Exxon Mobil Corporation (XOM), CNOOC Limited (ADR) (CEO), Cheniere Energy, Inc. (LNG): Will U.S. LNG Exporters Benefit From Rising Asian Demand?

But there’s a catch
While Cheniere Energy, Inc. (NYSEMKT:LNG) is assured of fixed payments, natural gas prices could stabilize and eventually fall beyond 2014. Barclays expects demand to fall gradually as Japan and South Korea, two of the largest natural gas consumers, plan to ramp up nuclear power generation . Hence, it’s too early to suggest U.S. LNG exporters could benefit from increased Asian demand.

But again, that is just a narrow view of the ever changing dynamics of the global natural gas industry. Emerging economies of China, India, Malaysia and Africa could easily fill in the demand gap in the next five years.

All in all, it’s fair to say that companies who are in the LNG trade will stand to benefit in the long run. Companies who have done the hard work will profit for years to come. Right now, Cheniere Energy, Inc. (NYSEMKT:LNG) and Exxon Mobil Corporation (NYSE:XOM) are best placed to reap rewards in the LNG space.

The article Will U.S. LNG Exporters Benefit From Rising Asian Demand? originally appeared on Fool.com and is written by Isac Simon.

Fool contributor Isac Simon has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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