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ExxonMobil (ticker: XOM) has submitted a formal application to the Federal Energy Regulatory Commission to construct an LNG plant at its Golden Pass facility in Sabine Pass, Texas. The proposal, officially submitted on July 9, 2014, is part of a joint venture with Qatar Petroleum International and the pre-filing process began in May 2013.

A final investment decision between the two companies is expected by 2015. Initial estimates place expenditures at a total of $10 billion over the course of a five year period. The project has already received export agreements to Free Trade Agreement countries but an approval from the FERC would expand the Golden Pass’ customers to a worldwide level.

Currently, only two United States LNG plants have been granted government approval for exports, including one in Sabine Pass operated by Cheniere (ticker: LNG). First exports from Cheniere’s plant are currently scheduled for 2015. A total of six plants in the United States are expected to begin the exportation phase between 2015 and 2019, with total combined output of roughly 10 Bcf/d. The number of plants awaiting approval currently stands at 14.

Source: Golden Pass

Source: Golden Pass

The United States has been attempting to speed up the application process in order to address the projected increase in LNG consumption, particularly in Europe and Asia. The political race in Colorado between Representative Cory Gardner (R) and Senator Mark Udall (D) has highlighted this issue, with both sides taking steps to accelerate government urgency. Fox 31 Denver said, “With Colorado [being] a big producer of natural gas…Udall and Gardner have both been bending over backwards to demonstrate leadership on this issue.”

Gardner’s H.R. 6 bill, also known as the Domestic Prosperity and Global Freedom Act, passed through the House on June 25, 2014. The H.R. 6 is focused on cutting down one step of the approval process to 30 days and is now headed to the Senate. The two opponents have submitted a total of four bills to date, with each bill proposing shorter limits on the LNG approval process.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.