natural gas futures

Natural Gas Stocks: Time to Pick the Next Winner in LNG Export Race

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There's a worldwide race heating up to supply the world with liquefied natural gas (LNG) and right now the U.S. lags far behind.

But that's about to change, with the U.S. expected to go from 0% of global LNG exports today to 9%-12% as early as 2020.

Investors should get ready because certain natural gas stocks will surge along with the exports.

So far, only Cheniere Energy Inc. (NYSE: LNG) is allowed to export LNG out of the U.S. to both free trade and non-free trade agreement (FTA) countries- it hopes to begin exporting in 2015.

And Cheniere's stock has been on a tear since earning that approval.

When the DOE announced the approval of LNG exports from Sabine Pass on May 20, 2011, Cheniere was trading at $7.69. The stock soared over 30% that day, finishing at $10.04, and today trades nearly 301% higher at $30.82.

Now, investors have another chance to profit from an LNG company.

Once again the catalyst will be approval from the DOE to export LNG to non-FTA countries.
And a non-FTA permit is the key with LNG exports.

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Natural Gas Prices Could Triple – And So Could Your Profits

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Natural gas prices are finally turning around, hitting multi-month highs - and piquing the interest of legendary investors who say the commodity has a lot higher to climb.

While most commodities are moving lower in price - some quite sharply - natural gas has soared in 2013.

The June natural gas futures contract on Monday settled at $4.392 per million BTU, putting it up 31% so far this year. This makes natural gas the top performer among the 24 commodities in the Standard & Poor's GSCI index.

Noted contrarian investor Jeremy Grantham of GMO Asset Management is among the natural gas bulls. He recently told a value investing conference in Toronto that investing in natural gas at today's low prices is a no-brainer.

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Why I'm So Bullish About Natural Gas

I just arrived in Texas yesterday for my latest round of oil meetings.

But my interest has moved in another direction.

Natural gas futures have closed at levels we haven't seen in quite some time, reaching $4.14 per 1,000 cubic feet on Thursday. As gas settles north of $4, that means the prospects for natural gas investors continue to improve.

In fact, there are a number of profitable ways to make money as prices continue to rise.

The Best Way to Invest in the Natural Gas Rebound

With natural gas prices inching up toward $4 per 1,000 cubic feet on the NYMEX futures market, let’s talk about how investors can make some money off this.
In fact, what’s happening now is just the beginning. My own estimate remains for an average price of about $4.35 come high summer, absent any unforeseen developments, with an increase to $4.85 to $5.15 by the end of 2014.
So, as the natural gas rebound continues, what opportunities should you target?
Here’s the winning strategy...

Five Reasons Why Natural Gas Prices Will Continue to Rise

Not long ago, the financial pundits were claiming that natural gas prices would remain around $3 per 1,000 cubic feet well into the foreseeable future.
But guess what? They couldn't have been more wrong.
Prices are creeping back up in a significant way. According to the EIA, last week Henry Hub prices increased from $3.57 per million British thermal units (MMBtu) to $3.72 per MMBtu. And today, all the conditions exist for much higher prices.
For investors that means there will be plenty of new opportunities developing now that just didn't exist six months ago.
Here's what you need to know.

Why This Chinese Company Is Investing in U.S. LNG

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A private energy company based in China is reportedly investing in the construction of a network of liquefied natural gas (LNG) fueling stations in the United States.

According to a Reuters report, ENN Group Co. Ltd. is teaming with a small U.S.-based company, and the partnership plans to open 50 to 60 LNG fueling stations this year. LNG stations cost an average about $1 million each to build, industry experts say.

ENN has already built a number of natural gas fueling stations in China, which is much further along in use of LNG for heavy trucks than the United States.

LNG's been promoted by investors such as T. Boone Pickens and natural gas producers including Chesapeake Energy Corp. (NYSE: CHK) as a cheaper, cleaner fuel for long-haul trucks.

Now more natural gas companies are teaming up to provide LNG, which means more investment opportunities for energy investors.

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Cheap Natural Gas Prices Give Hope to this U.S. Industry

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While natural gas prices are up 50% from their 2011 lows below $2 per 1,000 cubic feet (million BTUs), they're still cheap at just over $3.

Lower-priced natural gas has helped a number of industries, like chemicals and utilities, cut costs, as Money Morning Global Energy Strategist Dr. Kent Moors pointed out in his 2013 natural gas price outlook.

Now there's another U.S. industry that hopes cheap natural gas can revive its flagging performance.

I'm talking about steel.

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Five U.S. Natural Gas Companies Set to Soar from an Export Boom

A U.S. Energy Department study released Dec. 5 has intensified the debate on what America should do with its abundance of natural gas - which could lead to huge opportunities for natural gas companies.

You see, critics of exporting natural gas have argued that exporting the resource to global markets would hurt the U.S. economy by raising natural gas and oil prices.

But last week's NERA Economic Consulting study, done at the DOE's request, showed the United States would get a positive economic boost from exporting liquefied natural gas (LNG), even under all possible scenarios in which exports are envisioned.

"Across all these scenarios, the U.S. was projected to gain net economic benefits from allowing LNG exports. Moreover, for every one of the market scenarios examined, net economic benefits increased as the level of LNG exports increased," the study found. "In particular, scenarios with unlimited exports always had higher net economic benefits than corresponding cases with limited exports."

The study could increase the chances of the Energy Department approving permits for natural gas companies to build LNG export facilities. Only one company has ever been approved to build an LNG export terminal, and at least 15 more LNG export projects are waiting for the green light.

Here's why companies are vying for a piece of the LNG export market.

How LNG Leads to Profits

LNG is simply natural gas in liquid form, and when it is liquefied the cooling process actually reduces the space LNG occupies by more than 600 times.

That makes transporting LNG on tankers much easier than moving natural gas through pipelines. It also allows companies to sell natural gas overseas, where natural gas prices at $11.83/MMBTU are about 3.5 times higher than U.S prices at $3.4/MMBTU.

Money Morning Global Energy Strategist Dr. Kent Moors says the export of LNG from the U.S. to global markets "is the single most significant change in the energy market for the next several decades."

"American operating companies recognize the LNG market will provide a major outlet for surplus production," said Moors. "Last week while I was in Moscow, Russian natural gas giant Gazprom again gave an estimate. They now believe that the U.S. will account for 9-12% of the world's LNG flow before 2020 from 0% today."

Natural Gas Companies to Watch

Some U.S. natural gas companies are ahead of competitors in setting up LNG-export facilities.

Investors who want to profit from LNG exports should keep an eye on these:

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