Midstream energy sector positioned for growth as LNG and AI drive demand

VettaFi Head of Energy Research Stacey Morris joined Steve Darling from Proactive to discuss the outlook for North America’s midstream energy sector, highlighting strong long-term growth drivers including LNG exports, rising electricity demand, and the rapid expansion of AI-driven data centres. Morris described midstream companies as the “shipping and handling function of the energy value chain,” operating critical infrastructure such as pipelines, storage terminals, export facilities, and natural gas processing plants. Unlike many energy producers, midstream operators typically generate stable, fee-based cash flows through long-term contracts that often include inflation-linked pricing, providing greater earnings visibility and less direct exposure to commodity price volatility. The discussion also explored the impact of global geopolitical developments, with Morris noting that both the United States and Canada are increasingly viewed as reliable energy suppliers. She highlighte...