While the COVID-19 outbreak has proved disastrous for some infrastructure assets, it has posed unexpected opportunities for others. For the midstream energy sector, Steve Bickerton, senior managing director and founder of Prostar Capital, says the market conditions caused by the pandemic actually appear to be a perfect storm, in a positive sense.
Unlike many traditional core infrastructure assets, such as toll roads and airports, which have suffered revenue loss, energy storage rates are up, a testament to the essential characteristics of the asset class.
“Regardless of what’s going on in the world economy, we still continue to use energy,” said Bickerton in a May video interview with IREI. “We still need to generate electricity; we still need to heat our houses, drive air conditioning. What we’re seeing at the moment really in the energy midstream space, especially around storage, is really a perfect storm in a positive way.”
Oversupply, combined wi
