Venture Global, Cheniere lead LNG stock surge on supply shock

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LNG exporter stocks, including Venture Global, NextDecade, and Cheniere, soared on Monday, Barron’s writes. 

The conflict in Iran has upended the market for liquefied natural gas—the commodity that keeps the lights on in much of Europe and Asia.

Global LNG markets were jolted Monday after Qatar halted production following attacks on two facilities, sending European benchmark prices soaring 49%. With roughly 20% of the world’s LNG supply suddenly disrupted and the Strait of Hormuz effectively closed, buyers in Europe and Asia are scrambling for alternatives. That’s putting U.S. exporters in the spotlight.

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Analysts say prices could climb even higher if disruptions persist, potentially reaching $18 per million BTUs. Venture Global may have the most immediate upside due to its spot market exposure, while Cheniere could benefit longer term if global buyers shift future contracts toward U.S. supply. Venture Global and Cheniere are the two most dominant LNG exporters in Louisiana.

Read more from Barron’s. 

 

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