The natural gas market is experiencing a rise in prices. Analysts predict that they will reach a thirteen-year high by winter 2013. Consequently, the shares of company Cheniere (LNG) have risen in price substantially over the past few months. Is LNG worth buying now, despite its stretched valuation? Continue reading to learn more. In Houston, Texas, Cheniere Energy, Inc. is an infrastructure company engaged in liquefied gas-related business in the United States. The price of natural gas has increased by more than 50% this year, and is expected to increase further. Analysts predict that natural gas prices will reach a new high of 13 years this winter. The surging natural gas prices have driven LNG’s stock to a substantial gain over the past few months.

LNG shares have risen 46.2% year-to-date, closing its most recent trading session at $87.74. Wall Street analysts predict that the stock could soon hit $107.09 which would indicate a potential upside of 22.1% from the closing price.

According to Cheniere Energy CEO Jack Fusco, “as the economies began to ramp back up, and countries and companies worldwide decided natural gas was the fuel of choice for clean energy transmission, the demand has just skyrocketed.” He added that LNG has sold 90% of its production for the next 20 years. The company’s decreasing inventories may pose a significant challenge to its future growth. This, along with its stretched valuation, makes the stock’s near-term prospects uncertain.

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