American exports of liquefied natural gas (LNG) to Europe are skyrocketing.
And it’s creating an incredible opportunity for energy investors to make huge profits.
The European Commission (EC) reported earlier this week that LNG imports from the U.S. have increased by 272% since 2018.
EC data shows record LNG imports coming from the U.S. in March totaling 49 billion cubic feet (Bcf).
That’s already a big jump. But it’s only just the beginning.
Yesterday, U.S. Energy Secretary Rick Perry signed two export orders that will more than double America’s LNG exports to 112 Bcf by next year!
Yes, you read that correctly: The United States will more than double LNG exports to Europe next year!
Starting to see dollar signs yet?
Referring to the liberation of Europe from Nazi occupation, Secretary Perry said to reporters, “The United States is again delivering a form of freedom to the European continent… And rather than in the form of young American soldiers, it’s in the form of liquefied natural gas.”
Freedom Gas
The recent export order is a follow-up to a joint agreement made back in July 2018 between European Commission President Jean-Claude Juncker and President Donald Trump. In a joint statement, they said, “The European Union wants to import more liquefied natural gas (LNG) from the United States to diversify its energy supply.”
The United States has been exporting LNG to Europe only for a few years. Right now, the largest importer of American LNG is South Korea, which bought 248 Bcf from the U.S. last year. Other major importers include Mexico and Japan.
But these new orders are very likely just the beginning of more LNG exports to Europe and promise to open up an entirely new (and massive) market for American suppliers.
The latest export orders will double America’s LNG exports to Europe to 112 Bcf.
But the European Commission says LNG imports could increase from there to 282 Bcf by 2023!
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Miguel Arias Cañete, European commissioner for Energy and Climate, said, “Energy security is one of the key success stories of our transatlantic cooperation and one where we both have a keen mutual interest. Given our heavy dependence on imports, U.S. liquefied natural gas, if priced competitively, could play an increasing and strategic role in EU gas supply.”
By now I’m sure you see the massive investment potential here. This series of agreements and orders opens up a huge new market of U.S. LNG producers and promises incredible returns for their investors.
The natural gas market is shaping up to be one of the most exciting sectors in the energy field. Just a few weeks ago I wrote to you telling you about Mexico’s natural gas crisis and how U.S. producers are planning to help.
The United States was blessed with a wide abundance of natural resources. And natural gas is one the most abundant and important.
The U.S. is home to the world’s fourth-largest natural gas resources. And right now, it is also the world’s #1 producer of the fossil gas.
Fact is, demand for natural gas is soaring all around the world. Just here in the U.S., natural gas demand hit an all-time record high totaling 31 quadrillion Btu during 2018 — an increase of 10% compared to the previous year.
As we’ve been urging, take another look at natural gas production stocks you’ve got in your sold portfolio. It appears to be a great time to open a new natural gas position.
Until next time,
Luke Burgess
As an editor at Energy and Capital, Luke’s analysis and market research reach hundreds of thousands of investors every day. Luke is also a contributing editor of Angel Publishing’s Bull and Bust Report newsletter. There, he helps investors in leveraging the future supply-demand imbalance that he believes could be key to a cyclical upswing in the hard asset markets. For more on Luke, go to his editor’s page.
