Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Cheniere Energy, Inc. (LNG): Does This Guarantee Long-Term Success?

Fools who have been following the “will we, won’t we?” liquefied natural gas export story know by now that Cheniere Energy, Inc. (NYSEMKT:LNG) is the only company with federal regulatory approval to export LNG to non-Free Trade Agreement countries. However, as my Foolish colleague Tyler Crowe pointed out yesterday, Dominion Resources, Inc. (NYSE:D) has gone full speed ahead on its LNG export plans, negotiating a deal with General Electric Company (NYSE:GE) to manufacture liquefaction equipment for its Maryland facility.

A Deeper Look At China’s Commodity IndustryAt the time, Tyler speculated that this forward progress by Dominion Resources, Inc. (NYSE:D) possibly indicated that the company might know more than we do about the likelihood that non-FTA approvals will come out of the DOE. Turns out, Tyler might have been on to something.

Sooner rather than later?
We may be on the verge of at least a few approvals. Check out what Energy Transfer Partners LP (NYSE:ETP) Chief Operating Officer Mackie McCrea had to say on its earning call earlier this week:

[It’s] another project we’re just extremely excited about; things are going as planned. We intend to file the resource report by the end of this year, and expect to get FERC [Federal Energy Regulatory Commission] approval within a year after that. Everybody knows that with the growth in shales; we need to export. I believe even our government is recognizing that. And since we’re next in line, we are very optimistic within a short period of time, within 60 to 90 days, we will receive our non-FTA permits. So it’s a project that we’re looking forward to and we’re moving forward and very excited about. …There [are] indications that we’re getting from Washington that they may move quicker on at least the next one or two decisions around non-FTA permits.

Who else is in the running?
There are more than 17 U.S. projects that necessitate permits for LNG export approval, and at least 10 of them have already begun the process. Again, the key here is the approval to ship to non-FTA countries. Why? The U.S. has free trade agreements with only 20 countries. That is extremely limiting as far as LNG sales go, and it makes the non-FTA export permission beyond crucial.

Outside of Dominion and Energy Transfer Partners LP (NYSE:ETP), Royal Dutch Shell plc (ADR) (NYSE:RDS.A) and El Paso Pipeline Partners, L.P. (NYSE:EPB) are teaming up to convert EPB’s import terminal on Elba Island, just off the Savannah coast, to an export facility. and Sempra Energy, among others, have also thrown their hats in the ring. Both companies would export from the U.S. Gulf Coast.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.