A Company That’s Profiting From Cheap Natural Gas

The price of North American natural gas has fallen from an all-time high of $15.37 per million British Thermal Units (BTUs) in December 2005, to just $2.67 today.

A 5 Year Weekly Chart of Natural Gas

Chart courtesy of barchart.com

The fall in price is primarily down to an increase in the production of shale gas, and the use of hydraulic fracturing or fracking. For the time being at least it looks as though low gas prices will be a feature in the US, but there are still ways to make a profit.

How to profit for cheap natural gas?

One company that continues to benefit from cheap gas prices is Golar LNG. Golar is a shipping company based in London that is dedicated to the transportation and storage of liquefied natural gas, a compressed form of natural gas that is easy to store and transport.

The company operates a fleet of 13 ships and is listed on the NASDAQ under the symbol GLNG. The stock delivered an impressive 196% return in 2011 and the outlook remains positive.

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