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Page added on December 18, 2011

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Natural Gas Fueling Stations Popping Up Around The Country

Consumption

It had to happen sooner or later. Natural gas is considered a much cleaner fuel than petroleum. Now a company called NCI is building natural gas fueling stations in Lee County, Florida for the general public and businesses. The fist will be a service station near Southwest Florida International Airport. Earlier this year, the city of North Little Rock built its first condensed natural gas fueling station, which is open to the public. Consumers, businesses, and governments are gradually making the shift, which should increase demand for natural gas.

There are many publicly traded companies involved in the distribution of natural gas, to both homes and businesses, and over 15 over them have yields in excess of 3%. For example, Atmos Energy Corporation (ATO) is involved in the distribution, transmission, and storage of natural gas. This Dallas, Texas based company, which was founded in 1906, trades at 13 times forward earnings and pays out a very favorable yield of 4.2%. Dividends on an annual basis increased from 1.37 to 1.38 per share. Earnings for the latest quarter were up an incredible 27.6% on a 1.4% revenue increase.

Another high yielder is Spectra Energy (SE) transports and stores natural gas for customers in various regions of the northeastern and southeastern United States, plus the Maritime Provinces and the Western Provinces in Canada. The company, based in Houston, trades at 16 times forward earnings and boasts a yield of 3.8%. Latest quarterly earnings were up an amazing 28.9% on a 10.2% rise in sales.

Other natural gas companies worth taking a closer look at include Northwest Natural Gas (NWN) at a 3.8% yield, WGL Holdings Inc (WGL) paying 3.7%, and Sempra Energy (SRE) at 3.6%. You can access a free list of over 25 natural gas companies, along with their financial data, at WallStreetNewsNetwork.com.

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6 Comments on "Natural Gas Fueling Stations Popping Up Around The Country"

  1. DC on Mon, 19th Dec 2011 12:26 am 

    Any serious expansion of the Nat Gas to power private personal trash-bins will only lead increased demand for resource in question. Which in turn, would lead to faster depeltion. And along the way, corporations would seek to maxmize there profits along the way, thus, Nat-gas as a vehicle would not stay ‘cheap’ for very long. Token efforts would not have much of an impact, a large expansion would lead to exactly this outcome. A large switch to nat-gas for cars would be followed a few years later with calls for cheap ‘altnernatives’ to the now expensive and increaseingly scarce nat-gas.(Most of which would be frak-gas btw) so enjoy your poisoned water along with your 60 mile daily commute amerikans.

  2. BillT on Mon, 19th Dec 2011 1:54 am 

    So, a few stations out of what 163,000+ in the US have Natural gas available. It will never be the fuel of a majority of the 220,000,000 vehicles in the US. And, yes, energy for energy, it will cost as much as gas and eventually be scarce also.

    BTW: “…On a per-gallon basis, CNG stored in the vehicle tank has about one-third less energy content than gasoline, which limits driving range…”
    so, when Natural gas approaches 2/3 the cost of gasoline, it will not save money. The general public will never know this and keep on buying even when the prices are equal. Just like biofuels lower the efficiency / energy in a gallon of gas but costs the same or more.

  3. Max Reid on Mon, 19th Dec 2011 3:32 am 

    Most of our trips are less than 40 miles. If every vehicle has a CNG tank with a 100 mile range, that’s go’d enough. For long distance, they can use the gasoline.

    The energy equivalent of CNG is only $2/gallon, actually the price of natgas is just $20 / barrel of oil equivalent. As more CNG stations popup, the cost will go down further.

  4. Anvil on Mon, 19th Dec 2011 6:58 am 

    lol it looks as if fat usa think think they are off the peak everything hook again.

  5. BillT on Mon, 19th Dec 2011 10:48 am 

    Max, it is possible that you are correct, but, I don’t think the changeover is going to happen fast enough to prevent the collapse of the system. And as demand increases, so will the price. That is Capitalism. All the sucker will pay.

    First, just the conversion is not practical for anyone who has to pay to have it done to an existing car, and especially an older model. Regulations make it expensive for a professional to make the switch. Buying a new car that runs on CNG is probably cheapest.

    Then there is the problem of getting from place to place when there may not be another CNG station for hundreds of miles. Or they may be out just when you need a replacement tank, Of course you could carry a spare tank, if you want to give up your trunk space.

    It took 100 years to get the current gasoline system in place and many billions of dollars of investment. I don’t think we have the time or money that it will take to make any sizable conversion.

  6. Kenz300 on Mon, 19th Dec 2011 9:58 pm 

    The oil embargo of the 1970’s taught us what to expect when demand for oil exceeds the supply. We will have higher prices, long gas lines, rationing, higher unemployment, a recession and business failures. We will need any and all alternatives when this happens. Bring on the electric, flex-fuel, hybrid, CNG, LNG and hydrogen fueled vehicles. We will need an all of the above solution.

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