Challenge
The Indo-Pacific is the world’s largest importer of liquefied natural gas (LNG) and strong economic growth in South and Southeast Asia is expected to further accelerate energy demand, creating significant opportunities for U.S. producers. But accessing these rapidly expanding markets will require significant investment in the modern infrastructure necessary to receiving, transporting, and distributing LNG.
Solution and Impact
In its single largest investment to date, DFC’s Board of Directors has approved $1.5 billion in debt and equity financing alongside private capital from investment funds managed by Florida-based I Squared Capital (ISQ), to establish the ISQ Asia Energy Infrastructure Investment Platform. The platform will support the development of critical energy infrastructure across the Indo-Pacific.
DFC’s investment is expected to serve as a multiplier and mobilize at least an additional $1.5 billion in private capital from other ISQ infrastructure funds.
The investment platform will pursue a wide range of energy investments across LNG and other strategic energy infrastructure to address the shortage of infrastructure that has limited reliable energy supply across the region. Areas of potential investment include but are not limited to onshore and floating regasification and storage terminals, pipelines, gas-fired power plants, city gas distribution networks, LNG trucking, small-scale LNG carriers, and port infrastructure.
The United States is already the world’s largest exporter of LNG and the U.S. Energy Information Administration projects current U.S. export capacity could more than double by 2029. Despite this growth, only about one-tenth of total U.S. LNG exports are currently going to the target countries of this platform, including India, Indonesia, the Philippines, Vietnam, and Malaysia.
I Squared Capital estimates that the Fund’s investments will have a major positive impact on U.S. LNG exports. Preliminary forecasts estimates the investments could catalyze at least 4 million tons per annum (MTPA) of U.S. LNG exports to the Indo- Pacific, equivalent to $17 billion in bilateral energy trade over 10 years. The transaction is also expected to facilitate hundreds of millions of dollars in contracts to U.S. energy equipment and service providers.
Under the terms of the agreement, DFC’s investment will be deployed into eligible portfolio companies alongside ISQ funds. The investment platform also establishes a framework for DFC and I Squared Capital to pursue additional financing opportunities for future strategic investments.
The project supports White House and State Department priorities by accelerating strategic energy infrastructure development across South and Southeast Asia, increasing U.S. economic competitiveness, and expanding U.S. influence throughout the Indo-Pacific.
This project was profiled in 2026.