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LNG stock news 2014: LNG stock prices are estimated to soar 118% compared to last year, bringing Cheniere Energy Inc. to the top of the investment list.
However, this might be only the start of the fireworks, especially if we refer to Cheniere, which is known as one of the largest liquefied natural gas-related energy company in Houston, Texas. Apparently, Morgan Stanley predicted an overgrowth in the LNG stock price this year, with over a 30% gain compared to its current price of $45.76. Morgan Stanley included in the financial forecast they released on Jan. 7, 2014 that Cheniere might get as much as $129 a share during this year.
However, Cheniere Energy Inc. is not the only energy company that continues to grow, as you know if you've read recent LNG stock news. That's why Money Morning Global Energy Strategist Dr. Kent Moors has called liquefied natural gas "one of the best investment opportunities of the decade."
A good question to ask ourselves at this time is: What is the LNG stock news pushing share prices higher? There are several factors that facilitate this sudden increase, and the primary one is Chinese contribution.
Bullish LNG Stock News Out of China
China is continually turning more to natural gas as a solution for air pollution in the country. It seems like China aims to triple the use of liquefied natural gas above 300 billion cubic meters by 2020, compared to the approximately 100 billion cubic meters from now.
Furthermore, China is rapidly moving on LNG. The country started to import LNG in 2006, and had more than six active LNG import terminals by the end of 2012, run by CNOOC Ltd. and PetroChina Co. Ltd. Consequently, the total capacity of these six terminals exceeded 18.8 million tons of liquefied natural gas. It is expected that China will come with another six terminals in 2014, summing up a total capacity of 28.8 million tons. What is more, the country has now a functional floating terminal.
Another major piece of LNG stock news is that share prices will rise as more major companies tap into shale gas. According to chief economist Christof Ruhl, shale gas is going to represent over 21% of global energy by 2035. Ruhl also forecasts that the United States will become the largest producer of liquefied natural gas in the world, accounting for more than 20% of the global economy.
The amount of natural gas is more than United States can actually consume, which is why the country is going to export a large part to other countries of the world, therefore resulting in increased LNG stocks prices.
The last reason, which is probably the most important, is the large number of customers on the waiting list to export LNG. Cheniere has five customers waiting to receive liquefied natural gas, and some of them are South Korea's Kogas and India's Gail. Many companies from all over the world received the approval to sell liquefied natural gas. More and more projects will receive the green light in 2014 from the Obama administration in order to commercialize liquefied natural gas, so LNG stocks are becoming world's most profitable opportunity fast. Look for more bullish LNG stock news this year.