Sempra Energy Receives DOE LNG Export License For Louisiana Liquefaction Facility -- One Word: Wow; Marcellus NG -- $4/MCF Yields 60% Rates Of Return

Sempra Energy subsidiary receives Department of Energy LNG export license for Louisiana liquefaction facility:

The U.S. Department of Energy (DOE) today issued a conditional authorization that allows Sempra Energy subsidiary Cameron LNG to export domestically produced liquefied natural gas (LNG) from its proposed liquefaction facilities in Hackberry, LA, to countries that do not have a free trade agreement (FTA) with the U.S. Subject to environmental review and final regulatory approval, the authorization conditionally approves Cameron LNG to export up to 12 million tonnes per annum (Mtpa), or approximately 1.7 billion cubic feet per day, of natural gas for 20 years commencing on the date of first export.

This reinforces the fact that there is not a "natural gas" shortage in New England; there is a "pipeline" shortage, or "distribution issue." See RBN Energy earlier today.

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Hitting new highs include BHI, EPD, MDU, WMB.

Others trading near new highs include SRE.

Not a good day for WPX:  WPX  late Monday said its fourth-quarter and full-year earnings will be impacted by up to $1.4 billion in pre-tax charge stemming from a drop in forward market natural gas prices. WPX shares slumped 10%, the biggest loser in the S&P 500.

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The Marcellus: A Monster

Yahoo!Finance / AccessWire is reporting that Canada has a problem. Losing East Canada as a customer means west Canada needs Asia for a natural gas customer.

When will Marcellus production peak? That is Big Question #1. There are thousands of undrilled well locations remaining in the play and Marcellus economics work at very low gas prices.

At just $4/mcf, rates of return from drilling wells in the Marcellus reach as high as 60%. These stellar economics will keep Marcellus production growing in all but the most pessimistic of natural gas price scenarios.

Expectations for the Marcellus are for production to increase by another 3 bcf/day in just 2014 alone. The Marcellus is the monster shale gas play and is already turning the North American natural gas game upside down—just recently it forced the partial reversal of the $4 billion REX pipeline, which was built only a few years ago to get Rockies gas east to the lucrative New England market. Now Marcellus gas will flow west.