Out now: Spark! Infrastructure: the LNG bubble
The third issue of Spark! zooms in on the role of infrastructure investment, covering both risks of stranded assets in LNG as well as emerging opportunities in transition assets
Much can change in two years. Mask wearing and social distancing now feel like the distant past, and so does the global gas shortage. Instead, energy firms have rapidly expanded LNG production, raising the prospect of oversupply before the end of the decade. This shift brings new questions for investors in LNG infrastructure and whether parts of the sector could face stranded asset risks. The coming LNG bubble is a key theme in this issue.
Continuing the infrastructure focus, we explore opportunities in sustainable aviation fuels and the growing investment needs of the electricity grid. Asset owners are increasing their allocations, though approaches vary widely from major direct investments to LTAFs and more diversified strategies, as our interviews with Aware Super’s Katya Romahskan and Aon’s Jo Sharples show.
We also hear from AXA IM portfolio managers Johann Plé and Rui Li on how green bonds have evolved from niche holdings to important portfolio diversifiers. As the year draws to a close, Royal London Asset Management’s Carlota Garcia-Manas and Charles Stott share lessons from a year of just adaptation engagements.
Read the third issue of Spark! here
In this issue, we explore:
- Why America's LNG infrastructure boom is built on shaky ground
- Licence to drill: bond market exposure to the LNG bubble
- Choosing a flightpath: how investors navigate SAF pathways
- Where voltage meets value: can patient capital clear the gridlock?
- AwareSuper's Katya Romashkan on UK and European infrastructure opportunities
- AON's Jo Sharples on leveraging LTAFs to invest in transition infrastructure
- Royal London Asset Management's insights on just adaptation engagements
- AXA IM's portfolio managers on the evolution of the green bond market
