The ongoing 2026 Iran conflict has placed a significant spotlight on global Liquefied Natural Gas (LNG) markets.
Approximately 20% of global LNG trade typically flows through the Strait of Hormuz, primarily originating from Qatar, the world’s second-largest exporter. Following a recent Iranian drone strike, the massive Ras Laffan LNG facility was forced to shut down. This single facility represents nearly a fifth of the global LNG supply. Consequently, the European LNG benchmark has surged 58% since the conflict began through March 11.
Against this backdrop, the liquefaction subsector in the Alerian Energy Infrastructure ETF (ENFR) has remained a focal point for advisors. While global supply faces shocks, U.S. export policy has remained supportive of domestic midstream providers. The Department of Energy recently approved a 12% increase in authorized exports from Cheniere’s Corpus Christi facility, adding 0.47 Bcf/d.
ENFR surged 9.5% in February, handily outpacing the S&P 500, which fell 0.9% during the month. Energy remains the best-performing S&P 500 sector so far in 2026.
Long-Term LNG Growth & Infrastructure
ENFR has been supported by long-term LNG contracting that accelerated throughout 2025. LNG is expected to be the largest driver of natural gas demand growth in North America over the coming years (read more). According to a recent Energy Information Administration (EIA) analysis, U.S. developers signed 40 million tons per annum (mtpa) of long-term sale and purchase agreements last year. This is the highest annual volume since 2022 and reinforces project visibility across the sector.
ENFR is strategically positioned to capture this opportunity. Around 71% of the fund’s underlying index is linked directly to the natural gas value chain. At the end of February, the portfolio allocated 36.5% to natural gas pipeline transportation, 27.0% to gathering & processing (G&P), and 7.5% to liquefaction. These fee-based businesses are designed to prioritize throughput and contractual stability over direct commodity price exposure.
