Thursday, October 18, 2012

Profiting From the Race For West Coast LNG Supplies

First Progress was acquired, now Celtic.

My most recent Seeking Alpha article looks at who is likely next:

Folks, there is a race going on north of the border. The race is for natural gas resources that are needed to feed liquid natural gas [LNG] export facilities that are going to be built off the West Coast of Canada.
The first shot fired in this race to secure natural gas assets in Northern British Columbia and Alberta occurred when Petronas agreed to acquireCanadian producer Progress Energy for $4.7 billion. That offer was a 77% premium to Progress's prior day closing share price. Petronas is involved in building an LNG terminal that will be located in Price Rupert British Columbia, so securing a source of natural gas to supply that terminal was obviously important.
Progress Energy held 820,000 acres of prime Montney shale gas land, which is located in an ideal location for pipeline transport to the West Coast.

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