Don't Sell Cheniere Energy at Its All-Time High, Just Wait for It

This article  was originally published by TheStreet on July 1, 2014

By Sarfaraz A. Khan

NEW YORK (TheStreet) -- Cheniere Energy (LNG_) is on fire. In the last 24 hours, the company has announced two major contracts for its planned Corpus Christi liquefied natural gas, or LNG, export terminal. And more deals could be on their way.

Yesterday, Cheniere said that it signed a 20-year agreement with Australia's Woodside Petroleum (WOPEY_) to supply natural gas. Today, Cheniere said that it entered into another 20-year sale and purchase agreement with Indonesia's state-owned Pertamina to supply 760,000 tons per year of LNG.

China's Oil Majors Could Move to Acquire This Australian Energy Giant

The European oil major Royal Dutch Shell (NYSE:RDS.A) has recently revealed that it plans to sell nearly $15 billion of its assets as the company requires an additional $55 billion in the next two years for investment in some of its major projects. Although Shell did not specifically mention the kind of assets it could be selling, but it’s an open secret that the oil giant’s $6.4 billion stake in Woodside Petroleum (WOPEY) could be up for grabs. Shell holds a 23% stake in Woodside Petroleum, which is Australia's second biggest oil and gas producer, as Shell’s management no longer feels that Woodside Petroleum is aligned with its long-term growth strategy.

Shell seems to have two options:

1. It can sell its stake back to Woodside, or other institutional investors.

2. it could sell this to Chinese oil majors, such as the offshore giant CNOOC (NYSE:CEO) or China Petroleum and Chemical Corp. (NYSE:SNP), popularly known as Sinopec .... read full article at GuruFocus