5 Best Stocks To Buy Now As LNG Spreads Widen Again
- 01. 5 Best Stocks to Buy Now as LNG Spreads Widen Again
- 02. Why LNG Spreads Matter for Investors Now
- 03. The 5 Best LNG Stocks to Buy Now
- 04. 1. Cheniere Energy (NYSE: LNG)
- 05. 2. Venture Global (NASDAQ: VG)
- 06. 3. Golar LNG (NASDAQ: GLNG)
- 07. 4. Shell (NYSE: SHEL)
- 08. 5. TotalEnergies (NYSE: TTE)
- 09. Key Financial Metrics Comparison
- 10. Market Tailwinds Supporting These Stocks
- 11. Risks to Consider
5 Best Stocks to Buy Now as LNG Spreads Widen Again
The five best stocks to buy now as LNG spreads widen are Cheniere Energy (NYSE: LNG), Venture Global (NASDAQ: VG), Golar LNG (NASDAQ: GLNG), Shell (NYSE: SHEL), and TotalEnergies (NYSE: TTE). These companies benefit directly from widening regional price arbitrage between U.S. Henry Hub natural gas and European TTF/Asian JKM LNG benchmarks, with Goldman Sachs and RBC Capital Markets issuing buy ratings on three of them in March-April 2026.
Why LNG Spreads Matter for Investors Now
LNG spreads-the price difference between U.S. domestic natural gas and exported LNG delivered to Europe or Asia-have spiked to approximately $10 per MMBtu as of late May 2026, doubling from $4 in late 2025. This widening arbitrage is driven by constrained new supply development, Qatar's March 2026 shutdown, and intensified demand from Asia and Europe following Middle East tensions.
Global LNG trade grew by only 2 million tonnes in 2024 to reach 407 million tonnes-the lowest annual increase in 10 years-due to project delays limiting new supply. More than 170 million tonnes of new LNG supply is expected by 2030, but startup timings remain uncertain, keeping the market tight.
The 5 Best LNG Stocks to Buy Now
1. Cheniere Energy (NYSE: LNG)
Cheniere Energy is the largest producer of liquefied natural gas in the United States and the second-largest LNG operator globally. On May 13, 2026, Scotiabank raised its price target on Cheniere from $288 to $312, implying nearly 9% upside. Goldman Sachs maintains a Buy rating with the same $312 target, citing the company's exposure to widening export margins into Europe and Asia.
Cheniere generated 29.7% year-over-year stock returns in 2026 and benefits from long-term contract-based cash flows alongside spot market flexibility. The company's Sabine Pass and Corpus Christi terminals position it as the backbone of American LNG exports amid Middle East conflict.
2. Venture Global (NASDAQ: VG)
Venture Global received a Buy rating from Goldman Sachs with a 12-month price target of $1,850, indicating 17% upside from March 2026's closing price. The company's Plaquemines LNG export facility is now operational, delivering cargoes into high-margin Asian and European markets.
Analysts note that Venture Global stands to gain significantly from the TTF/Henry Hub arbitrage, which spiked to $10 on Friday morning in May 2026. The company's 90.4% stock return in 2026 reflects strong investor confidence in its expansion trajectory.
3. Golar LNG (NASDAQ: GLNG)
Golar LNG is one of the world's largest independent owners and operators of marine-based LNG midstream infrastructure, specializing in FLNG (floating liquefaction) and FSRU (floating storage and regasification) units. Goldman Sachs added GLNG to its US Conviction List on February 2, 2026, maintaining a Buy rating with a $56-$60 price target (25%+ upside).
The company's fleet of converted LNG carriers and modular LNG solutions provides steady revenue from time-charter contracts, reducing exposure to spot price volatility while capturing infrastructure demand.
4. Shell (NYSE: SHEL)
Shell is among the largest multinational supermajors with significant market share in global LNG, operating both upstream production and downstream trading desks. RBC Capital Markets expects Shell to benefit from widening export margins, with 1Q26 LNG volumes expected near the upper end of guidance at 7.4-8 million tonnes.
Shell's LNG Canada ramp-up comes at an opportune time as Asian buyers seek alternatives for LNG imports amid supply constraints. The company's diversified portfolio reduces risk while capturing arbitrage benefits from Asian and European price dislocations.
5. TotalEnergies (NYSE: TTE)
TotalEnergies is another supermajor with significant LNG exposure, expected to show strong quarter-on-quarter volume growth similar to Shell. RBC analysts note that TotalEnergies, along with Shell and BP, will feel benefits from wider export margins more significantly in the rest of 2026.
The company's integrated business model-combining LNG production, trading, and regasification-provides stable cash flows while capturing upside from regional price spreads. TotalEnergies saw utilization increases in March 2026, positioning it to benefit from the widening arbitrage.
Key Financial Metrics Comparison
| Company | Ticker | 2026 YTD Return | Analyst Rating | Price Target | Upside Potential |
|---|---|---|---|---|---|
| Cheniere Energy | LNG | 29.7% | Buy (Goldman, Scotiabank) | $312 | ~9% |
| Venture Global | VG | 90.4% | Buy (Goldman) | $1,850 | ~17% |
| Golar LNG | GLNG | N/A | Buy (Goldman, Conviction List) | $56-$60 | ~25% |
| Shell | SHEL | N/A | Outperform (RBC) | N/A | N/A |
| TotalEnergies | TTE | N/A | Outperform (RBC) | N/A | N/A |
Market Tailwinds Supporting These Stocks
- Global LNG demand forecast to rise 60% by 2040, driven by Asian economic growth, emissions reductions in heavy industry, and AI-powered data center power needs
- Europe will need more LNG in 2025-2026 following expiry of Russian pipeline flows through Ukraine at end of 2024
- Taiwan's spot LNG purchases tripled after Middle East conflict, with U.S. deliveries rising to 1.33 million mt (March-May 2026) from 0.44 million mt year-earlier
- LNG bunkering for shipping estimated to reach more than 16 million tonnes annually by 2030 as ship owners turn to LNG-powered vessels
Risks to Consider
- Project delay risk: Start-up timings for 170 million tonnes of new LNG supply by 2030 remain uncertain, creating volatility
- Price volatility: While spreads are widening now, arbitrage margins can contract if supply catches up or demand softens
- Geopolitical uncertainty: Middle East conflict and Iran tensions could disrupt shipping routes or alter trade flows unexpectedly
- Capital requirements: Pure-play LNG developers like Venture Global and NextDecade require $15-25 billion in funding for major facilities
Helpful tips and tricks for 5 Best Stocks To Buy Now As Lng Spreads Widen Again
What drives LNG spreads to widen?
LNG spreads widen when regional demand outpaces supply, typically due to geopolitical disruptions (e.g., Middle East conflict, Qatar shutdown), project delays limiting new capacity, or seasonal demand spikes from extreme weather. The TTF/Henry Hub arbitrage spiked to $10/MMBtu in May 2026 after falling to $4 in late 2025.
Which LNG stocks are Goldman Sachs recommending?
Goldman Sachs recommends Cheniere Energy (LNG), Venture Global (VG), and Golar LNG (GLNG), all with Buy ratings. Price targets are $312 for Cheniere, $1,850 for Venture Global, and $56-$60 for Golar LNG.
Are supermajors like Shell better than pure-play LNG stocks?
Supermajors like Shell and TotalEnergies offer lower risk through diversified portfolios (oil, gas, renewables) while capturing LNG upside. Pure-plays like Cheniere and Venture Global have higher upside potential but greater volatility from spot price exposure.
When will new LNG supply come online?
More than 170 million tonnes of new LNG supply is set to be available by 2030, but startup timings remain uncertain due to project delays. LNG Canada started up in 2025, and NextDecade's Rio Grande LNG Train 1 is anticipated in H1 2027.
How do LNG spreads affect stock prices?
Wider LNG spreads increase export margins for U.S. producers and traders, directly boosting earnings. Cheniere, Venture Global, and Golar LNG dropped 20%+ in Q4 2025 when spreads narrowed to $4, then rallied as spreads widened back to $10.
