Japanese stocks related to liquefied natural gas (LNG) stand to benefit from rebuilding war-damaged energy infrastructure in the Persian Gulf and the construction of new facilities elsewhere to diversify away from the Middle East.
Heightened awareness of Middle East risks has fueled expectations for a build-up of alternative LNG supply chains in the U.S., Canada, Australia and Southeast Asia.
“Turmoil in the Middle East is likely to trigger a structural shift in global energy procurement,” said Kazuhiro Toyoda, head of Japanese equities at Schroder Investment Management (Japan), who had recently been looking for stocks that will profit. “Companies positioned to benefit from developments such as expansion of LNG terminals could emerge as attractive investment opportunities.”
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