Cheniere Gets OK to Export Natural Gas (CQP, LNG)

Energy

Published: April 17, 2012 7:05 am

Cheniere Energy Partners LP. (AMEX: CQP) announced last night that the company has received approval from the Federal Energy Regulatory Commission (FERC) “to site, construct and operate facilities for the liquefaction and export of domestically produced natural gas at the Sabine Pass LNG terminal.” The FERC’s order permits the company to build up to four liquefied natural gas plants, called ‘trains,’ at the Sabine Pass terminal.

The export terminal gives natural gas producers hope not only for selling liquefied natural gas to foreign countries, but that the demand will raise prices in the US. At the current price of around $1/thousand cubic feet, domestic natural gas is essentially free. When exported as LNG, the gas currently fetches $15-$16/thousand cubic feet.

Cheniere has long-term contracts for deliveries to begin in late 2015 or early 2016 for the first two trains and 2017/2018 for the second two trains.

Cheniere Energy Partners and its general partner, Cheniere Energy Inc. (AMEX: LNG), are trading near 52-week highs on the FERC announcement.

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!