Chevron Corporation (CVX)’s Future in Angolan LNG Looks Bright

Interestingly, Anadarko Petroleum Corporation (NYSE:APC) Petroleum will begin to sell its Mozambican LNG to Japan by the year 2018. Chevron will find a huge market to export its Angolan LNG if it hurries the project this year. The very fact that there has been a flurry of shipping activity is reason enough for future optimism.

Competitors Anadarko and BP have invested in LNG and succeeded

Anadarko Petroleum Corporation (NYSE:APC), which has been one of the most prolific LNG exporters in the world, literally put East Africa’s Mozambique on the world’s oil map. The company has steadfastly worked toward developing Mozambique’s natural-gas reserves and has worked with Enersis S.A. (ADR) (NYSE:ENI) to explore, drill and process natural gas.

Recently, Anadarko entered into talks with Japanese buyers so that LNG can be shipped by 2018, which is when it expects its Mozambican LNG to be ready for shipment. Anadarko Petroleum Corporation (NYSE:APC) has also continued to explore and drill in Kenya, Tanzania and other East Africa nations.

BP plc (ADR) (NYSE:BP), Chevron’s competitor and partner in the Angola LNG project, has a global natural gas business. It has been investing in LNG projects for the last 30 years. The company has also invested a lot in order to bring cleaner burning fuels to consumers.

However, BP plc (ADR) (NYSE:BP)’s journey toward clean fuel has been marred by accidents in the Gulf of Mexico and elsewhere. It has been forced to pay huge fines and has borne the brunt of legal fees, as well. However, BP has continued to make significant strides in the development of clean LNG and delivering the resource to key markets, including the US and the UK.

The bottom line

Certainly, Chevron is going in the right direction, if we were to talk about LNG shipments. If Chevron begins to ship its Angolan LNG and export it to key international markets, its profits and income will drastically increase in the coming quarters.

Considering the ship has sailed to Angola, I believe LNG shipments will take place sometime later this year. With profits exceeding expectations and great LNG projects lined up for future, Chevron is a great stock that continues to attract investor attention.

The article Chevron’s Future in Angolan LNG Looks Bright originally appeared on Fool.com is written by Nauman Aly.

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