Earlier this week, the APGA filed motions to intervene in opposition to three applications to export LNG. Specifically the motions are in response to:
- An application by Excelerate Liquefaction Solutions I, LLC to export approximately 1.33 billion ft3/d of LNG from a proposed facility in Texas to non-free trade agreement (FTA) countries.
- An application by CE FLNG, LLC to export approximately 1.07 billion ft3/d of LNG from a proposed facility in Louisiana to non-FTA countries.
- An application by Golden Pass Products, LLC to export approximately 2.6 billion ft3/d of LNG from its existing LNG import terminal in Sabine Pass, Texas to non-FTA countries.
The draft motions are fairly similar in that the APGA’s opposition focuses more on the policy implications of LNG export and less on the merits of each individual application. To date, 22 companies have applied to export LNG from the contiguous US to FTA or non-FTA nations. Also to date, the total export capacity that has been applied for is 31.41 billion ft3/d and 24.8 billion ft3/d to FTA and non-FTA nations, respectively. Total marketed natural gas production was approximately 66 billion ft3/d in the US in 2011; therefore, based on current marketed production, the total applied for export capacity would have the effect of increasing the demand for natural gas by nearly 48%.
In its filings, APGA communicates that the proposed exports will increase domestic natural gas prices, burden households and jeopardise potential growth in the manufacturing sector. The filings further state that increased production of natural gas in the US provides the nation with an unprecedented opportunity to pursue energy independence and sustained economic growth and that the price increases triggered by LNG exports will jeopardise these opportunities. In addition, high prices will inhibit efforts to foster natural gas as a major transportation fuel, which is important in weaning the US from its historic and high risk dependence on foreign oil.
Adapted from press release by Claira Lloyd.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/08022013/apga_intervene_lng_export_apps/