U.S. LNG Demand Hits Record High: A Boon for Select Stocks

Core Insights - U.S. natural gas demand from LNG plants reached a record 15.2 billion cubic feet per day (bcfd) on the last day of 2024, driven by new gas-processing plants and robust sector growth [1] - LNG feedgas demand is expected to rise to 17.8 bcfd in 2025, supported by the U.S. being the largest global LNG exporter [2] - Additional projects like Golden Pass LNG are projected to increase demand to 20.3 bcfd by 2026 and 24.2 bcfd by 2028 [3] Drivers of Rising LNG Demand - The startup of new projects, seasonal efficiency gains, and increased global reliance on U.S. LNG, particularly from Europe and Asia, are key factors driving demand [4] Impact on Domestic Gas Prices - The surge in LNG demand has led to significant increases in domestic gas prices, with a recent daily percentage gain reaching close to $4 per million cubic feet (mcf) [5] Stocks Poised to Benefit - NextDecade Corporation, Cheniere Energy, and ExxonMobil are identified as companies well-positioned to benefit from rising LNG demand [6] - NextDecade's market capitalization is approximately$2.01 billion, with shares up 69.8% over the past year [7] - Cheniere Energy, with a market capitalization of around $48.2 billion, has seen its shares climb 26.9$472.8 billion, has experienced a 4.2% increase in shares over the past year [10]