As natural gas prices fall, investors have started to bet against companies like Enbridge, which is already facing stiff competition from rivals like TransCanada and Marathon.
Now it’s looking at new competition as well.
Indy Gas has raised a record $1.9 billion in a $1 billion round led by Pershing Square Capital Management.
The company said its next round of financing will be a combination of its existing cash and new money from a new financing vehicle.
The new money will come from new sources, including a combination with existing lenders.
Indy is hoping to win contracts for up to $5 billion for its new liquefied natural gas (LNG) terminals at a time when the company is struggling to generate revenue.
It has already secured contracts for projects in Indiana, Tennessee, and North Dakota.
The terminals will bring in as much as $100 million per year for the company, which has struggled to keep pace with demand.
The companies are competing for the same customers as their competitors, which are in the midst of natural gas price increases.
Enbridge and Marathon have already announced plans to build the facilities and are seeking to raise money through a new funding vehicle.
Enbridge is seeking $10 billion from a private equity firm.
Marathon is seeking a $6 billion cash infusion from the federal government.
TransCanada has raised $10.5 billion from the government and is seeking to add $6.5bn.
It also has a pipeline contract worth $7 billion.
In the last few months, Marathon and TransCanada have faced challenges.
Marathon has been hit by allegations of environmental violations and its own safety record has been criticized by regulators.
The pipeline company also faces a lawsuit from the environmental group Sierra Club that accuses it of overstepping its authority and causing harm to the environment.
Analysts say these recent events could trigger a consolidation in the LNG business.
“This is going to give these competitors a much better chance at winning contracts,” said Adam Kiesling, head of market analysis at Newfield Research.
“This is a very, very aggressive market and the stakes are high.”
Read more about the natural gas industry from The Hill: In January, a New York federal judge issued a ruling against Enbridge for failing to comply with environmental regulations and for delaying permitting.
Enberg said the ruling was the result of an “overzealous, politicized regulatory review” and said it would appeal.