3 Brilliant LNG Stocks to Buy Now and Hold for the Long Term

Yahoo

12 hours ago

Energy Transfer's strong position in natural gas transportation and storage and future Lake Charles LNG export terminal set it up to be an LNG winner.
Williams' Transco system and strong presence in the Haynesville Basin position it well to serve growing LNG export demand.
Cheniere Energy is the best pure-play way to invest in the LNG megatrend.
10 stocks we like better than Energy Transfer ›
In the energy space, one of the fastest-growing markets 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.S. 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.S. LNG exports that you can buy and hold for the long term.
Energy Transfer (NYSE: ET) operates one of the largest and most integrated midstream energy systems in the U.S. Its assets span natural gas, crude oil, NGLs, and refined product transport, storage, and processing. 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.S. LNG exports.
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 feed 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.
With a 7.2% yield and 3% to 5% targeted distribution growth, Energy Transfer offers a compelling mix of income, growth, and upside. Once approved, Lake Charles LNG offers it another compelling growth driver.
Williams Companies (NYSE: WMB) owns arguably America's most important gas pipeline system in Transco. Transco connects prolific 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 stream of organic growth projects.
Williams has eight major expansions lined up for Transco through 2030, underpinned by long-term contracts. These are low-risk, high-return projects driven by structural trends like coal-to-gas switching and rising export demand. On top of that, the company is leaning into the data center buildout. Its $1.6 billion Socrates power project in Ohio is aimed directly at feeding natural gas to new data centers, while its stake in Cogentrix Energy provides 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 proximity 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.
When looking at companies set to benefit from rising U.S. LNG exports, Cheniere Energy (NYSE: LNG) 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 (NYSE: CQP), 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 business 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 process of building seven new trains at Corpus Christi through its CCL Stage 3 project, 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 progressing 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 produce 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.
Before you buy stock in Energy Transfer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!*
Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of June 30, 2025
Geoffrey Seiler has positions in Energy Transfer. The Motley Fool has positions in and recommends Cheniere Energy. The Motley Fool has a disclosure policy.
3 Brilliant LNG Stocks to Buy Now and Hold for the Long Term was originally published by The Motley Fool