On 23rd May, the APGA filed a motion to intervene in protest of an LNG export application by Magnolia LLC to export 1.08 billion ft3/d to non-free trade agreement (FTA) countries from the Magnolia LNG Terminal near Lake Charles, Louisiana. Under this application, the total export capacity applied for to date is 38.87 billion ft3/d and 35.93 billion ft3/d to FTA and non-FTA nations, respectively. When an application is filed, in cases where the application is specific to identified countries with which the US has an FTA, 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 of LNG to countries with which the US does not have FTAs, the burden is on those opposed to the application to demonstrate that the application is not consistent with the public interest.
APGA’s filing
In the filing, the APGA communicate that Magnolia’s application is inconsistent with the public interest and should be denied. APGA states that the proposed exports from Lake Charles, ‘will increase domestic natural gas prices, burdening households and jeopardising potential growth in the US manufacturing sector, as well as the nation’s transition away from more environmentally damaging fossil fuels.’ The failing also expresses concern that ‘exports by Magnolia and others will bring about a new equilibrium between domestic and international natural gas prices, squandering the current opportunity to take full advantage of lower domestic natural gas prices to boost the US economy.’
A copy of the motion can be found at www.apga.org/filings
Adapted from press release by Claira Lloyd. View more LNG news at LNGIndustry.com