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More Exports of Liquefied Natural Gas Approved

Thursday, May 14, 2015
Sandler, Travis & Rosenberg Trade Report

The Department of Energy announced this week that it has issued final authorizations for Dominion Cove Point LNG LP and the Corpus Christi Liquefaction Project to export domestically produced liquefied natural gas to countries that do not have a free trade agreement with the United States. For the next 20 years the Cove Point LNG Terminal in Calvert County, Md., is authorized to export LNG up to the equivalent of 0.77 billion standard cubic feet per day (Bcf/d) of natural gas and the Corpus Christi Liquefaction Project in Corpus Christi, Texas, is authorized to export LNG up to the equivalent of 2.1 Bcf/d of natural gas.

Federal law generally requires natural gas exports to countries that have an FTA with the U.S. to be approved. For countries that do not have an FTA with the U.S., the Natural Gas Act directs the DOE to grant export authorizations unless it finds that the proposed exports will not be consistent with the public interest. In each of the above two cases the DOE considered the economic, energy security and environmental impacts and determined that exports up to the specified amounts are not inconsistent with the public interest.

The DOE states that it will continue to act on applications to export LNG from the lower 48 states after completion of the review required by the National Environmental Policy Act and when it has sufficient information on which to base a public interest determination. During this time the department will continue to monitor any market developments and assess their impact in subsequent public interest determinations.

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