The bright light amidst today’s energy uncertainty

COVID-19’s impact on the infrastructure market has been widely publicised. Some assets, formerly viewed as safe investments, have faced unexpected and unprecedented challenges.  But amidst this challenging environment, one particular asset class has begun to thrive – liquid storage. Storage terminals worldwide have benefited from the supply/demand imbalance as a direct consequence of the global pandemic. Stable assets at a ‘stand-still’ It’s clear that traditionally ‘safe’ investments are experiencing difficulties. European airports, for example, are now either full or largely closed, causing their conservative pension fund or insurance company investors sleepless nights – with prolonged airport closures not a downside that could have been anticipated. Likewise, ferries, toll roads, motorway services and equipment leasing companies are suffering losses as lockdown measures across the country, persist. Surplus energy With the sharp reduction in demand for transportation fuels, crude oil prices (WTI) recently reached unprecedented minimum barrel prices, including negative figures for a short period of time.  Power prices have also decreased across Europe, with...