Dow Chemical (NYSE: DOW ) 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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