How the Smart Money Plays Natural Gas

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How the Smart Money Plays Natural Gas By Keith Kohl | Wednesday, February 29th, 2012 I'm actually shocked more people haven't caught wind of this yet. But at a time when crude oil is trading well over $100 a barrel, there simply hasn't been much excitement for gas... click image to enlarge  Of course, the best time to buy is when nobody's looking. And there's another opportunity developing on the horizon right now, thanks to an LNG trade war brewing in the Far East. War in the Far East Back in 2005, Japan represented about one-third of the entire LNG trade. Last month, this tiny island nation imported over 8 million mt of LNG — roughly 28% more than a year ago. But it wasn't the sheer volume of LNG being shipped to Japan that grabbed our attention. No, what made us look twice was the price: Their cheapest shipment cost approximately $13.25 per MMBtu. For the record, that's four times higher than what we're paying here in the United States! And they've proven they're willing to pay far more than that for it. Last month, the Japanese dished out as much as $19.07/MMBtu for some shipments. Advertisement Rare Arrangement Lets Investors Profit as China Overpays for Gas North America's cracking into the Asian markets... with one hell of an entrance. Over the next ten years, a small group of energy companies is sending up to 500 trillion cubic feet of natural gas overseas for a record profit. In fact, the Chinese have agreed to deliver this small group of companies (and smart shareholders) payments four times larger than what they could ever charge here. The full story — and details about how you could take advantage of it today — are all right here in your free report.  The Japanese will soon be fighting tooth and nail for that gas. Throughout the last few years, we've talked about the billions of dollars that China has been throwing at foreign energy investments. For the Chinese, it's all about securing future energy supplies. When the country announced its 12th Five-Year Plan for cleaner energy, it all but guaranteed growth in one particular sector: natural gas. It makes sense for China to move to a cleaner energy source. The Middle Kingdom used nearly four billion tons of coal last year, making up nearly half of global coal consumption. Within the next few years, the country expects natural gas to make up more than 8% of its energy mix. To reach that goal, China will be importing up to 60 billion cubic meters of gas in 2015, representing almost a fourfold increase over current demand. Within the next three years, China is expected to have 14 LNG terminals up and running. We're already seeing signs that China is shifting toward more gas... In 2011, the country's LNG imports increased more than 60% over a year earlier: The question now is where they'll go to find their future supply. As you can see below, there aren't too many countries to help them out... But that's about to change. If there's one solution for the supply glut plaguing North America today, it will be how effectively U.S. and Canadian gas producers are able to tap into Asian LNG markets. And the smart money isn't going to wait around for China to make the first move... These four natural gas players are planning to satisfy the Middle Kingdom's future gas demand. You'll want to stay ahead of this play — or else risk missing this opportunity altogether. Until next time, Keith Kohl @KeithKohl1 on Twitter A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta tar sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.   Related Articles Natural Gas Profits, One Way or Another Presidential Oil Lies Flush with Natural Gas Is British Columbia the New Bakken? The Real Reason Solar Companies Can't Hack It The solar industry looks like it's taken a big hit lately: Scandals. Flops. Companies going under left and right... It looks like solar's doomed. But the truth — exposed here in this shocking video — could be your meal ticket for the next decade. You'll see how a tiny energy company does better than anyone else. Their technology can even generate electricity at night! And it's making investors stocking up now quite wealthy...  From the Archives... 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