Summary: Sempra Energy’s Cameron LNG export project has finally received a green signal from regulators. The company could start exporting LNG as soon as 2018. The company could post solid earnings growth over the next several years, and it won’t come just from LNG exports.
Slowly but surely, the United States is moving towards exporting liquefied natural gas as the country eyes a greater share of the global LNG trade. The federal government has recently approved Sempra Energy's Cameron LNG export facility. So far, the government has approved LNG exports of up to 4.5 billion cubic feet per day by giving licenses to two major projects.
"Major Regulatory Hurdle"
On Wednesday, Sempra Energy's proposed Cameron LNG project finally received the green signal from the Department of Energy, allowing the company to export 1.7 billion cubic feet of gas daily to countries that do not have a free trade agreement with the U.S. The company has been targeting customers in Asia and Europe. Until now, Cheniere Energy's Sabine Pass project was the only facility to receive these approvals.
The Energy Department has recently overhauled the procedure required to obtain a gas export license. Under the new rules, energy companies are now required to obtain Federal Energy Regulatory Commission's (FERC) approval before filing an application with the energy department. Sempra Energy, however, was one of the few companies that already had a construction license from FERC.