Oil and gas stocks had a great year in 2021, and analysts expect the favorable energy market environment to continue in 2022. On Tuesday, Bank of America analyst Chase Mulvehill chose his five top stock picks for 2022 in the midstream oil and gas and MLP group.

Gas Exports: Mulvehill said the return of U.S. shale production growth will be a key midstream theme in 2022. While that growth will be driven largely by Permian (Western Texas) oil, Mulvehill said investors should focus more on derivative plays surrounding Permian associated gas.

Related Link: Analyst Downgrades Devon Energy, Marathon Oil; Names Top Oil And Gas Stocks For 2022

Mulvehill is anticipating a sharp rise in U.S. natural gas liquids (NGL) production in 2022, which will drive U.S. Gulf Coast fractionation (frac) utilization to near 100% by year's end.

"With the U.S. being a low-cost producer of natural gas, as well as pioneering the novel concept of responsibly sourced natural gas (RSG), we expect LNG exports to be one of the few secular growth opportunities for the US midstream sector," Mulvehill said.

Bank of America is projecting U.S. LNG export capacity will double over the next five years.

How To Play It: Mulvehill's top midstream and MLP stock picks for 2022 own assets across the entire NGL value chain, creating downstream optionality and providing upstream leverage to Permian NGL growth. Here are his five favorite midstream stocks to own in 2022:

• Enterprise Products Partners L.P. (NYSE:EPD)
• Energy Transfer (NYSE:ET)
• Targa Resources Corp (NYSE:TRGP)
• Williams Companies Inc (NYSE:WMB)
• Western Midstream Partners LP (NYSE:WES)
• Benzinga's Take: It’s understandable why investors are excited about alternative energy stocks and their long-term growth potential. However, the Energy Information Administration projects renewables will still account for far less than half the global energy supply by 2050.
• Related Link: 10 Best Performing S&P 500 Stocks Of 2021