[Institutions: Competition for Natural Gas Assets Heats Up; Related Transactions Reach Highest Level in Over a Decade] A surge in demand for natural gas from energy giants and investors has driven related transaction activity to its highest level in over a decade. Data from industry consultancy Wood Mackenzie shows that in the first six months of this year, spending exceeded $32 billion on acquiring natural gas production projects, the highest level in over a decade. The average premium for upstream assets, primarily natural gas, is 21%, the highest level since 2013. Greg Aitken, head of corporate and M&A research at Wood Mackenzie, stated that the Iraq War has increased the attractiveness of investing in natural gas, with more buyers entering the sector. "This has intensified competition and inevitably led to more aggressive pricing assumptions, betting that demand prospects will continue to provide support." Wood Mackenzie also stated that approximately $30 billion was spent on developing unconventional natural gas resources in North America in the first half of this year, three times the average level of the past three years.
