LNG Trouble Down Under

Australia has its sights set on a lofty goal: to be the world's top natural gas exporter. According to Royal Dutch Shell (NYSE: RDS-A  ) CEO Peter Voser, though, there are some big problems getting in the way. With LNG export facilities running over budget and past due dates, the country's shot at establishing a first-mover status may be at risk from other new countries looking to supply the Asia-Pacific market.

Why should we listen to Shell on Australian LNG? The company has over $30 billion tied up in four separate LNG export facilities down under. In this video, Fool.com contributors Tyler Crowe and Aimee Duffy take a look at why Australia wants to get these facilities up and running quickly, and discuss some other players in the Asia-Pacific market to look out for.

With domestic natural gas production growing faster than consumption, the United States is expected to become a net exporter of natural gas by the end of the decade. Cheniere Energy will become the first LNG exporter approved to ship to high-margin countries that are not members of a free trade agreement. With natural gas prices expected to rest in the $4-$5 range per MMbtu, Cheniere is primed for solid gains once the initial LNG trains start chugging in the first half of 2015. Don't wait until then – this 2013 darling continues to outperform the broad markets. Be sure to read all the details in this premium research report

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  • Report this Comment On June 02, 2013, at 12:09 PM, shirtbrigade wrote:

    IOC is the play, IMO. Closer to the target market, half the cost, Exxon about to close a deal with them (its in the news). No one will be able to touch their margins and cost metrics. Exxon has the edge. Royal Dutch Shell rumored to be stalking to make a buyout offer when Exxon and IOC announce their final deal.

  • Report this Comment On June 02, 2013, at 12:09 PM, shirtbrigade wrote:

    and recent very large insider buys in IOC signals the timing plus the press releases

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