Latest news with #RapidanEnergy
CNBC
3 days ago
- Business
- CNBC
Trump administration is convinced massive Alaska energy project will find investors despite steep cost
The Trump administration is confident that a massive liquified natural gas project in Alaska will find investors despite its enormous cost. President Donald Trump has pushed Alaska LNG as a national priority since taking office. Alaska has already spent years trying to build an 800-mile pipeline from the North Slope above the Arctic south to the Cook Inlet, where the gas would be cooled and shipped to U.S. allies in Asia. But Alaska LNG has never gotten off the ground due to a stratospheric price tag of more than $40 billion. Trump has pushed Japan and South Korea in particular to invest in the project, threatening them with higher tariffs if they don't offer trade deals that suit him. "If you get the commercial offtakers for the gas, financing is pretty straightforward," Energy Secretary Chris Wright told CNBC's Brian Sullivan in Prudhoe Bay, Alaska. "There [are] countries around the world looking to shrink their trade deficit with the United States, and of course, a very easy way to do that is to buy more American energy," Wright said. Energy analysts, however, are skeptical of the project. Alaska LNG "doesn't have a clear cut commercial logic," Alex Munton, director of global gas and LNG research at Rapidan Energy, told CNBC in April. "If it did, it would have had a lot more support than it has thus far, and this project has been on the planning board for literally decades," Munton said. Wright said the project would be built in stages and initially serve domestic demand in Alaska, which faces declining natural gas supplies in the Cook Inlet. Interior Secretary Doug Burgum said the Department of Defense is ready to support the project with its resources. "They're ready to sign on to take an offtake agreement from this pipeline to get gas to our super strategic, important bases across Alaska," Burgum said of the Pentagon in a CNBC interview at Prudhoe Bay. Alaska LNG, if completed, would deliver U.S. natural gas to Japan in about eight days, compared to about 24 days for U.S. Gulf Coast exports that pass through the congested Panama Canal, Burgum said. It would also avoid contested waters in the South China Sea that LNG exports from the Middle East pass through, the interior secretary said. Wright said potential Asian investors have outstanding questions about the timeline and logistics of Alaska LNG. The pipeline could start delivering LNG to southern Alaska in 2028 or 2029, with exports to Asia beginning sometime in the early 2030s, Wright said. The project's lead developer Glenfarne told CNBC in April that a final investment decision is expected in the next six to 12 months on the leg of pipeline that runs from the North Slope to Anchorage. Glenfarne is a privately held developer, owner and operator of energy infrastructure based in New York City and Houston.
CNBC
3 days ago
- Business
- CNBC
Trump administration convinced massive Alaska energy project will find investors despite steep cost
The Trump administration is confident that a massive liquified natural gas project in Alaska will secure investors despite its steep cost. President Donald Trump has pushed Alaska LNG as a national priority since taking office. Alaska has sought for years to build an 800 mile pipeline from the North Slope in the Article Circle south to the Cook Inlet where the gas would be cooled to liquid and shipped to U.S. allies in Asia. But Alaska LNG has never gotten off the ground due to an eyewatering price tag of more than $40 billion. Trump has been pushing Japan and South Korea in particular to invest in the project, threatening them with higher tariffs if they don't offer trade deals that suit him. "If you get the commercial offtakers for the gas, financing is pretty straightforward," Energy Secretary Chris Wright told CNBC's Brian Sullivan in Prudhoe Bay, Alaska. "There's countries around the world looking to shrink their trade deficit with the United States, and of course, a very easy way to do that is to buy more American energy," Wright said. Energy analysts, however, are skeptical of the project. Alaska LNG "doesn't have a clear cut commercial logic," Alex Munton, director of global gas and LNG research at Rapidan Energy, told CNBC in April. "If it did, it would have had a lot more support than it has thus far, and this project has been on the planning board for literally decades," Munton said. Wright said the project would be built in stages and initially serve domestic demand in Alaska, which faces declining natural gas supplies in the Cook Inlet. Interior Secretary Doug Burgum said the Department of Defense is ready to support the project with its resources. "They're ready to sign on to take an offtake agreement from this pipeline to get gas to our super strategic, important bases across Alaska," Burgum said of the Pentagon in a CNBC interview at Prudhoe Bay. Alaska LNG, if completed, would deliver U.S. natural gas to Japan in about eight days, compared to around 24 days for U.S. Gulf Coast exports that pass through the congested Panama Canal, Burgum said. It would also avoid contested waters in the South China Sea that LNG exports from the Middle East pass through, the interior secretary said. Wright said potential Asian investors have outstanding questions about the timeline and logistics of Alaska LNG. The pipeline could start delivering LNG to southern Alaska in 2028 or 2029, with exports to Asia beginning sometime in the early 2030s, Wright said. Glenfarne, the project's lead developer, told CNBC in April that a final investment decision is expected in the next six to 12 months on the leg of pipeline that runs from the North Slope to Anchorage. Glenfarne is a privately-held developer, owner and operator of energy infrastructure based in New York City and Houston
Ya Libnan
02-05-2025
- Business
- Ya Libnan
Trump: Anyone who buys oil from Iran will barred from doing any business with U.S.
President Donald Trump said Thursday any country or person that buys oil or petrochemicals from Iran will not be allowed to do any business with the U.S. U.S. crude oil futures rose $1.03, or 1.77%, to close at $59.24 per barrel, while global benchmark Brent gained $1.07, or 1.75%, to settle at $62.13. Iran is one of the biggest oil producers in OPEC. 'Any Country or person who buys ANY AMOUNT of OIL or PETROCHEMICALS from Iran will be subject to, immediately, Secondary Sanctions,' Trump said in a post on his social media platform Truth Social . 'They will not be allowed to do business with the United States of America in any way, shape, or form.' Trump in February ordered a ' maximum pressure ' campaign against Iran that aims to completely shut down the Islamic Republic's oil exports. The president accused Iran in remarks at the White House Thursday of financing militant groups throughout the Middle East. Trump also initiated negotiations with Iran in Oman in April over its nuclear program. He said in February that he wants to prevent Iran from developing a nuclear bomb. Tehran has denied it is seeking such a weapon. The president said in February he would prefer to reach a deal with Iran. During his first term, Trump pulled the U.S. out of the nuclear agreement negotiated with Iran by President Barack Obama. Trump's comments are clearly directed at China, which is importing more than 1 million barrels per day from Iran, said Scott Modell, CEO of consulting firm Rapidan Energy. Modell said U.S. sanctions are unlikely to have an impact on Iranian oil flowing to China unless the White House targets Beijing's state-owned enterprises and infrastructure. The president's statements 'don't signify a change in the administration's drive to reach a new deal with Iran but rather underscore Trump's belief in negotiating through strength,' Modell, a former CIA officer, told CNBC. Trump in early April imposed what he calls ' secondary tariffs ' on any country that buys oil from Venezuela, another OPEC member. NBC
Gulf Today
28-03-2025
- Business
- Gulf Today
Putting pressure on Venezuela crude buyers
A US plan to slap tariffs on countries buying sanctioned Venezuelan oil marks an unprecedented, and potentially potent, mixture of punitive economic measures against a geopolitical foe that Washington could replicate against other countries like Russia and Iran, analysts said. The US has maintained sanctions on all three countries for years to hobble their energy revenues, but Washington has tended to enforce sanctions using designations that isolate people or companies that break them from the US financial system. On Monday night, President Donald Trump broke with that tradition, signing an executive order authorising his administration to impose blanket 25% tariffs under the 1977 International Emergency Economic Powers Act on imports from any country that buys Venezuelan crude oil and liquid fuels, according to Reuters. Analysts said there are at least two benefits to using tariffs, instead of targeted designations, as the penalty for violating sanctions. Tariffs deliver pain across a country's entire economy and they are simpler to enact than designations. 'Use of IEEPA to immediately implement broad and sweeping tariffs without any process or procedure remains an unprecedented but potentially extremely powerful weapon in Trump's trade and foreign policy arsenal,' said Glenn Schwartz, director of energy policy service at consultancy Rapidan Energy. 'Assuming it withstands litigation, I can see this becoming an attractive option for the Trump administration to exert pressure on US adversaries in addition to traditional sanctions,' said Fernando Ferreira, director of Rapidan's geopolitical risk service. 'Enforcement could be easier than traditional sanctions, as you only need to monitor country-level dynamics, and we all know where the barrels are going.' Yet others say enforcement may pose some hurdles. Exporters facing US sanctions have had years of practice masking shipments using a variety of tactics. In Venezuela, which first faced US energy sanctions in 2019, intermediaries have disguised the country of origin of cargoes bound for China, transferring oil at sea and switching off vessel transponders. Such an approach could complicate enforcement, the Reuters report adds. Both Venezuela and China slammed the US announcement. 'With this new action, the United States flagrantly violates international trade rules,' Venezuela's government said in a release on Monday, citing provisions that prohibit discrimination between trading partners. Washington 'has long abused illegal, unilateral sanctions and so-called long-arm jurisdiction to grossly interfere in the internal affairs of other countries,' said Guo Jiakun, spokesperson at the Chinese foreign ministry, on Tuesday. The US State Department did not immediately comment. Trade of Venezuelan oil to top buyer China stalled almost immediately after Trump's order, according to traders and refiners. China had been buying around 500,000 barrels per day (bpd) of Venezuelan crude and fuel, or 55% of its exports. Most of that was rebranded as Malaysian after transshipment. China is also by far the main buyer of Iranian crude oil exports, which Trump has vowed to push down to zero as part of a 'maximum pressure' campaign to prevent Tehran from developing a nuclear weapon. China's Iranian oil imports averaged about 1.43 million bpd in February, according to data from analytics firm Kpler. Sara Vakhshouri, founder and president of energy research firm SVB Energy International, said using the threat of additional tariffs on buyers of Iranian oil would again put China in the crosshairs, which may or may not be in US interests. 'In theory, this could be an effective sanctions tool. Under Trump 1.0, Iran's oil exports dropped to 250,000-300,000 bpd largely because Iran became a factor in Trump's broader tariff talks with China,' she said. The US could also consider the approach for Russia, if a ceasefire deal with Ukraine remains elusive, Rapidan's Ferreira said. 'Trump has already threatened to ratchet up sanctions and tariffs on Russia if they need to pressure Moscow to accept a ceasefire deal,' he said.
Yahoo
25-03-2025
- Business
- Yahoo
Analysis-Trump tariffs on Venezuela crude buyers are a potent new tool of US pressure
By Timothy Gardner and Marianna Parraga WASHINGTON/HOUSTON (Reuters) - A U.S. plan to slap tariffs on countries buying sanctioned Venezuelan oil marks an unprecedented, and potentially potent, mixture of punitive economic measures against a geopolitical foe that Washington could replicate against other countries like Russia and Iran, analysts said. The U.S. has maintained sanctions on all three countries for years to hobble their energy revenues, but Washington has tended to enforce sanctions using designations that isolate people or companies that break them from the U.S. financial system. On Monday night, President Donald Trump broke with that tradition, signing an executive order authorizing his administration to impose blanket 25% tariffs under the 1977 International Emergency Economic Powers Act on imports from any country that buys Venezuelan crude oil and liquid fuels. Analysts said there are at least two benefits to using tariffs, instead of targeted designations, as the penalty for violating sanctions. Tariffs deliver pain across a country's entire economy and they are simpler to enact than designations. "Use of IEEPA to immediately implement broad and sweeping tariffs without any process or procedure remains an unprecedented but potentially extremely powerful weapon in Trump's trade and foreign policy arsenal," said Glenn Schwartz, director of energy policy service at consultancy Rapidan Energy. "Assuming it withstands litigation, I can see this becoming an attractive option for the Trump administration to exert pressure on U.S. adversaries in addition to traditional sanctions," said Fernando Ferreira, director of Rapidan's geopolitical risk service. "Enforcement could be easier than traditional sanctions, as you only need to monitor country-level dynamics, and we all know where the barrels are going." Yet others say enforcement may pose some hurdles. Exporters facing U.S. sanctions have had years of practice masking shipments using a variety of tactics. In Venezuela, which first faced U.S. energy sanctions in 2019, intermediaries have disguised the country of origin of cargoes bound for China, transferring oil at sea and switching off vessel transponders. Such an approach could complicate enforcement. Both Venezuela and China slammed the U.S. announcement. "With this new action, the United States flagrantly violates international trade rules," Venezuela's government said in a release on Monday, citing provisions that prohibit discrimination between trading partners. Washington "has long abused illegal, unilateral sanctions and so-called long-arm jurisdiction to grossly interfere in the internal affairs of other countries," said Guo Jiakun, spokesperson at the Chinese foreign ministry, on Tuesday. The U.S. State Department did not immediately comment. FAST ACTING Trade of Venezuelan oil to top buyer China stalled almost immediately after Trump's order, according to traders and refiners. China had been buying around 500,000 barrels per day (bpd) of Venezuelan crude and fuel, or 55% of its exports. Most of that was rebranded as Malaysian after transshipment. China is also by far the main buyer of Iranian crude oil exports, which Trump has vowed to push down to zero as part of a "maximum pressure" campaign to prevent Tehran from developing a nuclear weapon. China's Iranian oil imports averaged about 1.43 million bpd in February, according to data from analytics firm Kpler. Sara Vakhshouri, founder and president of energy research firm SVB Energy International, said using the threat of additional tariffs on buyers of Iranian oil would again put China in the crosshairs, which may or may not be in U.S. interests. "In theory, this could be an effective sanctions tool. Under Trump 1.0, Iran's oil exports dropped to 250,000–300,000 bpd largely because Iran became a factor in Trump's broader tariff talks with China," she said. "In a second term, the situation may differ. Most of Iran's oil now goes to China, and adding tariffs on China, beyond what has already announced, could fuel inflation in the U.S. However, if Iran again becomes part of tariff negotiations between the U.S. and China, secondary tariffs could effectively pressure Tehran and help the Trump administration to effectively implement sanctions on Iran," she said. The U.S. could also consider the approach for Russia, if a ceasefire deal with Ukraine remains elusive, Rapidan's Ferreira said. "Trump has already threatened to ratchet up sanctions and tariffs on Russia if they need to pressure Moscow to accept a ceasefire deal," he said. "U.S. imports from Russia are pretty small, so the threat didn't amount to much initially, but it could be effective in the context of secondary tariffs to dissuade importers of Russian energy." (Additional reporting by Daphne Pseladakis in Washington; Writing by Richard Valdmanis; Editing by David Gregorio)
