Stocks of the US’ largest LNG producers rose in trading following the announcement of a framework trade agreement that will see the European Union buy $750bn of US LNG, crude oil, and coal exports over the next three years, Reuters reported on July 28.

Under the terms of the deal, announced on July 27 as part of President Donald Trump’s four-day trip to Scotland, Brussels will purchase $250bn of US LNG, crude oil, and coal exports annually for three years.

In return for the commitment to purchase US energy exports, Brussels will see a lower tariff level of 15% attached to most EU goods. Previously, Washington was threatening to impose a 30% tariff on most products coming from the bloc.

The news sent stocks of US LNG producers climbing for two consecutive days. At the end of trading on July 29, the US’s largest LNG producer Cheniere Energy saw its stock rise over 4% from its close on July 25 prior to the weekend announcement.

Similarly, the US’s second-largest LNG producer Venture Global saw a 7% rise after two days of trading following the news. Moreover, two other US LNG producers, namely Energy Transfer and NextDecade have also seen their stock climb since the announcement.

In 2024, the EU imported 35.13mn tonnes of the super-chilled fuel from the US at a price tag of $21.78bn.

Meanwhile, in total the 27-member state bloc imported 82.68mn tonnes of LNG in 2024.

The deal also comes at a time when Brussels finds itself squabbling with another key LNG supplier Qatar.

The Gulf state has threatened to halt LNG exports to Europe over a due diligence law on forced labour and environmental damage. Failure to comply with the law could result in QatarEnergy facing fines from Brussels of up to 5% of its global turnover.

Since 2022, Qatar has supplied between 12% and 14% of the EU’s LNG.