Fitch Says Prolonged Iran Conflict May Boost North American Energy Infrastructure
Summary
- Fitch said a prolonged Iran conflict and increased commodity market volatility could have a positive effect on North America's energy infrastructure sector.
- Fitch said greater supply uncertainty in the Middle East could lift demand for U.S. crude oil, LNG and NGL exports, increasing use of related pipelines, storage facilities and export terminals.
- Fitch added that the actual scale of the benefit could vary depending on each company's contract structure, export capacity and investment plans.
Forecast Trend Report by Period
Fitch Ratings said a prolonged conflict involving Iran and greater volatility in commodity markets could benefit North America's energy infrastructure sector.
Walter Bloomberg reported on June 10 that Fitch said in a report North American midstream companies handling crude oil, liquefied natural gas and natural gas liquids could benefit if Iran-related geopolitical tensions persist or global commodity price volatility increases.
Midstream refers to the energy infrastructure segment responsible for transporting, storing and processing crude oil and natural gas.
Fitch said rising supply uncertainty in the Middle East could increase demand for U.S. crude oil and LNG exports. That, in turn, could lift utilization of related pipelines, storage facilities and export terminals.
The ratings firm added that the scale of any benefit could differ by company depending on contract structures, export capacity and investment plans.
Market watchers say heightened tensions between the U.S. and Iran have recently brought global energy supply-chain stability and energy security back into focus.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
