JPMorgan in Talks to Reignite Its Physical LNG Trading Operations

JPMorgan Chase & Co., the American multinational investment bank and financial services holding company, is reportedly in talks to re-enter physical trading of liquefied natural gas (LNG) after more than a decade. Sources close to the matter indicate that the bank is negotiating with several Gulf Coast projects for long-term LNG supply.

The bank is said to be in discussions with developers to construct a project for liquefying and exporting gas. These discussions potentially involve collaboration with the Commonwealth LNG site in Louisiana, Sempra Energy’s under-construction site in Texas, and Energy Transfer’s facility, also located in Louisiana.

JPMorgan has declined to comment on these reports, but this move is seen as a potential strategic expansion into the energy sector, particularly the LNG market. The bank's possible re-entry into this market coincides with a period of growth in the LNG industry due to rising global demand.

Sempra Energy, trading on the New York Stock Exchange under the ticker NYSE:SRE, and Energy Transfer, trading under the ticker NYSE:ET, are among the companies involved in ongoing discussions with JPMorgan. However, Energy Transfer has not responded to requests for comment regarding these talks.

The reported negotiations underscore the bank's interest in securing a stable LNG supply from the U.S. The U.S. has become a significant player in the global LNG market, particularly with the strategic positioning of Gulf Coast facilities for export.