Morgan Stanley has identified six equities it views as well placed to capture upside as global gas markets evolve. The bank emphasized firms with tangible infrastructure, protective contract structures and direct links to expanding liquefied natural gas volumes and broader natural gas demand.
The list covers a geographic spread from India to Thailand and North America. Morgan Stanley highlighted both midstream pipeline developers and downstream gas distributors, underscoring a theme of infrastructure-led exposure where long-term contractual cash flows or advantaged terminal positions limit direct commodity risk and provide leverage to improving supply dynamics.
1. Petronet LNG (PLNG.NS) - Overweight
Morgan Stanley views Petronet as strategically placed to benefit from changes in LNG flows into India. The bank notes that Indias LNG exports are projected to increase from about 26 million tons per annum to 45 million tons per annum by fiscal year 2030, and argues Petronets terminal infrastructure in key gas markets is not fully appreciated by investors. The firm acknowledges legitimate investor concerns over regulatory overhang and the potential for competition from underutilized or newly built terminals, but underscores upside from the Kochi terminal - which has endured multiple years of under 20% utilization - as utilization improves. Additional upside could come from the Kochi pipeline and an expanding southern India gas market.
In a related development cited by Morgan Stanley, Investec reiterated a Buy rating on Petronet LNG with a price target of INR400.00, while pointing to favorable global LNG supply conditions expected in 2026.
2. Gujarat Gas (GGAS.NS) - Overweight
Gujarat Gas was described as a levered beneficiary of cost deflation in gas markets. Morgan Stanley expects that a gas glut will make gas more competitive versus alternative fuels, enabling the company to regain market share in tile cluster areas. The bank projects a 7.8% compound annual growth rate in volumes over fiscal years 2026 to 2028, and models EBITDA at Rs5.7 per standard cubic meter. Morgan Stanley also highlighted the reverse merger, which will open access for Gujarat Gas shareholders to GSPCs gas trading operations, upstream exploration and production assets, wind generation and a gas-fired power plant.
3. Gulf Development (GULF.BK) - Overweight
For Thailand, Morgan Stanley identified Gulf Development as a critical enabler of the countrys power ecosystem. The integrated energy company holds a 7.8 million ton gas import quota and owns 14 gigawatts of gas-fired power capacity. The bank noted Gulf's roughly 200 megawatts of data center capacity currently under construction and a partnership with Google to commercialize AI cloud applications in Thailand. Morgan Stanley pointed to strong contractual cash flows as a driver for deleveraging and suggested that new gas trading activities could further expand return on equity.
4. Tohoku Electric Power (9506.T) - Overweight
Morgan Stanley argued that a decline in Japans LNG import prices could lower gas-fired power generation costs, potentially benefiting electric utilities. The bank highlighted that gas-fired generation accounted for 44% of Tohoku Electric Powers generation mix by power source in fiscal year 2025, a share above the national average of 33% cited in the analysis.
5. The Williams Companies (WMB.N) - Overweight
Williams was identified as a leading developer of pipeline infrastructure that supplies feedgas to U.S. LNG facilities. Morgan Stanley referenced Williams recent equity interest in Woodside Energys LNG liquefaction project in the Calcasieu Ship Channel in Louisiana. The firm emphasized the companys solid contractual protections supporting high-quality long-haul natural gas pipelines and noted that a largely fee-based gathering and processing portfolio limits direct commodity risk and reduces variability in cash flows.
6. TC Energy (TRP.N) - Overweight
TC Energy was cited as another principal beneficiary from the need for new pipeline infrastructure connected to expanding U.S. LNG facilities. Morgan Stanley described the company as on the verge of an inflection in natural gas infrastructure projects, noting C$5 billion of new projects announced in the prior 12 months and an additional C$9 billion expected over the next 12 months.
Across the six picks, Morgan Stanley emphasized assets and contracts that could help firms capture gains from improving LNG supply conditions and greater natural gas competitiveness, while mitigating direct exposure to commodity price swings through fee-based and contract-backed cash flows.
Investors considering exposure to these names should weigh infrastructure-led advantages alongside the company-specific considerations highlighted by Morgan Stanley, including terminal utilization, project pipelines and the mix of contracted versus commodity-sensitive revenues.