LNG M&A: Dry Powder Meets Dry Gas
Just 10 years ago, the U.S. exported its first cargo of liquefied natural gas (LNG). It is now the world’s largest exporter of LNG as well as being the top producer of both gas and crude oil. As crude markets contemplate plateaus in both production and demand, both are widely expected to increase for natural gas in the long term. That is driving robust dealflow from wellhead to tidewater, particularly in the middle market.
Transactions have ranged widely, with many involving private equity taking significant minority stakes in LNG terminals. Also notable are Asian energy companies taking equity positions in U.S. production. One merger of U.S. midsized producers has been announced amid a myriad of asset-level transactions among both public and private buyers and sellers.