Asian Legal Business Online reports that recent deals have seen funds invest billions in energy resources.
Dennis Barsky, a Singapore-based partner at American global firm Jones Day, said: ‘We’ve been seeing this trend driven in part by the availability of attractive oil and gas assets in the US.’
Fracking
The natural gas-extracting technique ‘fracking’ has seen the amount of gas available on the market soar, driving prices to a 10-year low in the US. However, natural gas is still relatively expensive in Asia, and the US lacks the infrastructure to export large amounts of gas to the markets where demand is high.
‘While Asia-based investment funds have historically focused their resource investments in Asian assets, the increased supply of natural gas in the US, and the prospect of the US becoming an energy exporter is an interesting trend that is starting to drive investment into the US,’ Mr Barsky told the web site.
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