Global LNG Deals Proceed Despite Straits Tension; Engineering Contract Awarded

Global liquefied natural gas (LNG) projects are advancing with new offtake agreements and shipments, even as geopolitical tensions persist around key shipping chokepoints, according to industry reports Monday. These developments underscore the continued global demand for natural gas, a market that Bakken gas producers ultimately compete in.

Italian energy major Eni has secured LNG offtake deals for its projects in Indonesia, according to Rigzone. The agreements cover about 2 million metric tons per year of LNG produced using feed gas from the company's North Hub and South Hub projects.

Separately, LNG shipments from the Middle East are continuing despite regional tensions. Rigzone reported that three LNG tankers from Qatar appear to have crossed the Strait of Hormuz in recent days. Suppliers in Qatar and the UAE are attempting to get fuel to key buyers despite the near-total closure of the waterway, the report stated.

In other infrastructure news, engineering firm Worley has been awarded an exclusive three-year contract by APA, according to a separate Rigzone report. Under the partnership, Worley will work with APA to deliver a phased infrastructure development program aimed at reducing constraints and improving system flexibility.

For Bakken operators, these international developments highlight the interconnected nature of the global gas market. While the Bakken is primarily an oil play, its associated natural gas production is increasingly being captured and marketed. Growth in global LNG capacity and trade can influence long-term demand outlooks and pricing for natural gas, which affects the economics of gas capture projects in North Dakota. The focus on infrastructure flexibility and reducing constraints, as seen in the Worley-APA deal, mirrors ongoing efforts in the Williston Basin to optimize midstream systems for both oil and gas.