00:00Let's just start with the macro and the fact that that gas has come off quite a volatile couple of years now. There has been an element of market tightness. How do you see things short term before we talk about some of the medium term. I think you nailed it short term natural gas markets are going to be defined by volatility. What's happened in the United States over the last 10 years with an infrastructure cancellation movement. We've seen demand grow 50 percent. But the infrastructure to support that demand the pipelines have only grown 25 percent.
00:29And most importantly the storage infrastructure has only grown 10 percent. What that means is we're going to have markets that are disconnected where people in Boston in the eastern part of our country are going to be paying the highest gas prices in the world. And they're right next to the world's largest gas field in Marcellus where EQT operates. And then from a storage perspective it's just not no longer going to be an effective buffer on prices. So we are going to see natural gas prices be very volatile. And we've positioned EQT to thrive in that environment by having a low
00:59cost structure. How long do you expect those bottlenecks to persist for. It will exist until we get our act together and get infrastructure built. You know we are seeing market signals to get more infrastructure built like the fact that Boston is paying highest gas prices in the world next to the largest gas field in the world. But it's it's going to take infrastructure and that is going to take permanent reform. It needs to be the number one priority in our country.
01:22Is the Trump administration listening? Absolutely. I think the Trump administration understands that energy needs to be affordable and reliable. And in order to make that happen we need infrastructure. And to get infrastructure we need to get things built.
01:35And that's going to require permanent reform. Okay. So there's one thing about the domestic market. But then more broadly speaking I'm seeing more and more reports. The IEA put out a report last week suggesting that the LNG market is going to tip into
01:46over supply in the coming years. How do you see that panning out. We don't disagree given the build out that's coming in the United States. You know we're currently exporting over 19 B.C.F. a day. We're the world's largest LNG exporter.
02:00You've got some projects from Qatar that are going to be coming into that 2720 timeframe. So there will be an oversupply. EQT we are entering the LNG market. But we have timed our entry to start beginning in 2030.
02:11We'll have over 6 million tons of LNG that will be shipping around the world. Because you look out 2030 we see LNG exports or LNG market growing to over 100 B.C.F. a day.
02:23That would be doubling by 2040 from where we are today. So this is you know everything that people are talking about right now. They're talking about power. They're talking about AI.
02:31Guess what. They're talking about natural gas. And when we step back and realize some of the other big issues that are struggling with the world that Bill Gates has put a bullseye on.
02:40We need to focus on making people more prosperous. Guess what. The fastest way to do that. Get people more access to energy. And natural gas being one of the lowest cost forms of energy is going to fit that bill.
02:50The market potential for natural gas is tremendous. And LNG is going to be an incredible vehicle to serve that demand. Yeah. OK. So we'll get there. Let me just ask you.
02:58Assuming the supply glut does happen in the next couple of years. What does that do to domestic prices then in the US. So in the United States we are tied to the international prices.
03:07So it does matter what happens with international pricing. So you could see a situation where softness in the international markets backs up into the U.S.
03:16And that means LNG capacity in the U.S. will turn down a little bit and that will push some gas that will the loss of gas demand could could lead to some lowering prices in the U.S.
03:25That said the only keep in mind what we one thing we've seen over the past couple of years is that demand for natural gas continues to grow in the U.S.
03:34We are seeing a 20 percent increase in natural gas demand both pop both to meet the power demand needs and this is growing LNG export. So it's not the only catalyst for demand.
03:44But it but it is a significant one. And how much of a driver of future demand is the demand that's coming through from the hyperscalers and from the artificial intelligence power.
03:53Yes. So when we look at power demand it's going to be growing in the U.S. We see that going anywhere from 10 to 18 B.C.F. a day. So a 10 to 20 percent increase in that in natural gas
04:04demand to meet this power. Only 40 percent of that is for the AI data center build out. It's really important for people to understand this is the power demand build
04:13out. It's not just about AI. It's also about lowering energy bills creating more reliability on the grid system. So natural gas has been a tremendous play
04:23a tremendous role in power generation. We've increased the amount of natural gas for power generation over the last 10 years by over 14 B.C.F.
04:31a day. So we talk about what's in front of us 10 to 18 B.C.F. a day. This is something that the natural gas supply chain can handle.
04:37But we need the ability to meet the market signals. We need the ability to build the infrastructure to get this
04:43low cost energy to the consumers. Yeah. Yeah. Important distinction there. You know one feature I guess of the last couple of months given we spent so much time talking about tariffs and trade deals is one thing that President Trump is quite intentionally doing is every time you sign the trade deal there's an energy component to it as well. Do you believe that some of the trade deals that are being inked with these countries from Asia pledging to buy more U.S. energy that it's going to offer a significant tailwind to your own business to see that
05:13as an opportunity to gain market share. Absolutely. We think that American energy specifically LNG exports can be the biggest tool to help balance some of these trade deficits.
05:24So when you look at what the U.S. has to offer the world and what the world needs LNG is a perfect fit. So we're incredibly excited about the trade deals that are going to be coming out and we're excited to see what happens with China.
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