Key Global Gas Stocks to Watch According to Morgan Stanley#

Morgan Stanley has identified six stocks that are well-positioned to benefit from growth in the global gas sector, which spans markets from India to North America. Their analysis focuses on companies with strong infrastructure, contractual protections, and growth opportunities linked to the increasing demand for liquefied natural gas (LNG).

Petronet LNG: A Strong Player in India#

Morgan Stanley considers Petronet LNG a strong candidate to capitalize on India's growing LNG exports, projected to rise from 26 million tons to 45 million tons per year by fiscal year 2030. Despite concerns about regulatory challenges and competition from new terminals, the firm believes Petronet's infrastructure in key gas markets is undervalued. The Kochi terminal, which has seen low utilization rates, is expected to improve as the gas market in southern India expands.

Gujarat Gas: Gaining Market Share#

Gujarat Gas is viewed as a strategic investment due to its potential to benefit from lower gas prices. With an oversupply of gas, the company is expected to regain market share in tile cluster areas. Morgan Stanley anticipates a 7.8% annual growth rate in volume from fiscal years 2026 to 2028, along with significant earnings before interest, taxes, depreciation, and amortization (EBITDA) improvements.

Gulf Development: Powering Thailand#

Gulf Development is recognized as a crucial player in Thailand's energy landscape. The company has a substantial gas import quota and significant gas-fired power capacity. Additionally, it is developing data centers and collaborating with Google on AI cloud applications. Strong cash flows are expected to enhance its financial stability and growth prospects.

Tohoku Electric Power: Benefiting from Lower Costs#

Tohoku Electric Power may benefit from declining LNG import prices, which could reduce the costs of gas-fired power generation. This is significant as gas-fired power constitutes a large portion of its energy mix, exceeding the national average.

The Williams Companies: Infrastructure Leader#

The Williams Companies is a key developer of pipeline infrastructure that supplies feedgas to U.S. LNG facilities. The company has recently invested in Woodside Energy's LNG liquefaction projects, further solidifying its role in the growing LNG market.