A plethora of newly developed natural gas deposits lays the groundwork for one of the great energy waves of the future.
As such, I've recently recommended that high-yield investors get in on the newest trend within the natural gas industry: Liquefied Natural Gas. We have embraced this secular trend by adding Cheniere Energy Partners L.P. (CQP) to our Aggressive High-Yield Portfolio.
It is expected that world demand for liquefied natural gas will double this year. That means consumption would increase to more than 280 million tons.
How will this multiply so quickly? Well, besides the U.S. demand, Australia has already emerged as a main provider for nations that are trying to obtain supplies produced in geopolitically established areas.
China and India are expected to be monster importers of LNG in the current decade, and many regions of the U.S. where piped in gas is not available will soon have exposure.
That's why LNG definitely has its place in the burgeoning energy industry and makes for a solid Cash Machine investment theme for 2012.
Cheniere Energy Partners L.P. is the owner and operator of the Sabine Pass LNG receiving terminal in Cameron Parish, Louisiana; a prime location with vast LNG capacity.
The company will begin exporting LNG in 2015 and has secured its first major export contract with BG Group PLC, a world leader in natural gas production and transportation.
CQP inked a 20-year deal with BG Group which accounts for only 25% of the terminal's send out capacity, and I'm expected more huge contracts to be announced in the months ahead as major energy companies look to take up the balance of the export capacity.
It's a great investment theme and an excellent high-yield income asset. Investors in Cheniere Energy Partners L.P. receive a 10.26% yield. Nice!
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