The U.S. Department of Energy's recent approval to extend LNG exports from Exxon Mobil Corporation's XOM Golden Pass LNG terminal presents a compelling opportunity for investors. As the global demand for liquefied natural gas (LNG) continues to rise, companies involved in its production and export stand to benefit significantly. With geopolitical instability, energy security concerns and the transition to cleaner fuels driving the market, LNG investments are becoming increasingly attractive.

Why Invest in LNG Now?

Growing Global LNG Demand

The global LNG market has experienced significant expansion in recent years, driven by increasing demand from various regions. In Asia, major economies like China, India and Japan are accelerating their shift from coal to natural gas as part of their broader decarbonization strategies. This transition is aimed at reducing carbon emissions while maintaining energy security. Meanwhile, Europe has been actively seeking alternative energy sources in response to geopolitical conflicts, particularly in Eastern Europe. The need to reduce reliance on Russian gas has led to a surge in LNG imports and the development of long-term energy partnerships. To accommodate this rising demand, new LNG terminals and storage facilities are being constructed worldwide, ensuring a steady supply of natural gas to meet global energy needs.

ExxonMobil’s Strength in LNG

Despite fluctuations in its stock price, ExxonMobil remains a dominant player in the energy sector, particularly in LNG. The company has made significant investments in LNG infrastructure, reinforcing its global position. ExxonMobil holds a 30% ownership stake in Golden Pass LNG Terminal LLC, a joint venture with QatarEnergy, and a similar stake in Golden Pass Pipeline LLC. The Golden Pass LNG project is progressing, with Train 1 expected to achieve mechanical completion and first LNG production by the end of 2025.

This facility will enhance ExxonMobil’s LNG export capacity, contributing to U.S. dominance in the global LNG market. Furthermore, the company’s diversified portfolio, which includes LNG projects in Mozambique, Papua New Guinea and Qatar, helps mitigate the volatility of crude oil prices, ensuring stable returns for investors. With a strong presence across multiple energy markets, ExxonMobil remains well-positioned for resilience and growth in the evolving energy landscape.

Capacity Expansion & Infrastructure Growth

The expansion of Golden Pass LNG aligns with broader industry trends emphasizing the increasing role of LNG in the global energy mix. The project is part of ExxonMobil’s long-term strategy to support growing global natural gas demand, which is expected to rise more than 20% by 2050, with much of the increase coming from the Asia-Pacific region. The company is also involved in the North Field East and North Field Production Sustainment projects in Qatar, which add significant LNG production capacity. These investments position ExxonMobil as a key supplier of cleaner-burning fuel, supporting energy security for importing nations and economic growth for domestic producers. As global demand for LNG continues to grow, ExxonMobil's strategic investments ensure its leadership in the evolving energy landscape.

3 Must-Watch Stocks: XOM, CVX, LNG

The approval of Golden Pass LNG’s export extension is a pivotal development in the global energy landscape. As LNG demand continues to surge, ExxonMobil and other LNG-focused stocks like Chevron Corporation CVX and Cheniere Energy Inc LNG offer strong upside potential.

Investors looking to capitalize on LNG’s growth should watch the following energy stocks. All the energy majors currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

ExxonMobil

XOM's investment in Golden Pass LNG strengthens its global energy position by expanding its LNG export capacity and reinforcing its role in the growing LNG trade. As a joint venture with QatarEnergy, the U.S.-based facility, where ExxonMobil holds a 30% stake, is set to export up to 2.57 Bcf/d upon full operation. With Train 1 expected to be mechanically complete by late 2025, this project aligns with ExxonMobil’s broader LNG strategy, including ventures in Qatar, Mozambique and Papua New Guinea. By enhancing its LNG footprint, ExxonMobil secures revenue stability amid crude oil volatility and capitalizes on increasing global LNG demand, particularly in Asia and Europe.

Chevron

Chevron is a diversified energy giant with substantial investments in LNG across North America and Australia. In Australia, the integrated energy major is the largest LNG producer, operating the Gorgon and Wheatstone projects, which have a combined capacity of more than 24 million metric tons per year. The company also holds a non-operated interest in the North West Shelf Venture. In North America, Chevron has strategic LNG investments, including Angola LNG and its growing presence in the U.S. LNG market. These investments reinforce Chevron’s role as a key supplier in the global LNG trade while supporting long-term energy security.

Cheniere Energy

Cheniere Energy, the largest U.S. LNG exporter, benefits from strong long-term contracts that provide stable cash flows, with approximately 96% of its LNG volumes sold under term agreements. The company has capitalized on rising European demand, with 86% of its January 2025 shipments sent to Europe, reflecting the region’s reliance on U.S. LNG amid reduced Russian gas supply. Financially, Cheniere remains strong, producing a record 45 million tons of LNG in 2024—more than 10% of global supply—and projecting 47–48 million tons for 2025 as its Corpus Christi Stage 3 expansion boosts capacity.

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