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…
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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.
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…
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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…
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Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
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