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Natural gas export permits

Hydrocarbon Engineering,

The US DOE has issued two final authorisations for Freeport LNG Expansion, LP and FLNG Liquefaction, LLC (Freeport) to export domestically produced LNG to countries that do not have a Free Trade Agreement (FTA) with the US. The Freeport LNG Terminal in Quintana Island, Texas is authorised to export LNG up to the equivalent of 1.4 billion ft3/d of natural gas and 0.4 billion ft3/d for a total authorised volume of 1.8 billion ft3/d, for a period of 20 years. Following the recent announcements of the procedural change, the Department evaluated the two Freeport applications after they completed the environmental review required by the National Environmental Policy Act (NEPA).

The development of US natural gas resources is having a transformative impact on the US energy landscape, helping to improve energy security while spurring economic development and job creation around the US. This increase in domestic natural gas production is expected to continue, with the Energy Information Administration forecasting a record production rate of 75.04 billion ft3/d this year.

The DOE conducted an extensive, careful review of the Freeport LNG applications. Among other factors, the Department considered the economic, energy security, and environmental impacts and determined that exports at a rate of up to 1.4 billion ft3/d and 0.4 billion ft3/d for a period of 20 years was not inconsistent with the public interest.

American Petroleum Institute comments

The API has welcomed the final approval by the DOE for exports of LNG from the Freeport LNG terminal on Quintana Island, Texas. Erik Milito, API Director of Upstream and Industry Operations said, ‘each export facility represents an opportunity to harness America’s economic strength as the world’s largest natural gas producer. As the Department of Energy confirmed in another report last month, US exports of natural gas will lead to greater domestic energy production, more US jobs, and a stronger economy.

‘The DOE’s approval is a welcome signal that policymakers recognise the economic and strategic importance of US energy exports. We are pleased with the progress the administration is making on LNG exports, and we urge them to continue working with leaders in Congress who are ready to accelerate America’s growth as an energy superpower by streamlining the permitting process and opening the doors to free trade.’

Edited from press releases by Claira Lloyd

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