Bernstein bets on Woodside as tight LNG market looms

Bernstein bets on Woodside as tight LNG market looms

Investment research firm Bernstein has named Australian liquefied natural gas (LNG) developer Woodside (ASX:WPL)as its “best idea” for the fourth quarter 2021 as prices surge and the Asian market tightens. Significantly, Woodside is one of the most exposed LNG suppliers to the spot market.

Woodside’s share price, which has lagged peers, will be a prime beneficiary of higher spot LNG prices and a tighter market over the next two to three years, Bernstein said in a note today.

Strong demand growth and reduced inventories have pushed LNG spot JKM prices to over US$35 per million British thermal units (mmBtu) to which Woodside has exposure to through a spot portfolio, which makes up more than 20% of the company’s sales.