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APGA against Venture Global LNG export application

Hydrocarbon Engineering,

The American Public Gas Association (APGA) filed a motion in protest with the Department of Energy (DoE) in response to an LNG export application by Venture Global LNG. The motion was file on 26 June against an export permit for approximately 243.5 billion ft3/y to both free trade agreement (FTA) and non-FTA countries from an export terminal to be located along the Calcasieu Channel in Louisiana.

In cases where an application has been filed for FTA countries, the application is deemed to be consistent with the public interest and granted without modification or delay. In cases where an application is seeking exportation to non-FTA countries, the burden is on those opposed to the application to demonstrate to DoE that the application is not consistent with the public interest. APGA has stated that the burden of proof should be shifted to exporting companies.

As the Association have communicated in previous LNG export filings, it holds that LNG exports from the lower 48 states will have adverse impacts on gas prices and will threaten an opportunity to reduce American energy dependence. In this most recent filing, APGA additionally states that suspending this proceeding and all other pending applications would be consistent with DoE’s recent decision to commission new studies regarding the impact of LNG exports on domestic prices.

APGA has highlighted that studies upon which DoE is currently relying are out of date and assume lower export quantities than now appears likely. The APGA also pointed out that deferring consideration of this and other applications would be consistent with DoE’s stated preference for not reviewing export applications until after the necessary environmental review under National Environmental Policy Act (NEPA) is concluded.

DoE has so far received 42 applications to export domestic LNG from the contiguous US to FTA or non-FTA nations. The total export capacity applied for to date is 39.31 billion ft3/d and 35.95 billion ft3/d, respectively.

Adapted from a press release by Emma McAleavey.

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