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Cheniere Energy (LNG) +4.7% premarket following a Reuters report that Tokyo Electric is in...

Cheniere Energy (LNG) +4.7% premarket following a Reuters report that Tokyo Electric is in advanced talks to secure supplies of liquefied natural gas from North America as Japan seeks to cut reliance on nuclear power. Plentiful supplies have depressed North American gas prices to slightly over $3/mmBtu, while spot prices for Asian LNG are ~$13/mmBtu.
Comments (1)
  • kmi
    , contributor
    Comments (3992) | Send Message
     
    Linked article:

     

    ""We want to procure LNG from the United States and Canada where prices are linked to Henry Hub. The talks have made progress, but I cannot say when they will be finalized," Koizumi said, referring to the main U.S. gas distribution centre."

     

    I'll point out that the reason US NG is cheap is because it is sourced and consumed on the domestic market and supply/demand has established it's current ~$3 price.

     

    Once it gets exported it starts being priced on the international market, like oil.

     

    Good for US producers, bad for US consumers.

     

    This jump in (LNG) is likely unwarranted short term since any export is likely many months out
    18 Sep 2012, 11:01 AM Reply Like
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