The Biggest Natural Gas Profit Play Today
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino and consumer goods editor/analyst Austin Smith discuss topics across the investing world.
In today's edition, Isaac and Austin shed light on the biggest natural gas story of the week. The Federal Energy Regulatory Commission opened the floodgates for natural gas exports when it granted approval to Cheniere Energy to start construction on its Louisiana-based terminal.
Cheniere, one of the first movers in North America, aims to start exporting in 2015 or 2016 when construction is completed. Foreign customers have rushed to place orders for the natural gas from this terminal due to the attractive prices that have recently plummeted to $2 per tcf. The announcement cements Cheniere's place as one of the comeback stories of 2012 and opens opportunities for similar projects by competing firms. In December, it was placed on Standard & Poor's Creditwatch due to the risk of default. As of Tuesday, however, the future looks much brighter.
The natural gas market could offer enormous profits for companies that can exploit this international price disparity, but the payoff could also be a few years down the road. If you are interested in more steady returns over the long haul, The Motley Fool has identified an attractive energy stock in its recent special free report, "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.
At the time this article was published Austin Smith and Isaac Pino have no positions in the stocks mentioned above. The Motley Fool owns shares of Westport Innovations.Motley Fool newsletter services recommendWestport Innovations. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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