Energy Prospectus

LNG announcement today is a Game Changer: (http://us.rd.yahoo.com/finance/external ... ews&rpc=43

This and hoped for approval of TRP's gas pipeline from Canada's shale fields and MOU's from four oil majors to forthcoming signed contacts this quarter should move a lot of LNG to distant shores. LNG very leveraged with exports not expected until 2015.

Comments? one man's opinion; due your own dd.

NEW YORK, May 20 (Reuters) - Cheniere Energy (LNG.A) said on Friday it had received approval from the Energy Department
to export up to 803 billion cubic feet of U.S. natural gas, in the form of liquefied natural gas, to all importing countries. Cheniere already had approval to export LNG to countries with which the United States had a free-trade agreement, but
Friday's move opens up the export to all major LNG importers. Cheniere plans to build a natural gas liquefaction plant at
Sabine Pass in Louisiana, which it expects will come online in 2015.

It certainly will help the NG market but "Game Changer" may be a bit strong:
> That is less than 3 bcf per day: The U.S. is a 22-23 Tcf market. We consume more than 60 bcfpd.
> This will take a long time.

I believe we will see the low for NG in September, then it will start to rise. My bet is NG will average over $5/mcf next year and over five years work back to 1/12 the price of oil. We are already seeing more NG demand for power generation. By 2015, taking 3 bcf per day off the market could be a significant change in supply / demand fundamentals.