The US Department of Energy approved Cameron Energy LLC and Carib Energy LLC’s requests for authorization to export LNG to countries that do not have a free-trade agreement with the US. Both applicants had completed reviews required under the National Environmental Policy Act, DOE said.
It gave the Cameron facility in Cameron Parish, La., permission to export LNG up to an equivalent of 1.7 bcfd of gas for 20 years. Carib Energy, a Crowley Maritime Corp. subsidiary, received approval to export up to an equivalent 0.04 bcfd for 20 years from its proposed Martin County, Fla., facility in International Standardization Organization approved containers, DOE said on Sept. 10.
The decision marked the last regulatory hurdle for the Cameron LNG facility and cleared the way for execution of the largest capital project in the history of its sponsor, San Diego-based Sempra Energy, Sempra Chair Debra L. Reed said.
“This landmark project will create thousands of jobs and economic benefits for Louisiana and the US for decades to come, while delivering natural gas to America's trading partners in Europe and Asia,” she said.
Reed said Cameron LNG received US Federal Energy Regulatory Commission approval earlier this year to site, construct, and operate the three-train liquefaction and export facilities. The liquefaction and export project is expected to create 3,000 on-site jobs, 200 full-time positions, and several hundred support jobs in fabrication, engineering, and operations.
First small-scale exporter
Carib previously was the first company to be granted a 25-year small-scale DOE license to export LNG to FTA countries, and continues to transport 0.03 bcfd of US-sourced LNG to customers in Caribbean and Central and South American countries, a Crowley Maritime official said.
Federal law generally allows exports of LNG from the US to countries with which it has an FTA. For countries that don’t, DOE is required to determine whether such exports would be in the US natural interest.
DOE said it conducted an extensive, careful review of the Cameron LNG and Carib Energy applications. Among other factors, it said it considered the economic, energy security, and environmental impacts, and determined that exports at a rate of up to 1.7 bcfd for Cameron and 0.04 bcfd for Carib over 20 years was consistent with the public interest.
Industry responses
American Petroleum Institute and America’s Natural Gas Alliance officials separately applauded DOE’s action.
“As the world’s top natural gas producer, America is in a strong position to create jobs, grow our economy, and bolster our influence overseas,” API Upstream Group Director Erik Milito said. “Cameron Parish and Martin County are now the second and third projects to receive final DOE approval. [They] open the door to billions [of dollars] in local investment, thousands of new jobs, and a stronger trade balance for the United States.
“But dozens of other permits still face lengthy delays,” he continued. “We urge the administration to accelerate this process and work with leaders in Congress who have shown they are ready to strengthen America’s position as an energy superpower.”
Frank Macchiarola, ANGA’s executive vice-president of government affairs, said the approvals were a positive step toward improving American energy and economic security. “In particular, the approval to export…LNG from the Cameron facility can help strengthen our standing globally while creating jobs and advancing the economy right here in the US,” he said.
“We hope that the administration will proceed swiftly with approval for all terminals that are under review so that our nation can seize this window of opportunity to be a major player in global gas markets,” Macchiarola said.
Contact Nick Snow at [email protected].
