Tag Archives: LNG

News, Politics, Government

Nigeria agency to allow LNG exports after $475 mln loss

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A Nigerian agency that has blockaded liquefied natural gas exports for three weeks, costing $475 million in revenue, agreed Friday to end its action after resolving a fees dispute, the company said.

Nigeria LNG Limited said it had decided under protest to pay $140 million in the dispute over levies claimed by the Nigerian Maritime Administration and Safety Agency, known by its acronym NIMASA.

That amount is in addition to an earlier $20 million paid under protest.

NLNG’s shareholders include Shell at 25.6 percent, state firm NNPC with 49 percent, Total LNG Nigeria at 15 percent and Eni at 10.4 percent.

“In addition, NLNG has agreed to pay, again under protest, the levies as they become due until a judicial ruling on whether these payments are justified can be obtained,” NLNG said in a statement.

The company maintains it is exempt from such levies under a law setting out conditions for Nigeria’s LNG industry.

The agency had continued to block shipments from the facility in southern Nigeria which provides some seven percent of global LNG supply despite court rulings ordering it to end the action, NLNG said.

A NIMASA spokesman did not return calls for comment.

Asked whether the agency would now lift the blockade, NLNG spokesman Kudo Eresia-Eke told AFP “that was what was agreed.”

“Owing to the NIMASA blockade which persisted in spite of court orders, the company has lost revenues of over 76 billion naira ($475 million), 65 percent of which belongs to the federal government, which has thus lost about 50 billion naira in dividends, taxes, etc.,” NLNG said in a statement.

According to NLNG, the blockade that began on June 21 also cut into cooking gas supplies in Nigeria because the facility produces liquefied petroleum gas as a byproduct.

According to local media reports, NIMASA has contracted with a security firm linked to a prominent ex-militant from the country’s oil-producing Niger Delta region. The security firm, Global West, was named in court documents seeking an end to the blockade.

Nigeria exported some 19.6 million metric tons of LNG in 2012, the fourth-largest output worldwide, according to data compiled by research firm IHS. Qatar was first with 74.2 million metric tons.

LNG, which sees natural gas super-cooled and transformed into liquid for transport on tankers, has represented around nine percent of global gas demand, according to figures from the International Energy Agency.

…read more

Source: FULL ARTICLE at Fox World News

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Forget Uncle Sam: Big Business Is Driving Our Green Future

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By Aimee Duffy and Tyler Crowe, The Motley Fool

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Though it may seem as if fans of LNG exports, the Keystone XL pipeline, or green energy have nothing in common, there’s one thing that brings these folks together: government inaction. Regardless of where you fall on the political spectrum, chances are you’re waiting for a decision to be made. For investors, that can be incredibly frustrating, given that these decisions can affect several companies, sectors, and future trends.

There are two areas of energy, however, that are surging ahead with or without government action: renewable power and energy efficiency. In this video, Fool.com contributor Aimee Duffy talks with Tyler Crowe to illustrate the point by examining Wal-Mart‘s efforts to cut energy waste and develop cleaner-burning fuels.

When it comes to dominating markets, it doesn’t get much better than Intel‘s position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer term if it doesn’t find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

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Source: FULL ARTICLE at DailyFinance

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Dominion Earnings: Is This Natural Gas Stock Headed Higher?

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By Justin Loiseau, The Motley Fool

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Dominion reported earnings last Thursday, underwhelming investors for Q1 2013. Stormy weather, service outages, and shrinking demand put a damper on its earnings, but a gas-centic strategy could keep Dominion pulling profits for years to come. Let’s see if this natural gas stock has what it takes to earn a place in your portfolio.

Number crunching
Dominion raked in $3.52 billion in revenue for Q1 2013, matching 2012’s first quarter but missing analyst estimates of 1.5% growth. 

The bottom-line numbers look slightly worse, with $0.83 EPS falling 2.4% below Mr. Market’s earnings expectations. These newest numbers are also $0.02 below Q1 2012’s earnings, and a full $0.10 below 2011’s first-quarter EPS.

For a peck of perspective, here’s how Dominion’s sales and EPS have held up over the past five years:

D EPS Diluted Annual data by YCharts

Since 2008, sales have fallen nearly 20%, while diluted EPS is down 83%. Southern, a slightly larger company, has seen sales drop 3% while diluted EPS headed 19% higher. PP&L , a slightly smaller utility than Dominion, has managed to boost revenue over 50%, but diluted EPS is just 5% above its 2008 level.

SO Revenue Annual data by YCharts.

Did Dominion just get dominated?
There’s no beating around the bush: Q1 was not nice to Dominion. One-time negatives like storm restoration costs and a delayed in-service date of a natural gas processing plant might not be long-term worries, but there are two key components that investors need to keep an eye on in the quarters to come.

First: falling sales. Although this is a common trend across all utilities, Dominion relies on regulated electricity sales for 50% of its revenue, a significant chunk of its profit pie. Regulated utilities offer some of the steadiest rates of return on the stock market, but overall sales still slump if customers use less energy. Ameren is currently cutting out its merchant generation business entirely, a move that could keep its profits in the pits if electricity use doesn’t pick up.

Keeping it natural
The second indicator of this natural gas stock‘s future is (of course) natural gas. Not only does the utility use natural gas for 17% of its generation capacity, but its Dominion Energy subsidiary is also busy making the most of midstream margins. Q1 EBIT clocked in at $301 million, well above Dominion’s estimated $255 million to $285 million range.

Dominion is a unique natural gas play, since the company is selling, transporting, and using natural gas. Its Blue Racer midstream joint venture offers a rare opportunity for vertical investment, potentially boosting sales as a result of pricier natural gas.

However, any longer-term price increase could have a negative effect on demand, reducing overall natural gas consumption. To globalize its price risk, Dominion is busy expanding its LNG export options, lobbying Congress, and creating 20-year agreements with Indian and Japanese corporations.

TECO Energy

Source: FULL ARTICLE at DailyFinance

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Peace in the South China Sea Is Vital for the Oil and Gas Industry

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By Matt DiLallo, The Motley Fool

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Regional geopolitical disputes are increasingly becoming international economic issues thanks to our global economy. At first glance, rising tensions in the South China Sea would appear to be no more than a fishing dispute. However, some see this situation as one surrounding supposed gas and oil reserves under the sea.

That, however, is in conflict with some reports that state that there are negligible reserves to be found in the disputed areas. Even if the potential energy reserves are what’s behind the current squabble, it probably won’t be something that’s solved anytime soon. That could mean future flare-ups that affect the energy industry beyond the resources that may or may not be under the sea. So as China, Vietnam, and others debate the territorial rights of two certain islands in the region, let’s look at how future incidents might have the potential to affect the global energy trade.

According to the Energy Information Administration, 15 million barrels of oil per day, or a third of all seaborne oil, traveled through this region in 2011. That puts it nearly on par with the higher-profile Strait of Hormuz, which is responsible for more than 17 million barrels per day. If this situation here were to boil over, it could have a significant impact on the flow of oil through the sea, given China‘s military might. 

As important as the region is for the oil trade, it’s also responsible for more than half of the global liquefied natural gas, or LNG, trade. With growing demand for natural gas in Asia, this dispute could become a big problem for LNG exports from places such as Africa and australia, while putting exports from North America at a competitive advantage. Take a look at the following map, and I’ll explain what I mean.

Source: Energy Information Administration.

In 2011, Africa shipped 0.3 trillion cubic feet, or Tcf, per day, while while australia shipped 0.9 Tcf. However, those numbers are probably headed much higher in the future. Energy companies are spending billions to develop new LNG export facilities designed to tap these highly profitable Asian markets.

For example, Anadarko Petroleum recently joined forces with Eni on a major LNG export facility in Mozambique. The project is designed to support Anadarko’s major natural gas find off the coast. The partners expect the project to begin exporting gas by 2018. While that’s a long way off, geopolitical disputes tend to be recurring themes.

Moving over to australia, ConocoPhillips is moving forward on a major LNG export facility. The company expects to begin exporting in mid-2015. Chevron is working to complete its own LNG projects with its Gorgon project, a joint venture with ExxonMobil and Royal Dutch Shell expected to come online in early 2015. Overall, a lot of gas will be flowing from Australia to Asia in the coming decades. 

If China were to use its military might to shut down shipping lanes, it could conceivably crimp the

From: http://www.dailyfinance.com/2013/04/14/peace-in-the-south-china-sea-is-vital-for-the-oil/

Business, Finance, Occupation & Industry

Is the United States on the Verge of Energy Independence?

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By Doug Ehrman, The Motley Fool

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While in many ways alternative energy remains in its infancy, continuing developments have put the U.S. in a better position relative to energy independence than seemed even thinkable a decade ago. The advent of hydraulic fracturing — known as fracking — has opened up a significant oil and gas supply that continues to lower the need to import resources from abroad. Similarly, advances in solar energy are making it an increasing viable solution, and positive guidance from the solar sector supports this belief. Finally, the U.S. is sitting on huge deposits of kerogen that could contain as much as 6 trillion barrels of oil if it could be extracted.

A case for liquefied natural gas
While thus far liquefied natural gas, or LNG, has remained impractical and unavailable in smaller, non-commercial vehicles, there has been an increasing push toward adopting this fuel for larger applications. Within the past month, Warren Buffett’s Berkshire Hathaway announced that it’s rolling out a pilot program to test the viability of using LNG to power locomotives at its BNSF Railway. The rail company is the second largest consumer of diesel in the country, using more fuel than any entity other than the U.S. Navy. If rail could effectively switch to LNG, the reduction in oil consumption would be dramatic.

This type of reduction would serve to continue a trend that has already begun. According to the U.S. Department of Energy, oil imports have fallen from a peak of 60% of consumption being supplied by foreign oil to 32%; furthermore, since total consumption has fallen, this means that the lower percentage is of an already smaller number. Similarly, according to a B of A Merrill Lynch estimate, where the U.S. spent $216 billion on natural gas in 2008, that number had fallen to $76 billion in 2012. A large factor for the decrease has been the explosion in supply from fracking operations.

Also aiding this effort is a push being made by Clean Energy Fuels to build enough LNG filling stations across the country to allow freight to traverse the U.S. in LNG-powered trucks. As the bulk of our goods still travels by truck, if these vehicles could be transitioned to LNG and away from diesel, consumption of foreign oil would fall even further. As the LNG trend continues, the position of the U.S. should continue to improve.

Solar flares
The second week of April saw solar companies explode to the upside, driven largely by bullish comments from First Solar about the company’s outlook for the rest of the year through 2015. The company also announced its acquisition of TetraSun under undisclosed financial terms. TetraSun brings expertise with silicon photovoltaic technology that’s been used by other leaders in the field. The acquisition should open up new avenues for First Solar and give the company the ability to improve overall efficiency.

On that front, Sun Power announced earlier this week that it was

From: http://www.dailyfinance.com/2013/04/13/is-the-united-states-on-the-verge-of-energy-indepe/

Business, Finance, Occupation & Industry

Another Reason the U.S. Should Export Natural Gas

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By Joel South and Taylor Muckerman, The Motley Fool

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Unconventional natural gas production has created a large surplus of the commodity in North America, dropping prices from $12 per MMBtu in the summer of 2008 to under $2 per MMBtu last summer. 

With international natural gas prices up to four times more expensive than domestic prices, significant profits can be had if the United States exports its surplus natural gas to these high-priced markets. However, opponents of exporting liquefied natural gas, or LNG, are quick to point out that cheap natural gas could be used to make the United States‘ manufacturing sector more competitive.

In the following video, Motley Fool energy analyst Joel South discusses a recent Energy Information Administration survey showing that U.S. manufacturing is increasing energy efficiency. With energy intensity dropping, is the country better off exporting the excess natural gas? A recent Deloitte study estimates the price increase due to exporting LNG would be insignificant, and since natural gas is a regionally priced commodity, the areas that would experience slight pricing pressure would be around shipping terminals, where gas is traditionally more inexpensive.

There are many different ways to play the energy sector, and The Motley Fool‘s analysts have uncovered an under-the-radar company that’s dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: “The Only Energy Stock You’ll Ever Need.” Don’t miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report — it’s totally free.

The article Another Reason the U.S. Should Export Natural Gas originally appeared on Fool.com.


Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Warren Buffett's Green Energy Profit

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By Doug Ehrman, The Motley Fool

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In a recent letter to shareholders, Warren Buffett wrote: “We will keep our foot to the floor and will almost certainly set still another record for capital expenditures in 2013. Opportunities abound in America.” The legendary investor was largely referring to Berkshire Hathaway‘s tradition of using profits to drive growth through the acquisition of additional assets or profitable businesses. Over the past few weeks, several environmentally friendly developments have had an impact on two of Buffett’s most critical businesses: Burlington Northern Santa Fe and MidAmerican Energy Holdings.

The railroad announced a pilot program that will investigate the use of natural-gas-powered locomotives, while energy efficiency improvements are expected to outpace organic rises in demand. BNSF is the second-largest consumer of diesel fuel in the U.S., second only to the Navy, meaning that the potential cost savings are significant. On the electricity side, weakening demand means that the company can target its own efficiency for growth and respond to actual customer needs.

The potential of LNG
To stress the importance of shifting locomotives from diesel to liquefied natural gas, or LNG: In 2012 the average price for a gallon of fuel was $3.97 relative to less than $0.50 for a comparable quantity of LNG. The cost of converting a single engine to use LNG is estimated at $1 million dollar, although the company hopes to achieve some economies of scale when it looks to convert the bulk of its 6900 locomotives. The upfront cost of such an undertaking is significant, but the ultimate savings potential is dramatic.

Companies like Clean Energy are already working hard to make LNG available across the U.S. for a number of consumer and industrial uses. In a recent press release, the company estimated that LNG reduces greenhouse gas emission between 23% and 30%, depending on vehicle type; the U.S. Department of Energy, or DOE, estimates that as much as 98% of LNG consumption is sourced in North America. The overall stability offered by LNG is significant.

The electrical shakeup
PacifiCorp’s Rocky Mountain Power projects a 0.6% decline in energy demand this year. Power companies including American Electric Power and Xcel Energy have seen similar pressure on sales as a result of efficiency improvements to everything from appliances to light bulbs. Xcel, which carries a dividend yield of 3.6%, recently touched a new 52-week high; despite the sales pressure, the stock has been strong. American Electric is behaving similarly and showing few signs of slowing. The DOE expects only a 0.4% increase in electricity usage for the year, also driven by improving efficiency. These types of improvements are behind the expectation for MidAmerican that capital spending will end up being $2.4 billion less by 2021 than had been expected.

The combined impact
Last year, these two businesses accounted for $9.8 billion of capital spending by Berkshire, making them the two largest uses of capital in Buffett’s empire. Where PacifiCorp is expected to slow …read more

Source: FULL ARTICLE at DailyFinance

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Foster Wheeler Awarded Contract for Two Shop-Assembled Steam Generators in Ireland

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By Business Wirevia The Motley Fool

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Foster Wheeler Awarded Contract for Two Shop-Assembled Steam Generators in Ireland

ZUG, Switzerland–(BUSINESS WIRE)– Foster Wheeler AG (NAS: FWLT) announced today that a subsidiary of its Global Power Group has been awarded a contract by Aughinish Alumina Refinery for the design and supply of two shop-assembled steam generators located at the alumina plant facility at Aughinish Island (Askeaton, Ireland). Aughinish Alumina Refinery is a part of UC RUSAL.

Foster Wheeler has received a full notice to proceed on this contract. The terms of the agreement were not disclosed and the contract value will be included in the company’s first quarter 2013 bookings. Delivery of the new steam generators is scheduled for early 2014.

Foster Wheeler will design and supply the package steam generators including auxiliary equipment and technical advisory services for the project, which will be designed to burn natural gas while meeting applicable environmental regulatory requirements. The two steam generators will be designed to generate a total of 300 tons per hour of reliable, high-pressure superheated steam which will be fed to the plant´s process steam system.

“These new units represent a significant replacement upgrade of the existing oil-fired boilers supplied by Foster Wheeler more than three decades ago,” said Gary Nedelka, Chief Executive Officer of Foster Wheeler‘s Global Power Group. “We are happy that Aughinish Alumina Refinery has chosen Foster Wheeler once again to supply the product they need to meet their long-term strategic needs.”

Foster Wheeler AG is a global engineering and construction company and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 13,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, mining and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company’s Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Reading, United Kingdom. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.

Aughinish Alumina is among the most technologically advanced and energy efficient of such facilities globally. It has the capacity to produce nearly two million metric tonnes of …read more

Source: FULL ARTICLE at DailyFinance

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3 Reasons to Buy Lockheed Martin Stock

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By Aimee Duffy, The Motley Fool

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It’s no surprise that defense contractors like Lockheed Martin are desperately trying to diversify their business mix. The government is a big customer, but in this age of belt tightening, Lockheed needs to branch out if it wants to survive. The company is doing just that, pursuing a variety of projects outside the realm of government contracts. Today I’ll take a look at three of Lockheed’s diversification efforts. Each project serves as an important step forward, and together they provide three reasons investors should consider buying Lockheed Martin stock.

1. LNG tanks
In March, Lockheed announced it was making a $3 million capital investment to develop liquefied natural gas tanks for transportation and storage. The company is using its experience manufacturing tanks for space shuttles to get into the LNG business. The increasing importance of natural gas on a global scale makes this a smart investment for Lockheed. The company has already received initial orders for the tanks, and it expects demand to grow.

Indeed, companies like Chevron and Cheniere Energy are both quickly working to finish LNG export facilities in the next two years. At the beginning of this year, the industry was capable of producing 290 million tons per year, and some estimates for LNG see supplies rising 4.5% per year through to 2030.

2. Fusion
Nuclear fusion is an ambitious goal if there ever was one, but that’s exactly what the company is working on at its secretive Skunk Works facility in California. Few specific details are known about the project, but as The New York Times reported last month, the company is aiming to develop small, modular fusion reactors that could be made in factories. If — and this is obviously a big “if” — Lockheed were to reach its goal the development would be nothing short of game-changing.

3. Perforene
The third reason to consider picking up some Lockheed Martin stock is a product called Perforene. It is a thin carbon membrane, called graphene, with perforations about a nanometer big that filters salt from water. The thinness of the filter (it is only one-atom thick) means the energy required to push salt water through the filter is considerably less — 100 times less, according to Lockheed — than what is needed for other filtration systems.

The filter is still in its development phase, but Lockheed expects to be able to commercialize it by 2014 or 2015. It would slash the cost of filtering water at a time when world demand for clean water is reaching unprecedented levels.

Foolish takeaway
Tackling the world’s energy problems with forward-thinking ideas is a brilliant strategy for diversifying a business away from government defense contracts. We will always need energy, and increasingly there is money to be made by whoever can develop cleaner energy, or find ways to use less of it. Lockheed is targeting those problems and I think it will pay off down …read more

Source: FULL ARTICLE at DailyFinance

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PAA Natural Gas Storage Completes Successful Pine Prairie Open Season

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By Business Wirevia The Motley Fool

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PAA Natural Gas Storage Completes Successful Pine Prairie Open Season

HOUSTON–(BUSINESS WIRE)– PAA Natural Gas Storage, L.P. (NYSE: PNG) today announced the successful completion of a non-binding open season for firm storage capacity at its Pine Prairie Energy Center facility. In response to the open season announcement that requested bids for firm storage capacity with a starting date of April 1st during 2015, 2016 or 2017, Pine Prairie received non-binding bids for an aggregate of 12.5 Bcf of firm storage capacity. The bids were from a diverse set of customers, highlighting the facility’s appeal across geographies and customer classes.

Located in south Louisiana, the Pine Prairie Energy Center is one of the largest salt dome gas storage facilities in the United States. Pine Prairie is a high-deliverability facility with the authorization and capability to receive and inject up to 2.4 Bcf per day and to withdraw and deliver up to 3.2 Bcf per day. Pine Prairie is directly connected to eight large-diameter interstate pipelines and provides storage and balancing services to customers from the Northeast, Midwest, Southeast and the Gulf Coast. Pine Prairie‘s interconnectivity allows customers access to major supply basins throughout the United States, and the facility’s significant deliverability and proximity to major existing and developing demand centers along the Gulf Coast positions it to provide critical balancing services to a variety of end use customers, including electric power generators, the growing petrochemical market and major LNG exporters.

PAA Natural Gas Storage is a publicly traded master limited partnership engaged in the development, acquisition, operation and commercial management of natural gas storage facilities. The Partnership currently owns and operates three natural gas storage facilities located in Louisiana, Mississippi and Michigan. The Partnership’s general partner, as well as the majority of the Partnership’s limited partner interests, is owned by Plains All American Pipeline, L.P. (NYS: PAA) . PNG is headquartered in Houston, Texas.

PAA Natural Gas Storage, L.P.
Investors:
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or
Media:
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KEYWORDS:   United States  North America  Canada  Louisiana  Texas

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The article PAA Natural Gas Storage Completes Successful Pine Prairie Open Season originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that …read more

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Why Global Oil Demand Could Soon Peak

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By Arjun Sreekumar, The Motley Fool

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Citigroup stoked a major debate when it argued earlier this year that America would become energy independent by 2020. Now the bank is out with another bold new call. In a research paper titled “Global Oil Demand Growth — The End Is Nigh,” Citigroup argues that global oil demand is “approaching a tipping point.”

The bank suggests there are two factors underpinning this expected trend. Let’s take a closer look at both of them, as well as the shocking conclusion Citi draws about the future of oil prices.

Shift toward natural gas
The first factor is a transition away from oil and toward natural gas as a fuel source. The shale gas revolution has already provided American consumers and companies with cheap and abundant supplies of the clean-burning fuel. It has even ushered in a so-called “renaissance” for domestic manufacturers, including chemical manufacturer Dow Chemical and steelmaker Nucor, which have moved or are planning to move plants that were previously relocated abroad back to the United States.

In addition, several U.S. truck manufacturers are capitalizing on cheap natural gas by equipping new vehicles to run on nat gas instead of diesel. For instance, Navistar reckons that over the next two years, a third of all its new trucks will be powered by natural gas instead of diesel.

Natural gas engine manufacturers such as Cummins and Westport Innovations will play a major role in driving this shift. In February, the two companies said their joint venture, Cummins Westport, is providing engines for two of the biggest natural gas transit fleet orders ever filled in North America.  

Both see massive potential in the North American long-haul trucking market, especially as companies such as Clean Energy Fuels develop the natural gas refueling infrastructure necessary to support the transition toward gas-powered vehicles. Having already built dozens of new LNG truck fueling stations, Clean Energy plans on completing an additional 70 to 80 LNG fueling stations adjacent to long-haul trucking routes and key warehouse distribution centers across North America.

If the price of natural gas remains cheap compared with diesel, projects such as these should continue to flourish.

Improving fuel economy
The second major factor that points to a peak in global oil demand, according to Citigroup, is improving fuel efficiency among new vehicles. According to Citi’s estimates, fuel efficiency among new cars and trucks is improving at an annual rate of 3%-4% and 1%-2%, respectively. Combining the two, the bank suggests new vehicles’ fuel economy is improving by around 2.5% every year — an estimate it deems conservative.  

Since the U.S. passed the Energy Independence and Security Act of 2007, which enforced higher Corporate Average Fuel Economy standards, vehicle fuel efficiency has improved drastically. The trend also appears to be catching on in other parts of the world, with the European Union, Japan, and Canada having passed similar mandates.

Though Citi …read more

Source: FULL ARTICLE at DailyFinance

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Is America Losing the Natural Gas Export Game?

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By Tyler Crowe and Aimee Duffy, The Motley Fool

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U.S. policymakers have dragged their feet on a definitive answer for liquefied natural gas, or LNG, exports for quite a while, and several countries are taking advantage of the delay. With over $150 billion at stake, companies in Australia, Canada, and Papua New Guinea have made a strong push to build out LNG export terminals to capture the lucrative Asia-Pacific market.

In this video, Fool.com contributor Tyler Crowe explains how the concentration of possible LNG export facilities along the U.S. Gulf Coast will not help the country capture this market, and how there are several companies that are betting on better success on other shores. Investors shouldn’t completely fret, though, because many American companies are the ones setting up shop overseas.

The growing production of natural gas from hydraulic fracturing and horizontal drilling is flooding the North American market and resulting in record-low prices for natural gas. Enterprise Products Partners, with its superior integrated asset base, can profit from the massive bottlenecks in takeaway capacity by taking on large-scale projects. To help investors decide whether Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool’s brand new premium research report on the company.

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Source: FULL ARTICLE at DailyFinance

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One Step Closer to Exporting Natural Gas

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By Dan Dzombak, The Motley Fool

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Dow Chemical 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.

Only time will tell what will happen with exports in the U.S. natural gas market. No matter what happens, it’s easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and one that investors should commit to memory due to its sheer size – it’s the third-largest energy company in the U.S. – not to mention its enormous potential for profits. In The Motley Fool‘s premium research report on Kinder Morgan, we break down the company’s growing opportunity – as well as the risks to watch out for – in order to uncover whether it’s a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor’s resource.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

3 Winners for Energy Exports

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By Aimee Duffy and Tyler Crowe, The Motley Fool

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At this point, many energy investors know that Cheniere Energy is poised to become the first U.S. company to export liquefied natural gas, or LNG, in significant quantities. Investing in energy exports is a smart move; however, LNG exports won’t become a reality until 2015, while the U.S. is already a net exporter of petroleum products. In this video, Fool.com contributor Aimee Duffy explains why investors should focus on companies that are already making money in the export game, including one company that is behind a whopping 25% of America’s energy exports, and two other companies that are flying under the radar.

Enterprise Products Partners is known best for its processing and fractionating footprint, but this midstream is poised to ramp up exports in 2013. To help investors decide whether Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool’s brand-new premium research report on the company.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Shivering Britain Underlines Opportunities for Centrica and BG Group

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By Tony Reading, The Motley Fool

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LONDON — It only took a few days of marginally unseasonable weather and some technical problems with the interconnector that pipes gas from the Continent to bring Britain close to energy rationing last month.

Gas stores were down to just two days supply and an LNG (liquefied natural gas) tanker was diverted here to avert the kind of rationing seen in third world countries.

It highlighted the U.K.’s poor gas storage facilities. But it should put some impetus behind the government‘s new “Gas Generation Strategy“.

Higher prices, more investment
It could be good news for investors, if not consumers. Higher gas prices and more investment into the sector should benefit both Centrica  and BG .

Though best known for its downstream British Gas business, Centrica is the largest investor in the Cygnus gas field in the North Sea, which is due to come on-stream in 2015.

Centrica claims that its involvement in upstream activities just hedges its downstream exposure to gas prices, but most observers would reckon high gas prices are good for the company.

Storage and generation
Centrica also has substantial gas storage and gas-powered electricity generation capacity, though it’s been closing down generating plant as its ageing fleet falls foul of the government‘s green agenda.

That’s where the Gas Generation Strategy comes in. It will “consider whether there is a case for measures to encourage gas storage”. Last month’s near-miss seals that question. The strategy should ensure that there are “opportunities for investors in gas generation plant”. That should help Centrica build new more efficient plants.

What might put some action into these words is the recent appointment of Michael Fallon as Energy Minister, while retaining a dual brief as Business Minster. He is expected to put more emphasis on securing low-cost energy supplies.

Coals to Newcastle
The diversion of the tanker Zarga to Milford Haven last month illustrates the global economics of LNG. Carrying enough gas from Qatar to provide six hours’ U.K. consumption, the tanker goes wherever the price is highest. The U.K. is building more LNG import terminals — and both Centrica and BG are cashing in on the global LNG market.

BG was one of the first companies to sign a long-term LNG supply deal in the U.S., where the shale gas glut has seen LNG import terminals reconfigured as export terminals. Centrica has just signed a 20-year deal with the same exporter.

BG‘s LNG business, a third of revenues, adds stability to the big bet it’s placing on its Brazilian offshore projects. It has just signed a 20-year contract to supply India with up to $20bn-worth of gas.

Gas is a sector with a healthy outlook and I have shares in both these companies. But any portfolio should be well diversified, and have a core of solid and dependable blue-chip shares that you can buy and forget about. The Motley Fool has picked the five best shares that fit this bill.

You can read all about them in this brand-new report. Just click …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Debate Over U.S. LNG Exports Heats Up

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By Arjun Sreekumar, The Motley Fool

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The debate over whether or not the U.S. should export its glut of natural gas – in a liquefied form known as LNG – is heating up.

The main beneficiaries would be the companies exporting LNG abroad, as well as U.S. natural gas producers. So far, only Cheniere Energy‘s Sabine Pass terminal has been green-lighted to ship LNG to countries that don’t have a free trade agreement with the U.S. But many more companies are restlessly vying for permits.

The main losers would include various manufacturing firms, especially those whose operations are highly energy intensive. Over the past couple of years, America’s shale gas boom has spurred a domestic “manufacturing renaissance,” as U.S. companies including chemical manufacturers and steelmakers have reaped the rewards of cheap and plentiful natural gas.

The argument against LNG exports
According to America’s Energy Advantage, an industry group supported by major industrial firms such as Dow Chemical , Huntsman , and Alcoa, allowing large-scale LNG exports from the U.S. would almost inevitably drive up the price of domestic natural gas and threaten to erode the competitive advantage U.S. manufactures have recently developed on the back of cheap natural gas.  

Higher gas prices, the group argues, could lead to a substantial loss of jobs, as well as reduced investment, in the U.S. manufacturing sector.  

Huntsman chemicals’ CEO Peter Huntsman suggests that if all the proposed export projects were green-lighted, it would cause the price of domestic natural gas to “skyrocket.” And Dow’s George Blitz argues that fears of a future spike in U.S. gas prices could seriously threaten the roughly $100 billion of new investment the company calculates has been planned to capitalize on cheap and plentiful domestic natural gas.  

America’s Energy Advantage is instead advocating a “balanced” approach, suggesting that only a few more companies should be approved to export U.S. natural gas to countries that don’t have free trade agreements with the U.S.  

The argument in favor of LNG exports
On the other hand, the Center for LNG – an industry group advocating unfettered LNG exports – and foreign countries eager to secure new supplies of relatively cheap U.S. natural gas are up in arms about the idea of restricting LNG exports from the U.S.

The Center for LNG argues that limiting gas exports would amount to unwarranted interference in energy markets, while some foreign countries are desperate for any chance to improve their energy situations.  

Japan, in particular, continues to be plagued by high fuel import costs, which have worsened markedly following the yen’s recent decline. The Japanese currently pay nearly $17 per MMBtu for imported natural gas, a little over four times the price of gas in the U.S.

Yes or no to LNG exports?
To date, 21 applications requesting LNG export licenses have been filed with the Department of Energy (DOE). If all of them were approved, it would amount to exports totaling 28.3 billion cubic feet of gas per day …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Big Oil Wants to Develop Its Own Maritime Fleet

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By Taylor Muckerman and Joel South, The Motley Fool

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Due to the costs of gathering natural gas from the ocean‘s depths and transporting it to processing centers on land, big oil companies are starting to develop facilities that will perform these actions out at sea. Royal Dutch Shell was the first to announce that it had begun construction back in October 2012, but its larger rival ExxonMobil is not to be outdone.

Partnering with Exxon will be BHP Billiton . Together, these two companies hope to begin processing millions of tons of liquids, LNG, and condensate by 2020 at the earliest. With that long time horizon, both companies are hoping that such a large investment will still be worth it.

Could this be bad news for pipeline companies with an offshore presence?
The growing production of natural gas from hydraulic fracturing and horizontal drilling is flooding the North American market and resulting in record low prices for natural gas. Enterprise Products Partners, with its superior integrated asset base, can profit from the massive bottlenecks in takeaway capacity by taking on large-scale projects. To help investors decide whether Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool’s brand new premium research report on the company.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

ExxonMobil Wins Either Way With Natural Gas Exports

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By Tyler Crowe, The Motley Fool

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The funny thing about the natural gas export debate is that both sides are claiming the exact same thing — that they will help create more American jobs and bring down the trade deficit through more exports. So how can we tell which side offers the better argument? Dow Chemical and ExxonMobil , have been two of the most vocal advocates on opposite sides of the debate, and have recently taken a couple of shots across each others’ bows.

What makes this story even more interesting, though, is that ExxonMobil is poised to do well no matter what side wins this debate. Let’s take a look at why these two sides of the argument are claiming the same benefits for the U.S. and how ExxonMobil could come out on top no matter what.

The debate
Thanks to the recent surge in natural gas production, many have debated the merit of exporting liquified natural gas, or LNG. Certainly a market opportunity exists, but is this market opportunity in the best interests of the nation? On the side for exporting LNG is ExxonMobil, which claims that it would spur an even further increase in natural gas production, and in turn create more jobs and lower the country’s trade deficit. Exxon isn’t the only one on this side of the debate, either. Over 17 different sites in the U.S. have been identified as potential locations for LNG export, and 10 of them have gone to the Federal Energy Regualtory Commission for an export license.

As of right now, Cheniere Energy has the only approved license to export to countries that are not members of a free trade agreement. The license allows them to export at a rate of about 2 billion cubic feet per day, or about 3% of the total current U.S. production. While it is difficult to determine how much production would increase if more of these proposed facilities were to come online, certainly we can assume that the percentage of production going to exports would increase significantly.

On the other side of the coin, we have a large base of manufacturers in the U.S. that claim by not exporting natural gas, we would be able to use this advantaged feedstock to power the manufacturing industry in the U.S. This would in turn create American jobs and decrease our trade deficit by exporting finished goods.

Dow Chemical is one of the first companies that comes to mind on this side of the debate because chemical manufacturing has seen some of the most immediate effect from cheap natural gas as a chemical feedstock. Other sectors that also see major advantages from not exporting natural gas are energy intensive endeavors like power generation and aluminum and steel manufacturing.

Atlantic Power generates almost 66% of its power exclusively from natural gas, and the cheaper cost of generating power could potentially inspire power hungry industries to consider the U.S. Also, steelmaker Nucor has plans to resurrect one of its steel mills in Louisiana …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Foster Wheeler Awarded SNG Studies by Pecket Energy in Chile

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By Business Wirevia The Motley Fool

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Foster Wheeler Awarded SNG Studies by Pecket Energy in Chile

ZUG, Switzerland–(BUSINESS WIRE)– Foster Wheeler AG (NAS: FWLT) announced today that a subsidiary of our Global Engineering and Construction Group has been awarded a contract by Pecket Energy to perform feasibility, conceptual and basic engineering studies, and develop an overall investment cost estimate for a substitute natural gas (SNG) production facility which is planned to be built near Punta Arenas, Chile.

The value of the award was not disclosed and will be included in Foster Wheeler‘s first-quarter 2013 bookings.

The main objective of the project is to produce syngas that will be used as a clean feedstock for the production of SNG, which gas is intended to be distributed to the existing grid in the region of Magallanes, Chile for domestic consumption or for industrial purposes.

The new facility intends to include several state-of-the-art units, including air separation, partial oxidation for syngas production, syngas treatment, acid gas removal, methanation and solid sulfur production. Foster Wheeler‘s scope of work is expected to be completed by mid-2013.

Pecket Energy is a Chilean company focused on coal-based energy business development. Pecket Energy belongs to ICV, a Chilean company which has been active in mining and infrastructure developments in Chile for more than 50 years.

Foster Wheeler AG is a global engineering and construction company and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 13,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, mining and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company’s Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Reading, United Kingdom. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.


Safe Harbor Statement

Foster Wheeler AG news releases may contain forward-looking …read more
Source: FULL ARTICLE at DailyFinance