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Market Chatter: BHP Evaluates Chile Asset Disposal Valued at Up to $2 Billion

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BHP Group is considering monetizing a desalination plant and electricity transmission assets in Chile as it directs more capital toward its copper business, Bloomberg reported Friday, citing people familiar with the matter.

The company has not decided whether to proceed because the review remains at an early stage. Discussions continue over the timing, structure and valuation of a potential deal, with the assets estimated to carry a combined value of $1.5 billion to $2 billion, according to the sources.

The report said any successful bidder would likely enter long-term service agreements with BHP, with the company's largest copper mines underpinning steady cash flows.

BHP Group did not immediately reply to' request for comment.

(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.)

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Update: Market Chatter: Petrobras Eyes Bolivia Upstream Return, YPFB Partnership

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US Natural Gas Update: Futures Fall Over 6% After Storage Build, Freeport LNG Maintenance

US natural gas futures tumbled in after-hours trading on Thursday, following government data showing a larger-than-expected increase in storage and as maintenance at the Freeport LNG export terminal was set to begin, pointing to weaker near-term demand.The front-month Henry Hub contract and the continuous contract both fell 6.23% to $3.012 per million British thermal units.The US Energy Information Administration said working gas in storage increased by 61 billion cubic feet during the week ended July 3, exceeding analysts' expectations for a build of between 51 Bcf and 57 Bcf. The injection also surpassed the five-year average increase of 51 Bcf for the period.Total gas inventories rose to 2,983 Bcf, the EIA said. While stocks remained 15 Bcf below year-earlier levels, the surplus to the five-year average widened to 185 Bcf from 175 Bcf the previous week.The larger-than-expected storage injection reinforced expectations of a looser supply-demand balance, weighing on prices.Additional pressure came from the start of a planned maintenance turnaround at the Freeport LNG export facility on the US Gulf Coast, scheduled for Friday, Reuters reported.The work, which is expected to continue through the end of next month, will reduce feedgas demand by keeping gas that would otherwise be liquefied for export in the domestic market.Weather forecasts also added to the bearish sentiment. Pinebrook Energy Advisors said the latest midday run of the Global Forecast System Ensemble model showed lower cooling demand next week, implying weaker natural gas consumption from power generators.Barchart, citing BNEF data, said US dry gas production rose to 113.5 Bcf per day on Thursday, up 1.9 Bcf/d from Wednesday and 6.8% higher than the same day a year earlier.Lower-48 gas demand also increased by 1.9 Bcf/d day over day to 78.1 Bcf/d, edging up 0.1% from a year ago. According to Celsius Energy, power sector gas consumption, or Powerburn, totaled 43.8 Bcf on July 7, up 0.3 Bcf from the previous day but 4.4 Bcf below the year-earlier level.Over the past seven days, Powerburn averaged 42.5 Bcf/d, down 1.1 Bcf/d from the corresponding period last year, it said.

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Market Chatter: Petrobras Eyes Bolivia Upstream Return, YPFB Partnership

Petrobras (PBR) and Bolivia will start technical discussions next week as the Brazilian oil company weighs re-entering the country's upstream sector, with the talks also expected to cover cooperation with state energy company YPFB, Reuters reported Thursday, citing Energy Minister Marcelo Blanco.Energy Minister Marcelo Blanco said Petrobras is willing to help restructure YPFB. He added the talks will assess the company's role in Bolivia's energy sector, but gave no investment details or timeline.Bolivia expects updated oil and gas reserve estimates by the end of last year next week after an independent firm completes its assessment, YPFB President Sebastian Daroca said.Bolivia's Ministry of Hydrocarbons and Energy, Petrobras, and YPFB did not immediately reply to' request for comment.(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.)

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