Tuesday, September 23, 2014

Cheniere Energy: First To Profit From The Changing Energy Landscape

This article was originally published by Seeking Alpha on September 8, 2014

Summary: The global LNG demand is set to grow by an average of around 5% per year through 2030. Currently, Qatar is the biggest exporter of LNG but the energy landscape could significantly change in the next couple of years. In the U.S., Cheniere Energy is leading the change. 

The global demand for liquefied natural gas, or LNG, imports is expected to continue growing through 2030. Qatar has led the world with its LNG exports. Until last year, the country alone had a quarter of the world's total LNG capacity. The market dynamics, however, could significantly change over the coming years with the emergence of the United States, as well as other countries, as one of the biggest exporters.

Several companies in the U.S. have planned to capitalize on this trend, such as Exxon Mobil (NYSE:XOM), Sempra Energy (NYSE:SRE) and Dominion Resources (NYSE:D). However, Cheniere Energy (NYSEMKT:LNG), a pure-play on LNG exports, is significantly ahead of this crowd.

Global LNG Demand

The increasing demand for LNG is driven primarily by the energy hungry Asia-Pacific markets, whose natural gas imports consist of 80% LNG. Consequently, since the beginning of the current decade, the demand for LNG has grown by 7% per year, more than twice as fast as the growth in demand for natural gas. This growth was led by Japan and South Korea that consumed a majority of the LNG imports to Asia. However, new demand centers, particularly China and India, are also emerging …. Read full article at Seeking Alpha.