Any property owner along the proposed Williams pipeline corridor should take heed of Cheniere Energy’s permit to use the Sabine Pass LNG terminal to add export of America’s natural gas reserves to its prescribed use. The proposed Jordan Cove LNG terminal in Coos Bay has begun the regulatory permit process on much the same grounds as, “Cheniere, which once planned to profit from building multi-billion-dollar liquefaction terminals”.

The Sabine Pass LNG terminal will tap into existing gas transmission lines with a “…16-mile pipeline originating at the Sabine Pass LNG terminal… and will run eastward along a corridor that will allow for interconnection points with interstate and intrastate natural gas transmission pipelines in South Louisiana, including Natural Gas Pipeline Company of America, Transcontinental Gas Pipeline Corporation, Tennessee Gas Pipeline Company, Florida Gas Transmission Company, and Bridgeline Holdings, L.P.”

The significance of this permit to Coos County property owners threatened with pipeline easements on their property is the eminent domain laws cannot be used for export terminals, one of the reasons, Douglas County chose to restrict land use approval subject to one way delivery of gas. In the Sabine Pass LNG terminal, however, is still claiming to be an import and liquefaction terminal and such a multi-use distinction may be a way Jordan Cove could ultimately use the Williams pipeline and its intrastate connection for export purposes.

The U.S. Department of Energy said Thursday it has granted approval to Cheniere Energy Partners LP’s (CQP: 19.76, +0.01, +0.05%) bid to export liquefied natural gas produced in North America from a terminal in Louisiana.

The approval, granted Sept. 7, puts the terminal in Cameron Parish, La., one step closer to becoming the first facility to export natural gas produced in the Lower 48 states, drawing supply from the burgeoning unconventional gas fields in Texas, Louisiana, Arkansas and Oklahoma.

Meanwhile the first comment objecting to the export permit has been filed.

A proposal to export US natural gas on the global LNG market would hurt domestic customers and jeopardize low prices and energy security, the president of the Industrial Energy Consumers of America said Friday.

“It is not enough to know that the US has significant reserves of natural gas,” Paul Cicio said. “The question remains what portion of those reserves can be produced at affordable prices and especially at prices that allow the manufacturing sector to flourish.”

Cicio’s group lodged the first negative comment to an application by Cheniere Energy Partners to liquefy and export gas from its Sabine Pass LNG terminal in Louisiana. The Houston firm asked the Department of Energy in August for permission to export supplies for 20 years.

“A lot can happen in 20 years, and exporting without any consumer safeguards could increase the price of natural gas and electricity,” Cicio said in a December 13 letter to the agency.

(hat tip/Holly)