LNG Stocks to Watch: Kinder Morgan and ConocoPhillips Poised for Long-Term Growth

Kinder Morgan and ConocoPhillips are well-positioned to capitalize on the anticipated surge in LNG demand, with Kinder Morgan operating the largest natural gas transportation network in the US and ConocoPhillips having several LNG growth catalysts, including new joint ventures with Qatar Energy and a sale and purchase agreement for 5 million tonnes per year from Sempra's Port Arthur LNG Phase 1 facility. Both companies have the potential to increase their volumes to US LNG export terminals and benefit from the growing demand for clean-burning fuel.

Title: Kinder Morgan and ConocoPhillips: Prime Stocks for the LNG Boom

Global demand for liquefied natural gas (LNG) is set to soar by 60% by 2040, driven by economic growth in Asia, artificial intelligence (AI), and other catalysts [1]. This surge in demand presents a significant opportunity for companies involved in the LNG trade. Kinder Morgan and ConocoPhillips are two such companies that are well-positioned to capitalize on this growth.

Kinder Morgan operates the largest natural gas transportation network in the United States, with approximately 60,000 miles of pipeline that move 40% of the country's natural gas production. The company's extensive and strategically located gas infrastructure makes it a leader in supplying gas to LNG export terminals [1]. Kinder Morgan currently has long-term contracts to supply 8 billion cubic feet per day (Bcf/d) of natural gas to U.S. LNG export facilities, which accounts for approximately 40% of all feed gas to U.S. terminals. By 2028, the company aims to increase its volumes to 12 Bcf/d as new LNG export terminals come online [1]. Additionally, S&P Global Commodity Insights forecasts that LNG feed gas demand in the United States will double by 2030, which should be a significant positive for Kinder Morgan [1].

ConocoPhillips, on the other hand, has a large, diversified, global oil and gas business. The company balances short-cycle growth in U.S. shale with longer-cycle investments in Alaska and LNG. ConocoPhillips has several LNG growth catalysts, including new joint ventures with Qatar Energy to invest in the North Field East and North Field South projects. These projects will expand Qatar's LNG capacity to 126 million tonnes per year by 2027 [1]. The company also bought a 30% interest in Sempra's Port Arthur LNG Phase 1 facility and signed a sale and purchase agreement for 5 million tonnes per year from that facility, which is expected to enter commercial service in 2027 and 2028 [1]. Furthermore, ConocoPhillips has secured long-term LNG supply agreements, such as 20-year deals to receive 2.2 million tonnes of LNG per year from Mexico Pacific's Saguaro export facility [1]. These strategic moves position ConocoPhillips to capture long-term demand growth and support sector-leading growth, with potential incremental free cash flow of $6 billion by 2029 [1].

Both Kinder Morgan and ConocoPhillips have prepared their businesses to capitalize on the growing demand for LNG, which should support strong long-term returns for shareholders. Their strategic positioning in the LNG market makes them attractive investment opportunities for those looking to benefit from the anticipated surge in demand.

References:
[1] https://www.fool.com/investing/2025/07/28/2-brilliant-lng-stocks-buy-now-and-hold-for-long-t/
[2] https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/33683606/2-brilliant-lng-stocks-to-buy-now-and-hold-for-the-long-term/