1 Easy Way to Ride the LNG Boomhttp://www.fool.com/investing/general/2014/07/23/1-easy-way-to-ride-the-lng-boom.aspx Joshua Bondy
July 23, 2014
LNG shippers are an easy way to participate in the global rush for flexible and emission-lite energy. Now that China is trying to move away from coal, LNG is an even more attractive fuel. Teekay LNG Partners (NYSE: TGP) is a great company to check out with its stable and diversified growth.
The new Arctic game
The LNG vessel market is expected to be oversupplied in 2014 and 2015, but nine of the new vessels Teekay LNG will receive between 2014 and 2016 five have already been contracted to Cheniere Energy and Statoil.
Towards the end of this decade things are expected to improve. In 2017 Yamal's first LNG train is expected to start-up while the market for LNG vessels falls into a deficit. The good news is that the majority of Teekay's LNG and LPG vessels are on long-term contracts that are expected to expire in 2020 or later, leaving limited exposure to short-term issues.
Not all LNG shippers are the same
It also has a number of older vessels. Golar LNG Limited is considering converting three of its older vessels into floating storage and regasification (FSRU) unit. The company needs