Imperial says no to LNG

Article Excerpt

IMPERIAL OIL LTD. $37.27 (Toronto symbol IMO; Shares outstanding: 792.7 million; Market cap: $29.5 billion; TSINetwork Rating: Average; Dividend yield: 2.0%; www.imperialoil.ca) formed a 50/50 joint venture in 2013 with U.S.-based ExxonMobil (New York symbol XOM) to build a liquefied natural gas (LNG) facility near Price Rupert, B.C. ExxonMobil owns 69.6% of Imperial. 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. Imperial Oil is a buy. buy. …