S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Investing.com -- Natural gas plays a critical role in the power generation mix of both Iran and Israel, accounting for 85% and 70% respectively, according to a JPMorgan analysis. The bank warns that infrastructure supporting these energy needs could face significant risk if regional tensions continue to escalate.
Iran ranks as the world’s third-largest producer of natural gas and serves as a major pipeline exporter to neighboring countries, with Turkey and Iraq being key destinations. Unlike oil, JPMorgan notes that natural gas assets serving domestic and export markets are nearly impossible to differentiate, making them particularly vulnerable.
Israel has already taken precautionary measures by shutting down two of its three production fields to prioritize domestic supply, suspending natural gas flows to Egypt and Jordan. The potential increase in liquefied natural gas (LNG) volumes to compensate for these disruptions is limited by the region’s current regasification capacity.
If Iran’s natural gas exports face disruption, Turkey will likely turn to a combination of Russian pipeline gas and global LNG supplies to meet its energy needs. Iraq, however, would need to resort to alternative fuels due to its limited access to other natural gas sources.
JPMorgan is monitoring the deployment schedules of two new Floating Storage Regasification Units (FSRUs) in Egypt, which could significantly enhance the country’s import capabilities. The bank notes this potential increase would be partially offset by the startup of LNG Canada.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.