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Global LNG supply disruptions, especially in Qatar, are tightening markets and could push natural gas prices higher in 2026.
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Vermilion Energy and EQT offer leveraged exposure to rising gas prices through European access and unhedged production strategies.
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The UNG ETF provides direct exposure to natural gas futures for investors looking to play the commodity itself.
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Interested in United States Natural Gas Fund LP? Here are five stocks we like better.
Oil prices are sending shock waves through the market and giving energy stocks a much-needed boost. A similar, but different, story is emerging with natural gas. The spot price of natural gas has been down since the conflict with Iran began. The United States Energy Administration cites milder-than-expected February weather that left more gas in storage. Plus, the rise in oil prices is driving up production in the Permian basin, which produces more associated natural gas as a byproduct.
However, there are geopolitical concerns that could mean higher natural gas prices even if the shock to oil prices is transitory. It’s all about what’s happening in the Strait of Hormuz. Approximately 20% of liquefied natural gas (LNG) flows through the Strait. Most of this comes from Qatar.
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This is where the supply-demand imbalance comes in. Qatar’s Ras Laffan plant has shut down operations, which is a step it has never taken. That’s removed about 14% of the global monthly forecast offline. That’s not noticeable in the United States, but Europe is noticing. Natural gas prices are up approximately 65%, the highest levels since March 2023.
Even if the conflict with Iran wraps up in the timeline being given by the Trump administration, it will take weeks, not days, for the Ras Laffan plant to come back online. Can the world make up the capacity, and how soon?
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The answer seems to be not at the scale or delivery speed needed. This disruption comes at a time when demand for natural gas, and LNG in particular, has never been higher. The United States has opened three new facilities to help meet the demand, which is also coming from hyperscalers, but that won’t help in the short term.
That means it’s more likely than not that lower natural gas prices are the outlier. As investors, that can signal an opportunity.
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Vermillion Energy (NYSE: VET) stock is reflecting the current price of natural gas, but probably not the company’s current positioning. VET stock has soared over 50% in 2026. That puts it within 20% of its consensus price target.
