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Natural Gas Export Rules Revised

Thursday, December 20, 2018
Sandler, Travis & Rosenberg Trade Report

Effective Dec. 19, the Department of Energy has discontinued its practice of requiring many holders of authorizations to export domestically produced natural gas, including liquefied natural gas, to track and report the country (or countries) into which their exported gas was received for end use. Instead, the DOE has reverted to its prior practice of requiring authorization holders to report the country (or countries) into which such gas was actually delivered. The DOE believes this change will enhance the accuracy of information provided by authorization holders and reduce administrative burdens for the U.S. LNG export market.

The DOE states that while this policy statement affects only future export authorizations, it is also issuing a blanket order removing the end use provision from applicable existing export authorizations issued from February 5, 2016 to the present.

Separately, the DOE is proposing an interpretive rule to clarify (a) the types of contracts and purchase agreements associated with the export of natural gas that must be provided to the DOE when a new or amended export authorization is sought and (b) that authorization holders must notify the DOE within 30 days of any prospective or actual changes to the information submitted during the application process. Comments on this proposal are due no later than Jan. 18.

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