Why energy security depends on infrastructure
Key takeaways
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Energy security increasingly depends on the infrastructure connecting supply with demand.
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Flexible midstream infrastructure can help maintain energy flows when global supply routes are disrupted.
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Strategic positioning and adaptability can determine the long-term value of energy infrastructure.
Secure energy increasingly relies on the infrastructure that connects supply with demand. Recent tensions in the Middle East have once again put energy security in the spotlight. They have also reinforced a simple point: producing energy is only part of the equation. Energy must also be transported, stored and distributed reliably, particularly when supply routes are under pressure.
This is not solely a response to geopolitical events. Rising electricity demand, AI-driven power consumption, decarbonization and greater uncertainty are increasing the value of resilient energy systems and the infrastructure that underpins them.
In an increasingly interconnected global energy system, the ability to maintain reliable supply during periods of disruption is paramount.
Midstream infrastructure plays a critical role in connecting energy supply with demand. Pipelines, terminals, storage facilities and export infrastructure enable energy to move between regions and respond to changing market conditions. Their strategic value can become especially visible during periods of instability.
Liquefied natural gas (LNG) serves as a useful example. Natural gas provides roughly a quarter of the world's primary energy, and as Europe adapts to significant shifts in energy supply, it has become increasingly reliant on LNG imports from the United States. This highlights the important role U.S. export infrastructure plays in global energy security.
U.S. LNG plays a critical role in global energy security: The United States now supplies over half of Europe’s LNG
Chart 1: Percentage of Europe LNG supplied by United States
Source: GIIGNL Annual Report
However, not all midstream assets are affected equally. Outcomes depend on an asset's role within the energy system, its location within broader energy networks and its ability to adapt as market conditions evolve. Assets that connect supply with demand, maintain flexibility during disruptions and serve critical energy markets may become increasingly valuable as energy systems become more complex and connected.
Case study: Freeport LNG Train 2 – Supporting global energy security through U.S. energy export infrastructure
Freeport LNG demonstrates the important role that reliable and flexible U.S. export infrastructure can play in supporting global energy security. The Russia-Ukraine crisis and the more recent Iran conflict highlight the strategic importance of assets capable of serving global energy markets during periods of stress.
The U.S. is the world’s largest producer of natural gas and the leading exporter of LNG1. Located on the U.S. Gulf Coast, Freeport LNG accounts for approximately 17% of U.S. LNG export capacity currently in commercial operation today1. The destination flexibility in customer offtake contracts has helped U.S. LNG export cargoes balance global supply and demand during recent conflicts.
Since the Russia-Ukraine crisis, Europe has increasingly relied on U.S. LNG to replace Russian gas imports, with the U.S. share of European LNG imports rising from 28% in 2021 to approximately 60% today (see chart 1). Similarly, over the same period, the proportion of Freeport LNG cargoes delivered to Europe increased from 24% to 66% (remaining 16% Asia, 7% South America, and 11% MENA)2.
From there, the Iran conflict disrupted global LNG markets following damage to QatarEnergy’s Ras Laffan export facility and the effective closure of the Strait of Hormuz, a key shipping route that facilitated approximately 20%1 of global LNG supply prior to the conflict. These events underscore how operating U.S. LNG facilities, such as Freeport LNG, help maintain energy flows and supply reliability during significant disruptions.
[1] U.S. Energy Information Administration
[2] U.S. Department of Energy. Natural Gas Imports and Exports Monthly. Data available as of September 2026.
Tom Osborne, Executive Director of Infrastructure at IFM Investors, says energy security requires not only ownership of resources, but also the infrastructure needed to deliver them. “Energy security depends on the resilience and adaptability of critical infrastructure when supply routes, trade flows or demand patterns shift. In an increasingly interconnected global energy system, the ability to maintain reliable supply during periods of disruption is paramount.”
This implication extends well beyond today’s geopolitical tensions. As energy demand rises and supply chains become more interconnected, infrastructure is becoming a critical enabler of reliability and system resilience.
For long-term investors, this reinforces the importance of identifying strategically positioned infrastructure assets that can support energy security and adapt as markets, technologies and trade flows continue to evolve.
To explore the potential investment implications of growing demand for strategically positioned energy infrastructure, please contact our Global Client Solutions team.