One Step Closer to Exporting Natural Gas

Dow Chemical and other chemicals companies have been leading the fight against exporting liquefied natural gas, or LNG, as they want to take advantage of constrained natural gas prices.

They are especially worried of the U.S. exporting to Asia where LNG prices are tied to the price of oil. This week, though, Japan announced that the country is planning futures contracts for LNG in an effort to unlink the price of LNG from oil. This should alleviate one of the big fears of opponents of exporting natural gas from the U.S.

In the below video Motley Fool contributor Dan Dzombak explains why and how this situation brings the U.S. closer to exporting natural gas.

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The article One Step Closer to Exporting Natural Gas originally appeared on Fool.com.

Dan Dzombakcan be found on Twitter @DanDzombakor on his Facebook page,DanDzombak. Heowns shares of Chesapeake Energy. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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