S&P Global: Iran conflict drives new U.S. LNG investment
Consulting agency S&P Global said the Iran conflict and the supply disruption it has caused to global energy markets are stimulating market investment in new U.S. liquefied natural gas export facilities. Daniel Yergin, vice chairman of S&P Global, energy consultant and historian, said that the obstruction of shipping in the Strait of Hormuz highlights the importance of geographical diversification of the supply chain, and this investment trend will continue in the next 12 months. “The current investment enthusiasm for U.S. LNG is very high,” Yergin said. “Countries will pay more attention to energy security and actively look for alternative supply channels in shipping chokepoints such as the Strait.” He added, “Purchasers will be more interested in U.S. LNG to diversify supply.” Since the outbreak of the Iran conflict, the United States, the world's largest liquefied natural gas exporter, has filled part of the supply gap in the Middle East and increased gas shipments to Europe and Asia. At the same time, the timing of the commissioning of the Ras Laffan complex in Qatar, the world's largest LNG facility, remains uncertain. The facility was damaged by an Iranian missile attack earlier this year, further highlighting the value of U.S. LNG supplies.