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Stocks that stand to gain the most from the LNG wave

A 12-storey LNG storage tank. It is a rolled steel and double-walled, perlite-insulated cryogenic tank that can keep 1.5 billion cubic feet of natural gas in compressed liquid form.

chad hipolito The Globe and Mail

Globe editors have posted this research report with permission of Dundee Capital Markets. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:

The potential economic benefits could be enormous even if a fraction (which is our base case scenario) of the dozen or so projects on the drawing board go ahead. LNG for B.C. could provide a similar cash windfall as the one experienced by Alberta's Oil Sands.

We estimate the capex spend over the next 20 years when accounting for incremental drilling, gas processing and gathering pipelines could hit the $88-billion to $219-billion (lower end of range assumes one large project goes ahead, while the higher end assumes three projects get sanctioned); this figure does not include capex related to the construction of exporting LNG terminals and sales pipelines which could add another $16-billion to $43-billion.

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With that in mind, in this report we offer our best ideas for taking advantage of this monumental thematic with a close eye on the E&P and industrial sectors. We have also created a Dundee LNG Index to track companies which we believe will be materially impacted by LNG activity. Catalysts for many of these stocks should come as projects move forward and in the near term all eyes will be on the B.C. government's LNG tax unveiling which is slated to come in February 2014

Read the full report here.

Read other research reports here.

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