3 Brilliant LNG Stocks to Buy Now and Hold for the Long Term
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In the energy space, one of the fastest-growing is liquified natural gas (LNG). The market is growing quickly as Asian countries shift from coal to natural gas to help reduce...
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July 3, 2025
07:05 AM
The Motley Fool
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In the energy space, one of the fastest-growing is liquified natural gas (LNG)
The market is growing quickly as Asian countries shift from coal to natural gas to help reduce emissions
And with an abundance of natural gas, the U
LNG export market is taking off
Shell predicts LNG demand to rise by 60% by 2040, showing the long-term growth of this market
Let's look at three stocks best positioned to benefit from growing U
LNG exports that you can buy and hold for the long term
Energy Transfer Energy Transfer (ET -0. 08%) operates one of the largest and most integrated mid energy systems in the U
Its assets span natural gas, crude oil, NGLs, and refined duct transport, storage, and cessing
That scale gives Energy Transfer a competitive advantage in capturing pricing differentials, managing seasonal spreads, and benefiting from rising volumes across the board
However, it is the company's strong position in natural gas transportation and storage that positions it well to benefit from growing U
Energy Transfer is in full-on growth mode, with $5 billion in 2025 capital expenditures (capex) aimed at capturing AI-driven power demand and growing LNG export volumes
It's already signed a deal to supply natural gas directly to an upcoming AI-focused data center, while receiving inquiries from many more
Its Hugh Brinson pipeline out of the Permian is specifically designed to Texas' surging power needs
At the same time, it's lining up the final pieces to greenlight its long-awaited Lake Charles LNG export terminal
It has signed a deal with MidOcean Energy for it to fund 30% of the construction costs in exchange for 30% of the offtake, and it also has several long-term LNG supply agreements in place
Financially, Energy Transfer is arguably in the best shape it has ever been in
Its leverage is now near the low end of its target range, and the distribution is well covered, with over 2x coverage last quarter
Importantly, 90% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) comes from fee-based contracts, with a record-high percentage being take-or-pay
This gives it stable and predictable cash flows. 2% yield and 3% to 5% targeted distribution growth, Energy Transfer offers a compelling mix of income, growth, and upside
Once apved, Lake Charles LNG offers it another compelling growth driver
Image source: Getty Images
Williams Williams Companies (WMB -0. 34%) owns arguably America's most important gas pipeline system in Transco
Transco connects lific Appalachian gas fields to high-growth demand centers along the Southeast and Gulf Coast
As coal plants retire and LNG exports surge, demand for Transco's capacity keeps rising, creating a steady of organic growth jects
Williams has eight major expansions lined up for Transco through 2030, underpinned by long-term contracts
These are low-risk, high-return jects driven by structural trends coal-to-gas switching and rising export demand
On top of that, the company is leaning into the data center buildout. 6 billion Socrates power ject in Ohio is aimed directly at ing natural gas to new data centers, while its stake in Cogentrix Energy vides intelligence on electricity market dynamics to help optimize supply and demand in real time
Not to be overlooked, the company also has a strong position in the Haynesville Basin that it is currently expanding
While not the lowest-cost basin, its ximity to the Gulf Coast sets it up well for future LNG export growth
All in all, Williams is an attractive growth stock in the pipeline space that should benefit from increasing LNG export demand
Cheniere Energy When looking at companies set to benefit from rising U
LNG exports, Cheniere Energy (LNG -0. 65%) is the purest way to play this megatrend
It owns and operates the Sabine Pass terminal in Louisiana through its stake in Cheniere Energy Partners (CQP 0. 02%), and has direct ownership of the Corpus Christi terminal in Texas
These two facilities make Cheniere the largest LNG exporter in the country, and one of the largest globally
Cheniere's model is centered around long-term, take-or-pay contracts with global buyers, which insulates the company's cash flows from big commodity swings
Currently, 95% of its capacity is contracted out until the mid-2030s
Cheniere has been in the cess of building seven new trains at Corpus Christi through its CCL Stage 3 ject, which will increase the company's capacity by more than 20%
The company said that Train 1 was substantially complete in March and that Train 3 is gressing toward late 2025 completion
The company is already planning final investment decisions for mid-scale Trains 8 and 9, and will decide whether to go through with a Sabine Pass expansion by early 2027
Even with trade policy noise, Cheniere recently reaffirmed its 2025 guidance of $6. 5 billion to $7 billion in adjusted EBITDA and $4. 1 billion to $4. 6 billion in distributable cash flow
It expects to duce between 47 million and 48 million tons of LNG in 2025, including contributions from the first three trains at CCL Stage 3
Overall, Cheniere is one of the best ways to play growing global LNG demand
Geoffrey Seiler has positions in Energy Transfer
The Motley Fool has positions in and recommends Cheniere Energy
The Motley Fool has a disclosure policy.
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