Gas Up Your Dividends with Cheniere Energy Partners

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tdp2664 InvestorPlace The recent news that natural gas pipeline firm Cheniere Energy Inc. (AMEX: LNG ) inked a deal with U.K. energy firm BG Group plc to export liquefied natural gas from the U.S. caused shares of LNG to jump 59% in just one trading session. No wonder. This deal has some exciting implications for the sector, and it's particularly good for Cheniere Energy Partners LP (AMEX: CQP ). Cheniere Energy Partners, in which LNG has a 90.6% ownership interest, owns and operates the Sabine Pass Terminal in Louisiana. The BG Group deal marks the first long-term liquefied natural gas purchase from the Gulf of Mexico into international gas markets. The exports are expected to begin as early as 2015, and construction of the liquefaction facilities at Sabine Pass is slated to begin in 2012. "This agreement gives BG Group an early entrance to the U.S. gas export market," according to BG. Why is liquefying natural gas so attractive? One reason: Liquefied natural gas takes up about 1/600th the volume of the original vapor, so it's much more cost-efficient to transport. In fact, liquefied natural gas is no longer limited to just pipelines. It can be transported via ship, rail and truck, thereby reaching the most remote areas — including international customers — where pipelines don't exist. Liquefied natural gas also is odorless, colorless, nontoxic and noncorrosive, and it has an energy density similar to gasoline and diesel fuels, while producing less pollution. Now that sounds very "green" to me! Many politicians here at home, including President Obama, don't seem to want to fully embrace liquefied natural gas as an alternative green fuel. However, the rest of the world realizes its value, and hence the deal between Cheniere Energy and BG Group. I estimate this agreement's value at $8.2 billion, which translates to approximately $410 million in revenue per year for Cheniere Energy Partners. That makes this natural gas play, which as of Nov. 4 has a dividend yield of 10.44%, a potential long-term winner. It also makes the stock a good choice for yield-seeking income portfolios. If you want to turn up the heat on your dividend portfolio, check out Cheniere Energy Partners. Disclosure: Bryan Perry recommends CQP in his Cash Machine advisory service.