LNG Stock Prices: Three Reasons 2014 Will Bring the Biggest Gains Yet

The best example of how developments in the liquefied natural gas export boom can boost LNG stock prices is Cheniere Energy Inc. (NYSE MKT: LNG) – which soared 118% over the past year.

That may be just the start of the fireworks for LNG stock prices – especially Cheniere.

Morgan Stanley released a forecast for the stock on Jan. 7, 2014. It initiated coverage at an "Overweight" rating with a price target this year at $60 a share. That's over a 30% gain from its current price of $45.76.

And that's on the low end…

The firm said its most bullish scenario sees Cheniere at $129 a share this year.

Cheniere won't be the only LNG stock to head higher. Check out these three reasons why LNG stock prices will continue to climb in 2014 – and why Money Morning Global Energy Strategist Dr. Kent Moors calls LNG "one of the best investment opportunities of the decade."

Why LNG Stock Prices Are Going Up

Reason No. 1: China Is Buying
China continues to turn more to natural gas as a solution to the country's air pollution problem. It aims to triple the use of natural gas by 2020 to above 300 billion cubic meters from approximately 100 billion cubic meters now.

And it's moving quickly.

China only began importing LNG in 2006, but by the end of 2012 it had six LNG import terminals in operation. The total capacity of these terminals is 18.8 million tons of LNG.

Four of the terminals are run by CNOOC Ltd. (NYSE ADR: CEO) and two by the parent of PetroChina Co. Ltd. (NYSE ADR: PTR).

By the end of 2014, China will have another six LNG import terminals operational with another two under construction. Added capacity is expected to be about an extra 28.8 million tons.

In addition, its first floating LNG terminal is now operational.