LNG

Sempra has agreed to divest a 45% stake in its infrastructure arm to KKR and CPP Investments for $10 billion. By ceding majority control of its LNG export and midstream assets, Sempra’s future earnings will mostly come form regulated utilities.

Continuing weak demand and excess tonnage are set to depress LNG shipping earnings in the near term, Drewry analysts forecast. Yet there's a silver lining further out, as rates will rebound over anticipated vessel shortages once an array of proposed liquefaction projects start operation.