FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: Australia Holds Off on Gas Export Curbs Following Supply Assurances From Exporters

By

Australia will not be imposing curbs on natural gas exports during the winter, the country's Resources Minister Madeleine King said, after exporters reassured the government of sufficient supplies for its east coast markets, Reuters reported Thursday.

"(The government) has now received assurances from exporters that there will be more than enough gas to meet the demand of Australians," King said in a statement to Reuters.

She, however, warned that further action could be taken going forward, based on changes to the supply outlook over the course of the upcoming winter.

In April, the Australian government said that it was considering the Australian Domestic Gas Security Mechanism during Q3 of this year, which allows it to restrict exports by the three LNG plants on its east coast, operated by Shell (SHEL), Origin Energy and Santos.

Australia's Resources Ministry did not immediately respond to' request for a comment on this matter.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Related Articles

Commodities

Asia Biofuels Update: Malaysian Palm Oil Recovers but set for Third Weekly Loss

Malaysian palm oil futures rebounded on Friday, driven by stronger crude oil prices and a softer local currency, but prices were on track for their third weekly loss due to weak fundamentals.Crude palm oil futures on the Bursa Malaysia Derivatives exchange recovered from two-month lows. The June contract gained 0.60% to 4,388 Malaysian ringgit ($1,115.40) per metric ton, and the July contract rose 0.48% to 4,414 ringgit/mt, in midday trade.Both contracts were on track to have lost about 1.9% over the course of the week.The broader energy market strengthened as uncertainties prevailed over the direction of the US-Iran war, providing support to the biofuels market.On Friday, Malaysian ringgit eased 0.4% against the US dollar, making exports cheaper to foreign buyers. This could provide relief to current export market weakness, resulting from lackluster demand from key importers, India and China.In April, Malaysian exports slumped 14.3% versus March shipments to 1.3 million metric tons, industry data showed. For the first 10 days of May, AmSpec Agri reportedly estimated a 10.8% month-over-month drop in shipments, while Intertek assessed growth of 8.5%.On the supply front, April domestic palm oil output surged 18.4% to 1.6 mmt. Against the backdrop of higher supplies and lower exports, stocks rose 1.7% to 2.3 mmt, to approach a level much higher than the previous year's 1.9 mmt.Among vegetable oils, palm oil led market declines this week, according to price reporting agency MySteel. This reversed a recent sharp uptrend in palm oil prices, largely due to crude oil strengthening and accelerating biofuel programs in key Southeast Asian producers.Once Malaysia and Indonesia implement higher biodiesel mandates in June and July, respectively, increased domestic consumption may lend support to palm oil prices.Supply risks from the potential development of an El Nino weather phenomenon could also serve as a tailwind in the coming months.Palm oil prices may also react to the soybean market movement, after US Trade Representative Jamieson Greer reportedly said China may buy up to "double-digit billions" worth of US agricultural products following the Trump-Xi summit.Greer, however, did not identify the farm goods and did not stipulate a commitment to any volume.

Commodities

NWS Forecasts Critical Fire Weather in Northern Plains, Upper Midwest, Southern High Plains

The US National Weather Service said the Northern Plains, Upper Midwest, and southern High Plains are expected to experience critical fire weather conditions on Friday, due to the presence of gusty winds and low humidity.Meanwhile, parts of the central Plains are likely to encounter severe thunderstorms risks, with potential for large to very large hail, wind damage and tornadoes until Saturday.The NWS early Friday issued a red flag warning for almost the entirety of North Dakota barring Crosby, Williston, Rugby, Minot, and Bottineau. Xcel Energy (XEL), MDU Resources (MDU) unit Montana-Dakota Utilities and Otter Tail's (OTTR) Otter Tail Power are among the major electric service providers in the state.Most of Minnesota was also covered under a warning for fire weather conditions, except for Minneapolis, St. Paul, Red Wing, Rochester, Mankato, Worthington, Albert Lea, Pipestone, and Windom. The main service providers in Minnesota are Otter Tail Power, Allette (ALE) subsidiary Minnesota Power, Xcel Energy and Alliant Energy (LNT).In South Dakota, a similar warning was issued for Mobridge, Aberdeen, Sisseton, Milbank, Redfield, Miller, Pierre, Huron, and Brookings. Xcel Energy, Northwestern Energy (NWE), Black Hills (BKH) subsidiary Black Hills Energy, Montana-Dakota Utilities and Otter Tail Power are among the major electric service providers in the state.Nebraska's Harrison, Chadron, Alliance, Scottsbluff, Bridgeport, Harrisburg, Kimball, Sidney were also placed under the red flag warning watch. Nebraska falls under the service area of regional transmission organization Southwest Power Pool, with Midcontinent ISO also serving some areas.Also covered under a red flag warning watch were Oklahoma's Gage, Woodward, Elk City, Clinton, Hobart and Altus. OGE Energy (OGE) unit Oklahoma Gas & Electric and American Electric Power subsidiary Public Service Co. of Oklahoma are the major electric utility service providers in the state.In Texas, a red flag warning was issued for Canadian, Childress, Vernon, Guthrie, Lubbock, Post, Aspermont, Perryton, Dumas, Dalhart, Amarillo, Hereford, Clarendon, Dimmitt, Plainview, Littlefield, Matador, and Morton. These places are primarily served by Xcel Enery and American Electric Power's (AEP) Texas unit.A similar warning was raised for Colorado's Craig, Rangely, Meeker, Aspen, Buena Vista, Lake City, and Gunnison, primarily served by Xcel Energy and Black Hills Energy.In Utah, which primarily falls under the service area of PacifiCorp's Rocky Mountain Power, Vernal and parts of Manila, and Moab were placed under a red flag warning watch.A red flag warning was also issued for Wisconsin's Hayward, Rice Lake and Park Falls; and Ironwood, Iron Mountain and Houghton in Michigan.The NWS issued flood warnings for certain pockets of Washington, Louisiana, and Mississippi; and a fire warning for areas near Liberal in Kansas.

$AEP$ALE$BKH$LNT$MDU$NWE$OGE$OTTR$XEL
Commodities

Carbon Capture Offers Fastest Route to Cleaner Data Centers, Wood Mackenzie Says

Carbon capture attached to gas-fired power plants offers the quickest way to reduce emissions from data centers as electricity demand could rise by 100 gigawatts to 200 GW by 2030, Wood Mackenzie said in a Thursday note.Data centers used about 450 terawatt-hours of electricity in 2025 and produced around 0.2 billion metric tons of carbon dioxide emissions annually, representing more than 0.5% of global emissions, the note said.Wood Mackenzie said steel, chemical, and cement industries emit far more carbon dioxide at 3.5 billion mt, 3 billion mt, and 2.3 billion mt annually, respectively, limiting the broader climate impact of cleaner data centers alone.US data centers currently emit 548 kilograms of carbon dioxide per megawatt-hour, or 48% above the national grid average, as artificial intelligence continues driving higher electricity consumption, according to Wood Mackenzie.Natural gas remains the primary source of near-term data center power additions, while all three major combined-cycle gas turbine manufacturers are expanding capacity after reaching full order backlogs, the note said."With gas power dominating buildouts right now and 58 GW already in development in Texas alone, the practical question isn't whether data centers will use gas, it's whether that gas will be decarbonized," said Peter Findlay, director of CCUS Analytics at Wood Mackenzie.Carbon capture systems can remove 92% to 98% of emissions from gas-fired plants, while developers can install the technology within three to four years or retrofit existing facilities within three to five years.The note estimated carbon capture would increase US gas-fired electricity costs by $15/MWh to $45/MWh after federal 45Q tax incentives, raising total power costs to roughly $115/MWh."At roughly $115 per MWh including capture, this represents a manageable premium for decarbonized power," Findlay said, adding that the technology is already commercially available and ready to scale.Enhanced geothermal systems could lower electricity costs to about $61 per MWh between 2030 and 2035, though only 1.5 GW are currently in the development pipeline.The note said restarted nuclear plants could generate decarbonized electricity at roughly $155 per MWh, although only 11.5 GW of retired nuclear capacity remains available in the US.Wood Mackenzie said long-duration energy storage technologies still face high costs of $100/MWh to $300/MWh, limiting their competitiveness against other low-carbon energy options.Wood Mackenzie said renewable energy and battery storage will remain important for cleaner power grids, although solar and wind alone cannot reliably meet constant data center electricity demand without significant natural gas backup."This isn't an either-or situation," Findlay said. "Renewables will help decarbonize the overall grid, which benefits everyone. But for data centers specifically - with their massive, constant power demands - you need firm capacity."Wood Mackenzie said hyperscalers are facing growing pressure to balance rapid expansion of artificial intelligence with long-term emissions-reduction commitments."Global data center emissions will increase," Findlay said, adding that strong balance sheets and public sustainability commitments will shape how hyperscalers address emissions over the coming decades.