what about all these lng plants proposed and under construction?
billion dollar investments in lng not just north america but Australia as well. gas has hit its bottom dont see how it goes lower from here. so is it time to buy some eca? lng exports from north america should start to drive up nat gas closer to "world price", if there is such a thing as " world price in nat gas". Dont know how relevant Australian lng is but does not look like it can be cheaper than lng from USA.
LNG in Australia is more economical. Much closer to Asia, it's market. Plus they don't have EPA problems, and not in my backyard problems and MOST of all, they don't have OBAMA interference. So forget ECA they won't last the 6 to 8 years needed. BUY XOM they have the cashflow to wait it out
China is understanding that cng cars fed from lng imports are going to help mitigate air pollution problems. China has a growing automotive market and chance to make infrastructure for the cng car now with a lot less competition from a well established gasoline market. The only thing i agree with in your post is that xom is a good investment. while there is always risk eca probably has more upside than xom from here.
The first thing that will have an effect long before lng is that essentially all natural gas producers have stopped drilling new gas wells, unless they are to hold a land lease. They will not start again until gas is much higher so, natural gas is in a bull market even though most don't see it.