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US DOE authorises LNG exports from Lake Charles

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Hydrocarbon Engineering,

The US Department of Energy has announced the approval of two long-term applications to export additional LNG from the Lake Charles LNG Liquefaction Project in Lake Charles, LA. Additional exports in the amount of 0.33 billion ft3/d of natural gas are approved from Lake Charles’s proposed liquefaction facility.

The two non-additive authorisations for the Lake Charles LNG Liquefaction Project have been issued to Lake Charles Exports, LLC and Lake Charles LNG Export company (the Lake Charles companies) authorising additional exports of domestically produced LNG from the Lake Charles LNG Liquefaction Project to any country in the world not prohibited by US law or policy. The Energy Department previously authorised the Lake Charles companies to export LNG up to the equivalent of 2 billion ft3/d of natural gas to any country in the world not prohibited by US law or policy from the Lake Charles LNG Liquefaction Project. Now, with further engineering of the planned project, additional design capacity has been realised and the Energy Department is authorising an additional 0.33 billion ft3/d of exports from the Lake Charles LNG Liquefaction project.

According to the Lake Charles companies, the construction of Lake Charles LNG Liquefaction Project will provide thousands of construction jobs and hundreds of permanent jobs as well.

Natural gas production from America’s shale reserves has generated economic growth and jobs across the United States. Utilising this clean energy source has also enabled the US to achieve the largest drop in carbon emissions of all countries in 2016. The DOE is eager to bring this clean burning resource and its benefits to all of our international trading partners. President Trump, Vice President Pence, and Secretary Perry continue carrying this message around the globe, working together with the US’ allies and trading partners in creating a clean and affordable energy future.

Gains in US natural gas production are expected to continue, with the US Energy Information Administration’s latest Short Term Energy Outlook projecting an average dry natural gas production rate of 73.3 billion ft3/d in 2017, the second highest on record. These production gains have led to increasing export opportunities for the US, which is transitioning to become a net exporter of natural gas. The Department of Energy has now authorised a total of 21.33 billion ft3/d of natural gas exports to any country in the world from planned facilities in Texas, Louisiana, Florida, Georgia, Maryland, and the Gulf of Mexico. The Lake Charles LNG Liquefaction Project would further position the US to become a predominant LNG supplier to the rest of the world.

Federal law requires the Energy Department to conduct a public interest review for applications seeking unrestricted export destinations such as the ones submitted by the Lake Charles companies. The Energy Department conducted an extensive review of the Lake Charles applications. Among other factors, the Department considered the economic, energy security, and environmental impacts, including macroeconomic studies that showed positive benefits to the US economy in scenarios with LNG exports up to 28 billion ft3/d. The Department determined that increased exports from the Lake Charles LNG Liquefaction project, jointly owned by the Texas-based Energy Transfer and the Anglo-Dutch based Royal Dutch Shell, for a period of 20 years, was not inconsistent with the public interest.

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