Lots of Power in this evening''s Nightcap

August 25, 2025 by Sean Dookie

NatGas

Trading range: $2.62 to $2.71

NatGas rigs are at a 2-year high. Production is at an all-time high with no signs of slowing.

LNG & Mexico Exports

31 LNG vessels departed U.S. ports last week, mainly from major Gulf Coast terminals.

The “experts” believe demand from Mexico for oil and gas will decline by the end of 2025 as Mexico’s domestic production increases.

Mexico is also setting up to become a notable LNG re-export hub.

Power

US electricity prices have risen for a third straight year, outpacing inflation at +4.8% YoY.

If RE is so affordable and so plentiful, why are AI/Data Centers opting for NatGas while they build out nuclear energy options to cover the increasing demand?

Numerous LDCs (utility companies) have already told AI/Data Centers (and other large energy consumers building out facilities) that the power they need will not come from the LDC because the LDC doesn’t have the options or the capacity on their lines to deliver additional power.

In California, the CPUC has told the LDCs/rate payers they have no money to pay for any upgrades, etc. The CPUC is basically saying, this is your D.I.Y project now.

FYI – the top 8 states for nuclear power are: AZ, TX, NC, AL, GA, SC, PA, IL.

The Drivers

Late-summer heat boosted regional power prices, but storage remains healthy for all regions, limiting NatGas price gains.

LNG exports and data center-driven power loads are seen as major growth drivers, tempered by increasing RE generation and infrastructure constraints.

Today’s Specials

The WH halted the 700MW Revolution Wind project off the coast of RI & CT. The project is said to be critical to the region’s clean energy “goals” (with no concern of price to the ratepayers). It was stopped over unspecified national security concerns.

Our Nightcap Beats Their Recap