Posted on 06/10/2013 9:48:36 AM PDT by thackney
...Already, a raft of global players have opened their wallets to invest in the early stages of the dozen or more planned Liquefied Natural Gas (LNG) export facilities, which chills methane gas to -260 degrees to move it as a liquid in ships. International owners include China Investment Corporation, BG Group from the United Kingdom, Government of Singapore Investment Corporation, Mitsui from Japan, Osaka Gas from Japan, Qatar Petroleum, RRJ Capital from Hong Kong and Singapore , RWE from Germany, Temasek from Singapore, and Tokyo Gas .
Midstream Master Limited Partnerships (MLPs) are the logical owners of LNG export facilities, an industry source told Mergermarket, and Cheniere, Kinder Morgan and Energy Transfer are already in LNG game. As the export projects move closer to fruition, and wheat gets separated from the chaff, Mergermarket has reported that international companies from Japan, Korea, India, or Europe, or global commodities trading houses could come in as late stage investors to ensure supply for themselves. That could set up a scenario where private and public US midstream companies could garner global backing, as has already happened with Cheniere.
But LNG is not the only area of US midstream attracting global attention, so too are Natural Gas Liquids (NGLs). Not to be confused with LNG, NGLs are as common as the propane you use for your barbecue, and also include propane’s cousins ethane, butane, isobutane and natural gasoline. Last fall, NGL production hit an all time peak of 2.5 million barrels per day in October, and it is expected to reach more than 3 million barrels per day by 2025, according to a recent Brookings Institute report. However, America only uses so much NGLs so surging production has meant a drop in NGL prices.
Ethane now is so cheap...
(Excerpt) Read more at forbes.com ...
Ship it all overseas so that we have higher prices here at home. We are so f—King stupid in Obummers aMeriKa.
There is increased demand here. But to believe we are somehow going to stay below world prices for any global fungible commodity is foolishness.
You don’t get the supply without investment of significant dollars. Those dollars won’t be invested in this country to pay below market prices for the product.
What company or stock would you invest in to make some money on LNG? The drillers? Equipment company, Pipeline terminals?
Stock advice is not my area. Understanding the industry is not the same as predicting the market.
Selling out the USA for $.
Yeah, having jobs and the associated business here in the US is so much worse than having the same companies invest in Australia and Qatar.
Some people are never happy. They hate imports and now they rail against exports. Sigh.
Too many don’t understand there are two curves to supply and demand versus pricing.
We won’t stay below market pricing and get the volume of supply for the long term.
As always, thanks for an interesting article.
There are some definite investing opportunities to be explored here. I’m already in some of the players but will be picking up more.
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