The question of when or if natural gas investments will become “stranded assets” has been controversial in the investment community.
Some argue that even with political and societal pressures to move toward net-zero emissions, natural gas will still be a dominant source of electricity generation and heating, and that utilities are to some degree protected from the risk of stranded assets by the fact that they can recover the costs of natural gas projects with regulatory approval. Others claim, however, that gas will soon become “the next coal” and that regulators’ appetite for charging customers for stranded assets may be waning.
