Energy - Weekly Refrac: BKV Starts CCS Projects; Deal Feedback; LNG Outlook, Record US Oil Volumes in Apr; EPD

Research evidence excerpt

Energy - Weekly Refrac: BKV Starts CCS Projects; Deal Feedback; LNG Outlook, Record US Oil Volumes in Apr; EPD

l injection capacity by 2028 with every incremental CCS

project underscoring the ability to market Carbon Sequestered Gas (CGS) pairing

produced natural gas with permanently stored emissions to create a differentiated

product for customers pursuing lower-carbon energy solutions (i.e. datacenters).

Recall BKV has already executed its first commercial CSG sale at a premium to

Henry Hub price demonstrating customers are willing to pay for verified, low-carbon

natural gas. Further, Alphabet (GOOGL, Buy, Squali) became the first hyperscaler to

sign a binding PPA for electricity generated from a natural gas plant equipped with

CCS in October 2025 which bodes well for BKV's own PPA efforts.

Global LNG demand anticipated to grow +65% by 2050. In Shell's (SHEL, Not Rated)

latest LNG outlook for 2026, global demand for LNG is expected to increase to ~700MM

tons a year by 2050, representing a +65% increase from 2025 levels. Note that a total

of ~422MM tons of LNG was traded in 2025. In terms of cadence, total LNG trade in

2026 could be similar to 2025 if shipping through the Strait of Hormuz returns to normal

this summer, before returning to growth in 2027. Moreover, Shell's outlook includes an

estimate of ~180MM tons of annual new supply to enter the market by the end of the

decade.

EIA's Petroleum Supply Monthly highlights record US oil volumes. US crude oil

production reached a new all-time monthly record of 13.93 MMbpd (+230 kbd m/m) in

April 2026. This expansion was anchored by the Permian Basin, where New Mexico

output hit 2.37 MMBpd (+65kbd m/m) while Texas production climbed +36kbd m/m to

5.77 MMbpd, its highest level since November 2025.