, EY-Parthenon Asia-Pacific oil and gas leader, said that the LNG market dynamics have changed. While in the past, countries such as Japan and South Korea were willing to pay a premium for the security of supply from a single LNG source, current market conditions benefit those with a multi-source supply. 'The current landscape favours companies that embrace a flexible trading strategy and optimise their global portfolios, allowing them to capture economic rents more effectively,' he added. Industry players have also long questioned the project's profitability. At an earnings briefing this month, Daisuke Yamada, senior managing executive officer at Japan's oil major Inpex, said the Alaska LNG project is 'extremely difficult to make profitable', noting that construction on frozen terrain is limited to only parts of the year. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The proposed project – a 1,300 km natural gas pipeline stretching from the North Slope to Nikiski – aims to commercialise natural gas reserves discovered in 1969. Since its inception, the project has been targeting Asian buyers with its Nikiski terminal offering faster shipping access to Japan, South Korea, Taiwan and South-east Asia. Source diversification In 2024, the US accounted for over 10 per cent of total LNG imports in Japan, South Korea and Taiwan, making it the region's third-largest supplier. In March, Taiwan's state-owned CPC Corporation signed a non-binding letter of intent to purchase six million tonnes annually from Alaska LNG – more than its total LNG imports from the Middle East (Qatar, United Arab Emirates, Oman) – in a bid to strengthen ties with the Trump administration. One observer described Taiwan's LNG deal with Alaska as a political rather than economic move, noting that the island already imports substantial volumes from Qatar – one of its top suppliers and a global leader in low-cost production. According to a Reuters report citing a source, Trump's energy security council plans to host a summit in Alaska in early June, when it hopes to secure commitments from Japan and South Korea for the Alaska LNG project. With the Alaskan project likely to yield more expensive LNG, Asian buyers are shifting towards a diversified sourcing strategy to meet growing demand. Gupta expects a diverse range of LNG sources as the LNG demand in Asia continues to grow at an annual rate of about 5 per cent. 'While the recent 90-day trade truce between the US and China has provided temporary relief, long-term uncertainty persists for the energy sector. Some major Chinese energy firms are exploring opportunities with Middle Eastern suppliers, signalling a strategic shift to diversify and de-risk their sourcing strategies,' he said. A Singapore-based LNG trader told The Business Times that Chinese buyers have long lost interest in US LNG given the geopolitical risk premiums, and are selling off leftover US contracts to Europe instead. Asia Natural Gas & Energy Association's chief executive officer Paul Everingham, however, noted that US LNG will continue to play an important role in Asia's energy mix amid rising demand. A 2024 study by Wood Mackenzie forecasts that US LNG would make up a third of global supply by 2035 – if planned and proposed projects are developed – while Asia's LNG demand is expected to nearly double to 510 million tonnes per annum in 2050, as emerging nations seek a cleaner fuel than coal for power generation. Given LNG's pivotal role, South-east Asian buyers are exploring ways to manage price volatility and rising costs. This includes Singapore's move to establish a centralised LNG purchasing entity to leverage economies of scale and enhance trading capabilities to reduce supply risks. As Vietnam, the Philippines and Thailand face declining domestic gas production, these countries are also actively seeking to engage with international markets for LNG supplies. Funding woes While Everingham expects the continued expansion of US LNG production to moderate global prices, export growth is clouded by an increasingly challenging funding environment – particularly following the imposition of 25 per cent global tariffs on aluminium and steel since Mar 12, which together account for about 30 per cent of LNG infrastructure costs, according to Rystad Energy. In fact, the new tariff regime has significantly undermined the US investment environment by fuelling uncertainty, Rystad's LNG market analytics team remarked. 'Developers will face increased difficulty finding financial backing for these long-term projects that often take over a decade to recoup costs,' the team reckoned, adding that eight projects expected to reach final investment decisions (FIDs) within the next three years are now at risk. Experts also expect waning interest in US LNG from Asian buyers, as higher capital costs driven by steel and aluminium tariffs will likely push developers to seek higher prices in offtake contracts, and potentially price US supply out of key markets. 'This is particularly the case for Asia, where buyers remain hesitant to commit to long-term US contracts given that LNG demand is price-sensitive in many East Asian emerging economies, and the added complication of shipping routes through the Panama Canal or around the Cape of Good Hope,' said Rystad. Such hesitation, coupled with eroding trust in the US as a reliable long-term partner, has opened the door for more geopolitically stable competitors to secure long-term contracts, it said. A key beneficiary could be Canada, given its expanding export capacity.
Yahoo
26-04-2025
- Business
- Yahoo
Why Vital Energy, Inc. (VTLE) Stock Is Gaining This Week
We recently compiled a list of the Energy Stocks that are Gaining This Week. In this article, we are going to take a look at where Vital Energy, Inc. (NYSE:VTLE) stands against the other energy stocks. After plunging to a 52-week low earlier this month, the energy sector has since slightly recovered, posting gains of around 2% over the last week. The primary reason behind this slight surge is the modest increase in global crude oil prices, due to a temporary suspension of President Trump's tariffs on most countries and his softening rhetoric regarding the levies imposed on China. Investor sentiment was also buoyed by a reported 4.6 million barrel drop in US crude oil inventories last week, far exceeding expectations of an 800,000 barrel drop. Another sector that has recently been in the spotlight is liquified natural gas, since an increasing number of countries are now looking to buy American LNG to narrow down their trade gap with the United States. A great example is how Indian state-run GAIL has issued a tender to acquire up to 26% stake in an LNG project in the United States, bundling the offer with a 15-year gas import deal, and aiding New Delhi's efforts to narrow its trade surplus with Washington. Moreover, the threat of Trump's tariffs is pushing Japan, South Korea, and Taiwan to consider investing in a massive natural gas project in Alaska. The project aims to produce 20 million metric tons of LNG annually, equal to about 23% of the total LNG that the US exported last year. In fact, Taiwan's state oil and gas company CPC Corporation already signed an LoI last month to purchase six million metric tons of gas from Alaska LNG. Aerial view of an oil well and the rig in the Permian Basin, West Texas. To collect data for this article, we have referred to several stock screeners to find energy stocks that have surged the most between April 16 and April 23, 2025. The following are the Energy Stocks that Gained the Most This Week. The stocks are ranked according to their share price surge during this period. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Share Price Gains Between Apr. 16 – Apr. 23: 7.01% Vital Energy, Inc. (NYSE:VTLE) is an independent energy company that engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas. The stock of Vital Energy, Inc. (NYSE:VTLE) fell by 37.5% earlier this month after it was downgraded by both Bank of America and Citi. Moreover, the company's production guidance for 2025 was also disappointing for analysts, and its Q4 2024 revenue also fell below market expectations, despite being up 20.2% YoY. The stock has since slightly rebounded, also helped by the modest increase in global crude price over the last two weeks. Overall, VTLE ranks 8th on our list of the energy stocks that gained the most this week. While we acknowledge the potential of energy companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VTLE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
26-04-2025
- Business
- Yahoo
Why Marathon Petroleum Corporation (MPC) Stock is Gaining This Week
We recently compiled a list of the Energy Stocks that are Gaining This Week. In this article, we are going to take a look at where Marathon Petroleum Corporation (NYSE:MPC) stands against the other energy stocks. After plunging to a 52-week low earlier this month, the energy sector has since slightly recovered, posting gains of around 2% over the last week. The primary reason behind this slight surge is the modest increase in global crude oil prices, due to a temporary suspension of President Trump's tariffs on most countries and his softening rhetoric regarding the levies imposed on China. Investor sentiment was also buoyed by a reported 4.6 million barrel drop in US crude oil inventories last week, far exceeding expectations of an 800,000 barrel drop. Another sector that has recently been in the spotlight is liquified natural gas, since an increasing number of countries are now looking to buy American LNG to narrow down their trade gap with the United States. A great example is how Indian state-run GAIL has issued a tender to acquire up to 26% stake in an LNG project in the United States, bundling the offer with a 15-year gas import deal, and aiding New Delhi's efforts to narrow its trade surplus with Washington. Moreover, the threat of Trump's tariffs is pushing Japan, South Korea, and Taiwan to consider investing in a massive natural gas project in Alaska. The project aims to produce 20 million metric tons of LNG annually, equal to about 23% of the total LNG that the US exported last year. In fact, Taiwan's state oil and gas company CPC Corporation already signed an LoI last month to purchase six million metric tons of gas from Alaska LNG. An oil pipeline stretching for miles, signifying the transportation of fuels for the market. To collect data for this article, we have referred to several stock screeners to find energy stocks that have surged the most between April 16 and April 23, 2025. The following are the Energy Stocks that Gained the Most This Week. The stocks are ranked according to their share price surge during this period. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Share Price Gains Between Apr. 16 – Apr. 23: 8.15% Marathon Petroleum Corporation (NYSE:MPC) is a leading integrated downstream energy company that operates the largest refining system in the US, with approximately 3 million barrels per day of crude oil capacity across 13 refineries. The share price of Marathon Petroleum Corporation (NYSE:MPC) has fallen by over 32% over the last 52 weeks, highlighting the challenges faced by the global refining sector. The sector has come under pressure following the prospects of a declining oil demand, coupled with a drop in crude oil prices. However, as the global oil prices have slightly recovered over the last two weeks, so has the share price of MPC. Despite the ongoing challenges, Marathon Petroleum Corporation (NYSE:MPC) topped estimates in Q4 2024, posting an adjusted EPS of $0.77 and a quarterly revenue of $33.47 billion. With 13 billionaire holders in the Insider Monkey database at the end of Q4 2024, MPC is included among the 10 Best Oil Stocks to Invest In According to Billionaires. Overall, MPC ranks 4th on our list of the energy stocks that gained the most this week. While we acknowledge the potential of energy companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MPC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
26-04-2025
- Business
- Yahoo
Why NCS Multistage Holdings, Inc. (NCSM) Stock is Gaining This Week
We recently compiled a list of the Energy Stocks that are Gaining This Week. In this article, we are going to take a look at where NCS Multistage Holdings, Inc. (NASDAQ:NCSM) stands against the other energy stocks. After plunging to a 52-week low earlier this month, the energy sector has since slightly recovered, posting gains of around 2% over the last week. The primary reason behind this slight surge is the modest increase in global crude oil prices, due to a temporary suspension of President Trump's tariffs on most countries and his softening rhetoric regarding the levies imposed on China. Investor sentiment was also buoyed by a reported 4.6 million barrel drop in US crude oil inventories last week, far exceeding expectations of an 800,000 barrel drop. Another sector that has recently been in the spotlight is liquified natural gas, since an increasing number of countries are now looking to buy American LNG to narrow down their trade gap with the United States. A great example is how Indian state-run GAIL has issued a tender to acquire up to 26% stake in an LNG project in the United States, bundling the offer with a 15-year gas import deal, and aiding New Delhi's efforts to narrow its trade surplus with Washington. Moreover, the threat of Trump's tariffs is pushing Japan, South Korea, and Taiwan to consider investing in a massive natural gas project in Alaska. The project aims to produce 20 million metric tons of LNG annually, equal to about 23% of the total LNG that the US exported last year. In fact, Taiwan's state oil and gas company CPC Corporation already signed an LoI last month to purchase six million metric tons of gas from Alaska LNG. A drilling rig in action, operated by an oilfield services team. To collect data for this article, we have referred to several stock screeners to find energy stocks that have surged the most between April 16 and April 23, 2025. The following are the Energy Stocks that Gained the Most This Week. The stocks are ranked according to their share price surge during this period. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Share Price Gains Between Apr. 16 – Apr. 23: 8.15% Next on our list of Energy Stocks Gaining the Most This Week is NCS Multistage Holdings, Inc. (NASDAQ:NCSM), a leading provider of highly engineered products and support services that enable oil-and-gas operators to optimize oil and natural gas well completions and field development strategies. The stock of NCS Multistage Holdings, Inc. (NASDAQ:NCSM) fell by over 33% earlier this month following the sharp decline in global crude prices and the overall bearish sentiment regarding the oilfield services industry. However, the stock has since partially recovered. Despite the plunge in April, the share price of NCS Multistage Holdings, Inc. (NASDAQ:NCSM) has surged by more than 78% over the last year. The company boasts a robust business model and has topped market expectations in both earnings and revenue in its last two quarters. Overall, NCSM ranks 5th on our list of the energy stocks that gained the most this week. While we acknowledge the potential of energy companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NCSM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
26-04-2025
- Business
- Yahoo
Why Permian Resources Corporation (PR) Stock is Gaining This Week
We recently compiled a list of the Energy Stocks that are Gaining This Week. In this article, we are going to take a look at where Permian Resources Corporation (NYSE:PR) stands against the other energy stocks. After plunging to a 52-week low earlier this month, the energy sector has since slightly recovered, posting gains of around 2% over the last week. The primary reason behind this slight surge is the modest increase in global crude oil prices, due to a temporary suspension of President Trump's tariffs on most countries and his softening rhetoric regarding the levies imposed on China. Investor sentiment was also buoyed by a reported 4.6 million barrel drop in US crude oil inventories last week, far exceeding expectations of an 800,000 barrel drop. Another sector that has recently been in the spotlight is liquified natural gas, since an increasing number of countries are now looking to buy American LNG to narrow down their trade gap with the United States. A great example is how Indian state-run GAIL has issued a tender to acquire up to 26% stake in an LNG project in the United States, bundling the offer with a 15-year gas import deal, and aiding New Delhi's efforts to narrow its trade surplus with Washington. Moreover, the threat of Trump's tariffs is pushing Japan, South Korea, and Taiwan to consider investing in a massive natural gas project in Alaska. The project aims to produce 20 million metric tons of LNG annually, equal to about 23% of the total LNG that the US exported last year. In fact, Taiwan's state oil and gas company CPC Corporation already signed an LoI last month to purchase six million metric tons of gas from Alaska LNG. A close-up of a wellhead, showing off the company's production of oil and natural gas. To collect data for this article, we have referred to several stock screeners to find energy stocks that have surged the most between April 16 and April 23, 2025. The following are the Energy Stocks that Gained the Most This Week. The stocks are ranked according to their share price surge during this period. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Share Price Gains Between Apr. 16 – Apr. 23: 7.99% Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company with operations focused in the Permian Basin, with assets concentrated in the core of the Delaware Basin. The recent volatility in the share price of Permian Resources Corporation (NYSE:PR) reflects the ongoing challenges faced by the oil industry. The stock closed at a 52-week low of $10.36 earlier this month after the global crude oil price plunged to multi-year lows. However, the slight recovery in crude prices has helped the stock somewhat recover. Despite some challenges in its Q4 2024, Permian Resources Corporation (NYSE:PR) declared a quarterly dividend of $0.15 per share in February. PR currently boasts a hefty dividend yield of almost 6%, putting it among the 13 Best Natural Gas and Oil Dividend Stocks To Buy. Overall, PR ranks 6th on our list of the energy stocks that gained the most this week. While we acknowledge the potential of energy companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
