Is Cheniere Energy, Inc. (LNG) A Buy?

My fellow Fool Maxx Chatsko points out the discrepancy between prices here and prices elsewhere, but he also raises a pertinent question: will new discoveries and extraction methods undermine the demand for nat-gas exports? One of the hottest stories in energy today involves methane hydrate, a sort of icy natural gas found on the seafloor near continental boundaries. There’s so much of it down there that it dwarfs the amount of carbon-based energy found everywhere else, combined. The problem will be getting it up to the surface and making it useful, but I wouldn’t bet against determined countries with a pressing need for energy independence.

While Japan pushes forward, America dithers. Lobbying from industrial enterprises, particularly chemical makers The Dow Chemical Company (NYSE:DOW) and Huntsman Corporation (NYSE:HUN), is holding back a larger effort to export. A number of companies making products from paint to fertilizer have profited greatly from the depressed price of American natural gas, and offering our surplus (such as it is) on the world market would almost certainly raise nat-gas prices domestically. If and when politicians and business leaders hammer out the details of an American nat-gas export scheme, Japan could be well on its way toward commercializing inexpensive methane hydrates. The window won’t be open forever. Will Cheniere Energy, Inc. (NYSEAMEX:LNG) let it close? That’s the question investors need to ask, since the entire premise of buying shares now is predicated on a long-term return from prime exporter status.

Putting the pieces together
Today, Cheniere Energy, Inc. (NYSEAMEX:LNG) has few of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Cheniere Energy’s Stock Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter, @TMFBiggles, for more insight into markets, history, and technology.The Motley Fool recommends TOTAL S.A. (ADR) (NYSE:TOT) and has options on Chesapeake Energy Corporation (NYSE:CHK).

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