Mush Khan

Energy Transfer’s plan to buy WTG Midstream, a West Texas-based and private equity-backed natural gas gatherer and processor, just got a bit less expensive — and not quite so comprehensive. Energy Transfer will still acquire WTG’s network of more than 6,000 miles of gas pipelines, eight processing plants and more, but WTG’s 20% stake in the joint-venture (JV) BANGL pipeline system is no longer part of the deal. In today’s blog, we’ll take a look at the detour from the original transaction. https://lnkd.in/gQxanMKr

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QY Research: Woodside Energy Buys Texas Ammonia Plant   Los Angeles, CA - August 6, 2024 – Woodside Energy has agreed to purchase a significant stake in an ammonia plant currently under construction by OCI in Texas. The deal is valued at approximately $2.35 billion. This acquisition reflects Woodside Energy's strategic move to expand its presence in the low-carbon energy sector, particularly in the production of ammonia, which is increasingly seen as a potential clean fuel for the future. OCI is a global producer and distributor of natural gas-based fertilizers and industrial chemicals, and the plant in Texas is expected to play a crucial role in the growing market for ammonia. Ammonia can be used as a hydrogen carrier and as a fuel itself, especially in the context of decarbonization efforts. The transaction highlights the increasing focus on sustainable energy solutions and the role of traditional energy companies like Woodside in diversifying their portfolios to include cleaner alternatives. Woodside Energy's Plan Woodside Energy's decision to buy the ammonia plant under construction by OCI in Texas aligns with several strategic and market-driven reasons: 1. Diversification into Low-Carbon Energy: ·   Ammonia as a Clean Fuel: Ammonia is gaining attention as a potential clean fuel, especially for sectors like shipping and power generation. It can be used directly as a fuel or as a hydrogen carrier, which is crucial for the hydrogen economy. ·   Decarbonization Efforts: Woodside, like many traditional energy companies, is under pressure to reduce its carbon footprint. Investing in ammonia production allows Woodside to align with global decarbonization trends and reduce its reliance on fossil fuels. 2. Strategic Growth in the U.S.: ·   Expanding U.S. Operations: The Texas ammonia plant gives Woodside a stronger foothold in the U.S. energy market, particularly in the Gulf Coast region, which is a hub for petrochemicals and energy infrastructure. ·   Leverage OCI's Expertise: OCI is a leader in the production of ammonia and other industrial chemicals. By acquiring this plant, Woodside can benefit from OCI’s established technology and market expertise. 3. Market Potential and Profitability: ·   Growing Demand for Ammonia: The global demand for ammonia is expected to rise, driven by its use in fertilizers, industrial applications, and as a fuel. This positions the plant as a potentially profitable asset. ·   Support for the Hydrogen Economy: Ammonia is seen as a key enabler for the hydrogen economy, which is expected to grow significantly. By entering this market early, Woodside can capitalize on future growth opportunities. 4. Sustainability and ESG Goals: ***** For more information about the report or to purchase a copy, please contact: Mark Liu
Sales Manager
QY Research, Los Angeles Office
Phone: 626-295-2442
Email: [email protected]

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🛢️📈Global energy markets are cruising smoothly amidst strategic shifts and nuanced market drivers. Stay fueled for success by diving into the Mid-Year Energy Market report with Petroleum VP Jeremy Peebles. ✔️Read the Full Article Here: https://lnkd.in/gYMdyYbT #Energy #MarketReview #MarketOutlook #Petroleum #Article #News #GCC #MovingForwardTogether

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FlexEnergy Solutions stands ready to deliver clean, reliable, and dispatchable power to operators who need it today. Although we applaud the Public Utility Commission of Texas (PUCT) approving the expansion of the ERCOT grid to meet burgeoning demand from the oil and gas industry, it will take years to make the needed transmission upgrades, which are expected to cost between $12.95 billion and $15.32 billion. Fortunately, there is no need to wait that long. The proven Flex Turbine is a cleaner, more reliable, and lower-cost energy alternative than most utility grids, including ERCOT. Contact us today to learn more about how we can help you transition into oilfield electrification with the cleanest and most reliable power solutions on the market today: https://lnkd.in/eyHM6vi6 #oilfield #oilgas #oilandgas #cleanenergy #microturbines

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An increase in ownership by large publicly traded energy companies in the Permian is driving their smaller peers to look for acquisitions in less-favored areas, creating sale opportunities for private-equity sponsors. Private-equity firms specializing in energy have secured a number of the largest exit deals in the Permian in recent years, but have found it more difficult to sell assets in less-popular areas, industry analysts said. SM Energy’s operations today are concentrated in the Midland Basin, a subregion of the broader Permian in West Texas, and the Eagle Ford shale region in South Texas.

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You know that I believe we need the #oilandgas industry to energize the world while decarbonizing it, and my end goal is to have oil and gas leaders seated at the most important #energy and #climate policy tables. What a joy it has been to help lead the Real Decarbonization Consortium with Naomi Boness, Ph.D. and be able to create forums for the best and brightest to think, explore, and push one another to achieve our decarbonization goals!

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Looks like even with the Matterhorn open, the pipeline we were told would fix the pricing problem at Waha, the pricing problem remains. There are a few points in this article I also disagree with. "Now, what this will likely do is spur on more natural gas production in the Permian – potentially oil production, too, because oil has also been under the effects of this excess natural gas in the region, because there’s a limit to how much natural gas can be flared." Ha! A limit to how much natural gas can be flared? In Texas. I don't think so. About those Permian gas prices: "With the production, the price in Permian – the Waha – there is negative. And so we are going to see a gradual increase, but nothing too crazy, because it’s just really relieving this bottleneck more than anything else." A gradual increase from negative pricing means they will still vent and flare the methane instead of paying to have it taken away. And the last point is if someone says this, when they are talking about energy markets in TX, they clearly don't understand the current energy market or are lying. "So going forward, demand continues to grow in Texas. There’s a lot of solar capacity being added, but to meet this higher demand, you’re going to need natural gas to continue to be that base load fuel – the most reliable one, whether the sun may not be shining or the wind isn’t blowing." Solar, wind plus storage is a money maker in TX. Storage is the fossil fuel killer. Now if we want to talk about energy being unreliable due to weather, have you heard about how nat gas does in extreme heat or cold? Not great. In summary, there is a new pipeline in TX. It will not make gas production profitable. So they will continue to dump that gas (methane) into the atmosphere. https://lnkd.in/e5ayEMEd

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The median deal size in the Permian Basin skyrocketed to $4.5B, a 9.5x increase despite a 53% drop in transaction activity. Major deals like ExxonMobil's acquisition of Pioneer Resources are reshaping how the market does business. Discover how this may affect deals to come. https://lnkd.in/gTprgiCb | #energy #permianbasin #acquisitions #transaction

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