Happy Gas! Freeport Gas Expansion Announced

Happy Gas! Freeport Gas Expansion Announced


According to an article by ENERGY.GOV, the US Energy Department has announced that it has conditionally authorized Freeport LNG Expansion, L.P. and FLNG Liquefaction, LLC (Freeport) to export domestically produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the United States from the Freeport LNG Terminal on Quintana Island, Texas.

The licence will be only the second such licence operational in the US, behind Cheniere Energy’s Louisianna licence, but there are around a dozen other licences currently being assessed.

For the second time this month we highlight another major develoment in our long term US natural gas energy boom thesis. At UGC, we welcome these developements as confirmation that the mega-trend, although in its infancy, is well and truely picking up steam.

Read the full article here.

For the past 12 months, clients of UGC have been taking advantage of several attractively valued companies which stand to benefit substantially from this long term investment theme. At UGC, we are excited by this potentially game changing development in energy, a development which has the potential to make the US the Saudi Arabia (as dubbed by Stansberry Research) of natural gas and our clients a lot of money.

According to the article, The US Energy Department conducted an extensive, careful review of the application to export LNG from the Freeport LNG Terminal. Among other factors, they considered the economic, energy security, and environmental impacts — as well as public comments for and against the application and nearly 200,000 public comments related to the associated analysis of the cumulative impacts of increased LNG exports — and determined that exports from the terminal at a rate of up to 1.4 Bcf/d for a period of 20 years was not inconsistent with the public interest.

The expansion in US natural gas could quite literally be the start of a major boom time for the US economy, with major new revenues streams and capital investment creating new employment opportunities in the energy sector and in the industrial sectors that are heavily reliant on secure and stable sources of affordable energy.

We (UGC) first wrote about the benefits of investing in the US gas boom back in May 2013. To help get some perspective of this opportunity, click on the following article.

Read the full article here.

If you would like to learn how you can take advantage of this exciting new mega-trend, contact UGC today and speak with one of our financial strategists for a No Cost, No Obligation consultation on 03 8657 7640 or email [email protected].

The information contained in this report is General in nature and has been prepared without taking into account your objectives, financial situation and needs.

Recent stories

EOFY: 5 bad habits small business owners should break in 2021

Looking to stay on top of your bookkeeping ahead of EOFY and minimise your tax burden? Start by dropping these…

Read more

Why investing in bonds still adds up

By Tony Kaye, Senior Personal Finance Writer, Vanguard Australia As an investor, it can be worrying when returns move into…

Read more

Switching home loans

Refinancing your home loan to take advantage of a lower interest rate might save you money. Before you switch, make…

Read more

Tips to help make 2020/2021 tax time easier

It’s been a year of change like no other and that extends to tax and superannuation. As the end of…

Read more

The importance of having a will

While it’s not something anyone likes to think about, planning your estate may make things a little easier for your…

Read more