Liquefied Natural Gas Stocks Today: What’s Going on With LNG, TELL, CQP, GLNG Stocks?


Liquefied natural gas stocks are in the spotlight after the U.S. pledged that it would provide the European Union with 15 billion cubic meters of LNG this year. The agreement comes as the E.U. is trying to eliminate its need for Russian gas. It currently obtains about 40% of its natural gas from Russia. In the wake of Russia’s invasion of Ukraine, the bloc has promised to reduce its imports of Russian gas by two-thirds in 2022.

Several natural gas tanks with a sunrise in the background
Source: OlegRi / Shutterstock

So what does this mean for investors? And what else do you need to know?

One important thing to note is that it is not entirely clear where these 15 billion cubic meters of LNG will come from. As Bloomberg reports, they could come from diverting LNG exports from other regions. Another option is that additional sources of production could come online and help supply the E.U. The current supply deal calls for the European bloc to take in 50 billion cubic meters of American LNG between now and 2030.

In recent weeks, the U.S. has contacted a number of its allies with large natural gas reserves, including Qatar and Israel, in an effort to convince them to increase their exports to Europe.

For its part, the E.U. has said that it has sufficient reserves of natural gas to heat all of its citizens until the weather in Europe turns warm later this year.

What Is Happening With Liquefied Natural Gas Stocks?

Right now, there is a lot of uncertainty in terms of where Europe will get its energy in the future. This supply deal sheds some light, but also opens some new questions.

For right now though, the supply-demand calculation is driving natural gas prices up and has been lifting liquified natural gas stocks. Cheniere Energy (NYSEMKT:LNG), whose facilities enable natural gas to be exported from the U.S., is up nearly 4%. Cheniere Energy Partners (NYSEMKT:CQP), a subsidiary of Cheniere Energy, is also up nearly 4%. Tellurian (NYSEMKT:TELL), which owns land that contains natural gas and is developing a natural gas export facility, jumped 15% to $5.60, while Golar LNG (NASDAQ:GLNG), which offers LNG shipping services, is up 7%.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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