Liquified natural gas stocks climbed sharply Monday following news that the European Union has agreed to purchase $750 billion worth of energy from the United States.
Cheniere and Venture Global—two leading U.S. LNG exporters—saw their shares jump around 3% and more than 4%, respectively. Infrastructure-focused companies NextDecade and New Fortress Energy also rallied, rising over 2% and approximately 3%.
The historic energy purchase is part of a sweeping trade agreement finalized over the weekend between the U.S. and the EU.
European Union President Ursula von der Leyen said the agreement was designed to help curb the bloc’s reliance on Russian energy.
“Purchases of US energy products will diversify our sources of supply and contribute to Europe’s energy security,” Von der Leyen stated over the weekend. “We will replace Russian gas and oil with significant purchases of US LNG, oil and nuclear fuels.”
In addition to the energy commitment, the EU pledged to invest $600 billion more in the United States beyond existing levels. The broader trade pact also introduces a 15% tariff on goods exported from the EU to the U.S.
During a Sunday meeting with von der Leyen, President Donald Trump emphasized the strategic nature of the agreement.
“Energy is a very important component” of the deal, Trump said.
“I think it’s the biggest deal ever made,” Trump proclaimed also.
The stated terms of the tariff deal appeared to be remarkably lopsided in favor of the US. Von der Leyen suggested that the only real concession from the Americans was that Trump would not impose 30% tariffs he had threatened.
The 27-member bloc is America’s biggest trading partner if taken together, with total trade hitting $1.97 trillion last year. The US trade deficit for goods was $235 billion.
The deal avoids a trade war between two economies that account for about 44% of the world’s gross domestic product — less than a week before steep “Liberation Day” levies were set to bite.
“I think we both wanted to make a deal,” the president said. “It’s going to bring us closer together. I think this deal will bring us very close together.”
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