companies that will directly benefit from
the new LNG plants going in have already
begun to see share prices rise, despite the
fact the first LNG shipment off our west
coast is not forecast to happen until 2015.
That is from one small proposed facility.
The next one is scheduled for 2018. There
are many other companies that will potentially benefit if more of these facilities
achieve government approvals.
But, the last piece of the puzzle remains
unclear; the end user or buyer. Producers
want high prices, buyers want low
prices…an age-old conundrum. While a
dozen conglomerates are competing to
build LNG facilities on BC's coast, only one
so far has locked in a buyer for a meaningful proportion of its production. That
means all the rest are still facing the signif-
JULY 2013
icant challenges of securing LNG buyers;
our opinion is that this will happen in time
as the fundamentals are there to support
it. n
Eric Hoesgen and Dennis Hoesgen can be
reached at 604-643-7705 or HIP@Canaccord.
com. Dennis Hoesgen and Eric Hoesgen are
Senior Investment Advisors with Hoesgen
Investment Partners (HIP) at Canaccord
Genuity wealth management, a division of
Canaccord Genuity Corp, Member-Canadian
Investor Protection Fund. The information
contained in this article is drawn from sources
believed to be reliable, but the accuracy and
completeness of the information is not guaranteed, nor in providing it does HIP, Canaccord
Genuity Corp, or its subsidiaries, or affiliated
companies, assume any liability. This infor-
mation is current as of the date appearing in
this article, we do not assume any obligation
to update the information or advise on further developments relating to these securities.
This report should not be considered personal
investment advice or a solicitation to buy or
sell securities. Canaccord Genuity and holdings of its respective directors, officers and
employees and their associations, from time
to time may buy or sell any securities mentioned herein. The views expressed are those
of the authors and not necessarily those of
Canaccord.
www.resourceworld.com
www.resourceworld.com 27
