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

EPA approves Magellan’s Corpus Christi splitter project

12/12/2014 The US Environmental Protection Agency has issued a final greenhouse gas prevention of significant deterioration construction permit to Magellan Pr...

Keyera to take majority interest in Alberta gas plant

12/12/2014 Keyera Corp., Calgary, will pay $65 million (Can.) to buy a 70.79% ownership interest in the Ricinus deep-cut gas plant in west-central Alberta.

PBF Energy, PBF Logistics make management changes

12/12/2014 Matthew Lucey, currently executive vice-president of PBF Energy Inc., will succeed Michael Gayda as the company’s president. Todd O’Malley, current...

TAEP: TPI still peaking, but ‘contraction unavoidable’ as oil prices fall

12/12/2014 The Texas Petro Index (TPI), a composite index based on a comprehensive group of upstream economic indicators released by the Texas Alliance of Ene...

MARKET WATCH: NYMEX crude oil price extends slump

12/12/2014 Crude oil prices extended their slump on the New York market with a Dec. 11 settlement of less than $60/bbl for January, and prices continued downw...

US needs more data before ending crude export ban, House panel told

12/11/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

BOEM raises offshore oil spill liability limit to $134 million

12/11/2014 The US Bureau of Ocean Energy Management increased the liability limit for oil-spill related damages from offshore operations to $134 million from ...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

White Papers

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST



On Demand

Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


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