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.
The article One Step Closer to Exporting Natural Gas originally appeared on Fool.com.Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He owns shares of Chesapeake Energy. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. 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.