DOE to permit Golden Pass to export LNG to non-FTA countries

The US Department of Energy has signed an order authorizing Golden Pass Products LLC to export domestically produced LNG to countries that do not have a free-trade agreement with the US. Golden Pass won approval to export as much as 2.21 bcfd of gas equivalent from its terminal near Sabine Pass, Tex., to any non-FTA country not prohibited by US law or policy for up to 20 years, DOE said.

The US is becoming a net gas exporter with the dramatic increase in gas production, DOE noted. A total of 19.2 bcfd of gas equivalent has been approved for export to non-FTA countries from planned facilities in Texas, Louisiana, Florida, Georgia, and Maryland. These projects, if built, would position the US to be the world’s dominant LNG exporter, DOE said.

Golden Pass, which is 70% owned by Qatar Petroleum and 30% owned by ExxonMobil Corp., noted that a study by the Perryman Group estimates the construction of the facility will provide 45,000 direct and indirect jobs over 5 years. It also will provide 3,800 direct and indirect permanent jobs nationwide during its 25 years of operation, including more than 200 positions at the facility itself, it indicated.

The Perryman Group study also anticipates that the GPP Export Project will generate significant tax revenue, including $4.6 billion for federal, state, and local governments from the project and indirect sources, Golden Pass said. The study estimated that the federal government will receive $26 million/year and Texas will receive $1 million/year from the project’s operation.

Federal law generally assumes approval of LNG exports to countries having FTAs with the US. For countries that do not, the Natural Gas Act directs DOE to grant export authorizations unless it determines that this would not be in the US national interest.

DOE said it extensively reviewed the Golden Pass export application. It considers, among other factors, the economic, energy security, and environmental impacts, including macroeconomic studies that showed positive benefits to the US economy in scenarios with LNG exports up to 28 bcfd of gas equivalent.

Contact Nick Snow at [email protected].