Cheniere Energy Stock Jumps on US-EU Trade Agreement That Includes LNG
Key Takeaways
- Liquid natural gas supplier Cheniere Energy shares were higher ahead of today’s session following a trade deal between the U.S. and the European Union.
- As part of the agreement, the EU will purchase $750 billion worth of energy from the U.S. over a three-year period.
- President Donald Trump and EU head Ursula von der Leyen praised the entire deal, which Trump said was the biggest ever made.
Shares of liquified natural gas provider Cheniere Energy (LNG) advanced in premarket trading Monday, a day after President Trump and European Commission President Ursula von der Leyen struck a trade deal that will have the European Union purchase more LNG from American suppliers.
Trump explained that the 27 countries of the EU will buy $750 billion worth of LNG and other energy sources from the U.S. over a three-year period, in a move to allow Europe to replace Russian energy sources following the country’s invasion of Ukraine.
The energy pact was part of a larger trade agreement that puts 15% tariffs on exports from the EU into the U.S, and opens EU’s market to American exports with no tariffs. The bloc would also invest $600 billion dollars more than it’s currently spending in America, and buy a “vast amount” of military equipment from U.S. manufacturers.
Trump called it “the biggest deal ever made.” Von der Leyen added, “It’s a huge deal.”
Ahead of today’s session, Cheniere Energy shares were up more than 4%.
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