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To: [email protected]
Date: Fri, 22 May 2026 08:14:09 GMT
Subject: Gas to Power Weekly - 22 May - Ichthys strike risk leaves Japan most exposed as LNG supply tightens; Hormuz LNG transit risk boosts chances for Russia-China pipeline
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<p style="margin: 0;"><span style="font-weight: bold; font-size: 16px; color: rgb(128, 126, 131);">LEAD ARTICLE</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-size: 18px; font-weight: bold;">Ichthys strike risk leaves Japan most exposed as LNG supply tightens</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-weight: bold;">Strike threats at Inpex-operated Ichthys LNG from May 27 have put Japan’s power sector at the center of a fresh supply-risk story, given the country’s heavy dependence on contracted Australian LNG and limited spot flexibility.</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">Around 70% of output from the 9.3 million tonnes per annum Ichthys project in Darwin is sold to Japanese buyers, including JERA, Kansai Electric, Kyushu Electric, Osaka Gas, Toho Gas and Tokyo Gas. That leaves Japan especially vulnerable to any disruption, even if the work stoppage proves short-lived.  </span></p>
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<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-size: 16px; font-weight: bold;">G A S S U P P L Y</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-size: 16px;">Vaca Muerta gains LNG traction amid Middle East supply risk</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-size: 16px;">Iraq hit by Iranian gas </span></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-size: 16px;">squeeze as Excelerate </span></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-size: 16px;">LNG deal advances</span></p>
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<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-size: 16px; font-weight: bold;">D E M A N D </span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-size: 16px;">SE Asia’s power hunger to grow by 100 TWh in next five years</span></p>
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<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-size: 16px;">Centrica completes £370m Severn CCGT acquisition in Wales</span></p>
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<p style="margin: 0;"><span style="font-weight: bold; font-size: 16px; color: rgb(128, 126, 131);">P R O J E C T S</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-size: 16px;">SK-led consortium breaks ground on $2.3bn LNG-to-power project</span></p>
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<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-size: 18px; font-weight: bold;">Vaca Muerta gains LNG traction amid Middle East supply risk</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131); font-weight: bold;">Argentina’s Vaca Muerta shale is drawing investor interest to a 15-block licensing round for blocks suited for LNG feedgas development. The bidding round comes as LNG buyers reassess their portfolio exposure to supplies chains built around the Strait of Hormuz. </span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">Disruption or perceived risk to future LNG exports from Qatar and the UAE have increased interest in Atlantic Basin alternatives. </span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">Vaca Muerta is the largest commercial shale play open to international E&P companies outside of North America and the play is already outperforming the US plays such as the Permian, Bakken and Eagle Ford on well productivity measures. Crude oil output from the basin is forecast to exceed 1 million b/d by 2030, while its shale gas resource base ranks among the largest globally.</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">The 15 blocks, offered through Neuquén provincial company Gas y Petróleo del Neuquén (GyP), span the full breadth of the play — from the condensate-rich northwest to the oil-heavy northeast and the more frontier southern fringe. </span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">The timing reflects rising international appetite, Rystad Energy commented, noting well breakeven prices across the most prospective blocks run between $32 and $49 per barrel – “competitive with many established global shale plays.” Gas-linked developments are expected to benefit from LNG pricing as export capacity comes online.</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">Pipeline expansions from Neuquén to the Atlantic coast are underway, with key projects including the Vaca Muerta Sur pipeline and the planned Corredor de Integración pipeline link. On the LNG side, Argentina is advancing several export schemes, including YPF and Petronas’ proposed onshore LNG plant, Southern Energy’s floating LNG project.</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">“Argentina is offering international companies their best organic entry point into Vaca Muerta in a decade,” said Jai Singh, Head of US Oil & Gas Research, Rystad Energy.“The basin is maturing fast, infrastructure is being built at pace, and the bid terms are designed to attract operators who can bring North American shale expertise to bear. For anyone who missed the first wave, this is the knock on the door they have been waiting for.”</span></p>
<p style="margin: 0;"><br></p>
<p style="margin: 0;"><span style="color: rgb(128, 126, 131);">Bidders will compete through a combination of working interest carried for GyP, royalties incrementally above the 15% minimum, work program commitments and an access bonus, with a minimum threshold of $500,000 per block.</span></p>
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Email from Gas to Power Journal Our weekly update covering everything you need to know about Natural Gas Power Generation LEAD ARTICLE Ichthys strike risk leaves Japan most exposed as LNG supply tightens Strike threats at Inpex-operated Ichthys LNG from May 27 have put Japan’s power sector at the center of a fresh supply-risk story, given the country’s heavy dependence on contracted Australian LNG and limited spot flexibility. Around 70% of output from the 9.3 million tonnes per annum Ichthys project in Darwin is sold to Japanese buyers, including JERA, Kansai Electric, Kyushu Electric, Osaka Gas, Toho Gas and Tokyo Gas. That leaves Japan especially vulnerable to any disruption, even if the work stoppage proves short-lived. DOWNLOAD NOW << G A S S U P P L Y Vaca Muerta gains LNG traction amid Middle East supply risk Iraq hit by Iranian gas squeeze as Excelerate LNG deal advances D E M A N D SE Asia’s power hunger to grow by 100 TWh in next five years Centrica completes £370m Severn CCGT acquisition in Wales P R O J E C T S SK-led consortium breaks ground on $2.3bn LNG-to-power project Vaca Muerta gains LNG traction amid Middle East supply risk Argentina’s Vaca Muerta shale is drawing investor interest to a 15-block licensing round for blocks suited for LNG feedgas development. The bidding round comes as LNG buyers reassess their portfolio exposure to supplies chains built around the Strait of Hormuz. Disruption or perceived risk to future LNG exports from Qatar and the UAE have increased interest in Atlantic Basin alternatives. Vaca Muerta is the largest commercial shale play open to international E&P companies outside of North America and the play is already outperforming the US plays such as the Permian, Bakken and Eagle Ford on well productivity measures. Crude oil output from the basin is forecast to exceed 1 million b/d by 2030, while its shale gas resource base ranks among the largest globally. The 15 blocks, offered through Neuquén provincial company Gas y Petróleo del Neuquén (GyP), span the full breadth of the play — from the condensate-rich northwest to the oil-heavy northeast and the more frontier southern fringe. The timing reflects rising international appetite, Rystad Energy commented, noting well breakeven prices across the most prospective blocks run between $32 and $49 per barrel – “competitive with many established global shale plays.” Gas-linked developments are expected to benefit from LNG pricing as export capacity comes online. Pipeline expansions from Neuquén to the Atlantic coast are underway, with key projects including the Vaca Muerta Sur pipeline and the planned Corredor de Integración pipeline link. On the LNG side, Argentina is advancing several export schemes, including YPF and Petronas’ proposed onshore LNG plant, Southern Energy’s floating LNG project. “Argentina is offering international companies their best organic entry point into Vaca Muerta in a decade,” said Jai Singh, Head of US Oil & Gas Research, Rystad Energy.“The basin is maturing fast, infrastructure is being built at pace, and the bid terms are designed to attract operators who can bring North American shale expertise to bear. For anyone who missed the first wave, this is the knock on the door they have been waiting for.” Bidders will compete through a combination of working interest carried for GyP, royalties incrementally above the 15% minimum, work program commitments and an access bonus, with a minimum threshold of $500,000 per block. Enjoyed your free read? Consider a trial subscription Follow us on social media Gas to Power Journal | 39-41 North Road | London, N79DP GB Unsubscribe | Update Profile | Constant Contact Data Notice
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