Natural Gas & The Market for LNG

Energy


This idea was presented at the Excellence in Investing Conference, San Francisco on 10/27/2015.
Publicly traded companies mentioned herein: Banpu PLC (BANPU TB), Ultra Petroleum Corp (UPL)

Highlights

The speaker’s presentation, titled “Run Rufus Run,” covered a number of global natural gas/ liquefied natural gas (LNG) market trends. He sees “the most interesting structural trend” occurring in this segment of the energy sector right now, and noted that “five new Qatars worth of supply” are expected to be added to the market for LNG over the next five years (by 2020). Additionally, the US market and global market appear to be converging, and “should continue to converge at an increasing rate” over the next five years. If his forecasts and assessment of the situation prove to be accurate, the use of coal in power generation could be cut in half in Europe and the shares of higher cost coal and natural gas producers will likely decline.

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Idea Discussion

Commentor 1 - 2 weeks ago

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