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What: Shares of Cheniere Energy
So what: Bloomberg is reporting that regulators could decide as early as next week if Cheniere can go ahead with its $10 billion liquefied natural gas export facility. They are meeting April 19 to discuss the project, and investors should know soon whether the project is moving forward.
Now what: The opportunity to export in the LNG market is enormous because demand overseas is growing. Cheniere could have a near monopoly on domestic exports if approved, but there are still challenges if the project moves forward. The company would need to finance the deal, and it would be years until any real revenue started flowing in. Those are two risk factors that will keep me from buying today, but speculators are jumping on board despite the risks.
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