Shell Plc: Top LNG and LNG Shipping Stock to Buy, According to Analysts

Shell Plc (SHEL), the Anglo-Dutch multinational oil and gas company, has emerged as a top pick among analysts for investors seeking exposure to the liquefied natural gas (LNG) and LNG shipping sectors. With a strong focus on growth and sustainability, Shell's LNG business is well-positioned to capitalize on the increasing demand for cleaner energy sources, particularly in Asia.



According to Shell's LNG Outlook 2025, global demand for LNG is projected to rise by around 60% by 2040, driven primarily by economic expansion in Asia, emissions reduction efforts in heavy industry and transportation, and the growing impact of artificial intelligence. This upward revision from previous estimates reflects the increasing role of LNG as a bridge to lower-carbon fuels and a reliable, flexible, and adaptable way to meet growing global energy demand.

Shell's LNG growth plans, which involve increasing its LNG business by 20% to 30% by 2030, have been called into question by a group of institutional shareholders and sustainable investment-focused organizations. They argue that the company's assumptions regarding future LNG demand are substantially higher than all demand scenarios published by the International Energy Agency (IEA), exposing the company to value erosion if demand is lower than anticipated. However, Shell's Energy Transition Strategy highlights LNG's role in the energy transition, including replacing coal in heavy industry and power generation, and the company remains committed to its net-zero emissions target by 2050.

Despite these concerns, analysts remain bullish on Shell's LNG and LNG shipping prospects. The average analyst rating for Shell stock from six stock analysts is "Buy," with a price target of $78.56, predicting an increase of 16.45% from the current stock price of $67.46. Analysts' recommendations for Shell stock have been consistently positive, with a strong buy rating from most firms, including RBC, UBS, Jefferies, and Goldman Sachs.



In conclusion, Shell Plc's strong focus on LNG growth and sustainability, coupled with analysts' positive recommendations, makes it an attractive investment opportunity for those seeking exposure to the LNG and LNG shipping sectors. Despite concerns regarding the company's LNG demand assumptions and the need for transparency in its net-zero emissions commitment, Shell's LNG business is well-positioned to capitalize on the increasing demand for cleaner energy sources, particularly in Asia. Investors should closely monitor Shell's progress in achieving its LNG growth targets and its commitment to reducing emissions while maintaining a strong financial performance.