The US Department of Energy proposed a rule that would allow it to authorize natural gas exports of as much as 140 MMcfd to customers in countries that do not have a free-trade agreement with the US, providing the application does not require an environmental impact statement or assessment under the 1969 National Environmental Policy Act. Comments on the Sept. 1 proposal will be accepted through Oct. 16.
The US small-scale gas exports market includes shipments primarily to countries in the Caribbean, and Central and South America, DOE noted in its announcement.
“Many of these countries do not generate enough natural gas demand to support the economies of scale required to justify large volumes of LNG imports from large-scale LNG terminals via conventional LNG tankers,” it said. “The small-scale gas export market has developed as a solution to the practical and economic constraints limiting gas exports to these countries.”
Under federal law, DOE must determine whether approving an application to export US-produced gas to customers in non-FTA countries are in the US national interest. The proposed regulatory change would let it approve applications involving shipments of as much as 140 MMcfd on receipt if a NEPA compliance review is not required.
Officials with groups supporting expanded US LNG exports applauded DOE’s proposal. “Such small-scale LNG export projects have—as DOE clearly recognizes—minimal market effects and environmental impacts,” Fred H. Hutchison, executive director of LNG Allies and Our Energy Moment, told OGJ.
“The proposed rule is further evidence that the administration is ‘all in’ when it comes to US LNG exports,” he said. “[US Energy Sec. Rick Perry] and other top officials understand the highly competitive nature of the global LNG marketplace, and we are pleased to be working with them on a number of fronts.”
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