Global LNG Demand Could Surge 65% by 2050. Here Are the Top Energy Stocks to Buy to Cash In on the Boom.

When evaluating energy stocks as long-term positions, investors need to consider liquefied natural gas (LNG). Demand for that energy source is expected to jump by 700 million tons annually by 2050, representing a 65% surge from 2025 levels, according to Shell's LNG Outlook 2026.

Yes, 2050 is a long way off, but market participants need not worry about that. Other estimates indicate the global LNG market is on pace to grow at a compound annual growth rate of 7.1% from this year through 2035.

Liquefied natural gas (LNG) demand is soaring. These stocks could benefit. Image source: Getty Images

Predictably, some investors are apprehensive. The commodity itself and natural gas stocks have reputations as volatile instruments, but the good news is that some stout fundamentals support the LNG expansion trade. As just two examples, China's LNG imports are up 258% since 2016, and over that period, the number of LNG-importing countries rose to 49 from 36, according to Shell.

Add to that the fact that the past decade has seen the U.S. morph into an LNG behemoth. This country is now the world's largest exporter of that commodity, so there is an element of patriotism in the LNG equity trade. That's a positive for red, white, and energy independence, and these energy stocks could mint green on the back of LNG demand growth.

A familiar face

ExxonMobil (NYSE: XOM) is typically viewed as an oil stock, and that's an accurate assessment, as the company is one of the world's largest producers of oil. It's also a major LNG player and is investing in that segment. Exxon has four large-scale LNG projects under way and expects to double its LNG portfolio by 2030 from 2020 levels. Those projects could lift the producer's LNG output by 40 million metric tons annually.

That is to say, the energy giant is bullish on LNG's trajectory. Exxon sees LNG demand rising by 3% annually through 2050, noting that by that year, natural gas will power 20% of global industrial activity. So it's clear there's demand for LNG, but meeting it requires scale. Not all companies possess it, but Exxon does.

Exxon's been one of the dominant names in the natural gas space for four decades, and it's engaged in LNG infrastructure, production, and transportation in a variety of markets, including Africa, Australia, and Papua New Guinea. In the first quarter, the company boosted U.S. LNQ exports by 5%.

A pure LNG play

Investors seeking purity in liquefied natural gas stocks may want to consider Cheniere Energy (NYSE: LNG). Cheniere sure lives up to its ticker. A decade ago, it became the first U.S. company to export LBG, and two years ago, it became the largest domestic LNG producer.

Those are the headlines. Getting into the "nitty gritty" of the Cheniere story, like Exxon, this energy company is investing to meet future LNG demand. Cheniere is working on three expansion projects, one of which is expected to be fully operational this year, with the other pair coming online in 2028 and 2029. One of the attractive points of this energy stock is the long-term contracts the company inks with LNG customers, which provide clarity and stability.

Speaking of the long-term, Cheniere may be appealing to patient investors because it's a cash flow king. The company generated $1.67 billion in distributable cash flow in the first quarter. That was enough to increase its 2026 distributable cash flow forecast to $4.75 billion to $5.25 billion, up from $4.35 billion to $4.85 billion.

The dividend idea

With a yield of 7.1%, Energy Transfer (NYSE: ET) rightfully earns its place in the conversation about oil dividend stocks. It's also deserving of its place at the LNG table because natural gas liquids are central to this midstream operator's pipeline suite, which is among the largest in the North American midstream space.

Said another way, Energy Transfer doesn't get its hands "dirty" with the production of natural gas liquids, but it is one of the premier intrastate and interstate transmitters of those products. There's clear demand for natural gas pipelines, underscoring why Energy Transfer is investing heavily in that part of its business.

In the first quarter, the company's natural gas liquids and refining business posted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of $185 million, confirming an impressive growth trajectory.

There's an artificial intelligence (AI) angle here as well. Due to Energy Transfer's status as the king of Texas pipelines, it can meet fresh demand from data center hyperscalers looking to source energy straight from basin regions.

Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cheniere Energy. The Motley Fool has a disclosure policy.