Alternative Capital Floods US LNG Sector Amid Energy Boom
The US liquefied natural gas (LNG) sector is attracting alternative capital to finance its projects, including LNG terminals, pipelines, and midstream assets. This shift in financing trends is driven by the growth of energy exports and increasing electricity demand.
Capital from insurers and large asset managers like Apollo Global Management, Blackstone, and KKR is pouring into US LNG projects, coinciding with a time when the energy sector needs to mobilize significant capital to expand its infrastructure. This influx of alternative capital has surpassed traditional financing methods, such as structured loans and equity contributions.
The Port Arthur LNG project, developed by Sempra Infrastructure, is one example of this trend. The second phase of the project received a $7 billion investment, marking a significant milestone in the sector's transition towards alternative capital.