Zhongjin: Energy security demand may prolong the LNG construction boom.

The Zhongjin research report stated that geopolitical conflicts and trade frictions are reshaping the global LNG trade chain, increasing the energy security needs of major importing countries, and increasing the source of gas supply by participating in the upstream and midstream assets, or may extend the global LNG construction boom. According to Reuters data, more than 180 million tons per year of new LNG production capacity will be put into operation globally from 2026 to 2030. We believe that the international LNG supply and demand may loosen from 2026. However, currently, over 40% of the under-construction production capacity comes from the Middle East. Based on the current geopolitical situation, the increase in energy security needs may require buyers to include non-Middle East LNG in their resource pool. 1) Recently, Japanese and South Korean companies signed a certain scale of LNG long-term contracts with the United States and plan to acquire upstream assets in the United States. 2) Based on the proven natural gas reserves and infrastructure readiness, we believe that the investment enthusiasm for LNG in countries such as Argentina/Mozambique may increase in the future to meet the energy security needs of buyers including China. In the long term, this will increase the supply of LNG.