Latest news with #VentureGlobal
Japan Today
14 hours ago
- Business
- Japan Today
Trump's tariff pressure pushes Asia toward American LNG, but at the cost of climate goals
U.S. Secretary of Energy Chris Wright, Secretary of the Interior Doug Burgum and Louisiana Gov. Jeff Landry tour the Venture Global's Plaquemines LNG export facility on March 6, 2025, in Plaquemines, La. By ANIRUDDHA GHOSAL Asian countries are offering to buy more U.S. liquefied natural gas in negotiations with the Trump administration as a way to alleviate tensions over U.S. trade deficits and forestall higher tariffs. Analysts warn that strategy could undermine those countries' long-term climate ambitions and energy security. Buying more U.S. LNG has topped the list of concessions Asian countries have offered in talks with Washington over President Donald Trump's sweeping tariffs on foreign goods. Vietnam's Prime Minister underlined the need to buy more of the super-chilled fuel in a government meeting, and the government signed a deal in May with an American company to develop a gas import hub. JERA, Japan's largest power generator, signed new 20-year contracts last month to purchase up to 5.5 million metric tons of U.S. gas annually starting around 2030. U.S. efforts to sell more LNG to Asia predate the Trump administration, but they've gained momentum with his intense push to win trade deals. Liquefied natural gas, or LNG, is natural gas cooled to a liquid form for easy storage and transport that is used as a fuel for transport, residential cooking and heating and industrial processes. Trump discussed cooperation on a $44 billion Alaska LNG project with South Korea, prompting a visit by officials to the site in June. The U.S. president has promoted the project as a way to supply gas from Alaska's vast North Slope to a liquefication plant at Nikiski in south-central Alaska, with an eye largely on exports to Asian countries while bypassing the Panama Canal Thailand has offered to commit to a long-term deal for American fuel and shown interest in the same Alaska project to build a nearly 810-mile (1,300-kilometer) pipeline that would funnel gas from The Philippines is also considering importing gas from Alaska while India is mulling a plan to scrap import taxes on U.S. energy shipments to help narrow its trade surplus with Washington. 'Trump has put pressure on a seeming plethora of Asian trading partners to buy more U.S. LNG,' said Tim Daiss, at the APAC Energy Consultancy, pointing out that Japan had agreed to buy more despite being so 'awash in the fuel' that it was being forced to cancel projects and contracts to offload the excess to Asia's growing economies. 'Not good for Southeast Asia's sustainability goals,' he said. Experts say LNG purchasing agreements can slow adoption of renewable energy in Asia. Locking into long-term deals could leave countries with outdated infrastructure as the world shifts rapidly toward cleaner energy sources like solar or wind that offer faster, more affordable ways to meet growing power demand, said Indra Overland, head of the Center for Energy Research at the Norwegian Institute of International Affairs. Building pipelines, terminals, and even household gas stoves creates systems that are expensive and difficult to replace—making it harder to switch to renewables later. 'And you're more likely then to get stuck for longer,' he said. Energy companies that profit from gas or coal are powerful vested interests, swaying policy to favor their business models, he said. LNG burns cleaner than coal, but it's still a fossil fuel that emits greenhouse gases and contributes to climate change. Many LNG contracts include 'take-or-pay' clauses, obliging governments to pay even if they don't use the fuel. Christopher Doleman of the Institute for Energy Economics and Financial Analysis warns that if renewable energy grows fast, reducing the need for LNG, countries may still have to pay for gas they no longer need. Pakistan is an example. Soaring LNG costs drove up electricity prices, pushing consumers to install rooftop solar panels. As demand for power drops and gas supply surges, the country is deferring LNG shipments and trying to resell excess fuel. Experts said that although countries are signaling a willingness to import more U.S. LNG, they're unlikely to import enough to have a meaningful impact on U.S. trade deficits. South Korea would need to import 121 million metric tons of LNG in a year — 50% more than the total amount of LNG the U.S. exported globally last year and triple what South Korea imported, said Doleman. Vietnam — with a trade surplus with the U.S. twice the size of Korea's — would need to import 181 million metric tons annually, more than double what the U.S. exported last year. Other obstacles stand in the way. The Alaska LNG project is widely considered uneconomic. Both coal and renewable energy in Asia are so much cheaper that U.S. gas would need to cost less than half its current price to compete. Tariffs on Chinese steel could make building building gas pipelines and LNG terminals more expensive, while longstanding delays to build new gas turbines mean new gas power projects may not come online until 2032. Meanwhile, a global glut in LNG will likely drive prices lower, making it even harder for countries to justify locking into long-term deals with the United States at current higher prices. Committing to long-term U.S. LNG contracts could impact regional energy security at a time of growing geopolitical and market uncertainties, analysts said. A core concern is over the longterm stability of the U.S. as a trading partner, said Overland. 'The U.S. is not a very predictable entity. And to rely on energy from there is a very risky proposition,' he said. LNG only contributes to energy security when it's available and affordable, says Dario Kenner of Zero Carbon Analytics. 'That's the bit that they leave out ... But it's pretty important,' he said. This was the concern during the recent potential disruptions to fuel shipments through the Strait of Hormuz and earlier during the war in Ukraine, when LNG cargoes originally destined for Asia were rerouted to Europe. Despite having contracts, Asian countries like Bangladesh and Sri Lanka were outbid by European buyers. 'Events in Europe, which can seem very far away, can have an impact on availability and prices in Asia,' Kenner said. Asian countries can improve their energy security and make progress toward cutting carbon emissions by building more renewable energy, he said, noting there is vast room for that given that only about 1% of Southeast Asia's solar and wind potential is being used. 'There are genuine choices to meet rising electricity demand. It is not just having to build LNG,' he said. Jintamas Saksornchai in Bangkok contributed to this report. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Yahoo
a day ago
- Business
- Yahoo
Deutsche Bank Downgrades Venture Global (VG) Stock
Venture Global, Inc. (NYSE:VG) is one of the Deutsche Bank downgraded the company's stock to 'Hold' from 'Buy' with a price objective of $17, up from the prior target of $13.50, as reported by The Fly. The firm cited valuation as a factor for the downgrade, with Venture Global, Inc. (NYSE:VG)'s shares near the new price target. Furthermore, the company's longer-term valuation remains challenged by the lack of liquidity in the Title Transfer Facility curve, and its spending on the Calcasieu Pass 2 development, highlighted the firm's analyst. Aerial view of an oil & gas refinery, showcasing the scale of operations. The CP2 Project got authorization from the U.S. Department of Energy to export LNG to non-free trade agreement nations. Notably, the company has also announced that it has initiated full mobilization and started site work at its third LNG export facility, CP2 LNG. Venture Global, Inc. (NYSE:VG) expressed optimism about launching on-site work for this project, which is anticipated to deliver reliable, low-cost LNG to the world starting in 2027. Venture Global, Inc. (NYSE:VG) announced the execution of a new 20-year Sales and Purchase Agreement with PETRONAS LNG Ltd., which is a subsidiary of Malaysian state-owned oil and gas company, PETRONAS. Venture Global, Inc. (NYSE:VG) is a long-term, low-cost provider of US LNG sourced from resource-rich North American natural gas basins. Sands Capital, an investment management company, released it Q1 2025 investor letter. Here is what the fund said: 'Venture Global, Inc. (NYSE:VG) specializes in the development and operation of liquefied natural gas (LNG) export facilities along the U.S. Gulf Coast. We believe natural gas demand is likely to continue growing over the next several decades as an abundant, affordable, reliable, highly scalable, and relatively clean energy source relative to other hydrocarbons. Given the fundamental mismatch between where the world's largest and cheapest natural gas resources are located (primarily the United States and the Middle East) versus key areas of demand growth (Asia), we expect LNG demand to grow even faster while becoming increasingly critical from a global energy security perspective. Against this backdrop, we expect that Venture Global's modular approach to facility development will enable the company to capture a disproportionate share of incremental demand. Its innovative approach meaningfully compresses construction timelines, reduces capital intensity and operating costs, and, we believe, facilitates a virtuous cycle that can allow for project cash flows to be generated and reinvested much faster and more effectively than for its peers. As a result, we see a runway for Venture Global to sustain above-average growth as it profitably expands its production over the next decade.' While we acknowledge the potential of VG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Mint
a day ago
- Business
- Mint
Europe gets tougher on Putin
European leaders on Friday at long last cranked up sanctions on Russia, sending Vladimir Putin a message that there will be more economic costs if he continues his drone and missile barrages on Ukraine. Now it's Washington's turn. Brussels' latest sanctions package ratchets up economic pressure on Moscow by closing loopholes and punishing foreign companies that circumvent them. Europe has already ended most of its Russian natural gas imports by pipeline. Oil tankers that are insured by European companies are also prohibited from transporting Russian crude sold at more than $60 a barrel. The goal has been to weaken Russia's war machine by reducing its oil and gas revenue while minimizing the pain for Europe. But Russian oil and gas have continued to flow to global markets by other channels. Russia has deployed uninsured shadow fleets to sell crude to refineries in India and Turkey, which export fuel back to Europe. The price cap also has less effect now, when crude is trading around $65 a barrel, than when it took effect in December 2022 and crude fetched $80 a barrel. Friday's package will lower the price cap to $47.60 a barrel, which will be revised every three months, and restrict imports of refined fuel that is produced from Russian crude. Europe will further isolate Russia from the global financial system by kicking 22 Russian banks out of the Swift financial-transfer network. It will sanction two Chinese banks that have helped Russia circumvent sanctions and a large oil refinery in India that is partially owned by Russia's state-run oil company Rosneft. Europe is also telling Mr. Putin not to count on reviving the Nord Stream gas pipelines between Russia and Germany. The pipelines were damaged in an underwater explosion in 2022, but some U.S. and European investors are eager to repair and restart them once the war in Ukraine ends. German Chancellor Friedrich Merz isn't so keen. The new sanctions will bar transactions that could revive or repair the pipelines. Mr. Merz and other European leaders deserve credit for their resolve, though lower oil and gas prices helped by increased U.S. production have made this easier. Venture Global signed a 20-year contract on Wednesday to supply LNG to Italy's Eni from its new Louisiana CP2 export facility. Sanctions are no substitute for the weapons Ukraine desperately needs. But Russia's economy is showing signs of trouble with interest rates near 20% to contain inflation. Bloomberg News this week reported that executives at some of Russia's biggest banks have discussed the possibility of seeking state bailouts if more loans on their books default. All of this suggests the West's economic leverage over Moscow is growing if countries unite to use it. President Trump could join this effort by backing a bipartisan Senate bill that would empower him to impose 500% tariffs on countries that purchase Russian oil and gas products. He could also work with Europe to confiscate some $300 billion in Russia assets frozen in the West to buy weapons for Ukraine. There's no good excuse for Mr. Trump not to follow Europe's lead now and put more pressure on Russia to negotiate a cease-fire.
Asahi Shimbun
2 days ago
- Business
- Asahi Shimbun
Trump's tariff pressure pushes Asia toward American LNG, but at the cost of climate goals
U.S. Secretary of Energy Chris Wright, Secretary of the Interior Doug Burgum and Louisiana Gov. Jeff Landry tour the Venture Global's Plaquemines LNG export facility on March 6, 2025, in Plaquemines, La. (The Advocate via AP) HANOI--Asian countries are offering to buy more U.S. liquefied natural gas in negotiations with the Trump administration as a way to alleviate tensions over U.S. trade deficits and forestall higher tariffs. Analysts warn that strategy could undermine those countries' long-term climate ambitions and energy security. Buying more U.S. LNG has topped the list of concessions Asian countries have offered in talks with Washington over President Donald Trump's sweeping tariffs on foreign goods. Vietnam's Prime Minister underlined the need to buy more of the super-chilled fuel in a government meeting, and the government signed a deal in May with an American company to develop a gas import hub. JERA, Japan's largest power generator, signed new 20-year contracts last month to purchase up to 5.5 million metric tons of U.S. gas annually starting around 2030. U.S. efforts to sell more LNG to Asia predate the Trump administration, but they've gained momentum with his intense push to win trade deals. Liquefied natural gas, or LNG, is natural gas cooled to a liquid form for easy storage and transport that is used as a fuel for transport, residential cooking and heating and industrial processes. Trump discussed cooperation on a $44 billion Alaska LNG project with South Korea, prompting a visit by officials to the site in June. The U.S. president has promoted the project as a way to supply gas from Alaska's vast North Slope to a liquefication plant at Nikiski in south-central Alaska, with an eye largely on exports to Asian countries while bypassing the Panama Canal Thailand has offered to commit to a long-term deal for American fuel and shown interest in the same Alaska project to build a nearly 810-mile (1,300-kilometer) pipeline that would funnel gas from The Philippines is also considering importing gas from Alaska while India is mulling a plan to scrap import taxes on U.S. energy shipments to help narrow its trade surplus with Washington. 'Trump has put pressure on a seeming plethora of Asian trading partners to buy more U.S. LNG,' said Tim Daiss, at the APAC Energy Consultancy, pointing out that Japan had agreed to buy more despite being so 'awash in the fuel' that it was being forced to cancel projects and contracts to offload the excess to Asia's growing economies. 'Not good for Southeast Asia's sustainability goals,' he said. Experts say LNG purchasing agreements can slow adoption of renewable energy in Asia. Locking into long-term deals could leave countries with outdated infrastructure as the world shifts rapidly toward cleaner energy sources like solar or wind that offer faster, more affordable ways to meet growing power demand, said Indra Overland, head of the Center for Energy Research at the Norwegian Institute of International Affairs. Building pipelines, terminals, and even household gas stoves creates systems that are expensive and difficult to replace—making it harder to switch to renewables later. 'And you're more likely then to get stuck for longer,' he said. Energy companies that profit from gas or coal are powerful vested interests, swaying policy to favor their business models, he said. LNG burns cleaner than coal, but it's still a fossil fuel that emits greenhouse gases and contributes to climate change. Many LNG contracts include 'take-or-pay' clauses, obliging governments to pay even if they don't use the fuel. Christopher Doleman of the Institute for Energy Economics and Financial Analysis warns that if renewable energy grows fast, reducing the need for LNG, countries may still have to pay for gas they no longer need. Pakistan is an example. Soaring LNG costs drove up electricity prices, pushing consumers to install rooftop solar panels. As demand for power drops and gas supply surges, the country is deferring LNG shipments and trying to resell excess fuel. Experts said that although countries are signaling a willingness to import more U.S. LNG, they're unlikely to import enough to have a meaningful impact on U.S. trade deficits. South Korea would need to import 121 million metric tons of LNG in a year — 50% more than the total amount of LNG the U.S. exported globally last year and triple what South Korea imported, said Doleman. Vietnam — with a trade surplus with the U.S. twice the size of Korea's — would need to import 181 million metric tons annually, more than double what the U.S. exported last year. Other obstacles stand in the way. The Alaska LNG project is widely considered uneconomic. Both coal and renewable energy in Asia are so much cheaper that U.S. gas would need to cost less than half its current price to compete. Tariffs on Chinese steel could make building gas pipelines and LNG terminals more expensive, while longstanding delays to build new gas turbines mean new gas power projects may not come online until 2032. Meanwhile, a global glut in LNG will likely drive prices lower, making it even harder for countries to justify locking into long-term deals with the United States at current higher prices. Committing to long-term U.S. LNG contracts could impact regional energy security at a time of growing geopolitical and market uncertainties, analysts said. A core concern is over the long-term stability of the U.S. as a trading partner, said Overland. 'The U.S. is not a very predictable entity. And to rely on energy from there is a very risky proposition,' he said. LNG only contributes to energy security when it's available and affordable, says Dario Kenner of Zero Carbon Analytics. 'That's the bit that they leave out ... But it's pretty important,' he said. This was the concern during the recent potential disruptions to fuel shipments through the Strait of Hormuz and earlier during the war in Ukraine, when LNG cargoes originally destined for Asia were rerouted to Europe. Despite having contracts, Asian countries like Bangladesh and Sri Lanka were outbid by European buyers. 'Events in Europe, which can seem very far away, can have an impact on availability and prices in Asia,' Kenner said. Asian countries can improve their energy security and make progress toward cutting carbon emissions by building more renewable energy, he said, noting there is vast room for that given that only about 1% of Southeast Asia's solar and wind potential is being used. 'There are genuine choices to meet rising electricity demand. It is not just having to build LNG,' he said.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Venture Global, Inc. Announces Timing of Second Quarter 2025 Earnings Release and Conference Call
Venture Global, Inc. ('Venture Global') (NYSE: VG) announced today that it plans to issue its earnings release with respect to second quarter 2025 financial results before market open on Wednesday, August 13, 2025. Venture Global will host a conference call for investors and analysts beginning at 9:00 am Eastern Time (ET) on August 13, 2025, to discuss second quarter results. A listen-only webcast of the conference call and accompanying slide presentation will be available at Venture Global's Investor Relations website HERE. After the conclusion of the conference call, a replay will be made available on the Venture Global website. About Venture Global Venture Global is an American producer and exporter of low-cost U.S. liquefied natural gas (LNG) with over 100 MTPA of capacity in production, construction, or development. Venture Global began producing LNG from its first facility in 2022 and is now one of the largest LNG exporters in the United States. The company's vertically integrated business includes assets across the LNG supply chain including LNG production, natural gas transport, shipping and regasification. The company's first three projects, Calcasieu Pass, Plaquemines LNG, and CP2 LNG, are located in Louisiana along the Gulf of America. Venture Global is developing Carbon Capture and Sequestration projects at each of its LNG facilities.
