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Unexpected escalation of the Iran conflict accelerates global LNG capacity expansion—could supply glut be imminent?
The blockade of the Strait of Hormuz has caused a sudden 20% drop in global LNG supply, driving the March Asian benchmark price up to $30. However, analysts note that as Asian buyers shift toward extra-regional sources to secure energy supplies, this could trigger a surge in project development in North America and elsewhere. Coupled with buyers turning to solar power and coal, this trend is likely to accelerate a third wave of even larger-scale and more prolonged LNG oversupply in the medium to long term.
Ormat Technologies Is the Best Performing Utilities Stock in the Past Month
RBC Favors Brookfield, AltaGas, Emera Among Canadian Regulated Utilities