Lazard Flags Gas Permitting Hurdles, Points to June Cost Report on Renewables
Lazard warns US gas infrastructure permitting inefficiencies hinder LNG exports and modernization, offering advisory opportunities in pipeline and turbine upgrades. The June Levelized Cost of Energy report reaffirms unsubsidized solar and onshore wind as lowest-cost generation and highlights natural gas’s role in supporting intermittent renewables.
1. Permitting Challenges and Infrastructure Demand
Lazard’s leadership emphasizes that current US permitting processes for gas pipelines, turbines and grid upgrades create bottlenecks that delay project execution. Simplifying approvals could accelerate construction timelines and expand consulting mandates across multiple states.
2. Expanding LNG Exports
Despite the US having abundant natural gas reserves, limited transmission capacity and regulatory barriers constrain LNG export growth. Lazard sees potential for multibillion-dollar advisory engagements if permitting reforms enable smoother export terminal development.
3. June Levelized Cost of Energy Outlook
Lazard’s upcoming June report will show that unsubsidized solar and onshore wind deliver the lowest levelized cost per megawatt-hour. The analysis also underscores the necessity of natural gas, nuclear and storage solutions to maintain 24/7 grid reliability alongside intermittent renewables.
4. Geopolitical Shifts in Energy Investment
Executives note that the Iran conflict is prompting investors to reassess allocations across energy infrastructure and renewable projects. Rising geopolitical risks are expected to boost demand for strategic advisory services in both traditional and clean energy sectors.