HOUSTON, Oct 17 (Reuters) - Cheniere Energy

moved one step closer to producing first liquefied natural gas

from a Corpus Christi, Texas, expansion project on Thursday

after it received permission from federal regulators to put a

supply line into operation.

Cheniere is the largest U.S. LNG exporter and the world's

second largest producer of the superchilled gas. The company has

played a key role in helping the U.S. become the world's largest

exporter of LNG.

The Federal Energy Regulatory Commission issued an order on

Thursday allowing Cheniere to take liquefied gas from the plant

to refrigerated liquid storage facilities and then onto an LNG

tanker for export.

Cheniere has said it wants to produce first LNG from its

Corpus Christi Stage 3 facility by the end of the year, which

will expand U.S. LNG export capacity.

Stage 3 is comprised of seven gas-processing units with an

expected capacity of approximately 10 million metric tons per

year of LNG.