Japan, in particular, continues to be plagued by high fuel import costs, which have worsened markedly following the yen’s recent decline. The Japanese currently pay nearly $17 per MMBtu for imported natural gas, a little over four times the price of gas in the U.S.
Yes or no to LNG exports?
To date, 21 applications requesting LNG export licenses have been filed with the Department of Energy (DOE). If all of them were approved, it would amount to exports totaling 28.3 billion cubic feet of gas per day – or a whopping two-fifths of the entire marketed gas production of the U.S. last year.
After approving Cheniere Energy, Inc. (NYSEAMEX:LNG)’s Sabine Pass terminal, the DOE has placed a moratorium on further gas export approvals. As the department further scrutinizes how gas exports might impact domestic gas prices and the nation’s economy, companies including Sempra Energy (NYSE:SRE) and Dominion Resources, Inc. (NYSE:D) are anxiously awaiting a decision.
What do you think? Which LNG export projects should be approved? And based upon what criteria?
The article Debate Over U.S. LNG Exports Heats Up originally appeared on Fool.com.
Fool contributor Arjun Sreekumar has no position in any stocks mentioned. The Motley Fool recommends Dominion Resources.
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