Looking at the Sempra chart below, we reflect on some research that we wrote several months ago that talked about a lost opportunity in the US because of the lack of cooperation and coordination in Washington. Energy demand is growing, the demand for materials is growing and the demand for re-shoring is growing, and if the US political and permitting system is either too hostile towards new investment or too cumbersome companies will look for workarounds. The Dow investment in Canada was partly justified by the easier regulatory environment as well as the proposed carbon price. Sempra is looking at Mexico because the ease of permitting for LNG is advantageous and we note Mattel's “near-shoring” in Mexico rather than reshoring. The opportunities for both Mexico and Canada are very significant if we remain mostly directionless in the US. For more see today's daily report.
Source: Sempra Infrastructure, NGI, April 2022