Its True! LNG is the Way to Play Natural Gas ($COP $CQP)
We have posted a couple articles recently that discussed the upside associated with Liquid Natural Gas (LNG). It looks like others are beginning to agree, and we keep reading more and more about it. What are others saying? Let’s find out Keith Schaefer’s opinion.
“LNG is simply in high demand. and it’s not just the consequence of Fukushima,” Jon Skule Storheill, chief executive officer of Awilco LNG, toldReuters, referencing the nuclear disaster in Japan that has prompted the country to rely more heavily on LNG. “There’s Korea, there’s Taiwan, this market is just strong. Gas is clean, it’s available and it’s cheap.”
America, on the other hand, has only two export terminals. The terminal in Kenai, Alaska, which was built in the 1960s, was idled in November of last year. [At the time, ConocoPhillips'(COP) spokeswoman Natalie Lowman told The Associated Press the plant will be in preservation mode until spring 2012, at which time the company will re-examine the facility.]
The other is Cheniere Energy’s (CQP) Sabine Pass LNG Terminal, near the border of Texas and Louisiana. This station has 4 billion cubic feet per day of capacity.
Overall, the U.S. exported 0.2 bcf/d of LNG in 2011, according to the EIA-a total of 71.5 bcf. Australia almost does that in just one month. The U.S. sends most of its LNG exports to Brazil, China, Japan and South Korea.
So How Does the US Get In On the Global LNG Action?
The LNG market is growing, and its future looks bright.
Some industry analysts predict demand for LNG globally will increase 40% in the five-year period from 2010 to 2015. This would make the annual market for LNG roughly 300 million tons.
If you are interested in getting involved with some LNG stocks, there are a couple solid sprinkled in this article. Do some additional research on these, but if you like what you see, it can be worth it!
Quotes taken from report by Keith Schaefer, Read the entire article here.
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