Topic: How To Invest

The Successful Investor Hotline – Friday, January 18, 2019

Article Excerpt

IMPERIAL OIL LTD., $37.21, Toronto symbol IMO, is Canada’s third-largest publicly traded oil company, after Suncor (No. 1) and Canadian Natural Resources. U.S.-based ExxonMobil (New York symbol XOM) owns 69.6% of Imperial. In 2013, Exxon and Imperial formed a 50/50 joint venture to build a liquefied natural gas (LNG) facility near Price Rupert, B.C. The facility would convert natural gas into a liquid form. Tanker ships would then transport the LNG to markets in Asia. However, LNG prices have dropped by about 50% since the partners first proposed this project. That’s largely why Exxon and Imperial recently withdrew the plan from an environmental review process. It’s possible that they could resubmit the proposal if LNG prices improve. Meantime, LNG Canada—a consortium headed up by Royal Dutch Shell—had decided to move ahead with its plan to build a $40 billion LNG terminal in Kitimat, B.C. Shell feels growth in global LNG demand will outpace supplies by 2022, which helps justify the high cost. As…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.