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Exports of Liquefied Natural Gas to Non-FTA Countries Approved

Thursday, April 27, 2017
Sandler, Travis & Rosenberg Trade Report

The Department of Energy has issued a final authorization to Golden Pass Products LLC to export domestically produced liquefied natural gas to countries that do not have a free trade agreement with the United States. Golden Pass is authorized to export volumes of LNG up to the equivalent of 2.21 billion cubic feet per day for 20 years from the Golden Pass Terminal near Sabine Pass, Texas.

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 DOE’s review of the economic, energy security, and environmental impacts of the Golden Pass application determined that exports at the approved level are not inconsistent with the public interest.

A DOE press release notes that a total of 19.2 Bcf/d of natural gas exports to non-FTA countries have been approved from planned facilities in Texas, Louisiana, Florida, Georgia, and Maryland. These projects, if built, would position the U.S. to be the dominant LNG exporter in the world. Golden Pass estimates that the construction of its facility will provide 45,000 direct and indirect jobs over five years and that the project will provide 3,800 direct and indirect permanent jobs over the next 25 years of operational activity.

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