2 Brilliant LNG Stocks to Buy Now and Hold for the Long Term
Key Takeaways
These companies are cashing in on the global LNG megatrend.
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4 min read
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investment
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July 28, 2025
08:34 AM
The Motley Fool
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From what the evidence shows, Global demand for liquefied natural gas (LNG) could soar 60% by 2040, fueled by economic growth in Asia, artificial intelligence (AI), and other catalysts
This analysis suggests that growing demand for the clean-burning fuel should benefit companies focused on supporting the global LNG trade
Kinder Morgan (KMI -0, given current economic conditions. 75%) and ConocoPhillips (COP 2. 02%) are in strong positions to capitalize on the anticipated surge in LNG demand
That makes them brilliant LNG stocks to buy right now and hold for the long haul
Image source: Getty Images
LNG terminals Kinder Morgan operates the largest natural gas transportation network in the U
Moreover, It has roughly 60,000 miles of pipeline that move 40% of the country's natural gas duction, given current economic conditions
This leads to the conclusion that company's vast and strategically located gas infrastructure has helped make it a leader in supplying gas to LNG export terminals (something worth watching)
The pipeline company currently has long-term contracts to supply 8 billion cubic feet per day (Bcf/d) of natural gas to U
Additionally, Furthermore, LNG export facilities, which accounts for apximately 40% of all gas to U
It has secured long-term contracts to increase its volumes to 12 Bcf/d by 2028 as new LNG export terminals come online (more than half the expected demand of 21 Bcf/d)
Furthermore, LNG export terminals should continue growing
S&P Global Commodity Insights forecasts that LNG gas demand in the United States will double by 2030 (quite telling). "That should be a real positive for Kinder Morgan," stated co-founder Richard Kinder on the company's second-quarter earnings conference call
The company said that it's pursuing a "substantial number" of additional opportunities to supply gas to LNG terminals
The LNG-fueled growth in volume should vide the company with substantial incremental income in the coming years
That will give Kinder Morgan more fuel to invest in other expansion jects, such as new pipelines to support rising domestic gas demand from AI data centers, and increase its dividend, which currently yields more than 4%
Building a global LNG ConocoPhillips has a large, diversified, global oil and gas
The company balances short-cycle growth (U
On the other hand, Shale) with longer-cycle investments (Alaska and LNG) (fascinating analysis), in this volatile climate
Those longer-term initiatives put it on the cusp of a multiyear growth phase
In contrast, The company has several LNG growth catalysts, amid market uncertainty
In 2022, it joined two new joint ventures with Qatar Energy to invest in the North Field East and North Field South jects (noteworthy indeed)
Those jects will expand Qatar's LNG capacity to 126 million tonnes per year by 2027, up from 77 million tonnes per year
ConocoPhillips also bought a 30% interest in Sempra's Port Arthur LNG Phase 1 facility, and signed a sale and purchase agreement for 5 million tonnes per year from that facility
The $13 billion ject should enter commercial service in 2027 and 2028
ConocoPhillips has inked other deals to purchase LNG from various facilities and secured long-term LNG supply agreements (noteworthy indeed)
In 2023, the company signed 20-year deals to receive 2 (which is quite significant)
Nevertheless, 2 million tonnes of LNG per year from Mexico Pacific's Saguaro export facility
Moreover, The energy giant has also secured space in several regasification facilities in Europe, enabling it to import LNG to those countries
The company's expanding LNG portfolio positions it to capture long-term demand growth
Alongside its Alaska investments, ConocoPhillips' long-cycle jects could der $6 billion in incremental free cash flow by 2029, supporting sector-leading growth
Meanwhile, This would give it more fuel for dividend increases and repurchases
Smart stocks to buy to cash in on the LNG boom The world's growing need for LNG favors Kinder Morgan and ConocoPhillips
Both energy companies have prepared their es to capitalize on this demand, which should support strong long-term returns for holders, in this volatile climate
Furthermore, Furthermore, That makes them brilliant stocks to buy to cash in on the LNG boom.
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