Designed with an annual LNG nameplate production capacity of 4.4 million tons, Delfin FLNG 1 is expected to achieve first production in 2030. The development carries an estimated total project cost of approximately USD 5 billion, while total equity contributions from investors amount to approximately USD 1.4 billion. Under the investment structure, MOL intends to contribute approximately USD 300 million, equivalent to approximately 23% of the total equity contribution, making it the first Japanese shipping company to invest in an FLNG project.

MOL’s involvement in the project dates back to 2023, when it invested in Delfin Midstream, Inc. Since then, the company has supported development activities while conducting a commercial evaluation of Delfin FLNG 1. Following the satisfaction of all conditions required for project realization, the partners proceeded with the FID. The project has already secured all permits and licenses necessary for construction and has signed long-term LNG sales agreements with Vitol and Gunvor, two of the world’s leading LNG trading companies; Centrica, a major U.K. energy company; Expand Energy, a major U.S. natural gas producer. As part of the FID milestone, a construction contract for the FLNG unit will be executed with Samsung Heavy Industries Co., Ltd., allowing the project to enter its execution phase ahead of commercial operations.

Beyond its equity participation, MOL will contribute technical expertise developed through offshore floating facility projects, including Floating Storage and Regasification Units (FSRU), as well as operational and safety knowledge gained from ship-to-ship cargo transfer operations and financial management capabilities. Natural gas transported as LNG is reduced to approximately 1/600 of its gaseous volume, making it more efficient for global transportation. Unlike traditional onshore liquefaction plants, FLNG facilities process gas offshore, reducing impacts on nearby communities while providing operational flexibility by avoiding congested shipping routes. In addition, FLNG units can disconnect from mooring systems and relocate to safer waters during severe weather events such as hurricanes, helping minimize potential damage.

For Delfin FLNG 1, feed gas will be sourced from the U.S. mainland and delivered through existing pipelines to a liquefaction facility situated approximately 40 miles offshore along the southern coast of Louisiana. After liquefaction onboard the FLNG vessel, the LNG will be loaded onto LNG carriers and shipped to customers.

Drawing on expertise accumulated through operating the world’s largest LNG fleet, MOL has expanded into downstream LNG activities through assets such as FSRUs and power generation vessels. Participation in this project extends the company’s presence into upstream segments closer to LNG production, complementing its existing LNG transportation, receiving, and regasification activities.

Through this expansion, MOL aims to strengthen its LNG business across the entire value chain and contribute to the diversification, stability, and decarbonization of global energy supply. Through the experience and expertise it has cultivated to date, the MOL Group aims to grow into a global social infrastructure company that supports people’s daily lives from the oceans, opens the door to a prosperous future, and delivers new value to all stakeholders.

Following years of development work tied to the $3 billion venture, company executives described the first commercial oil flows as a significant milestone. Bruce Dingeman, the Santos executive vice president overseeing the company’s Alaska operations, reflected on the achievement. However, Dingeman stressed that the launch of production is only the beginning of broader ambitions tied to the Pikka project. Santos owns a 51% stake in the project, while Repsol holds the remaining 49%. Beyond the 29 wells already drilled, the companies continue working to further develop the site. Santos has additionally outlined wider plans aimed at expanding activity on Alaska’s North Slope through the use of established infrastructure, proven production areas, and additional leases.

Industry observers also anticipate that regulatory adjustments could accelerate future developments. Recently announced Trump administration proposals intended to streamline permitting processes within the National Petroleum Reserve-Alaska are expected to support faster project approvals. The Pikka project is notable as the first greenfield oil development on Alaska state lands in nearly two decades. When the field was first identified in 2013, it was widely viewed as a transformational discovery located roughly two hours west of Prudhoe Bay, long considered the center of Alaska’s oil industry. Oil from Pikka forms part of the Nanushuk formation, a resource-rich underground formation that has encouraged companies to expand exploration efforts farther west across the state.

The project began development on state land before President Donald Trump’s second term, though production is beginning at a time when global crude markets are under pressure from the Iran war, which has reduced worldwide supplies by millions of barrels per day. The project also aligns with Trump’s broader strategy to strengthen American energy production, particularly in Alaska. US Interior Secretary Doug Burgum, described the launch of production as “a triple win” that supports affordable energy, unlocks Alaska’s potential, and reshapes energy geopolitics in the Western hemisphere.

“Whenever we can add affordable, secure, reliable sources of energy coming from America, it’s great for jobs and great for utilization of existing American infrastructure,” said Burgum, who also heads Trump’s National Energy Dominance Council.

Because the Nanushuk formation is located near decades-old oil and gas infrastructure on Alaska’s North Slope, operators are able to move production to market more efficiently.

“The Nanushuk is a new-generation play in an established basin that is creating value not just for Santos but for a lot of the industry players,” Dingeman said. As a new play inside an established basin, developers can take advantage of existing infrastructure. Industry interest surrounding the Nanushuk formation also contributed to a record-setting March lease auction within the 23-million-acre National Petroleum Reserve-Alaska, where Exxon Mobil Corp., Santos, Armstrong Oil & Gas and other explorers collectively bid around $164 million for acreage. The Pikka project is ultimately expected to produce approximately 400 million barrels of oil, with supplies transported through the Trans Alaska Pipeline System.

In April 2026, U.S. oil exports averaged an impressive 5.3 million barrels per day over a four-week period. This represents a substantial increase from the approximately 3.8 million barrels per day recorded at the close of March, according to data from the U.S. Energy Information Administration. A notable peak occurred during the week of April 24, when exports surged to 6.4 million barrels per day, before moderating slightly to 4.8 million barrels per day in the subsequent week. Even with this adjustment, crude oil exports remain considerably higher than the roughly 4 million barrels shipped overseas daily during the same period last year.

Experts note the remarkable nature of this export activity. Brian Prest, an economist at Resources for the Future, commented on the substantial one-week jump, highlighting that the week ending 24th April 2026 marked the first time in American history that the U.S. was a net exporter of oil. This achievement underscores the dynamic adaptation of global oil markets to significant supply disruptions.

The global energy landscape has faced a substantial loss of approximately 13 million barrels per day from the Middle East for over two months. Regions, particularly in Asia, that have historically relied heavily on Middle Eastern oil, are now experiencing supply shortages. This scenario presents the United States, as the world’s leading oil producer, with an opportunity to temporarily mitigate these global oil supply gaps.

The decision to export oil rather than retain it domestically is driven by economic factors. Since the onset of the recent geopolitical conflict, the United States has exported over 280 million barrels in just nine weeks. This increased export activity has also led to a drawdown of the country’s strategic petroleum reserves.

The Department of Energy has released nearly 23 million barrels from these reserves since late March, a portion of the 172 million barrels authorized for release by President Donald Trump. As of 1st May 2026, the strategic petroleum reserves stood at approximately 392 million barrels. Despite the record-breaking U.S. oil exports and efforts to bolster global supply, oil and gas prices have persisted at elevated levels.

The Bridger Pipeline Expansion, a three-foot-wide conduit, is designed to move as much as 550,000 barrels of oil daily. The planned route begins at the Canadian border in Montana and continues through eastern Montana and Wyoming, where it will connect with an existing pipeline network. Before construction can commence, the project will require further environmental clearances from both state and federal authorities. Company officials anticipate beginning construction next year.

Environmental organizations have voiced opposition to the project, citing concerns about the potential for pipeline ruptures and subsequent spills. At its maximum capacity, the 650-mile pipeline would transport two-thirds of the volume of oil carried by the more widely recognized Keystone XL pipeline. The Keystone XL project’s permit was revoked by President Joe Biden in 2021, citing climate change concerns.

In contrast to the previous administration’s stance on pipeline projects, President Trump stated following the signing of the cross-border approval for the Bridger Pipeline Expansion, “Slightly different from the last administration. They wouldn’t sign a pipeline deal. And we have pipelines going up.” This decision reflects a differing approach to energy infrastructure development.

The Bridger Pipeline Expansion is sometimes referred to as “Keystone Light.” A notable aspect of this project is that it will not traverse any Native American reservations. Bridger Pipeline LLC has stated that over 70% of the pipeline will be constructed within existing pipeline corridors, and approximately 80% will be located on private land. The Casper, Wyoming-based company currently manages over 3,700 miles of oil gathering and transmission pipelines across various basins in North Dakota, Montana, and Wyoming.

Bridger Pipeline, a subsidiary of True Companies, could potentially safeguard its project from future policy reversals by a subsequent administration if construction is completed before the end of President Trump’s current term. The company’s timeline projects construction starting in the fall of 2027, with completion anticipated by late 2028 or early 2029, aligning with the end of President Trump’s term in January 2029.

In response, U.S. LNG exporters have ramped up operations, maximising liquefaction capacity and tightening vessel loading schedules to increase shipment volumes. Data from Kpler show U.S. LNG exports are estimated to reach a record 32.15 million metric tonnes between January and April 2026, marking a 28% rise compared with the same period last year. This roughly 7 million-tonne increase has more than compensated for Qatar’s decline of 6.93 million tonnes during the same timeframe. Consequently, total global seaborne LNG exports are projected to exceed 149 million tonnes in the first four months of 2026, reflecting a 6% year-on-year increase, with U.S. LNG exports accounting for a record 18% share.

Operationally, Cheniere Energy’s Sabine Pass terminal in Louisiana continues to serve as the central hub for U.S. LNG exports, managing about 25% of shipments in the first quarter. Meanwhile, Venture Global’s Plaquemines LNG terminal has played a pivotal role in driving growth, with export volumes surging 240% year on year. The facility shipped nearly 6.5 million tonnes of LNG in the first quarter of 2026, compared with less than 2 million tonnes a year earlier. Despite this strong performance, sustaining such output levels may prove challenging. Routine maintenance requirements, along with risks linked to extreme weather and the approaching hurricane season in early summer, could disrupt operations and slow export momentum.

Europe has emerged as the dominant destination for U.S. cargoes, accounting for around 72% of shipments in 2026, with nine of the top ten buyers located in the region. Although seasonal demand typically eases as temperatures rise, storage levels remain low at approximately 30% following the winter season. This suggests that replenishment needs ahead of the next winter could continue to underpin demand for U.S. LNG exports, even as broader market conditions evolve.

The Appalachia region in the Northeast remained the country’s largest producing area in 2025, accounting for 31%, or 36.6 Bcf/d, of total marketed output. However, expansion in the region has slowed in recent years due to limited pipeline takeaway capacity needed to move gas to demand centres. A key development occurred in June 2024, when the Federal Energy Regulatory Commission authorized the Mountain Valley Pipeline to begin operations. The added infrastructure capacity, combined with stronger Henry Hub prices in 2025, helped increase production in the region by 1.1 Bcf/d compared with a much smaller rise of 46 million cubic feet per day Bcf/d in 2024. Despite infrastructure challenges, Appalachia remains central to sustaining record natural gas production levels nationwide.

Strong output growth was also recorded in the Permian region of Texas and New Mexico, which represented 23% of U.S. marketed natural gas production in 2025 and delivered roughly half of the country’s annual increase. Production in the basin rose 11%, or 2.7 Bcf/d, to average 27.7 Bcf/d. Much of the increase stems from associated gas generated during oil extraction. While West Texas Intermediate (WTI) crude oil prices declined from $77/barrel (b) in 2024 to $65/b in 2025, the price level continued to support oil-focused drilling activity in the region. According to the Dallas Fed Energy survey, industry executives reported breakeven prices of $61/b (Midland Basin) and $62/b (Delaware Basin) in 2025, while a steadily rising gas-to-oil ratio further contributed to expanding supply and reinforcing record natural gas production.

In the Haynesville region spanning Louisiana and Texas, output averaged 14.9 Bcf/d in 2025, representing a 4% increase compared with the 2024 annual average. The rise in Henry Hub prices between 2024 and 2025 enabled drilling to remain economically viable despite deeper and more expensive well development. Wells in the Haynesville formation typically reach depths of 10,500 feet to 13,500 feet, significantly deeper than the 4,000 feet to 8,500 feet common in the Appalachia region. Even with those higher costs, the formation’s proximity to liquefied natural gas export terminals and major industrial consumers along the U.S. Gulf Coast continues to attract operators.

The move comes as fuel costs in the United States have surged amid supply disruptions tied to the conflict.

The drawdown of 172 million barrels will temporarily reduce oil stockpiles held in the nation’s emergency reserves, which currently total 415 million barrels. That figure represents about 58% of the authorized capacity of 714 million barrels. Trump has previously criticized former President Joe Biden for making use of the reserve during his administration.

Officials said the oil withdrawn from the reserve will eventually be replenished. Energy Secretary Chris Wright stated that the Trump administration intends to replace the crude with 200 million barrels over the next year, and emphasized that the plan will come at no cost to the taxpayer. The release of 172 million barrels of oil is also part of a coordinated international response to market instability. The decision follows an agreement by the International Energy Agency to release 400 million barrels of oil from emergency stocks to counter supply disruptions affecting global markets.

The broader energy crisis stems from the U.S.-Israeli attack on Iran on 28th February 2026, which has triggered a series of retaliatory actions and intensified regional tensions. Iran has responded with strikes targeting Israel and Gulf countries hosting U.S. bases, while also blocking the normal flow of cargo shipments through the Strait of Hormuz. The disruption at the strategic waterway has added significant pressure to global energy markets, prompting coordinated action on a global scale.

Although the policy temporarily eases restrictions, officials emphasized that the step is strictly limited in scope. Washington has signaled caution about the possibility of Russia benefiting financially from the arrangement. In a statement on X, Bessent said the measure was “narrowly tailored” and “short-term” and would not provide significant financial benefit to the Russian government. The 30-day sanctions waiver represents the latest move by President Donald Trump’s administration to manage energy price pressures that emerged after the U.S. and Israeli strikes on Iran and Tehran’s subsequent response escalated regional tensions. The conflict has disrupted shipping routes through the Strait of Hormuz, a critical artery for Middle East oil and gas flows, contributing to higher global energy prices.

The waiver coincides with broader efforts by Washington and its partners to stabilize supply. The U.S. recently announced a release of 172 million barrels of oil from the strategic petroleum reserve to counter surging prices linked to the war in Iran. That action forms part of a wider initiative by the 32-nation International Energy Agency, which has committed to releasing 400 million barrels of oil. According to available data, approximately 124 million barrels of Russian-origin oil were on water across 30 different locations globally as of 12th March 2026. The newly granted 30-day sanctions waiver could add roughly five to six days of supply when factoring in the daily disruption of oil flows through the Strait.

Despite its potential to boost supply, the move could complicate Western efforts to limit Russia’s revenue from its war in Ukraine while causing friction with allied governments. European Commission President Ursula von der Leyen, after participating in a call with G7 leaders to assess the Iran war’s impact on oil and gas markets, expressed disapprovingly on Russian oil sanctions. Meanwhile, Russian presidential ⁠envoy Kirill Dmitriev said he had discussed the current energy crisis with a U.S. delegation at a meeting in Florida.

Using a play-based assessment methodology, the 2026 National Assessment estimates a mean Undiscovered Technically Recoverable Resource of 65.80 billion barrels of oil and 218.43 trillion cubic feet of natural gas across the Outer Continental Shelf. These estimates highlight the significant scale of U.S. undiscovered offshore reserves, offering a perspective on the long-term energy potential of the region. According to the report, current production trends indicate that these undiscovered resources could support 100 or more years of energy production from the shelf. Such capacity underscores the strategic importance of offshore resources in helping meet future demand while supporting employment opportunities and maintaining stable energy supplies.

“The Outer Continental Shelf holds tremendous resource potential,” said BOEM Acting Director Matt Giacona. The methodology behind the assessment involves analyzing each geologic play across the Outer Continental Shelf and assigning probabilities regarding the presence of undiscovered oil and gas resources within individual plays. Results from these analyses are subsequently aggregated to generate regional estimates, which are then combined to form an overall estimate for the entire Outer Continental Shelf. Through this process, the assessment provides a structured evaluation of U.S. undiscovered offshore reserves, offering insight into where resources may be located and how significant those deposits could be.

The 2026 National Assessment represents a comprehensive evaluation based on detailed scientific analysis and the best available data and information. It builds upon earlier Outer Continental Shelf resource assessments and forms part of a continuing effort to refine the understanding of offshore energy potential. As a result, the report serves as a key analytical resource for guiding decisions related to offshore exploration and development. By delivering updated data and insights into U.S. undiscovered offshore reserves, the assessment is positioned as an important reference for shaping the nation’s long-term energy strategy and maintaining the United States’ role as a major global energy producer.

The policy announcement follows remarks by President Donald Trump directing DFC to provide insurance “at a very reasonable price” to help safeguard the movement of energy supplies and other commercial cargo through the Gulf. The comments were made as oil prices surged and concerns grew that the availability of insurance was preventing vessels from entering the waterway. Several governments, including the US, had previously indicated that restricted insurance access was a significant barrier to transit. Trump also stated that the US military might provide escorts for ships traveling through the Strait, although no operational plans have been disclosed. Against this backdrop, the $20 bn reinsurance program is being positioned as a mechanism to restore confidence among shipowners and insurers operating in the region.

The Strait of Hormuz is one of the world’s most critical maritime corridors, carrying roughly one-fifth of global oil flows along with shipments of gas, fertilizer and other commodities. Tensions escalated after Iran warned that vessels attempting to cross the passage could face attacks, triggering a sharp rise in energy prices and increasing risk perceptions across global shipping markets. In a statement outlining implementation plans, the development agency said, “DFC and Treasury are coordinating closely with CENTCOM on next steps in the implementation of this plan,” referring to the US military’s central command. Officials said the $20 bn reinsurance program will operate with selected partners, noting that the DFC has already identified “best-in-class, preferred American insurance partners.”

Despite the heightened security risks, private insurance markets had continued offering coverage before the government initiative was announced. The Lloyd’s Market Association confirmed that premiums were still being quoted for ships considering passage through the Strait, while broker Arthur J. Gallagher & Co. stated that the London insurance market remained willing and capable of underwriting vessels navigating the route. Insurers have also expressed interest in cooperating with DFC on the new arrangement, according to an agency official. The structure of the $20 bn reinsurance program, the official added, reflects extensive consultations between the agency and the insurance sector as authorities attempt to restore stability to commercial shipping in the Gulf.