Dallas, Texas 10/02/2013 (Financialstrend) – Cheniere Energy, Inc. (NYSEMKT:LNG) has received approval from Federal Energy Regulatory Commission to export LNG (Liquefied Natural Gas) from its Sabine Pass Terminal. The export cap is 2.6 bcf-per-days. Additionally, four other projects are already approved by Department of Energy to export LNG, but FERC’s approvals are still pending for the same. Of these four, Cove Point terminal which is majority owned by Dominion Resources has received only a conditional license to export 0.77 bcf-per-day. Under present approvals phase: 6.37 bcf-per-day of LNG is being exported from US alone.
Global energy demands fuel exports of LNG
As per recent survey by World Trade Organization, Energy demands are expected to rise 65% by 2040 in developing countries and average global energy demand is expected to grow by 35%. In terms of consumption this would translate in to a massive jump over 2010 consumption levels which were at 185 trillion cubic feet. As per the same report, the average per day consumption would be 507 billion cubic feet by 2040.
With the US just beginning to explore its own oil-backyard with new drilling techniques like ‘fracturing’ and ‘horizontal drilling’ vast resources of natural gas are now accessible to US-based oil companies as well. Production is expected to grow to 44% by 2040. LNG is placed in pole-position in export of natural gas with FRE’s approval.
LNG is also looking to develop secondary facilities for export of natural gas in addition to its flag-ship Sabine Pass terminal. On the other hand, competitors such as Dominion (NYSE:D) has a presence in power plants as well as natural gas pipelines. The company looks poised for growth as its natural gas exports portfolio diversifies. Its share was trading at $34.4 as of close of business on October 1, and has a market cap of $7.46 billion. The highest 52 week range price point was at $43.69 while its 52 week low price point was $13.85.
