U.S. regulators approved the country’s first liquefied natural gas (LNG) export plant in 50 years late Monday, giving shares of Cheniere Energy a boost in Tuesday trading. The Federal Energy Regulatory Commission (FERC) approval opens the door for construction at Cheniere’s LNG plant in Louisiana which will chill gas to a liquid for shipping overseas.
The ruling comes as natural gas inventories in the U.S. are set to spill over due to record production from newly found gas deposits. At this point, Cheniere is the only project to get the go ahead as the U.S. government has suspended decisions on expanding U.S gas exports until the price impact of such exports on domestic consumers is completed this summer.
Cheniere’s plant will be able to export 2.2 billion feet of natural gas per day, the equivalent of 16 million tons per year, representing about 3% of U.S. daily supply. Cheniere will raise about $4 billion in debt to help finance the construction.
Cheniere Energy (LNG : AMEX : US$17.60), Net Change: 0.61, % Change: 3.59%, Volume: 14,541,717