DOE okays Freeport to start LNG exports to non-FTA countries

The US Department of Energy conditionally approved Freeport LNG’s request to export domestically produced LNG from its Quintana Island, Tex., terminal to countries that do not have a free trade agreement with the US.

The conditional authorization allows exports up to 1.4 bcfd for 20 years and is subject to environmental review and final regulatory approval. DOE approved Freeport’s application to export LNG from the terminal to FTA countries on Feb. 11. The May 17 announcement was DOE’s second LNG export approval to non-FTA countries; its first for as much as 2.2 bcfd of gas came earlier in May to the Sabine Pass terminal in Cameron Parish, La.

Several oil and gas associations applauded DOE’s move. “One export permit is a step in the right direction, but many more job and revenue creating projects are still waiting for approval,” said Erik Milito, the American Petroleum Institute’s upstream and industry operation’s director.

“DOE should now move forward with the approval of the remaining applications without delay because the law presumes that all applications should be granted,” Milito maintained.

America’s Natural Gas Alliance Pres. Marty Durbin also called on DOE to approve more LNG export applications. “Selling natural gas into the global market will improve the US trade balance, deliver net jobs and economic benefits here at home and help [US President Barack Obama] achieve his goal of doubling all exports,” he said.

Independent Petroleum Association of America Pres. Barry Russell cheered what he said was DOE’s “continued diligence in approving export applications to allow market forces to work in developing facilities and negotiating contracts.”

Reflects confidence

Natural Gas Supply Association Pres. R. Skip Horvath noted, “We believe this approval demonstrates the [DOE’s] confidence in the country’s abundance of natural gas. We hope this portends more decisions where the competitive market is allowed to choose winners and losers, and that [DOE] considers and decides on additional export applications without unnecessary delay.”

Kathleen Sgamma, vice-president of government and public affairs at the Western Energy Alliance in Denver, meanwhile, said, “[DOE] has carefully studied LNG exports, and found that America benefits from exports in terms of increased economic growth and job creation. The more natural gas America exports, the more America benefits.”

Other business groups responded favorably. “Today’s decision by [DOE] represents an important next step in the recognition that America is well positioned to be a global energy leader,” Karen A. Harbert, president of the US Chamber of Commerce’s Institute for 21st Century Energy, said.

“Although we continue to believe that exports to non-FTA nations should be treated the same as FTA nations, we look forward to a timely review of additional applications that are currently pending,” Harbert added.

The National Association of Manufacturers encourages DOE to continue processing LNG export permit applications expeditiously, said Ross Eisenberg, NAM vice-president of energy and resources policy. “When it comes to energy exports, manufacturers support free trade and open markets. We believe the free market can and will work if given the chance,” he said.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

BG’s 2015 budget ‘significantly lower than 2014’

02/03/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is “significantly lower than 2014” due to “a lower oil...

BP trims capital budget by $4-6 billion

02/03/2015 BP PLC plans an organic capital expenditure of $20 billion in 2015, down from the previous guidance $24-26 billion. Total organic capital expenditu...

EPA suggests DOS reconsider Keystone XL climate impact conclusions

02/03/2015 The US Department of State might want to reconsider its conclusions regarding potential climate impacts from the proposed Keystone XL crude oil pip...

IHS sees second-half end of US output surge

02/03/2015

Expectations are moderating about growth of oil production in the US this year.

Anadarko reports 2014 loss, remains upbeat about Wattenberg

02/03/2015 Anadarko Petroleum Corp. announced a 2014 net loss of $1.75 billion, or $3.47/share diluted, including a net loss of $4.05 billion associated with ...

CNOOC cuts capital budget, starts production from Jinzhou 9-3

02/03/2015 CNOOC Ltd. is slashing its capital budget for 2015 by 26-35% to $11.25-12.86 billion compared with last year’s budget. Capital expenditures for exp...

Seven Group buys into Beach Energy

02/03/2015 Media group Seven Group Holdings, Perth, has bought 13.8% of Adelaide-based Beach Energy Ltd. through share purchases fuelling speculation of a pos...

Karve joins Cobalt for Cameia development

02/03/2015 Shashank V. Karve has joined Cobalt International Energy Inc. as executive vice-president in charge of development of deepwater Cameia oil field on...

MARKET WATCH: NYMEX crude oil stays positive on lower rig count

02/03/2015 Oil prices on the New York and London markets closed higher Feb. 2 on positive momentum generated by a falling US rig count, suggesting cuts in pro...
White Papers

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected