Value Walk – Natural Gas Boom Leads to Rapid Growth in Natural Gas Stations
Growing Chinese Influence In U.S. Natural Gas Boom
Led by Chinese billionaire Wang Yusuo, ENN Energy Holdings Ltd (HKG:2688) (OTCMKTS:XNGSY) is yet another Chinese company willing to grab a piece of the U.S. natural gas boom. Last month, Sinopec Group announced to buy some of Chesapeake Energy Corporation (NYSE:CHK)’s Mississipi Lime shale properties for $1 billion. ENN started looking for an opportunity to work in the United States two years ago. It had first approached Clean Energy Fuels Corp (NASDAQ:CLNE) to build a partnership, but the attempt couldn’t bear fruit, people familiar with the matter told Reuters. Then it contacted CH4 Energy Inc (OTCMKTS:CFRE) which had just one LNG fueling station in Salt Lake City. They formed a new company Blu Transfuels LLC. A large part of the joint venture is controlled by the Chinese company.
The natural gas boom will reduce the dependence of U.S. transport industry on diesel extracted from imported crude oil. Almost half of the U.S. garbage trucks run on natural gas as they can refuel at their home base. But the long-distance truckers haven’t relied on natural gas because they need to make sure that they can refuel along the highways.
Original article can be found here.