Newsletter No. 118
Good evening,
It’s Thursday, May 29, 2025. In this edition of The Upside, we’ll cover the latest news from the oil and gas industry, along with important updates from King.
As always, my goal is to keep you informed on the trends shaping our industry. Thanks for reading.
This Week's Headlines
- South Africa Wants to Buy U.S. Natural Gas in $1.2B Deal
- Ethane: The One U.S. Export China Won’t Touch in the Trade War
- Germany Pledges to Keep Russian Nord Stream 2 Pipeline Shut Down
- Latin America Pays More for Smaller LNG Supplies
- Recent Guest Appearance on Anthony Scaramucci's Open Door Podcast
- Glenfarne Hires Worley to Help Build Major Alaska Natural Gas Pipeline
Oil and Gas News
South Africa Wants to Buy U.S. Natural Gas in $1.2B Deal
South Africa has proposed a plan to buy up to $1.2 billion worth of natural gas from the U.S. every year for the next 10 years. In exchange, the U.S. would help build gas infrastructure in South Africa and support its efforts to find and use its own gas. The idea came up during a visit to the White House. The deal would add to South Africa’s current energy sources, not replace them.
Ethane: The One U.S. Export China Won’t Touch in the Trade War
Even as China and the U.S. hit each other with steep tariffs during their trade fight, one American product has been left alone: ethane. This chemical is key for making plastic and other everyday products, and China depends heavily on it to keep its factories running. While other energy exports like natural gas and propane were hit or rerouted, ethane kept flowing. U.S. companies say business is normal, and experts believe China skipped the ethane tariffs because it simply can’t do without it. This may even hint that China is open to talks behind the scenes.
Germany Pledges to Keep Russian Nord Stream 2 Pipeline Shut Down
Germany has made it clear that the Nord Stream 2 pipeline, which was built to carry Russian natural gas directly to Germany, will never go into operation. Chancellor Friedrich Merz said the country will do everything it can to keep the pipeline offline, reinforcing Germany’s stance against relying on Russian energy. The project was halted in 2022 after Russia invaded Ukraine, and Russia later shut down the older Nord Stream 1 pipeline as well. Both pipelines have remained inactive for more than two years, and now the European Union is considering new sanctions to officially block their return.
For the U.S., this is significant. With Europe turning away from Russian gas, demand for U.S. liquefied natural gas (LNG) is expected to stay strong. This benefits American energy companies and supports U.S. goals to reduce Russia’s influence in Europe. By keeping Russian pipelines closed, Europe becomes more dependent on trusted partners like the U.S., giving Washington greater economic and political influence in the region.
Latin America Pays More for Smaller LNG Supplies
Latin America is slowly growing its natural gas use, but the region’s tough geography—like mountains and jungles—and scattered population make it hard to build big pipelines or big LNG terminals like in other parts of the world. Instead, they use trucks and small containers to deliver LNG to remote areas. Because there aren’t many long-term deals, and the infrastructure is limited, LNG prices in Latin America are much higher than in the U.S.—about three to four times more expensive. The market is small and spread out, so big growth is slow. Still, Latin America’s LNG production is expected to roughly double by 2035, mostly to meet local energy needs as the region’s economies grow.
Happening at King
Recent Guest Appearance on Anthony Scaramucci's Open Door Podcast
I recently had the privilege of being a guest on Anthony Scaramucci's Open Book podcast. As someone with a lifelong passion for the oil and gas industry, I shared insights about founding King Operating Corporation, and more about my experiences in this industry. You can watch the episode here. I also talked about my own podcast, The Jay Young Show, and my book, The Upside Of Oil and Gas Investing.
Moves to Watch
Glenfarne Hires Worley to Help Build Major Alaska Natural Gas Pipeline
Glenfarne Group has hired the engineering company Worley to help move forward with a huge natural gas project in Alaska. The $44 billion project will build a pipeline over 800 miles long to carry natural gas from Alaska’s North Slope to southern Alaska and then ship it overseas to Asia. It’s designed to solve Alaska’s growing energy shortage and also make the state a big player in the global LNG (liquefied natural gas) market.
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Jay
