Long term lurker and long term holder of CSPST. Having been in the LNG industry for over 30 years I'll shed some light on the "Sabine Pass" Cheniere Energy (LNG) Export Plans. At the current time they are awaiting FERC approval to go forward with the construction of the export facility. All on other approvals have been received as well as financing for construction. They, Cheniere, have asked the FERC to make a decision by tomorrow or they, LNG, will face increased construction cost down the road.
Four long term export and transportation contracts have already been signed in anticipation of the plant being constructed in placed in service in 2015.
The gas will be sourced through Henry Hub, liquefied at Sabine, and transported overseas. Its a no brainer when Henry Hub spot NatGas is at $2.30 (a record low, and the lowest in the world)and the Japanese and European countries are willing to pay $14 or more per mmBtu. Even factoring in the transportation cost the whole equation makes sense from all parties.
The Kenai plant in Alaska has been exporting LNG to Japan for almost 40 years but can only accommodates small tankers. This plant is due to be decommissioned soon.
There is a growing groundswell of opposition to the construction of these plants but if Cheniere got most of the approvals in place prior to opposition arriving from the Siera Club and the power industry. This opposition is two fold: 1. Siera Club objects because of more fracking. Power industry objects because of future price increases of NatGas.
