If you listen to the mainstream media, you’d think natural gas is on its way out—a dying industry destined to be replaced by wind, solar, and hydrogen. But the numbers tell a very different story. In reality, natural gas is not disappearing—it’s evolving. And investors who understand this shift are in a prime position to benefit.
Natural Gas Demand is Surging
In 2023, global demand for natural gas surged, making the U.S. the world’s top exporter of liquefied natural gas (LNG). That momentum hasn’t slowed in 2024, and in 2025, the trend is only accelerating.
The U.S. Energy Information Administration (EIA) forecasts a 15% increase in U.S. LNG exports, fueled by strong global demand and new liquefaction facilities coming online. For instance, the Golden Pass LNG facility in Texas is set to ramp up production, adding 20% more U.S. export capacity by year-end.
Meanwhile, some of the biggest players in the financial world—including Warren Buffett’s Berkshire Hathaway—are doubling down on natural gas infrastructure, betting on its long-term demand. China, India, and Japan have signed massive, decades-long LNG contracts, locking in natural gas as a crucial part of their energy mix into the 2040s.
But there are other major long-term use cases for natural gas—namely, AI and Crypto.
AI and Crypto Mining Are Boosting Demand
A new factor fueling natural gas consumption is the rise of artificial intelligence (AI) and cryptocurrency mining, both of which require vast amounts of electricity. As AI-powered data centers expand across the U.S., electricity demand is skyrocketing. Natural gas, as the primary fuel for power generation, is playing a key role in meeting this demand.
Companies such as EQT Corporation, Antero Resources, Energy Transfer, and Williams Companies are well-positioned to benefit from this shift, as they own the infrastructure and supply chains that fuel power plants nationwide.
LNG Prices and Market Outlook
Henry Hub is the primary pricing benchmark for U.S. natural gas, serving as the standard reference point for natural gas prices traded on the New York Mercantile Exchange (NYMEX).
Located in Louisiana, Henry Hub is a key distribution center where multiple natural gas pipelines intersect, making it the central pricing hub for natural gas futures and spot market transactions.
Recently, analysts have raised their 2025 price forecasts for natural gas, citing increasing global demand and supply constraints. Morgan Stanley, for example, has revised its projection for Henry Hub natural gas prices, now expecting an average of $4.15 per million British thermal units (MMBtu)—an increase from its prior estimate of $3.75/MMBtu.
Several factors are driving this upward revision:
Rising Global LNG Demand: The world’s increasing reliance on liquefied natural gas (LNG), especially in Europe and Asia, is tightening supply and pushing prices higher.
Electrification Boom: The transition to electric heating and power generation is increasing natural gas consumption in the U.S. and abroad.
Colder-than-Expected Weather: Harsh winters and unexpected cold snaps have boosted heating demand, further supporting higher prices.
With these trends in play, analysts expect continued volatility in natural gas markets, making Henry Hub prices a critical metric for energy investors and industry stakeholders.
Energy Giants Reassessing Their Strategies
Even traditional energy companies are pivoting back toward natural gas. Activist investors like Elliott Management are pushing BP and other oil majors to reinvest in natural gas rather than prioritizing renewables.
The reasoning is simple: despite the push for wind and solar, natural gas remains a reliable, cost-effective, and scalable energy source that underpins global electricity grids.
While renewables such as solar, wind, hydroelectric, and geothermal energy are making strides, they still face challenges in reliability and energy storage. Natural gas continues to act as a bridge fuel, providing consistent power when the sun isn’t shining and the wind isn’t blowing.
Top LNG Stocks to Watch
If you’re looking to capitalize on the LNG boom, here are some of the most prominent stocks to consider, along with their 1 year performance as of February 20, 2025:
Cheniere Energy (LNG)
Cheniere is the largest U.S. exporter of liquefied natural gas (LNG), operating the Sabine Pass LNG terminal in Louisiana and the Corpus Christi LNG terminal in Texas.
The company benefits from long-term contracts with global buyers, which allow for steady cash flow and reducing market volatility exposure.
Cheniere is expanding its capacity with the Corpus Christi Stage 3 project, which will add 10+ million tonnes per annum (MTPA) of LNG production. This is critical as global demand for LNG is expected to rise, particularly from Europe and Asia.
Given the energy crisis in Europe due to the Russia-Ukraine conflict, Cheniere has played a pivotal role in supplying LNG to European nations looking to reduce reliance on Russian gas.
EQT Corporation (EQT)
EQT is the largest natural gas producer in the U.S., specializing in production from the Appalachian Basin, particularly in the Marcellus and Utica Shales.
EQT has among the lowest production costs in the industry, thanks to its scale, advanced drilling techniques, and operational efficiencies.
The company is expanding its liquefied natural gas (LNG) export strategies, partnering with key infrastructure companies to bring more U.S. natural gas to global markets.
EQT is working towards reducing methane emissions and improving ESG (Environmental, Social, and Governance) metrics, making it a leader in sustainable gas production.
Kinder Morgan (KMI)
One of the largest midstream energy infrastructure companies in North America, with an extensive network of natural gas pipelines, storage facilities, and processing plants.
Kinder Morgan owns approximately 70,000 miles of natural gas pipelines, giving it a dominant position in U.S. energy infrastructure.
The company focuses on natural gas transportation, and it benefits from rising U.S. LNG exports. In addition, it is investing in carbon capture and renewable energy infrastructure to future-proof its business.
KMI is known for its strong dividend yield (currently it has a 4.32% annual yield), making it attractive for income investors.
ExxonMobil (XOM) and Chevron (CVX)
These two oil and gas giants are expanding their presence in LNG production and exports to capitalize on growing global demand.
ExxonMobil operates Golden Pass LNG (a joint venture with QatarEnergy) in Texas, which is expected to begin exporting in 2025.
Exxon is also expanding LNG projects in Papua New Guinea and Mozambique.
Plus, it invests in low-carbon LNG solutions, such as carbon capture at its LNG terminals.
Chevron is a major player in Australian LNG exports, operating the Gorgon and Wheatstone LNG projects.
It has been strengthening its U.S. LNG presence through partnerships and infrastructure investments and exploring hydrogen and renewable gas projects alongside its traditional LNG operations.
Both ExxonMobil and Chevron see LNG as a key bridge fuel between traditional fossil fuels and a cleaner energy future. They have positioned themselves to benefit from long-term global energy transitions.
The Biden-to-Trump Transition: What It Means for Natural Gas
With the shift from the Biden administration to Trump’s leadership, major policy changes are expected to impact the natural gas industry.
Under Biden, regulatory scrutiny and restrictions on fossil fuel projects slowed pipeline and LNG expansion efforts. The administration focused heavily on renewable energy incentives, making it more challenging for natural gas producers to secure permits and financing.
However, Trump’s return to office is likely to reverse many of these policies. His administration has historically favored domestic energy production, reducing regulations and opening up new drilling opportunities.
This shift could lead to:
Eased permitting for LNG export terminals and pipeline projects – This would accelerate infrastructure growth, benefiting companies like Cheniere and Kinder Morgan.
Expansion of federal land drilling – More access to natural gas reserves could drive supply increases and stabilize prices.
Less focus on renewable subsidies – While renewables won’t disappear, natural gas will likely regain priority as a reliable energy source for grid stability and economic growth.
Stronger international LNG trade policies – A Trump administration may negotiate more favorable trade agreements for U.S. LNG exports, securing long-term buyers in Asia and Europe.
The Hidden Investment Opportunity
Despite the push for renewables, natural gas remains one of the world’s most essential energy sources. While mainstream narratives suggest its decline, the data tells a different story: it’s evolving, not disappearing.
For investors, this presents an overlooked opportunity. Natural gas companies are trading at historically low valuations, even as demand and prices rise. As Wall Street and global markets catch on to this shift, we could see a wave of investment flow back into the sector.
If you recognize this reality now, you could position yourself for a massive upside in the years ahead. To stay ahead of this trend, sign up for our free YMM newsletter for real-time market insights.