Natural gas has been a reliable source of energy since the mid-19th century and currently makes up around 26% of Australia's annual electricity production1.
Australia is also one of the world's largest liquid natural gas producers (LNG).
Gas has also become a widely-traded commodity due to its abundance and usage.
There are 4 main ways to invest in gas in Australia:
Gas ETFs are one of the easiest ways to get exposure to the natural gas sector.
Exchange-traded funds (ETFs) are traded like regular stocks, but track the performance of a basket of stocks or assets instead of a single company.
You can invest in gas ETFs by creating an account with a share trading platform.
There are no longer any gas-specific ETFs on the ASX, but there are several ETFs that track the performance of energy companies, including gas companies.
Here are some of the top ASX gas-related ETFs based on performance over the last 5 years2:
Another popular way to invest in the gas industry is by buying shares in publicly-traded gas companies.
While gas companies may benefit from increasing gas prices, their stock price will be influenced by a variety of other factors including the company performance, the wider economic situation and general stock market trends and volatility.
In order to buy gas stocks, you'll need to sign up with a share trading platform.
This is a list of the 5 best-performing gas stocks on the ASX based on performance over the last 12 months:
This data is based on gas companies with the best 12-month return and a market capitalisation of more than $30 million (last updated 11 October 2024).3
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Futures trading is a form of investing that lets you speculate on the future price of a certain asset, such as gas.
When you buy a gas futures contract, you're betting on either the price of gas going up or down over a certain period of time.
In Australia, one of the most common methods for trading gas and other commodity futures is through CFD brokers.
When trading gas CFDs, you don't actually own the underlying asset, but can potentially make money if you can correctly predict where the price of gas goes.
However, it's worth keeping in mind that futures trading (and specifically CFD trading) is an advanced form of investing and only suited to experienced traders.
Some of the most commonly traded gas-related commodities in the futures markets include liquid natural gas, low sulphur gasoline and regular gasoline.
Trading CFDs and forex on leverage is high-risk and you could lose more than your initial investment. It may not be suitable for every investor. Refer to the provider’s PDS and consider the risks before trading.
Another way to invest in gas is by buying stocks in Master Limited Partnerships (MLPs). MLPs are a type of company that generally operate in the natural resources sector.
MLPs are structured to offer certain tax advantages that mean profits are only taxed when they are distributed to the general and limited partners of a company.
This type of set-up is appealing to some investors, as MLP returns are not taxed in the same way as dividend-paying shares.
MLPs also tend to be seen as a lower risk, but longer term, investment option.
There are some risks that come with MLPs however, including demand, market volatility and the fluctuation of prices, as well as new legislation, environmental disasters/hazards and political and social shifts.
The world relies on gas for energy, and its abundance makes it a quite a reliable commodity on the stock market.
However, the market is never completely safe, and gas is no exception:
Investors looking to build wealth can do so through a joint share trading account. But it comes with risks. Here's what you need to know.
Reporting season is a 2-week or so period where investors can see the results for a large number of publicly traded companies.
Risks and performance indicators to consider before you buy into a SPAC.
Get the lowdown on Canada's largest stock exchange and find out how you can make trades with the TSX.
Check back each week to find an updated list of the most shorted stocks on the Australian Stock Exchange (ASX).
Want to invest in a managed fund? Here’s how you can trade units in managed funds through an online share trading platform.
Learn what an initial public offering (IPO) is, how an IPO works and the advantages and risks of IPOs.
Here’s how to buy shares in major tech companies listed in New York.
If you are looking to transfer your shares into another trading platform, follow these few steps.
Learn the ins and outs of share trading so that you can start investing in the sharemarket to build a secure financial future.