The conflict in Iran and the disruptions it has caused in global energy markets are driving new investment in U.S. liquefied natural gas (LNG) export infrastructure, according to S&P Global.

Daniel Yergin, Vice Chairman of S&P Global, energy advisor, and historian, stated that the trend of increasing U.S. LNG investment is expected to continue over the next 12 months as shipping disruptions through the Strait of Hormuz highlight the importance of geographically diversifying supply chains.

"The momentum for U.S. LNG investment is quite strong," Yergin said. "Energy security and options to replace energy chokepoints will receive more focus." He added, "We will see buyers more strongly viewing U.S. LNG as a diversification option."

Since the onset of the Iran conflict, the United States, as the world's largest LNG exporter, has helped offset some of the supply losses from the Middle East, particularly for Europe and Asia.

Concurrently, uncertainty remains over when QatarEnergy will restore capacity at the world's largest LNG facility, which was damaged by an Iranian missile strike in the early stages of the conflict.

Research by S&P Global on the economic impact of U.S. LNG shows that while natural gas prices in Europe and Asia have surged, the effect of LNG exports on domestic household costs in the U.S. has been "minimal."

"At a time of the biggest disruption to global energy since World War Two, prices have actually fallen, which shows how ample and large the economically recoverable gas reserves in the United States are," Yergin said.

Eric Eyberg, Vice President of S&P Global Energy's Natural Gas and LNG Advisory, stated that over the next 6 to 12 months, the U.S. is expected to approve additional LNG export projects with a combined annual capacity of 30 million tons.