Private Equity Firms' LNG Terminal Investments Exposed to Growing Risks

Private equity firms are investing heavily in liquefied natural gas (LNG) terminals worldwide, despite growing concerns over their financial and environmental risks. According to a recent update of the Private Equity Climate Risks Global Fossil Fuel Asset Tracker, 46 private equity-backed LNG terminals were identified as of June 2026.

These investments are not only exposed to market volatility but also face significant geopolitical risks due to their proximity to conflict zones. The Strait of Hormuz, a critical transit zone for oil and LNG, has been closed or partially blocked since February 2026, affecting around 20% of global LNG supply.

The closure of the Strait has caused price volatility and supply unreliability, hindering long-term demand. In addition to these risks, private equity-backed LNG terminals also face community opposition due to their high-intensity emissions and impact on rural areas. Several projects have been halted or delayed in recent years due to local resistance.

In Canada, for instance, the proposed Ksi Lisims LNG project has faced mounting opposition from indigenous communities and environmental groups. The project's developer, Western LNG, is backed by private equity firm Blackstone Energy Transition Partners. Meanwhile, investors in LNG Canada, an operating export terminal with a proposed expansion, are also facing pressure to divest due to concerns over the facility's operational defects and impact on local communities.