Ed Ajootian: Sure, there are several possible ways to play the Chinese nat gas shortage.
The shortage apparently is a combo of increasing demand and not enough supply. My view is this: China is a large country with much geographical diversity. It seems to me that we in the USA now may have abundant nat gas resources thanks to horizontal drilling, fracturation, whatever. That, imo, has also got to be the case in China as well (somewhere in that country the appropriate earth formations are similar). Once they acquire the technology, Chinese companies will explore and find.
I'm holding a position in WH, a Chinese multinational pipe manufacturer. They could be a beneficiary. Also CVVT for valves.
CHNG: "China Natural Gas, Inc., through its subsidiaries, distributes and sells natural gas and gasoline to commercial, industrial, and residential customers in the Xian area..."
finance.yahoo.com
For a penny stock bet, there's China New Energy, who say they are "an energy project developer specializing in development of natural gas distribution networks, and distribution of natural gas in China"
finance.yahoo.com
Then of course, for a shortage of one commodity (nat gas) there's the bet on increased demand for and use of substitute commodities... diesel, biodiesel, wind, solar. There are Chinese companies involved in these too.
(I hold positions in all companies mentioned above and a couple of Chinese companies involved with diesel and biodiesel.) |
