- As Australian gas projects worth more than $180 billion move into production in the next three years, supply fears are rising.
- Positioning portfolios to capitalise on the move towards a lower-emission world and higher demand for LNG and renewable energy makes sense in the long-term.
- On balance, try taking a global rather than local-only approach to energy investments, focusing that exposure on LNG and renewable sources, using professional managers, and waiting for better value.
Few sectors have such contrasting short- and long-term fortunes as liquefied natural gas (LNG).
As Australian gas projects worth more than $180 billion move into production in the next three years, fears are rising of sharply lower LNG prices and falling share prices of LNG suppliers. The bears say LNG will follow iron ore and coal lower as supply spikes and demand eases.