FERC commissioner Phillips resigns from agency

Spanish Market: Coal, Crude oil, Emissions, Natural gas, Oil products
22/04/25

Democratic commissioner Willie Phillips has resigned from the US Federal Energy Regulatory Commission (FERC) after serving more than three years at an agency responsible for permitting natural gas infrastructure and regulating wholesale power markets.

Phillips' departure will clear the way for President Donald Trump to nominate a replacement at FERC, who once confirmed by the US Senate would provide Republicans a 3-2 majority for the first time since 2021. Phillips, whose term was not set to expire until June 2026, had a reputation for negotiating bipartisan deals on contentious orders involving pipelines and power market issues in the two years he served as FERC's chairman under former president Joe Biden.

Phillips has yet to release a statement explaining his abrupt resignation. But Trump has already fired Democratic commissioners and board members at other agencies that, like FERC, are structured as independent from the White House. Two of the fired Democrats, who were serving at the US Federal Trade Commission, have filed a lawsuit that argues their removal was unlawful under a 1935 decision by the US Supreme Court.

The White House did not respond to a question on whether it had pressured Phillips to resign.

FERC chairman Mark Christie, a Republican, offered praise for Phillips as a "dedicated and selfless public servant" who sought to "find common ground and get things done to serve the public interest". Christie for months has been downplaying the threats to FERC's independence caused by Trump's executive order that asserts sweeping control over FERC's agenda. Energy companies have come to depend on FERC in serving as independent arbiter in disputes over pipeline tariffs and electricity markets, without the consideration of political preferences of the White House.

Former FERC chairman Neil Chatterjee, a Republican who served in Trump's first term, said in a social media post it was "disappointing" to see Phillips pushed out after he "played it straight" in his work at the agency. As chairman, Phillips was able to authorize a "massive LNG project" — the 28mn t/yr CP2 project — at a time when Biden had sought to pause LNG licensing, Chatterjee said.

Separately, Paul Atkins was sworn in as the chairman of the US Securities and Exchange Commission (SEC) on 21 April, after the US Senate voted 52-44 earlier this month in favor of his confirmation. Atkins was previously the chief executive of financial consulting firm Patomak Global Partners and served as an SEC commissioner from 2002-08. Republicans will now have a 3-1 majority at the SEC.

By Chris Knight

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.

21/05/25

India's air passenger traffic rises on year in April

Mumbai, 21 May (Argus) — India's domestic air passenger traffic rose by 8pc on the year but fell by 1pc on the month to 14.3mn in April, data from the Civil Aviation Ministry show. Domestic air passenger traffic rose by nearly 10pc on the year to 57.5mn during January-April. Domestic air travel serves as an indicator of jet fuel demand. Jet fuel demand in April rose by 4pc on the year to 202,000 b/d, oil ministry data show. Indian state-controlled refiners cut jet fuel prices by 6pc from a month earlier in April. Prices in capital New Delhi, Kolkata, Mumbai and Chennai dropped to 89,441.18 rupees/kilolitre ($1,044/kl), Rs91,921.00/kl, Rs83,575.42/kl and Rs92,503.80/kl respectively. Fuel costs typically account for 30-40pc of airlines' expenses. Military confrontations between India and Pakistan in May disrupted flights from and within India. Almost 32 airports in parts of northern and western India were briefly closed because of security concerns and border threats. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Thailand's Banpu adopts biomass co-firing in China

21/05/25

Thailand's Banpu adopts biomass co-firing in China

Singapore, 21 May (Argus) — Thailand's mining and power generation conglomerate Banpu plans to adopt biomass co-firing for all its combined heat and power plants (CHPs) in northern China. It has fully implemented 10pc biomass co-firing at its coal-fired Zhengding power plant. The plant has a total installed capacity of 139MW electrical (MWe), including a power generation capacity of 73MW and steam production output at 370 t/hr. The type of biomass used at this plant could not be immediately ascertained, and Banpu did not respond to a request for comment. Banpu's Zouping CHP, with a combined capacity of 233MWe, 125MW of power and steam output at 600 t/hr, is "undergoing commissioning", the company said. Its plans to co-fire with biomass at the 246MWe Luannan coal-fired plant is in the "bidding phase," the company added. The plant has a power capacity of 150MW and steam production output at 538 t/hr. The move to boost biomass co-firing at its operations in China is part of the company's plans to reduce carbon emissions and earn revenue from carbon emission allowances (CEAs)— a type of carbon credit or emission permit, giving rights to emit a certain amount of greenhouse gases within a carbon market. CEAs are part of a "cap-and-trade" system, designed to reduce overall emissions. Higher earnings from CEAs from its Chinese plants and cost management in the coal business lifted its net profit in the first quarter. Banpu reported a net profit of 574mn baht ($17.3mn) before interest, taxes, depreciation and amortisation in the first quarter, up by 19pc from the same period in 2024. By Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US gas market expected to tighten in 2026

20/05/25

US gas market expected to tighten in 2026

New York, 20 May (Argus) — US natural gas producers and analysts are forecasting a tighter market in 2026 than previously expected because of rising LNG exports, a slowdown in crude production and a reluctance on the part of gas-focused producers to ramp up supply. The market has already tightened this year as cold winter weather balanced the previously oversupplied domestic market and Venture Global's Plaquemines LNG terminal ramped up faster than expected. Nymex gas delivery for 2026 at the US benchmark Henry Hub settled Tuesday at $4.30/mmBtu, up from $3.91/mmBtu at the start of the year. US LNG exports are expected to rise by 19pc to 14.2 Bcf/d this year, followed by a 15pc increase to 16.4 Bcf/d in 2026, the US Energy Information Administration forecasts. Meanwhile, tariff-induced economic uncertainty and plans by Opec+ to boost supply have lowered crude prices this year, which will probably throttle growth in the Permian basin, a prolific US oil field in west Texas and southeast New Mexico that accounted for 22pc of US gas supply in 2024. US onshore crude production has likely peaked as activity slows in response to the recent decline in oil prices, Diamondback Energy chief executive officer Travis Stice said earlier this month. US producer Antero Resources this week forecast a 5.5 Bcf/d supply growth shortfall from 2025-26 as producers fail to keep up with booming LNG exports, pipeline sales to Mexico and rising gas-fired power demand. Producers have so far been reluctant to ramp up activity in the Haynesville shale basin of east Texas and northwest Louisiana, the major marginal gas supplier to the US market and a key supplier to the coming wave of new US LNG export terminals, all of which are sited in Texas and Louisiana. Producers' hesitation might be linked to past experience, when they ramped up output for new LNG terminals only for those terminals' in-service dates to get pushed back, contributing to an oversupplied market that depressed prices. Haynesville operators' lack of response to higher gas prices in the first quarter of this year led analyst group Enverus to raise its 2026-30 US gas price forecast to $4/mmBtu. Some producers, including EQT, the second-largest US gas producer by volume, are holding off on locking in the elevated prices for 2026 production with financial derivatives, in part because they want exposure to the possibility of even higher prices. Those producers are "playing a little bit of a dangerous game", according to FactSet senior energy analyst Connor McLean. If a mild summer or delayed LNG terminal start-ups reverse expectations of a tighter market, producers might enter a weaker market in 2026 having "missed their chance" at more opportunistic hedges, McLean said. US LNG out the window Tudor Pickering Holt last week raised its "2026 base case forecast" for US gas prices from $4/mmBtu to $5/mmBtu. The Houston-based investment bank expects the US gas market to shift to a state of "material undersupply" in 2026, potentially pushing domestic prices so high that the price of producing LNG from US gas would exceed prevailing global LNG prices. Aside from short-term price spikes caused by storms or maintenance events, this would be the first instance of the US gas-to-global LNG price "arbitrage window" closing since pandemic-induced demand destruction caused more than 175 US LNG cargoes to be cancelled from April-November 2020, according to consultancy McKinsey. Energy Aspects head of North American gas David Seduski said he would not rule out the possibility of high US gas prices reducing exports, but that is not his "base case". According to Seduski, Europe is "in such desperate need of gas" that in the absence of some geopolitical development that boosts Russian gas sales to Europe, high US gas prices would probably just spur higher European gas prices and keep US sales to the continent profitable. Henry Hub prices would probably have to exceed $7/mmBtu given current global gas prices for US LNG cargoes to start being cancelled, FactSet's McLean said. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Shell CEO defends 'resilient investment strategy'

20/05/25

Shell CEO defends 'resilient investment strategy'

London, 20 May (Argus) — Shell chief executive Wael Sawan defended the company's "resilient investment strategy" at its annual shareholder meeting today, as directors faced a barrage of questions from climate-focused investors. A resolution calling for more details on Shell's LNG strategy gained over 20pc support, a level consistent with climate-related votes in previous years . But absent this year were the disruptive climate protests that have marked past meetings. This was partly due to Shell's choice of venue, London's Heathrow Airport, which has a five-year High Court injunction banning environmental protests on site. Still, climate-conscious shareholders dominated the discussion. One questioned how Shell could justify expanding oil and gas operations when the IEA's net zero emissions by 2050 scenario suggests no new oil and gas projects are needed. Shell's chairman Andrew Mackenzie responded that the IEA's scenario is just one of many and includes conditional commitments made by governments that may not materialise. "We see a phase of continuing growth, particularly in the use of gas and especially in LNG, that we think is appropriate to invest in," he said. Sawan pointed out that most of the net present value from Shell's oil and gas projects will be realised before 2040, "and so this is a very resilient investment strategy that we are offering our shareholders". He also highlighted that Shell has $20bn of capital invested in low-carbon alternatives such as biofuels, hydrogen and electric vehicle charging. "It is in our interest... to see that market grow," he said. A key focus was Resolution 22, filed by the Australasian Centre for Corporate Responsibility (ACCR), which called on Shell to explain how its LNG strategy aligns with its climate goals. "We believe that shareholders still don't have the information that they need to properly assess the risks associated with this strategy," said the ACCR's Sarah Brewin. The scale of Shell's uncontracted LNG out to 2050 exposes the company and its shareholders to "significant risk should prices fall and demand soften", she said. The company's LNG outlook "is highly optimistic and increasingly out of step with global trends", she added. Shell's board opposed the resolution, arguing that its strategy is based on a range of scenarios — including one exploring the impact of AI on energy demand. Its 2025 LNG Outlook, based on Wood Mackenzie data, forecasts a 60pc rise in global LNG demand by 2040, driven by economic growth in Asia and decarbonisation in heavy industry and transport. While the resolution did not pass, Shell said it will prepare a note within six months detailing its LNG market outlook, its LNG business strategy and how these align with its climate commitments. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Unsold German storage tightens 3Q global LNG balance

20/05/25

Unsold German storage tightens 3Q global LNG balance

London, 20 May (Argus) — A lack of commercial interest in some German storage sites could support European injection demand in the third quarter, when Asian summer demand peaks. Operators are struggling to sell underground storage capacity at the 45TWh Rehden and 11.5TWh Breitbunn sites — probably because the German THE hub's prompt discount to the winter contract is not large enough to cover the reserve price. In Rehden, only 900GWh has been allocated of the 20.5TWh needed to reach the 45pc fill target. A inverted summer 2025-winter 2025-26 spread earlier this year provided no incentive for firms to book space ahead of the storage year, and although the spread normalised last month, it remains too narrow to make some sites attractive. In addition, Rehden is slow-cycling, so capacity holders have less flexibility to react to price movements. That said, these sites would still need be filled at some point this summer to help meet demand in Germany during winter plus EU and German mandates for 1 November. The lack of a commercial incentive to fill storage could prompt the intervention of market area manager THE later in summer, either by subsidising injections — as Italy did in early April — or through direct purchases, as THE did in 2022. THE said on Monday that it currently has no plans to intervene. But an intervention, if any, would probably only take place later in summer, as Rehden injections could start as late as 17 August to reach the 45pc fill target for 1 November. Asian demand Europe's stockbuild has benefited from weak Asian demand, but firms delaying injections to the third quarter are likely to contend with tighter LNG supply as northeast Asian demand peaks. Asian summer imports tend to be at their heaviest in July-August, when high temperatures boost air-conditioning use and power-sector gas burn. LNG imports in China, South Korea, Japan and Taiwan in July-August have on average increased by 6.4pc from May-June over the last three years, according to Kpler data, equivalent to 2.2mn t, or 30 LNG cargoes, over the two months. The European delivered discount to the TTF third-quarter contract has already started to narrow on stronger buying interest from Asia, falling to a 45¢/mn Btu discount from an average discount of 52¢/mn Btu the previous week. That said, part of the increase in Asian demand in the third quarter could be offset by weaker consumption from downstream sectors affected by US tariffs. And Asian delivered LNG prices above $11/mn Btu will probably continue to suppress demand from price-sensitive buyers in China and India, reducing competition for uncommitted Atlantic-basin supply. By Isabel Valverde Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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