Korea Investment & Securities noted on the 19th that U.S. President Donald Trump is most proactive about developing liquefied natural gas (LNG) as part of his energy policy and that it is time to pay attention to the LNG value chain.
Research Institute Park Gi-hoon noted the energy-related executive orders announced by President Trump. They include: ▲ freeing Alaska's special resource potential (EO 14153) ▲ unleashing U.S. energy (EO 14154) ▲ declaring a national energy emergency (EO 14156) ▲ establishing a national energy dominance commissioner (EO 14213).
This executive order includes provisions for prioritizing the processing of permits related to the development of Alaska LNG projects, rapid approval for LNG exports, and the promotion of LNG infrastructure development.
Research Institute Park anticipates that specific development and production plans will be announced through additional executive orders. He said, "A closer look at the detailed policy proposals in the executive orders issued by the Trump administration confirms that they ultimately encourage regulatory relief and promote development to strengthen energy independence," adding, "I expect the national energy dominance commissioner to establish a comprehensive national energy strategy."
It will take time, but the LNG value chain, which recently stalled, may regain attention during the process of suggesting and implementing regulatory relief measures, according to Research Institute Park. This includes corporations such as ExxonMobil (XOM), Chevron (CVX), ConocoPhillips (COP), and EQT (EQT), which extract and produce natural gas, along with pipeline-related companies like Energy Transfer (ET), Kinder Morgan (KMI), OneOak (OKE), and processing and exporting firms such as Cheniere Energy (LNG) and Sempra Energy (SRE). Power generation companies like NextEra Energy (NEE), Duke Energy (DUK), and Southern (SO) are also part of the LNG value chain.
Research Institute Park stated, "Among the LNG value chain stocks, I prefer Kinder Morgan, OneOak, Cheniere Energy, and Sempra Energy from a medium to long-term perspective," adding, "Given that Trump's policy to expand energy production could lower oil and natural gas prices, it is expected that midstream companies will be highlighted over more sensitive upstream and downstream players."