The fracking boom has driven natural gas prices below $2 per 1,000 cubic feet for the first time in decades. That has prompted many firms to begin the process of exporting that bounty to places like Asia, where it fetches a higher price.
With the U.S. on the cusp of becoming one of the world’s largest exporters of liquefied natural gas, the firms that do the exporting will continue to benefit from the abundance of energy produced via fracking.
Cheniere Energy’s (AMEX:LNG) Sabine Pass liquefaction facility last week received the final stages of federal approval and could open the floodgates for other new exporting facilities. Several firms with import terminals are following Cheniere’s lead and are applying for export permits, including Sempra Energy (NYSE:SRE) and Dominion Resources (NYSE:D). At the same time, day rates for LNG shippers like Golar LNG (NASDAQ:GLNG) continue to hit new highs as demand increases.