Japanese power producer Jera said this week that it has signed multiple long-term LNG supply agreements with US partners over the past two months, to procure up to 5.5mn t/yr over 20 years. This includes 2mn t/yr from NextDecade and 1mn t/yr from Commonwealth LNG. It also signed non-binding interim agreements with Sempra Infrastructure for 1.5mn t/yr and with developer Cheniere for 1mn t/yr. The deals offer competitive pricing and flexible contract terms. All supply will be delivered on a fob basis priced against the US' Henry Hub, allowing Jera to optimise shipping routes and respond flexibly to domestic demand and market conditions, the company said.
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US' Alcoa, Australia's Equus ink 10-year gas sales deal
US' Alcoa, Australia's Equus ink 10-year gas sales deal
Sydney, 14 August (Argus) — Australian gas developer Equus Energy has signed a binding 10-year gas sales agreement (GSA) with global aluminium producer Alcoa to supply gas from the planned Equus project offshore Western Australia to Alcoa. Equus will provide 50 TJ/d of gas to Alcoa, equivalent to 182PJ over the term of the deal, the company said on 14 August. Alcoa will use the supplies to power its expanding portfolio of Western Australia-based (WA) alumina refineries. In return, Alcoa will provide advance payment of $30mn to complete a front-end engineering design (Feed) study for the Equus project in Western Australia's North West Shelf region. The funding will cover project costs until it reaches a final investment decision (FID), Equus said. It did not specify a timeline for the FID. Equus, which was known as Western Gas until December 2025, completed a pre-Feed study for the Equus project in May, confirming project design of 50 TJ/d of domestic gas, 2mn t/yr of LNG for export markets, and 12,000 b/d of condensate production over a 15-year project life. The project will address a peak day gas supply shortfall in Western Australia and will represent 5pc of the Western Australian domestic gas market upon completion, Equus said. Annual peak day gas demand in Western Australia is set to increase from 2026 by 36pc to 558 TJ/d in 2035 with the winter season recording the highest demand levels, according to the Australian Energy Market Operator's (Aemo) 2025 Western Australian Gas Statement of Opportunities . This is despite an expected decline in overall annual gas consumption over the same period due to increased large-scale wind and solar generation, Aemo said. The deal with Alcoa will fully satisfy Equus' commitments under Western Australia's domestic gas reservation policy, the company said. The reservation policy mandates that Western Australia-based gas producers retain at least 15pc of production for sale in the domestic market over a project's life. Alcoa operates the 30.5mn t/yr bauxite mine and the 4.2mn t/yr Pinjarra and 2.85mn t/yr Wagerup alumina refineries in Western Australia. Alcoa bought most of Australian mining company South32's aluminium supply chain stakes in June, including the 37mn t/yr Worsley bauxite mine and 4.4mn t/yr Worsley alumina refinery in Western Asutralia. Alcoa signed a three-year gas sales agreement with Australian independent Woodside Energy for 31.1PJ in June, which will begin in 2027. The company also secured a 10-year gas sales agreement with LNG operator Chevron in December 2024 for 130PJ, starting from 2028. This has built on Alcoa's existing 10-year gas sales agreements with Chevron, ExxonMobil and Australian independent Warrego Energy for a total of 198PJ of gas to its alumina refineries in Western Australia, starting in 2024. By Daniel Gage-Brown Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Gulf war reverses fortunes for US OCTG demand
Gulf war reverses fortunes for US OCTG demand
Houston, 13 August (Argus) — US oil and gas drilling companies and rig owners have boosted their demand outlooks because of the global crude oil supply shock from the US-Iran war. US drilling contractors and oil country tubular goods (OCTG) producers now anticipate higher oil prices and increased oil and gas drilling to raise US demand in the second half of 2026, a far cry from declining rig counts and lower oil prices at the start of the year. Pipe and tube companies are bullish as crude oil prices bolstered by the war in the Middle East raise US drilling activity. The Argus West Texas Intermediate (WTI) fob Houston assessment stood at $84.82/bl on 11 August, up from $68.19/bl at the end of February and before the onset of the war. Rig contractors raise estimates Publicly traded drilling rig contractors have seen the greatest shift, as they now expect a second quarterly rig count increase. Drilling rig contractor Helmerich & Payne (H&P)'s shifting outlook reflects the war-fueled reversal of fortune in the industry. At the end of 2025, H&P lowered its rig count estimates for the first quarter because of lower oil prices and drilling activity. "Going into [2026], things felt relatively bearish, but I do think it's quite a different story right now," H&P chief financial office Todd Scruggs said. "We think this [third quarter] is a pretty good marker for where we're going to be in [2027], we actually think we will be improving from this base." But the stronger outlook remains contingent on oil prices staying elevated and the conflict not widening into a disruption that undercuts economic growth or drilling budgets. At the end of the first quarter, H&P and fellow drilling rig contractors Nabors and Patterson-UTI guided for the second quarter an average of 294-301 active US drilling rigs between them. The rig operators surpassed that outlook and exited the second quarter with an estimated 316 active drilling rigs in the US, which the companies expect to grow to an approximate 324 active rigs by the end of the third quarter. US private and independent oil and gas exploration and production (E&P) companies drove higher drilling rig demand as they capitalized on higher crude oil prices, gains that are expected to continue in the back half of the year. The US weekly active drilling rig count has held at 588 since mid July, the highest level since April 2025 and up from 539 a year earlier, according to oilfield services company Baker Hughes. Pipe producers expect US volumes to grow As more US drilling rigs activate, OCTG producers are working to take advantage of greater demand, import constraints and tight inventories. Higher US drilling activity and lower import volumes raised Vallourec's second quarter US tubular mill production and OCTG prices, chief executive Philippe Guillemot said on a 30 July earnings call. He added that US OCTG inventory levels are below five-year averages. Tenaris chief executive Gabriel Podskubka said the company's Bay City, Texas, seamless OCTG mill is running at record production levels to meet demand. OCTG prices have responded to the shortage and higher demand. The Argus Pipe Logix OCTG all items index, which reflects distributor selling prices, has climbed by $45/short ton (st) in July to $2,233/st, which is $224/st higher since the start of the year. Domestic OCTG mills have pushed about $600/st of price increases into the market and have struggled to bridge a large import supply gap despite raising production. US domestic OCTG pipe mill shipments collected by Argus and import volumes less exports from January-June are at 2.24mn st, down by about 500,000st from the same period in the prior year. OCTG supply declined solely on lower import volumes as major foreign OCTG suppliers like Austria and Taiwan are under US antidumping investigations, causing many US buyers to refrain from importing from those countries. The majority of US OCTG distributors remain optimistic that pricing will continue to rise, with the Argus OCTG distributors index at a positive reading of 86 in July, down by two points from June and the fifth consecutive positive reading. Multiple OCTG distributors reported sourcing difficulties in July for certain products that they would normally buy as imports and cannot find domestically. By Rye Druzchetta Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Mexico fracking report sets limits on development
Mexico fracking report sets limits on development
Mexico City, 11 August (Argus) — A government-commissioned report evaluating unconventional gas development in Mexico has recommended banning hydraulic fracturing in the Tampico-Misantla basin and imposing strict water and environmental safeguards elsewhere. President Claudia Sheinbaum created the committee of 56 scientists and experts in April to assess whether Mexico can safely develop its estimated 141.5 Tcf of unconventional gas resources using newer hydraulic fracturing technologies while minimizing environmental and social impacts. State-owned Pemex's 10-year strategy aims to lift unconventional gas production from 20mn cf/d in 2026 to 1.159 Bcf/d by 2030 and 3.196 Bcf/d by 2035, part of government efforts to reduce dependence on US gas imports. Of the 141.5 Tcf in prospective gas identified by the report, 20.7 Tcf, or 15pc, are located in the Tampico-Misantla basin, where the commission is ruling out fracking. The report cites the region's higher population density, including many indigenous communities, and highly biodiverse rainforests as reasons to place Tampico-Misantla, situated in the central Huasteca region and Veracruz on the Gulf, off limits. Industry sources also note the far greater geological complexity of the basin's gas deposits. The remaining 85pc of resources are found in two northeastern formations on the Texas border: the Sabinas-Burro-Picachos formation, which spans Coahuila and Nuevo León, with 67 Tcf, 47.3pc, and 53.8 Tcf, with 38pc, in the Burgos basin, located in Tamaulipas state and geologically tied to Texas' massively important Eagle Ford play across the border. Sheinbaum said last week said that her government would accept the panel's conclusions. The report also recommends prohibiting freshwater use for fracking. Projects would instead need access to underground saltwater, typically found at depths of 1,000-1,500m, with testing confirming hydraulic separation from freshwater aquifers. At least 75pc of water used should be recycled or reused. The debate will move to congress when the next legislative session begins in September, where support is not guaranteed even within Sheinbaum's Morena party. But the plan has gained backing from opposition figures, including lower-house president Kenia Lopez. "Fracking must be considered as a means to strengthen energy sovereignty, reduce foreign dependency and secure the energy supply our country requires," Lopez said, while calling for strict environmental, technical and regulatory safeguards. Projects would begin with informed public consultations with nearby communities, followed by hydrogeological and environmental studies to assess resources, profitability and baseline conditions, including comprehensive mapping of water supplies. Consultations should continue throughout development and operations. For the Burgos and Sabinas-Burro-Picachos basins in northeastern Mexico, the panel recommends focusing development on "sweet spots" combining the largest resources with suitable hydrological conditions and technologies. Other recommendations include independent scientific monitoring of aquifers, regional water use, seismic activity and ecosystems; circular-economy waste management; preference for local suppliers and gradual elimination of gas flaring. Sheinbaum aims to raise domestic gas output from the current 4 Bcf/d to 5 Bcf/d by 2030. Even if the plan advances, industry sources tell Argus it remains unclear how Pemex would fund development or secure the technical expertise needed to meet its unconventional gas targets. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil court suspends offers of 18 oil, gas blocks
Brazil court suspends offers of 18 oil, gas blocks
Sao Paulo, 10 August (Argus) — A federal court in Brazil's federal district has suspended future offers for a combined 18 oil and natural gas blocks in three basins in response to a civil lawsuit filed by climate activist group Arayara. The blocks are in the Potiguar, Sergipe-Alagoas and Espirito Santos basins. The three basins produced a combined 21,641 b/d of oil equivalent in June, according to Brazil hydrocarbons regulator ANP. Arayara presented technical evidence that suggests that the blocks "overlapped with or encroached upon conservation units, ecological corridors, quilombola territories, breeding grounds for endangered species and regions of high importance for biodiversity", it said. The decision "reinforces the need for a prior assessment of environmental risks before including areas in bidding rounds", the group added. ANP will now be unable to offer the blocks until further environmental studies are conducted in the area. But none of the suspended blocks was due to be offered in ANP's next two auctions, to be held on 7 October . The agency will offer 22 blocks in a concession auction, including two in Espirito Santo and five in Potiguar. ANP did not immediately answer Argus ' requests for comments. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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