Eastern Star Gas (ESG) is a company focused on the exploration, development and production of coal seam gas in Australia.
ESG’s main activity is the Narrabri Coal Seam Gas Project in NSW, and recent events indicate that it is one of the energy sector stocks to watch.
Recently, ESG signed an agreement which paves the way for a feasibility study into the development of an LNG export project in Newcastle.
The agreement was reached with Hitachi, Industrial & Social Infrastructure Systems Co. and Toyo Engineering Corp.
The consortium expects front-end engineering and design activities to commence by the end of the year, with first LNG export in 2014.
ESG put on 3.6% on the day of the announcement, and with the potential for further upside to its share price, investors should consider it as one of the key stocks to watch.