Alternative asset managers are transforming the way U.S. energy infrastructure is financed by using capital from their insurance businesses to support major liquefied natural gas (LNG) export projects and the pipelines that transport oil and natural gas across the country.
The trend is being led by some of the largest names in private markets, including Apollo Global Management, Blackstone and KKR. These firms are providing capital at a time when LNG developers and pipeline operators face significant funding needs due to rising energy demand, increased exports and the growing electricity requirements of artificial intelligence infrastructure.
Insurance Capital Drives LNG Expansion
The arrival of insurance-backed capital has helped advance several new U.S. LNG export projects that require financing commitments before final investment decisions can be made.
Although concerns about oversupply affected the sector last year, geopolitical tensions involving Russia and the Middle East have increased demand for U.S. LNG as buyers in Europe and Asia look for more reliable energy supplies.
Alternative investors have participated in LNG and midstream energy transactions worth $20.35 billion in 2026, according to data provider Infralogic. That figure is more than double the total value of similar deals completed during all of 2024.
“This is a marriage of assets that have proven over time to be generally lower risk, with capital that wants to invest for the long term in lower-risk assets with steady returns,” said Rick Campbell, senior managing director at Blackstone Credit and Insurance.
Major Energy Infrastructure Deals
Recent transactions involving alternative investors include:
- A $7 billion investment supporting the second phase of Sempra Infrastructure’s Port Arthur LNG facility.
- A $5.34 billion investment supporting power projects developed by pipeline operator Williams.
- A $9 billion investment backing ONEOK, including its acquisition of Brazos Midstream’s Midland Basin assets.
Historically, LNG projects were mainly financed through project loans and equity investments. However, since 2025, nearly every major LNG project approved has included additional partners such as infrastructure funds, sovereign wealth funds, private capital firms and institutional investors.
Examples include the fourth train at NextDecade’s Rio Grande LNG project, which received approximately $1.7 billion in equity commitments from investors including BlackRock’s Global Infrastructure Partners, Singapore’s GIC, Abu Dhabi’s Mubadala Investment Company and TotalEnergies.
At Woodside Energy’s Louisiana LNG project, Stonepeak acquired a 40% stake and committed $5.7 billion toward development costs.
“There is ample capital out there, so for project developers, it’s about having diversification of sources,” said Daniel Vogel, partner at Apollo.
LNG Projects Seen as Long-Term Infrastructure Assets
The increased availability of private capital reflects a shift in how investors view LNG facilities. These projects are increasingly considered long-term infrastructure assets rather than simply commodity businesses.
LNG supply agreements can secure revenue streams for up to 20 years, while fixed-price engineering and construction contracts can reduce development risks.
Pipeline Companies Also Attract Private Capital
Insurance-backed investments are also expanding into companies that own and operate pipelines and related midstream energy assets.
EQT was an early example, raising $3.5 billion in late 2024 by selling a 49% stake in a joint venture holding midstream assets to Blackstone Credit & Insurance. The transaction helped EQT reduce debt following its acquisition of Equitrans Midstream.
More recently, companies including Williams and ONEOK have used alternative financing structures to fund acquisitions and infrastructure projects while maintaining operational control.
Williams announced a $5.34 billion Blackstone-led investment in July to support the development of five power projects. The company said the transaction created a framework that could allow it to pursue similar opportunities in the future.
ONEOK’s $9 billion agreement with Apollo, announced in August, introduced a new structure where an asset manager made a minority investment directly in the company’s equity rather than financing a separate project or joint venture.
“This has the potential to become an additional funding option for public companies, as you can raise equity at scale without having to go to the public markets,” said Jeffrey Mensch, head of M&A structuring at Barclays.
