Quote: "The DOE has approved one export application from Cheniere Energy for its Sabine Pass terminal in Louisiana. About seven other companies including Southern, BG, and Sempra have also requested permission to export to countries without free trade agreements."
It appears that the DOE wants to delay any action on non-FTA permits until after the November election. It will be very hard, if not impossible, for the FERC to delay their decision on Cheniere for that long. Any additional delay by FERC could have negative impacts on financing and the EPC (and the eventual start date), but I would expect the FERC to issue its approval in 2Q.
I think the issue for Cheniere investors is what impact does the DOE delay have on Cheniere’s Corpus Christi project? Supporters of Cheniere have claimed that there is still price upside due to Cheniere’s ability to construct additional trains. How valid is that upside given Cheniere’s place in the DOE queue and the political pressure to restrict exports in some manner?
As has been discussed at length, there is very limited upside for Cheniere based on the existing contracts for the 4 trains. Any upside needs to come from additional trains, so it is hard to see how this is good for Cheneire.
I’m long CQP, but have no position in the parent company.
You mean I havent interpreted the article like you have. I read just fine. My point is Cheniere does NOT have the FERC permit. Are you so naive to think that the DOE has no influence on FERC? Guess who pulls both their strings? Could be great, could be real bad! If you can stomach the risk, then absolutely, go for it.