Exxon Mobil Corporation (XOM) Foraying Into LNG Export From Canada

The 30 million-ton LNG terminal that Exxon Mobil Corporation (NYSE:XOM) is proposing to build to serve the Asian countries is not the only LNG project that the company has in its closet. If British Colombia is strategically poised to serve the Asian market due to its geographic proximity to the Asian continent, then so is Australia and Papa New Guinea. Exxon already has some projects underway in Australia and Papa New Guinea, keeping in mind the huge demand and price premium available in the Asian countries. It is also showing interest in InterOil’s discoveries in the country to expand the $19 billion PNG LNG export project.

Foolish takeaway

Exxon Mobil Corporation (NYSE:XOM) is not the only company to apply for a license to export LNG from the western coast of Canada, but surely one which has both the required expertise and capital. Exxon – along with Shell and many others – is betting big on LNG and is trying to grasp the opportunity available in the Asian markets. If Exxon is successful in getting the license, it would not only be beneficial for the company, but also for the industry as a whole. With new markets to cater to, the decline in production of natural gas in North America will witness a reversal and lead to higher production levels. The stock is surely worth watching for this reason.

The article Exxon Foraying Into LNG Export From Canada originally appeared on Fool.com and is written by Satarupa Bose.

Satarupa Bose has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Satarupa is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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