Expand Energy, the largest natural gas producer in the United States, said on Wednesday that the customs duties imposed by Trump will only have a minimal short-term effect on its activities. In the longer term, the group thinks that the price impact will depend on the results and the magnitude of the American president’s program. However, it ensures that it is able to produce more in 2025 and 2026 to meet growing demand.
On April 2, Donald Trump imposed a series of customs duties on several countries with a minimum floor of 10%. He notably imposed additional customs tariffs of 20% on the European Union, from 26% to India, 34% in China and 49% in Vietnam. Put under pressure by the markets, the American president finally frozen these taxes for 90 days (until the end), the time to assess the situation. But Washington has maintained and even exponentially increased Chinese customs duties, up to 145%. Beijing replied with 135% additional rates for American products entering China.
Expand Energy sees a minimal impact on short -term customs duties
Although paused, these protectionist measures of the Trump administration have increased uncertainty in several sectors of activity, especially in the natural gas industry. The producers of this fuel fear that a trade war will reduce demand for energy and slow down global economic growth. Expand Energy, the first producer of natural gas in the United States, believes that Donald Trump’s customs duties will have a minimum short-term impact. He thinks he can limit damage thanks to existing contracts and favorable perspectives for pricing services.
Everything will then depend on the scale of Trump’s pricing program
In the longer term, the possible impact of the taxes “will largely depend on the result and the magnitude of the pricing program” of Donald Trump, judge Nick Dell’osso, the director general of Expand, formerly known under the name of Chesapeake Energy before his merger with Southwestern Energy in 2024. In the meantime, the company continues to carry out its production capacity ” Dynamic macro-environment of today and be ready to respond effectively to the evolution of market conditions, ”adds the manager.
Expand Energy on the right track to meet the growing demand for natural gas
Analysts of the investment bank Piper Sandler consider them “expands as one of the best positioned companies in the exploration and production sector to benefit from the increase in natural gas demand on the Gulf Coast”. On Wednesday, during a conference call on the results of the first quarter, Expand Energy said it was on track to produce more gas in 2025 and 2026 in order to meet growing demand for this fuel.
Expand Energy wants to produce around 7.1 billion cubic feet of gas equivalent per day this year
In 2025, the American gas group plans to operate 12 platforms and invest nearly $ 2.7 billion to produce around 7.1 billion cubic feet of gas equivalent per day (PI3/D). This volume corresponds to the forecasts announced by the Company when publication of its results of the fourth quarter 2024 last February. In 2026, the company targets a production of 7.5 billion cubic feet (PI3/D) with 15 drilling platforms.
Donald Trump takes measures favorable to hydrocarbons
Expand Energy must partly prevailing to Donald Trump. In January, the new American president raised the moratorium of his predecessor Joe Biden on the construction of new LNG export terminals. Deeply climato-skeptical, it at the same time deleted the environmental regulations which slowed down projects, mainly on the coast of the Gulf of Mexico. According to the Energy Information Administration (EIA), the expected increase in gas pipeline exports to Mexico and Canada will represent most of the planned gas demand in 2025 and 2026.
