The Energy Department announced that it has
conditionally authorized Freeport LNG Expansion, L.P. and FLNG
Liquefaction, LLC (Freeport) to export additional volumes of
domestically produced liquefied natural gas (LNG) to countries that do
not have a Free Trade Agreement (FTA) with the United States from the
Freeport LNG Terminal in Quintana Island, Texas. Freeport previously
received approval to export 1.4 billion cubic feet of natural gas a day
(Bcf/d) of LNG from this facility to non-FTA countries on May 17, 2013.
The Freeport Expansion application was next in the order of precedence
after the Energy Department conditionally authorized Dominion’s proposed
Cove Point facility in September 2013. Subject to environmental review
and final regulatory approval, the facility is conditionally authorized
to export an additional 0.4 Bcf/d, for a total rate of up to 1.8 Bcf/d,
for a period of 20 years.
The development of U.S. natural gas
resources is having a transformative impact on the U.S. 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 total natural gas
production rate of 70.3 Bcf/d in 2013.
Federal law generally requires approval of
natural gas exports to countries that have an FTA with the United
States. For countries that do not have an FTA with the United States,
the Natural Gas Act directs the Department of Energy to grant export
authorizations 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 application to export LNG from the
Freeport LNG Terminal. Among other factors, the Department considered
the economic, energy security, and environmental impacts - as well as
public comments for and against the application and nearly 200,000
public comments related to the associated analysis of the cumulative
impacts of increased LNG exports – and determined that additional volume
of exports from the terminal at a rate of up to 0.4 Bcf/d for a period
of 20 years was not inconsistent with the public interest.
The full conditional authorization can be found HERE.
The Energy Department will continue to
process the applications currently pending on a case-by-case basis, in
the order of precedence previously detailed. During this time, the
Department will continue to monitor any market developments and assess
their impact in subsequent public interest determinations as further
information becomes available, including the EIA’s Annual Energy Outlook
Report at the end of 2013.
Post to be found at:
http://www.maritime-executive.com/article/Energy-Department-Authorizes-Additional-Volume-at-Proposed-Freeport-LNG-Facility-2013-11-18/
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