Alaska LNG promises gas cheaper to Asia and Europe than on the American stock exchange
The multibillion-dollar LNG project in Alaska is trying to attract investors and declares that the cost of gas will be lower than on the American Henry Hub exchange. Until recently, investors were in no hurry to visit Alaska, but Donald Trump’s threats to impose import duties forced companies in major Asian countries to reconsider their attitude. The American Glenfarne Alaska LNG, which is the main shareholder of Alaska LNG, announced the completion of the first round of the strategic partner selection process, which was attended by more than 50 companies from the USA, Japan, South Korea, Taiwan, Thailand, India and the European Union. “These potential partners have officially expressed interest in a contract value of more than $115 billion for various partnerships, including the supply of equipment and materials, services, investments and client agreements,” Glenfarne Alaska LNG reports. The company did not specify what amounts were offered as investments or for LNG purchases. At the same time, they noted that Alaska LNG’s economic performance allows it to supply LNG to Asia at prices that are lower than prices on the American Henry Hub exchange. Traditional contracts for the supply of American LNG assume that the cost of LNG is based on the following formula: the price of gas at Henry Hub plus 10-15% and the cost of liquefaction. Alaska LNG expects to produce 20 million tons of LNG (about 28 billion cubic meters of gas) per year. At the same time, to implement the project, it is necessary to build not only a terminal, but also an 800-mile gas pipeline, which increases the cost of the project to $ 40 billion. Until recently, investors and consumers were not particularly interested in the project and it did not have a single agreement. The situation changed after Donald Trump occupied the White House and unleashed a trade war. Due to the threat of import duties, many Asian countries have changed their attitude to the project.
Asian LNG spot market prices dip amid weak demand and high inventories
Prices on the Asian LNG spot market slid for the first time in five weeks, Reuters reported on June 6. Weak demand in the region saw the average LNG price for July delivery fall to $12.30 per million British thermal units (mmBtu). It marks a slight dip from $12.40/mmBtu a week earlier High inventory levels, especially in Japan, which is the world’s second-biggest importer of LNG, have depressed prices. According to Japanese government data cited by Argus, the country’s utilities have higher stock levels compared to the same time in 2024. Japan’s LNG stocks at its utilities are 1.3% higher than the volume at this time last year and 7.6% higher than the average for the end June for 2020-2024. And while temperatures are expected to climb higher than seasonal averages in the weeks ahead in Japan and South Korea, the high inventory levels are expected to keep demand weak on the spot market. Indeed, demand for LNG from the spot market has been low in northeast Asia, but it has also been weak in southeast Asia. The arrival of monsoon season in India has reduced power demand in India. Moreover, rough seas in the Bay of Bengal have also disrupted LNG operations in Bangladesh, with at least two tankers halting ship-to-ship fuel transfers off Moheshkhali Island amid stormy monsoon conditions. If conditions worsen, LNG tankers and floating storage regasification units (FSRUs) may be required to be moved to safer locations in deeper waters, which would affect Bangladesh’s LNG imports.
India targets 1,000 hydrogen-powered buses and trucks by 2030
The Indian government has announced plans to deploy at least 1,000 hydrogen-powered trucks and buses by 2030. The government has identified hydrogen as a more practical solution for long-distance freight trucks, offering key advantages over battery-electric alternatives, especially in terms of preserving cargo space and enabling faster refuelling. Abhay Bakre, Mission Director of India’s National Green Hydrogen Mission (NGHM), reportedly outlined at an event that up to 50 hydrogen-powered trucks and buses will be operating this year. Bakre added, “I hope by 2030, more than 1,000 trucks or buses will be plying and used commercially in the country. That is what we are expecting.”
India’s Oil & Gas Sector Poised For Steady Growth Through FY26-27 Despite Market Volatility: Research
India’s oil and gas sector is projected to maintain robust growth through FY26 and FY27, despite recent market turbulence, according to a research note by Systematix Institutional Equities. The brokerage expects that India’s oil and gas companies are likely to post average sales growth of 6 per cent in FY26 and 7.8 per cent in FY27, with ebitda rising by 12.9 per cent and 9 per cent, and Pat increasing by 13.3 per cent and 10.1 per cent year-on-year, respectively. Top investment picks include Reliance Industries (RIL), GAIL India (GAIL), Mahanagar Gas (MGL) and Gulf Oil Lubricants India (GOLI). The oil market witnessed high volatility in May 2025. Brent crude prices dropped 22.9 per cent year-on-year and 3.8 per cent month-on-month, driven by higher Opec output from Saudi Arabia and the UAE. This decline in prices also led to a fall in US rig counts, indicating caution in upstream investment. However, refining margins rebounded sharply, with the benchmark Gross Refining Margin (GRM) increasing 85 per cent month-on-month and 121 per cent year-on-year to USD 6.4 per barrel. The surge was attributed to lower crude costs and stronger cracks in gasoline, gasoil, jet fuel, kerosene, and naphtha. Natural gas markets showed divergent trends. While US Henry Hub prices dropped 31.8 per cent since January 2025 due to oversupply and mild weather, Asian spot LNG (Japan Korea Marker) rose 6.7 per cent year-on-year to USD 11.9/mmbtu, buoyed by regional demand. In the final quarter of FY25, the oil and gas sector saw flat year-on-year earnings but sequential improvement, especially among gas and City Gas Distribution (CGD) companies. While EBITDA per standard cubic metre (scm) declined on a yearly basis, it recovered sequentially, supported by price increases and favourable gas sourcing.