LNG Demand Rises in Asia, Stocks to Watch

Liquid natural gas (LNG) is rapidly emerging as a crucial global commodity, driven by increasing demand from China and India as they seek alternatives to coal, alongside Europe’s pivot away from Russian energy due to the ongoing war in Ukraine. A recent report from Stifel Financial projects a 5% annual growth in global LNG demand through 2034, with expectations that consumption will reach 596 million metric tons by 2030, marking a significant 47% increase from 401 million metric tons in 2023. The report highlights that LNG demand has outpaced oil growth by five times over the past two decades. Companies like Chart Industries, which specializes in manufacturing plants that convert natural gas into liquid form and back, are poised for substantial growth. Stifel forecasts that Chart could experience high single-digit to low double-digit annual revenue growth over the next decade, with a price target of $199 per share, suggesting a potential 71% upside from its recent close of $116.48. Cheniere Energy, a leading LNG exporter with a current capacity of 45 million metric tons, is also expanding its operations, aiming to increase capacity to 75 million metric tons by 2031. Stifel has set a price target of $204 for Cheniere, indicating an 11% upside from its recent close of $183.07. The company has seen a 7% increase in stock value this year, bolstered by its operational units in Cameroon and Senegal. Meanwhile, Golar LNG has experienced a remarkable 42% rise in stock value this year, although it has faced a slight pullback of nearly 7% this month. The overall trend indicates a robust future for the LNG sector as global energy dynamics shift.