11 Best LNG and LNG Shipping Stocks To Buy Now

Sheryar Siddiq
11 min read

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In this article, we discuss the 11 best LNG and LNG shipping stocks to buy now. If you want to read about some more LNG and LNG shipping stocks, go directly to the 5 Best LNG and LNG Shipping Stocks to Buy Now.

The United States has witnessed a surge in natural gas production since the fracking boom in the mid-2000s. In October, U.S. liquefied natural gas (LNG) producers substantially increased exports to 7.92 million metric tons, marking the second-highest monthly level on record. While slightly below the record 8.01 million metric tons in April, the October figures reflected an increase from 7.12 million metric tons in September, when plant maintenance led to a reduction in U.S. production. Europe remained the primary recipient of U.S. LNG, constituting 60% of all exports last month—a rise of 8 percentage points. Asian customers accounted for 20% of exports, down from 30% in September, while Latin America received 5% of cargo, down from 8% in the previous month.

Approximately two-thirds of the total U.S. production originates from Texas, Pennsylvania, Louisiana, and West Virginia, typically being transported via pipelines to fuel power plants and heat homes across the nation. Historically, domestic natural gas supply and demand have closely mirrored each other, with international trade involving minimal imports from Canada through pipelines. However, the proliferation of new liquefied natural gas export terminals has transformed these dynamics, increasingly connecting domestic gas prices to global markets. Similar to the impact on crude oil, the growing exports of LNG will lead to U.S. natural gas prices being determined by the international market. This implies that domestic prices will become susceptible to global price fluctuations, extending beyond the influence of domestic consumption and production. Specifically, according to the EIA, the projections indicate that in the scenario of higher volumes of U.S. LNG exports, prices are expected to rise by $1.50 per million British thermal units (MMBtu), equating to approximately a 10% price increase. This increase will be reflected in household natural gas bills, and electricity utility costs, and will have an impact on various manufacturing industries.

Further forecasts from the EIA, utilizing data from the International Group of Liquefied Natural Gas Importers (GIIGNL) and trade press, compare the expected LNG import capacity to the levels in 2022. The analysis has revealed that in the initial seven months of 2023, three countries – Germany, the Philippines, and Vietnam – commenced their first-ever LNG imports. By the close of 2024, the EIA anticipates that Antigua, Australia, Cyprus, and Nicaragua will also initiate their LNG imports, and several other nations are in advanced stages of developing their LNG import infrastructure. To provide further context to this, the global LNG import capacity, often referred to as regasification capacity, expanded by 49%, equivalent to 45.8 billion cubic feet per day (bcf/d), reaching a total of 140 bcf/d across 48 countries. The EIA projects that by the end of 2024, 55 countries will have completed LNG regasification terminals, boasting a combined capacity of 163 bcf/d.

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