Alternative capital powers America's next wave of LNG and pipeline projects
XLE•Alternative investors have participated in $20.35 billion of U.S. LNG and midstream transactions in 2026, more than double the value of deals struck in all of 2024. Insurance-arm capital is helping finance LNG facilities and pipeline projects through investments and hybrid structures.
1. Capital backs LNG projects
Apollo Global Management, Blackstone and KKR are among the major alternative asset managers using insurance-arm capital to back U.S. LNG export projects and pipelines. In the last year, deals included $7 billion for the second phase of Sempra Infrastructure’s Port Arthur LNG facility and roughly $1.7 billion in equity commitments for the fourth train at NextDecade’s Rio Grande LNG project.
2. Long-term funding structures
LNG projects increasingly attract infrastructure funds, sovereign wealth investors and other institutional partners alongside traditional lenders. LNG sales agreements can lock in revenues for up to 20 years, while lump-sum engineering and construction contracts reduce development risk, the article says.
3. Pipeline financing expands
Williams announced a $5.34 billion Blackstone-led investment to help fund five power projects. ONEOK’s $9 billion deal with Apollo created a structure for a minority investment in the company’s equity, rather than funding a ring-fenced project or joint venture.
