What’s The Opportunity at Cheniere Energy, Inc. (LNG)?

Cheniere has a second liquefaction project in the nascent stages of development in Corpus Christi, Texas. It is an ideal location because of its proximity to all the exploration and production action going on in the Eagle Ford Shale right now. The plan for this facility includes three LNG trains capable of exporting a combined 15 million tons per year, an amount that the Department of Energy officially approved in October. Cheniere filed the necessary applications with FERC for construction and operation authorization in August 2012. If and when FERC approves, Cheniere can move forward to secure financing, customers, and contract for the construction of the first train at Corpus Christi.

The Creole Trail pipeline is the Cheniere asset that gets the least amount of attention, but it is important to the company’s business model. A mere 94 miles long, the pipeline connects to no fewer than seven other natural gas transportation networks. In February 2013, Cheniere received permission from FERC to reverse the flow of the line, so that it may deliver gas to Sabine Pass for liquefaction, in lieu of transporting imported gas from the facility. The pipeline is currently in its open season period, soliciting bids from shippers. If everything goes according to plan, the reversed Creole Trail will go into service in the fourth quarter of 2014, reaching full capacity of 1.5 billion cubic feet per day by the fourth quarter of 2015. At some point between now and then, Cheniere Energy Partners will purchase the pipeline from Cheniere Energy, Inc. (NYSEMKT:LNG) for $300 million and 12 million Class B units .

With all its ducks in a row, Cheniere should be ready to take advantage of a rise in global demand for natural gas. All told, some expect global demand for natural gas to rise 19% higher than 2010 levels by 2017.

The article What’s the Opportunity at Cheniere Energy? originally appeared on Fool.com and is written by Aimee Duffy.

Fool contributor Aimee Duffy has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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