On My Mind: Episode 48: December 19 2025

In this episode, I take a broad perspective to examine howlow oil prices are affecting the LNG and gas industry. I cover topics such as reduced supplies of associated gas (which could push feed gas prices higher), limited exploration budgets that may hinder discoveries of new gas sources, andless motivation for energy companies to develop stranded gas fields.Since much of the global gas market still relies onoil-linked pricing, both contracted and spot LNG prices in these regions will fall. This drop affects the profit margins of existing LNG exporters, who must sell into these markets. Importing countries are unlikely to agree to higher linked prices when current rates are low, so greenfield project FIDs will be hit first. US projects face additional challenges with rising costs, possible tariffs, and market concentration along the Gulf Coast.A significant portion of new investment has come from MiddleEastern energy companies and sovereign funds. As their earnings depend heavily on oil sales, lower prices mean they have less incentive and fewer resources to invest in fresh LNG ventures.Nevertheless, there is reason for optimism. Over time, lowerprices may attract new users and entrants to LNG, expanding demand and growing the overall market. Ideally, this growth will help absorb new projects and bring LNG prices back to more sustainable levels.Gulfstream LNG is currently focused on the permittingprocess and isn't rushing toward FID decisions. Thanks to our modest size and competitive cost structure, we can afford to wait until conditions for FID become more favorable.Comments are always welcome! @onmymind @vivekchandra @gulfstreamlng