Shares of U.S. gas exporters jump after damage to Qatar LNG plant

After Iran's attack damaged the world's largest LNG plant in Qatar, shares of gas companies outside the Middle East rose sharply in value, The Wall Street Journal (WSJ) noted.

Attacks on Qatar's natural gas infrastructure have exacerbated supply shortages in the Middle East, driving gas prices in Europe up more than 35% on March 19 and boosting the share prices of companies producing or exporting LNG elsewhere, the WSJ writes.

- In particular, the securities of the American exporter of liquefied natural gas Venture Global jumped by more than 10% to $16.81 per paper on March 19 - investors were betting on the fact that the U.S. company can benefit from disruptions in supplies from the Middle East, points out WSJ, noting that since the beginning of the war between the U.S. and Israel against Iran, its securities have risen more than 50%. Venture Global shares are up nearly 130% since the beginning of the year. The company exports LNG from the U.S. and sells it on the spot market. According to the consensus forecast, of the 20 analysts who monitor the company's securities, eight recommend buying Venture Global shares, ten recommend holding, and only two recommend selling (one Underweight and Sell rating each), MarketWatch data show.

- Cheniere Energy, another U.S. LNG exporter, also jumped more than 12% to $299.49 per share at an intraday high on March 19, amid rising energy prices and disruptions in LNG supplies from Qatar. Its securities have no sell recommendations, with 23 analysts recommending buying Cheniere Energy shares and four recommending holding.

- Another beneficiary of rising gas prices, to which the WSJ draws attention, was Norway's Equinor, a major European natural gas producer, on March 19. Its shares jumped 11% to $42.06 per share in Thursday's trading. Since the beginning of the conflict in the Middle East, the company's securities have grown by more than 40%, the newspaper points out. Equinor shares are up 72.78% since the beginning of the year. However, most Wall Street analysts who watch the company's securities are skeptical about their prospects: of only six ratings on MarketWatch, Equinor shares have three "hold" tips, and one each for "buy" and "sell."

Overall, the S&P 500 energy sector index added 1.3% on March 19 amid rising oil and natural gas prices.

On March 19, oil and gas prices jumped on the escalation of the conflict in the Middle East: Iran responded to Israeli strikes on one of the largest Iranian gas fields by attacking the world's largest LNG plant in Qatar, and also - expanding the geography of military actions - by striking a Saudi Aramco refinery on the Red Sea coast. The news pushed Brent crude oil quotes up 10% to more than $119 a barrel. April gas futures in Europe, meanwhile, jumped 35% to an intraday high; at the time of publication, they were trading up 11% from the previous close.

This article was AI-translated and verified by a human editor