Gas driller EQT pushing into LNG with two huge tankers, exec tells Bloomberg

What happened

EQT Corp. is leasing two liquefied natural gas tankers, each with 174K cubic meters of capacity, and plans to start trading LNG cargoes by next year, Bloomberg reported. EQT also expects to lease more ships and open offices in London and Singapore.

Confirmed

Global impact / market context

Owning ships and trading cargoes lets EQT sell gas overseas at higher global prices instead of only at domestic rates. That could lift revenue and profit per sale, but it adds shipping costs, trading risk and the need for new staff and offices.

Analyst inference

U.S. gas producers usually sell at home, where prices are often lower. Global LNG demand, especially in Europe and Asia, has risen since the war in Iran disrupted supplies. EQT is positioning itself as a global supplier rather than a purely domestic driller.

Analyst inference

What to watch

1. EQT plans to start trading LNG cargoes by next year and expects to lease more ships, possibly another 10 vessels, depending on customer sales in Europe or Asia. Confirmed
2. EQT aims to open offices in London and Singapore by next summer and could hire another 10 LNG trading staff across the three locations by the end of next year. Proposed
3. Watch whether EQT signs more supply deals like its Lithuanian agreement with Ignitis, since customer sales determine how many extra tankers and staff it actually adds. Analyst inference

Evidence

• seekingalpha.com