Global Energy Market Upended by US Naval Blockade

The global energy market is undergoing significant changes due to the US naval blockade that has sharply curbed Iran's exports. This supply shock has tightened markets, increasing price risk and making large integrated oil and gas producers more attractive to investors.

Golar LNG (GLNG) is a pure-play on this trend through its focus on floating liquefied natural gas infrastructure connecting upstream resources with seaborne trade. The company earns most of its revenue from long-term FLNG contracts, which provide stable cash flows linked to global gas pricing and trade routes.

However, Golar LNG's stock is sensitive to project execution and funding conditions due to heavy capital needs and reliance on a few large contracts. Its US$17b EBITDA backlog and growing FLNG footprint suggest an underpriced story that investors may want to explore further.