Golar’s future holds more than simply shipping liquefied natural gas. The company operates ships that can make liquefied natural gas onboard, allowing offshore natural gas production to be processed and exported without having to be first transferred to an onshore facility. Similarly, Golar operates ships that can receive natural gas from shore and load it onto LNG carriers. Lastly, Golar recently announced an equity stake in a liquefied natural gas plant in British Columbia that looks to export gas to Asia. This diversity of operations should provide revenue security to the company.
Final Foolish Thoughts
Japan, South Korea and China are the world’s top three importers of liquefied natural gas at a time when global natural gas production looks to steadily increase. The Asians know this and seem willing to wait until production increases, thus pushing down prices and profit margins for gas producers. To me, Golar, either its common stock or MLP, offers the best combination of income and capital gains potential. The demand for natural gas isn’t declining anytime soon and Golar operates one of the biggest independent fleets of LNG carriers. Its diversity of other LNG operations further adds to its appeal.
Robert Zimmerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
The article 3 Ways to Profit From Asian Natural Gas Imports originally appeared on Fool.com and is written by Robert Zimmerman.
Robert 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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