U.S. Natural Gas Market Evolves - Clean Energy Fuels and Cheniere Energy Poised to Benefit
February 23 2012 - 8:20AM
Marketwired
An abundance of available natural gas combined with muted domestic
demand has sent prices for the fuel down to record lows this year.
The U.S. Energy Information Administration projects shale gas
production to increase from 5.0 trillion cubic feet in 2010 to 13.6
trillion cubic feet in 2035. With prices near historic levels, U.S.
producers have started either idling wells or looking outward for
other sources of demand. Five Star Equities examines investing
opportunities in the natural gas market and provides equity
research on Clean Energy Fuels Corporation (NASDAQ: CLNE) and
Cheniere Energy, Inc. (NYSE Amex: LNG). Access to the full company
reports can be found at:
www.fivestarequities.com/CLNE
www.fivestarequities.com/LNG
According to an energy sector report from EIC Consult, the rise
in shale gas development has led to a number of Liquefied Natural
Gas (LNG) terminals being converted from import to export terminals
and LNG exports doubling between 2009 and 2011. By July 2011,
imports were down 44 percent year-on-year, according to Reuters,
with imports at the lowest monthly level since December 2002. At
the same time exports almost doubled from 33.355 Bcf (billion cubic
feet) in 2009 to 64.793 Bcf in 2010 -- a result of the
re-exportation of LNG imports.
EIC Consult argues that natural gas storage capacity is
increasing to accommodate shale output with many new storage
facilities entering construction, with resulting opportunities for
the supply chain.
Five Star Equities releases regular market updates on the
Natural Gas market so investors can stay ahead of the crowd and
make the best investment decisions to maximize their returns. Take
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EIC Consult warns, however, that the future of LNG remains
uncertain as "the market for US exports is far from secure" as
proposed export terminals are located on the East Coast lacking a
direct route to the more profitable Asian markets.
Earlier this month Fitch Ratings issued a report arguing that
the measured conversion of some U.S. liquefied natural gas (LNG)
terminals to allow the export of liquid natural gas as positive.
"However, currently favorable margins for U.S. LNG exports may not
be sustainable and could set up long-term risks for these
infrastructure projects," Fitch says.
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