Pivotal LNG Inc. − an affiliate of energy services holding company AGL Resources Inc. (GAS) – has entered into a long-term agreement with Carib Energy LLC. Per the deal, Pivotal is expected to sell liquefied natural gas (LNG) to Carib Energy − provider of natural gas transportation and logistics services − for a length of time.
Recently, the Federal Energy Regulatory Commission issued an order confirming the ability of Pivotal of delivering LNG from U.S. mainland to U.S. territories by using non-pipeline modes of transportation. Hence, Pivotal has the capacity to sell LNG to all the U.S. territories by transporting it through water-borne vessels.
AGL Resources revealed that Pivotal will use non-pipeline modes of transportation to deliver LNG to Carib Energy. Firstly, the LNG will be loaded onto international shipping organization containers by Pivotal. After that, the loaded containers will be carried by trucks to the waterborne vessels of Crowley in Jacksonville, FL. The vessels will then deliver the cost-effective and emission-reducing LNG to the customers of Carib Energy in Puerto Rico.
Founded in 1856, Atlanta, GA-based AGL Resources is an energy services holding company the principal business of which is gas distribution. The safety and reliability of AGL Resources’ distribution operations which contribute more than three fourths of its operating profits and the utility’s consistent earnings make it a must-hold for income-oriented investors.
AGL Resources has partial ownership in PennEast Pipeline Co. and currently carries a Zacks Rank #2 (Buy), implying that it will outperform the broader U.S. equity market over the next one to three months.
One can also consider other players in the energy sector like Patterson-UTI Energy Inc. (PTEN), Pioneer Energy Services Corp. (PES) and Ocean Rig UDW Inc. (ORIG). Patterson-UTI and Pioneer Energy sport a Zacks Rank #1 (Strong Buy), while Ocean Rig holds a Zacks Rank #2.
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