This is a significant reason I love KMI and WMB. Nat gas is quickly becoming the globe’s primary energy source and it has to get to the US coast to exported. If you own KMI and WMB you touch ~70% of the nat gas being transported in the US. Results at both are demand-driven, not commodity-price driven and demand for nat gas is continually rising and along with it the need for the infrastructure these two provide.
With both paying over 7% dividends currently (both are C-corps, not MLP’s) grabbing these and tucking them away is something I like.
“Davidson” submits:
LNG has grown to ~50% of natural gas exports. LNG pricing has risen ~45%, from $3.6 to $5.2/MMcf since Jan 2016 and despite falling pipeline pricing has continued to rise reflecting global demand. LNG monthly exports in Feb 2020 of $1,137bil/mo dwarfs exports for pipeline gas at $0.437bil/mo. The demand trend for LNG has been 70% annual growth as opposed to pipeline demand at 7%.
The global response to COVID-19 has reduced demand temporarily but is not likely to have a long-term impact. Note that demand peaks with the northern climate demand for heating every winter, Seasonal demand may begin to smooth out as multiple LNG power projects in countries with more equatorial climates come on line. By building higher summer demand for power which is likely to follow lower costs of LNG vs other fuels for air conditioning.
LNG is proving itself globally as low-cost to produce, low-cost to export and a lower-cost fuel for electric power vs. alternatives. LNG once transported, on gasification, is a much safer, less polluting fuel with lower-transport costs especially if delivered via residential distribution systems. LNG exports likely to continue to dominate going forward. Suggested companies for portfolios include Argan Corp(AGX), New Fortress Energy(NFE), Chart Inds(GTLS), Emcor(EME) and etc.
