Private equity commits to LNG at the expense of long-term energy transition

The report details the significant financial backing provided by private equity firms for both approved and proposed LNG export terminals in the United States. It argues that the rapid growth of this industry, driven by short-term price spikes, is incongruent with diminishing international demand and the EU's carbon reduction goals. The document highlights specific firms like KKR, I Squared Capital, and Fortress Investment, noting that such investments expose institutional investors to climate-related financial risks and cause environmental and social harm to frontline communities.

• Private equity has significant financial involvement in U.S. LNG export infrastructure: 60% of the 15 new LNG export terminals or expansions approved by the Federal Energy Regulatory Commission (FERC) have private equity backing, and 42% of 14 additional announced projects also have private equity support.
• The expansion of LNG infrastructure is deemed unnecessary for short-term energy needs, as the Institute for Energy Economics and Financial Analysis (IEEFA) suggests the U.S. LNG industry can assist Europe without building new gas infrastructure.
• LNG infrastructure faces increasing stranded asset risks due to the EU's goal to reduce emissions by 55% by 2030 (relative to 1990 levels) and crumbling gas demand in Asia caused by price increases of 300% compared to the previous year.
• Specific private equity investments have faced legal and community opposition: KKR's investment in the Port Arthur LNG project is opposed by the Port Arthur Community Action Network due to air quality concerns, and Fortress Investment's subsidiary, New Fortress Energy, was ruled by a June 2022 D.C. Circuit Court of Appeals to have built a facility in Puerto Rico without necessary FERC approval.

APA

Private Equity Stakeholder Project (2023). Private equity commits to LNG at the expense of long-term energy transition. https://pestakeholder.org/news/private-equity-commits-to-lng-at-the-expense-of-long-term-energy-transition/

Chicago

Private Equity Stakeholder Project. Private equity commits to LNG at the expense of long-term energy transition. 2023. https://pestakeholder.org/news/private-equity-commits-to-lng-at-the-expense-of-long-term-energy-transition/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Private equity commits to LNG at the expense of long-term energy transition |date=9 February 2023 |url=https://pestakeholder.org/news/private-equity-commits-to-lng-at-the-expense-of-long-term-energy-transition/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2023private, author = {{Private Equity Stakeholder Project}}, title = {{Private equity commits to LNG at the expense of long-term energy transition}}, institution = {Private Equity Stakeholder Project}, year = {2023}, month = feb, url = {https://pestakeholder.org/news/private-equity-commits-to-lng-at-the-expense-of-long-term-energy-transition/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }