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More Exports of Liquefied Natural Gas to Non-FTA Countries Approved

Tuesday, June 02, 2015
Sandler, Travis & Rosenberg Trade Report

The Department of Energy has issued a conditional authorization for the Alaska LNG Project LLC to export domestically produced liquefied natural gas to countries that do not have a free trade agreement with the United States. Subject to environmental review and final regulatory approval, Alaska LNG, in the Nikiski area of the Kenai Peninsula, is authorized to export LNG up to the equivalent of 2.55 billion standard cubic feet per day of natural gas for 30 years.

Federal law generally requires approval of natural gas exports to countries that have an FTA with the U.S. For those that do not, 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.

The department notes that it considered this application separately from other pending LNG export applications in the lower 48 states due to the relative geographic isolation of the natural gas resources on Alaska’s North Slope. North Slope gas has been a stranded resource unavailable to commercial markets, but the project proposed by Alaska LNG includes a pipeline intended to make North Slope gas accessible to consumers.

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