It's hard to imagine but thanks to economic development and progress every week around 1.3 million people globally leave their rural lifestyles and move into cities and urban zones. On a yearly basis that equates to roughly 70 million people who begin to enjoy the benefits of a (more) reliable supply of energy.
This population tidal wave has led to a major increase in projections of future global energy demand. However, while increased demand is a near certainty, how that energy will be supplied is debatable. Nuclear, solar, wind, hydro, coal and gas are all potentially viable options but exactly what IS the future of the electricity generation?
We can expect that in the coming years, liquefied natural gas (LNG) will play an important part in providing nations – Asian ones in particular – with their energy needs. LNG is a natural gas converted into a liquid form. It is a cleaner burning, lower emission fuel than other fuels such as coal and because of its liquid form easier and safer to transport.
Four companies which are set to export huge volumes of LNG to Asia over the next few decades are Santos Ltd (ASX: STO), Origin Energy Limited (ASX: ORG), Woodside Petroleum Limited (ASX: WPL) and Oil Search Limited (ASX: OSH).
In Australia we take it for granted having gas and electricity to heat and cool our homes, run our appliance, cook our meals, and run our public transport systems. However for literally hundreds of millions of people – in Asia particularly – a move to a city is their first opportunity to access these luxuries. This demand is a massive tailwind for LNG producers and it should greatly benefit these 4 stocks.
