Letter from the US: Chesapeake-Southwestern merger is big deal for US LNG

The combination of the two independents will show the benefits of both size and methane reduction efforts

Analysts have lauded the announced combination of US independents Chesapeake and Southwestern Energy for the deal’s benefits to shareholders. Less attention has been given to the potential ramifications for US LNG, which will likely include more mergers of gas producers and—particularly in light of the Biden administration’s pause on new LNG facility approvals—a push towards producing gas with a much lower carbon footprint. The merger comes amid a wave of multibillion dollar oil industry tie-ups, including ExxonMobil buying Texas-headquartered Pioneer Natural Resources and Chevron buying New York-headquartered Hess. These acquisitions bolster the acquirors’ drilling inventories and offer cos