US liquefied natural gas (LNG) producers were boosted on Monday by a new trade agreement between the EU and the US, under which the EU has pledged to purchase $750 billion of US energy products.
The EU will spend $250 billion per year over the next three years on energy products, including LNG, as it seeks to reduce its dependence on Russian gas.
In 2023, the US emerged as the leading global supplier of LNG, overtaking Australia and Qatar, fueled by rising global prices and heightened demand caused by energy market disruptions related to Russia's invasion of Ukraine.
The trade agreement also includes a $600 billion investment from the EU into the US economy, mainly aimed at advanced manufacturing and clean energy technologies, which is also expected to strengthen US energy infrastructure.
Shares of Venture Global (NYSE:VG), the second-largest LNG exporter in the US, added 4.6% at about $15 on the news.
Cheniere Energy, Inc. (NYSE:LNG), the largest exporter in the US, added 2.6% and NextDecade (NASDAQ:NEXT) was up 2.3%.