To The Moon

Faced with the worst energy crisis in decades, European countries are frantically stockpiling gas. Britain is set to import liquefied natural gas (LNG) from distant Australia for the first time in six years. European natural gas futures also hit a record amid supply concerns.

According to energy intelligence firm Kpler,

an LNG ship called Attalos is on its way to Britain with a cargo of LNG from Australia's North West Shelf project.

Traditionally, European countries have rarely imported LNG from Australia because it is not economical to transport it over long distances. Australian LNG is typically exported to Asian buyers with strong demand.

Australian gas demand will grow further as European countries are desperate for alternative sources of gas ahead of winter. 

Here are 3 ASX LNG stocks to watch (market cap above 2bln and focus on LNG):

YTD Performances of 3 LNG stocks

1. $WOODSIDE ENERGY GROUP LTD(WDS.AU)$

The company produces liquefied natural gas, pipeline natural gas, condensate, liquefied petroleum gas, and crude oil. It was formerly known as Woodside Petroleum Ltd and changed its name to Woodside Energy Group Ltd in May 2022.

It accounted for 5% Global LNG supply in 2021.

In the first half of 2022, Woodside produced 4.39 million tonnes of liquefied natural gas (LNG) which is approximately 36.14 million barrels of oil equivalent.

The first-half LNG production was:

2. $SANTOS LIMITED(STO.AU)$

Santos is already Australia’s biggest domestic gas supplier and aims to be a leading Asia-Pacific LNG supplier. The company has discovered, developed and delivered natural gas to the people of Australia and Asia for over 65 years.

Earlier in August, $SANTOS LIMITED(STO.AU)$ revealed a record result: a 300% boost in underlying profit to US$1.27 billion in HY22. Statutory net profit also lifted 230%.

It will use the capital for much larger shareholder returns in the form of a dividend and share buyback.

According to analyst,

Santos itself is 70% gas revenue and is a low-cost producer. Very strong earnings, very strong cash flow to fund investments, and more dividends and returns to shareholders.

The Santos share price is up 9% since the company reported its half-year results.

3. $BEACH ENERGY LTD(BPT.AU)$

Beach Energy is a key supplier to Australia’s East Coast gas market, operating the Otway Gas Plant and the Lang Lang Gas Plant in Victoria.

Beach supplies approximately 12% of the gas on the East Coast of Australia.

Recently, Beach Energy has entered into a liquefied natural gas (LNG) sale and purchase agreement (SPA) with BP Singapore.

Under the SPA, BP will be purchasing all 3.75 million tonnes of Beach Energy’s expected LNG volumes.

According to the management:

Signing of the LNG SPA with bp is a significant milestone in our delivery of material growth and another step closer to Beach becoming a supplier of LNG to the global market…

Are you bullish on LNG stocks?

What's your opinion towards these 3 LNG stocks?

Do you know any other LNG companies worth investing?

Share your thoughts in the comment section~~