US Energy Department authorises Sabine Pass Liquefaction to export LNG

The Energy Department announced today that it has issued a final authorisation for Sabine Pass Liquefaction, LLC’s expansion project (Sabine Pass) to export domestically produced LNG to countries that do not have a Free Trade Agreement (FTA) with the US. The Sabine Pass LNG Terminal in Cameron Parish, Louisiana, is authorised to export additional volumes of LNG up to the equivalent of 1.38 billion ft³/d of natural gas for a period of 20 years. In 2012, Sabine Pass Liquefaction was authorised to export LNG up to the equivalent of 2.2 billion ft³/d of natural gas for a period of 20 years. With this most recent authorisation, Sabine Pass Liquefaction is authorised to export LNG up to the equivalent of 3.58 billion ft³/d of natural gas for a period of 20 years.

The development of US natural gas resources is having a transformative impact on the US energy landscape, helping to improve our energy security while spurring economic development and job creation around the country. This increase in domestic natural gas production is expected to continue, with the Energy Information Administration forecasting a record average production rate of 78.92 billion ft³/d in 2015.

Federal law generally requires approval of natural gas exports to countries that have an FTA with the US. For countries that do not have an FTA with the US, the Natural Gas Act directs the Department of Energy to grant export authorisations unless the Department finds that the proposed exports ‘will not be consistent with the public interest’.

The Energy Department conducted an extensive, careful review of the three Sabine Pass Liquefaction Expansion Project applications. Among other factors, the Department considered the economic, energy security, and environmental impacts and determined that exports at a rate of up to 1.38 billion ft³/d for a period of 20 years was not inconsistent with the public interest.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/29062015/us-energy-department-authorises-sabine-pass-liquefaction-to-export-lng-1004/