Global natural gas demand is expected to pick up again in 2026 as a new wave of liquefied natural gas (“LNG”) supply changes how the market functions. Large capacity additions, mainly from North America, are easing supply pressures while strengthening LNG’s role in driving gas consumption. For investors, this shift draws attention to opportunities across the LNG value chain, especially among globally active energy producers and infrastructure companies like Shell plc (SHEL Quick QuoteSHEL - Free Report) , Kinder Morgan (KMI Quick QuoteKMI - Free Report) and ExxonMobil (XOM Quick QuoteXOM - Free Report) . How this LNG expansion affects prices, trade flows and volatility will be an important factor in evaluating natural gas exposure in the coming year.

LNG Emerges as a Structural Driver for Gas Markets

The International Energy Agency expects global natural gas demand growth to strengthen to nearly 2% in 2026, rebounding from growth of less than 1% in 2025, as LNG supply expansion accelerates worldwide. This shift follows a period of market tightness, when higher spot prices and weaker industrial activity weighed on consumption, particularly across Asia. The turning point came in the second half of 2025, as new LNG projects began ramping up and supply growth returned to double-digit territory.

LNG is playing a bigger role in linking gas markets around the world. More flexible LNG cargoes are allowing gas to move more easily between regions, pushing European and Asian prices to move more closely together. This tighter connection has improved market liquidity and helped reduce long-term price pressure. At the same time, prices can still swing in the short term, as weather patterns and geopolitical events continue to influence supply and demand.

North America Leads the LNG Investment Wave

The scale of LNG capacity growth reaching final investment decision underscores the industry’s confidence in long-term gas demand. More than 90 billion cubic meters (bcm) per year of liquefaction capacity reached final investment decision in 2025, marking the second-highest annual total on record. The United States dominated this wave, accounting for over 80 bcm of approved capacity and reinforcing its position as the world’s largest LNG supplier.

This surge in investment is translating directly into supply growth. Global LNG supply rose 6.7% in 2025, with around three-quarters of that increase concentrated in the second half of the year. Growth is expected to accelerate further in 2026 to more than 7%, the fastest pace since 2019, with North America responsible for the majority of the roughly 40 bcm increase. Expanding availability is helping to rebalance markets and reduce fears of sustained tightness.

Demand Signals and Liquidity Point to Long-Term Confidence

Stronger LNG availability is expected to support broader gas consumption, particularly in China and emerging Asian markets, which are projected to be the primary drivers of demand growth in 2026. In contrast, Europe’s total gas demand is forecast to decline as renewables continue to displace gas in power generation, even as LNG imports reach record volumes to replace lost pipeline supplies and maintain energy security.

At the same time, record LNG contracts and higher trading activity point to growing confidence in gas markets. Better liquidity helps cushion supply disruptions, though price swings can still occur during periods of stress. For equity investors, this creates a cautiously optimistic backdrop for gas-linked stocks, with an emphasis on companies that have strong balance sheets and global reach.

Positioning for the LNG-Driven Gas Cycle

As LNG cements its role at the center of global gas flows, investors are increasingly focused on companies exposed to supply growth, infrastructure and international trade. The accelerating LNG wave heading into 2026 suggests that gas markets are entering a new phase defined less by scarcity and more by scale, flexibility and connectivity. Against this backdrop, attention turns to a select group of LNG-linked companies, each currently carrying a Zacks Rank #3 (Hold), that are positioned to benefit from expanding global gas trade and improving market depth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

3 Stocks to Focus on

Shell: Shell has played a key role in the LNG industry for more than six decades. It helped launch global LNG trade in 1964 by backing the first commercial LNG facility in Algeria and shipping the first cargo to the UK. Today, Shell is still one of the world’s largest LNG suppliers, with about 40 million tons of equity capacity.

The company is active across the entire LNG value chain, from gas production and liquefaction to trading, shipping, regasification and delivery. Shell combines its own LNG supply with third-party purchases to stay flexible. Its projects span 10 countries, with regasification stakes in markets such as India and the UK, supported by a large global shipping fleet.

Kinder Morgan: Kinder Morgan’s LNG business focuses on reliability and logistics. By converting natural gas into liquid form, LNG becomes easier to store and transport, especially for customers not directly connected to pipelines. Kinder Morgan’s model is vertically integrated, meaning it can liquefy, store, and deliver LNG, effectively acting like a “virtual pipeline” when needed.

The company supports supply security with redundant infrastructure, including two LNG plants connected to four interstate pipelines and over 2 billion cubic feet of LNG storage. Kinder Morgan also operates major U.S. gas infrastructure, including roughly 65,000 miles of pipelines. Its Elba Island LNG facility in Georgia is a small-scale export plant with around 2.5 million tons per year capacity, backed by a 20-year contract.

ExxonMobil: ExxonMobil has over 50 years of LNG experience, covering exploration, development, production, liquefaction, shipping, and regasification. It works through co-ventures with governments and industry partners, using LNG projects to support jobs and economic activity.

Globally, ExxonMobil produces nearly 25 million tons per year of LNG and, through joint ventures, delivers cargoes to around 30 countries. Key projects include Papua New Guinea’s integrated LNG development, Australia’s Gorgon LNG project with carbon capture and storage, and Mozambique’s Area 4 gas resources supporting new LNG capacity. In China, it secured long-term access to the Huizhou LNG terminal to strengthen supply security.