It takes an optimist to invest in natural gas-levered stocks right now.
The commodity is trading at decade-low prices, raising questions about whether some companies will able to survive long enough to benefit from a resurgence that could take years to materialize. The reality is though that there are plenty of names that are well-positioned to stay alive through the wait.
There are wide-ranging forecasts for when the natural gas price catalysts will combine forces and drive domestic prices higher. But generally, analysts are leaning towards 2016 as the start of it. That’s when Cheniere Energy Partnersis expected to begin commercial operations of a first-of-its-kind, $10 billion U.S. liquefied natural gas (LNG) export plant in Sabine Pass, La.
Private equity group Blackstone has already agreed to invest $2 billion towards the construction of the project. The first two of four gas liquefaction facilities at the site — natural gas must be liquefied at extremely cold temperatures for ease of shipping overseas — will cost up to $5 billion to build. Cheniere is planning to begin construction around April, pending final regulatory approval from the federal energy regulator and closing of the Blackstone financing agreement.Page 1 of 7 | Next Page