The Iran Conflict Has Increased LNG Profits, But Executives Have Concerns.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Barron's
- Impact of the Iran War: The ongoing conflict in Iran has significantly affected global markets, particularly in the energy sector.
- Surge in LNG Prices: Since the onset of the war, international gas prices have surged by over 60%, making liquefied natural gas (LNG) a highly sought-after commodity.
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Analyst Views on WDS
About WDS
Woodside Energy Group Ltd is a global energy company. Its segments include Australia, International and Marketing. The Australia segment is engaged in the exploration, evaluation, development, production and sale of liquefied natural gas, pipeline gas, crude oil and condensate and natural gas liquids in Australia. International segment is engaged in the exploration, evaluation, development, production and sale of pipeline gas, crude oil and condensate and natural gas liquids in international jurisdictions outside of Australia. Marketing segment is engaged in the marketing, shipping and trading of its oil and gas portfolio. Its projects include Pluto LNG, the North West Shelf Project, Macedon, Sangomar, the lower carbon ammonia project in Texas, and others. It holds an interest in Woodside Louisiana LNG, which is an under-construction LNG production and export terminal in Calcasieu Parish, Louisiana. The Sangomar, containing both oil and gas, is located 100 kilometers south of Dakar.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Climate Disaster Effects: The cyclone is estimated to have disrupted Australian LNG supply by over 30 million metric tons per year, and combined with the shocks from the Middle East conflict, over 25% of global LNG supply has been disrupted, exacerbating market tensions.
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- Positive Industry Outlook: Analysts indicate that with the gradual recovery of the global economy, energy demand is expected to continue growing, particularly in the integration of renewable and traditional energy sources, which may present new growth opportunities for related companies.
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See More
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See More
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- Strategic Implications: By taking control of this project, Woodside can optimize production processes and improve resource efficiency, positioning itself more favorably in the global ammonia market.
- Market Impact: This move may bolster investor confidence in Woodside Energy, potentially driving its stock price higher, particularly against the backdrop of increasing ammonia demand.
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See More
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- Capacity and Market Impact: The facility has a production capacity of up to 1.1 million tonnes per annum, which is expected to nearly double US ammonia exports, thereby contributing to regional economic growth and enhancing Woodside's competitive position in the market.
- Low-Carbon Ammonia Production Outlook: Although ammonia production commenced in December 2025, the production of lower-carbon ammonia is now likely to occur after 2026 due to construction issues at the third-party feedstock supply facility, impacting the company's long-term strategic goals.
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See More
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- Delayed Low-Carbon Production: While traditional ammonia production commenced in December, the anticipated start of lower-carbon ammonia production has been postponed until after 2026 due to construction issues at a third-party feedstock supply facility, impacting the company's short-term strategic plans.
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See More
