Liquefied natural gas developers led a surge in US energy shares on Monday after the European Union committed to $750 billion in energy purchases from the United States as part of a newly unveiled trade framework.
The deal marks a dramatic deepening of transatlantic energy ties at a time when the EU is phasing out Russian imports.
The wide-ranging trade pact, finalised after months of negotiation, includes strategic commitments from the EU to buy US oil, gas, and nuclear fuel throughout President Donald Trump’s current term.
The bloc also pledged to increase overall investment in the United States by $600 billion.
European Commission President Ursula von der Leyen confirmed that the $750 billion in energy purchases will be spread evenly over the remaining three years of Trump’s term, at $250 billion per year.
The agreement includes nuclear-related investments in addition to fossil fuels.
“This is how we replace Russian energy,” von der Leyen said.
NextDecade, Venture Global gain as demand outlook improves
Shares of US liquefied natural gas companies rose sharply following the announcement.
NextDecade, Venture Global, and Cheniere Energy gained between 5% and 7% in premarket trading.
Uranium miner Energy Fuels also climbed 4% to $10.42, reflecting optimism around increased nuclear fuel sales.
Natural gas producers Expand Energy and EQT Corp advanced 1.6% and 2% respectively, while oil benchmarks Brent and WTI each gained over 1.5%.
The US became the world’s top LNG exporter in 2023, surpassing Qatar and Australia.
Demand for LNG has surged following sanctions on Russian energy exports, with Europe turning to the US to fill the gap.
A softer tariff blow, but long-term price risks
The deal imposes a 15% US tariff on most EU goods—less severe than the 30% level investors had feared.
Analysts say the reduced tariff level may soften the blow to transatlantic trade and industrial output.
“Terms of the EU-U.S. trade deal were at the forefront, with the 15% tariff level better than feared (30% was mooted previously),” said Ashley Kelty, an analyst at Panmure Liberum, in a Reuters report.
“This should see less of a drag on industrial activity between the two.”
However, Kelty warned that the deal’s energy provisions could weigh on gas prices if a glut emerges.
“The demand for the EU to buy more US energy will see more US LNG imports in the future,” she said.
Morgan Stanley sees further upside for NextDecade
Morgan Stanley recently raised its price target for NextDecade to $15 from $10, citing improved regulatory conditions and accelerating project approvals.
The firm expects final investment decisions and financing for the company’s fourth and fifth liquefaction trains at the Rio Grande LNG facility in Texas by mid-September.
The facility is expected to produce up to 48 million tonnes per year once fully operational, making it one of the largest in the world.
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