Generic Hero BannerGeneric Hero Banner
Latest market news

Texas governor orders halt in state gas exports: Update

  • Market: Natural gas
  • 18/02/21

Adds details on Mexican export demand.

Texas governor Greg Abbott (R) today ordered natural gas producers to refrain from sales outside the state through 21 February in an effort to alleviate unprecedented supply pressure caused by severe cold weather.

Abbott began requiring today that gas producers that had been shipping to buyers outside of Texas divert supplies to power generators inside the state instead.

"That will increase ability of gas-fired generators to increase power sent to grid," he said in a press conference this afternoon.

If fully implemented, the move would deal a crippling blow to Mexico's industrial, automotive, and manufacturing sectors that rely on US gas supply.

But it is unclear if Abbott has the authority to order producers to disregard contracts for shipments to states other than Texas or shipments into Mexico, or for fulfilling LNG export contracts through Gulf coast terminals. Beyond commercial implications, Abbott's order could contravene bilateral trade terms in the US-Mexico-Canada Agreement (USMCA).

Limited gas supply amid wellhead freeze-offs cut power to millions of Texans this week. As of this afternoon more than 2.6mn customers across the state did not have power, according to outage tracker PowerOutage.US. Most homes in Texas are also heated with electricity, leaving many without power as well as heat during extremely cold weather that is expected to last through the weekend.

Abbott has requested all major industrial gas consumers to limit gas consumption and earlier asked Freeport LNG in Texas to voluntarily curtail its operations in order to reduce gas and power demand.

Crippling blow

Mexico buys most of the gas produced in Texas, importing it through a network of cross-border pipelines that are already running at well below capacity this week, highlighting the country's supply vulnerability in spite of vast US shale resources just over the border. Gas shortages have already caused losses of $2.7bn over two days in northern Mexico's manufacturing sector, Mexico's national council of maquiladora and export manufacturing industries (Index) said.

A Texas gas export ban "is the most transcendent piece of news in the recent history of Mexico's energy sector," Eduardo Prud'homme, former technical director at state pipeline operator Cenagas said. "There is a high possibility that this will create a critical situation."

Mexico is highly dependent on US pipeline imports with around 67pc of domestic demand — mainly for electricity generation — covered by US pipeline imports of 5.52 Bcf/d in November, according to the latest information from the US Energy Information Administration (EIA).

Mexico has 24 gas pipeline import points along its border with the US, 12 of which — including the largest capacity pipelines — are connected into Texas.

Mexican state-owned power utility CFE — an anchor shipper on a series of cross-border pipelines — and state-owned pipeline operator Cenagas — which handles around 7 Bcf/d of capacity — declined to comment on Abbott's announcement.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
06/02/25

Amos to buy Sinopec Venezuelan oil, gas assets

Amos to buy Sinopec Venezuelan oil, gas assets

Caracas, 6 February (Argus) — US upstream start-up Amos Global Energy Management has agreed to buy some of Chinese Sinopec's oil and natural gas interests in Venezuela with an eye on US sanctions eventually easing there, the Houston-based firm said. Venezuela's state-owned PdV is the majority owner of the stake to be sold, which is part of the PetroParia joint venture with Sinopec in the Gulf of Paria. "Sinopec did not develop it better because of clashes with PdV management, but the potential to export gas to Trinidad and Tobago from the property is clear", Maracaibo-based analyst ChemStrategy said. Trinidad and Tobago has discussed developing gas fields that straddle its border with Venezuela to stem its downturn in production. But US sanctions on Venezuela's crude sector have slowed progress, and the administration of President Donald Trump has not indicated that it will change course . Amos "believes that this purchase will ultimately bring the investments needed to develop oil and gas production opportunities" there and in other nearby properties, including in a previous agreement in the same Gulf of Paria with Inepetrol. PdV officials and pro-Maduro lawmakers in Caracas said they were aware of the plan but declined to offer additional details. Amos has been seeking capital and arming agreements to be "prepared to increase Venezuelan production when existing sanctions are lifted." Amos is led by chief executive Ali Moshiri who retired as president of Chevron Africa and Latin America exploration and production in March 2017. Completion of the sale will require approval from the US Treasury's Office of Foreign Assets Control and the Venezuelan hydrocarbons ministry, Amos said. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

Australia's Beach cuts FY24-25 oil, gas output target


06/02/25
News
06/02/25

Australia's Beach cuts FY24-25 oil, gas output target

Sydney, 6 February (Argus) — Australian independent Beach Energy has narrowed its oil and gas output guidance for the year to 30 June 2025, given delays in bringing the Western Australian (WA) 250 TJ/d Waitsia gas plant on line. Beach will produce 18.5mn-20.5mn bl of oil equivalent/d (boe/d) in 2024-25, it said in its half-year results to 31 December. It revised the top end of its previous forecast of 17.5mn-21.5mn boe down because of delays at Waitsia, which is operated by joint venture partner Japanese trading house Mitsui. Beach has maintained its guidance for first sales gas at Waitsia in April-June. The Adelaide-based firm last month reported its output at 10.2mn boe in July-December 2024, 15pc higher on the year, leading Beach to raise the bottom end of its guidance. The five Waitsia LNG swap cargoes that Beach has executed to date have brought forward revenue for the firm, which reported A$139mn ($87.1mn) from the two shipped in July-December 2024. A fifth cargo was lifted from Australian independent Woodside Energy's 14.4mn t/yr North West Shelf (NWS) LNG terminal in January, while a possible sixth may occur before the end of June. "We have opportunities for additional swaps in the market and we're looking very closely… I'm hoping to get another [cargo] out before the half-year," chief executive Brett Woods said on 6 February. About 35pc of the gas exported via swap cargoes to date were from Beach's own 20 TJ/d (534,000 m³/d) Xyris gas plant, meaning it will not need to be swapped back, Woods said. Beach expects 8-10 cargoes/yr of Waitsia gas to be shipped until 2028, with scope to further extend the project's LNG exports following the WA government's changes to onshore gas export rules. Waitsia partners hold a gas processing agreement with the NWS JV running until the end of 2028. Beach will start its Offshore Gas Victoria programme in 2025 as part of its ambition to become a major domestic gas supplier. This includes drilling the Hercules gas prospect in Victoria state's offshore Otway basin in April-June, described as a "large scale opportunity" with prospective reserves of 100bn ft³ (280mn m³). No change was made to Beach's 2024-25 capital expenditure guidance of A$700mn-$800mn. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Equinor Norwegian gas output up on year in 2024


05/02/25
News
05/02/25

Equinor Norwegian gas output up on year in 2024

London, 5 February (Argus) — Norwegian state-controlled Equinor's gas output on the Norwegian continental shelf (NCS) edged up on the year, driven by record-high output from the giant Troll field and fewer unplanned outages at NCS assets, the firm said on Wednesday. The firm's Norwegian gas output rose by 4pc on the year to 758,000 b/d of oil equivalent (boe/d) or 107mn m³/d in 2024. This was driven by "strong contributions" from the Troll and Johan Sverdrup fields, Equinor said. Gas production from Troll — in which Equinor holds a 31pc stake — reached an all-time high last year at roughly 116mn m³/d, the Norwegian producer has said. And there were fewer "unplanned losses" on the NCS last year than in 2023, Equinor said. The firm was the largest producer on the NCS in 2023, accounting for more than a third of total gas output on the shelf, the latest available data from the Norwegian Offshore Directorate show. Equinor's global gas output rose by 2pc to 985,000 boe/d or 139mn m³/d last year. But the firm's combined oil and gas global output was slightly lower in 2024, with a small increase in gas production insufficient to offset lower liquids output. Equinor's equity liquids production was 1.08mn boe/d in 2024, down by 3pc on the year. Equinor expects "more than 10pc growth from 2024-27" in oil and gas production, reaching a peak at 2.3mn boe/d in 2027. And the firm estimated that hydrocarbons output would grow by 4pc from 2024 to 2025. Equinor's reported Norwegian gas prices dropped by 22pc on the year to $9.47/mn Btu, or €31.01/MWh, in 2024, using Wednesday's exchange rate. And the average reported price for its US gas decreased by 4pc to $1.70/mn Btu, or €5.57/MWh. Equinor made a profit of $8.83bn in 2024, down by 26pc on the year. Profit was $1.99bn in the fourth quarter, 23pc lower on the year. The company has cut its 2030 expected renewables capacity to 10-12GW, from 12-16GW, noting that the pace of the energy transition is slower in some markets. It did not give a new target for capital expenditure allocation to this sector. Equinor also modified some net carbon intensity goals, setting ranges rather than absolute targets. By Georgia Gratton and Jana Cervinkova Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Equinor scales back renewables plan


05/02/25
News
05/02/25

Equinor scales back renewables plan

London, 5 February (Argus) — Norwegian state-controlled Equinor said today it has cut by up to 25pc its target for renewables capacity by 2030, and abandoned a plan to allocate half its capital expenditure (capex) to low carbon projects by that same year. The company has cut its 2030 expected renewables capacity to 10-12GW, from 12-16GW, noting that the pace of the energy transition is slower in some markets. It did not give a new target for capex allocation to this sector. Equinor also modified some net carbon intensity goals, setting ranges rather than absolute targets. It now plans to reduce net carbon intensity — which includes scope 3 emissions, from sold products — by 15-20pc by 2030 and by 30-40pc by 2035, from a 2019 baseline. The previous targets were at the higher end of these ranges. Equinor made a profit of $8.83bn in 2024, down by 26pc on the year. Profit was $1.99bn in the fourth quarter, lower on the year by 23pc. The company's oil and gas output was slightly lower in 2024, with a small increase in gas production not quite offsetting lower liquids output. Equinor's equity liquids production was 1.08mn b/d of oil equivalent (boe/d) in 2024, down by 3pc on the year, and its equity gas production rose by 2pc to 985,000 boe/d over the same timeframe. It expects "more than 10pc growth from 2024-27" in oil and gas production, and estimated that hydrocarbons output would grow by 4pc from 2024 to 2025. Liquids and gas prices fell in 2024. Equinor's reported Norwegian and US gas prices rose by 5pc and 26pc, respectively, on the year in the October-December period, but this was not enough to assuage a decrease across the year. The average reported price for its Norwegian gas dropped by 22pc on the year to $9.47/mn Btu in 2024, and the average reported price for its US gas decreased by 4pc to $1.70/mn Btu. Equinor reported an average liquids price of $74.1/bl in 2024, 1pc lower on the year. Its reported fourth-quarter 2024 liquids price fell by 10pc from the same period in 2023, to $68.5/bl. Equinor's power generation rose in 2024, boosted by additions in Brazil and Poland in 2023 and the start of the 531MW Mendubim solar plant in Brazil in 2024. Equinor's share of power generation stood at 4,917GWh in 2024, up by 19pc on the year — but its renewables share rose faster, by 51pc to 2,935GWh. Equinor has maintained its target of 30mn-50mn t/yr of CO2 storage by 2035. Equinor trimmed 600,000 t/CO2 equivalent (CO2e) from its absolute scope 1 and 2 — or operational — emissions over 2023-4. Scope 1 and 2 emissions from its operated production stood at 11mn t/CO2e in 2024. The company's upstream carbon intensity fell to 6.2kg CO2/boe in 2024, down by 7.5pc on the year. Equinor will buy back $5bn of shares in 2025, having bought $6bn in 2024. It completed the fourth $1.6bn tranche of its 2024 programme on 14 January and will launch the first tranche — of up to $1.2bn — of its 2025 programme on 6 February. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

HU-SK summer 2025 gas capacity nearly fully booked


04/02/25
News
04/02/25

HU-SK summer 2025 gas capacity nearly fully booked

London, 4 February (Argus) — Gas transmission capacity from Hungary towards Slovakia is almost entirely booked for the summer following near sold-out quarterly auctions on 3 February. Following a decision in January to make higher capacity at Balassagyarmat/Velke Zlievce permanent , the additional 25.4 GWh/d of space was offered for the next two quarters, with 23 GWh/d allocated for both ( see table ). After these auctions, roughly 99.4 GWh/d out of total technical capacity of 101.8 GWh/d from Hungary towards Slovakia has been allocated for April-September, although bookings drop to 68.7 GWh/d from October, Entso-G data show. Flows in this direction have been strong this year, averaging 87 GWh/d on 1 January-3 February, driven by Slovakia's need to replace Russian gas after the end of transit through Ukraine. And on the Hungarian-Ukrainian border at VIP Bereg, roughly 35 GWh/d of unbundled exit capacity was booked. Flows to Ukraine at Bereg averaged 17 GWh/d on 1 January-3 February, well below 56 GWh/d in December. Interest in this capacity may have been spurred by buying interest from Ukraine's Naftogaz , although throughout last summer there were also quick flows at Bereg, which then transited to Poland making use of Ukraine's short-haul regime. Elsewhere in the region, there was strong interest in quarterly bookings at VIP Brandov, on the German-Czech border, where 53 GWh/d was booked towards the Czech Republic for the second quarter and 48 GWh/d for the third quarter. Brandov has served as the only entry point for Czech supply since the turn of the year, as flows from Slovakia at Lanzhot dropped to zero after Russian transit halted. Given that the Czech Republic has national targets obliging a 90pc stockfill by 1 November, and storage was 51.4pc full as of Monday morning, there will probably be a need for a strong stockbuild this summer, necessitating inflows from Germany. By Brendan A'Hearn Quarterly capacity bookings GWh/d Network point Period Capacity Type Exit TSO Quality Exit TSO Entry TSO Quality entry TSO Offered capacity Allocated capacity VIP Brandov (DE/CZ) 2Q25 Bundled Gascade FZK firm Net4Gas FZK firm 154.1 53.4 VIP Brandov (DE/CZ) 3Q25 Bundled Gascade FZK firm Net4Gas FZK firm 151.3 47.8 VIP Bereg (HU/UA) 2Q25 Unbundled FGSZ Firm GTSOU 103.5 34.8 Balassagyarmat (HU) / Velke Zlievce (SK) 2Q25 Bundled FGSZ Firm Eustream Firm 25.4 23.0 Balassagyarmat (HU) / Velke Zlievce (SK) 3Q25 Bundled FGSZ Firm Eustream Firm 25.4 23.0 Kireevo (BG) / Zaychar (RS) 2Q25 Unbundled Bulgartransgaz Firm Gastrans 82.9 6.0 — RBP, Prisma Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more