Natural gas exports? What seemed impossible a mere five years ago is becoming a reality. The shale gas revolution has blessed us with burgeoning domestic supply and historically low prices for gas relative to crude oil. Cheniere Energy (ticker symbol LNG) is among a small group of American companies planning the construction of facilities to export liquified natural gas (not coincidentally, also known as LNG). The technology is fascinating and the economic promise is compelling.

But a political battle looms over expansion of gas exports. Sen. Ron Wyden (D-OR), the presumptive new head of the Committee on Energy and Natural Resources, has already declared his opposition to natural gas exports. There is also opposition from large industrial users of natural gas who fear rising prices for their fuel and feedstock.

Cheniere has secured permits (at a cost of $100 million) and is proceeding with plans to construct an $11 billion export facility at a site in Cameron Parish, in extreme southwest Louisiana. It is effectively a major expansion of Cheniere’s existing gas import facility, utilizing the existing deepwater port, gas storage facilities and pipeline interconnects. On site is a deepwater port that can accommodate Q-Flex and Q-Max tankers for export to overseas markets. (Due to Jones Act restrictions, shipments to U.S. destinations like Hawaii or Puerto Rico are not allowed; the entire world fleet of LNG tankers is foreign-flagged.)

If all goes as planned, the terminal will begin export operations in the third quarter of 2015.

The Technology

When chilled to -260°F, natural gas (methane, CH4) occupies 1/600th the volume it does at 60°F, at very near atmospheric pressure, making it possible to transport LNG in ocean-going tankers. The largest tanker class, the Q-Max, is as long as an aircraft carrier and has a capacity of 260,000 cubic meters; its LNG capacity is thus 5.7 billion standard cubic feet of gas (standard conditions 60°F & 1 atm). That’s roughly 8% of one day’s domestic production, or enough gas to supply 70,000 American homes for a year.

via LNG and Gas Exports | RedState.