Monday, July 3, 2017

U.S. DOE Approves 2 Applications to Export More LNG From Louisiana

The U.S. Department of Energy (DOE) said on Thursday that it has approved two long-term applications to export additional liquefied natural gas (LNG) from the Lake Charles LNG Liquefaction Project in Lake Charles, La.

Additional exports in the amount of 0.33 billion cubic feet per day (Bcf/d) of natural gas are approved from Lake Charles's proposed liquefaction facility, DOE said.

The two non-additive authorizations for the Lake Charles LNG Liquefaction Project have been issued to Lake Charles Exports LLC and Lake Charles LNG Export Company (the Lake Charles Companies) authorizing additional exports of domestically produced LNG from the Lake Charles LNG Liquefaction Project to any country in the world not prohibited by U.S. law or policy, it said.

The Energy Department previously authorized the Lake Charles Companies to export LNG up to the equivalent of 2 Bcf/d of natural gas to any country in the world not prohibited by U.S. law or policy from the Lake Charles LNG Liquefaction Project.

Now, with further engineering of the planned project, additional design capacity has been realized and DOE is authorizing an additional 0.33 Bcf/d of exports from the Lake Charles LNG Liquefaction Project, DOE said.

According to the Lake Charles Companies, the construction of the Lake Charles LNG Liquefaction Project will provide thousands of construction jobs and hundreds of permanent jobs as well.

Natural gas production from America's shale reserves has generated economic growth and jobs across the U.S., DOE said. Utilizing this clean energy source has also enabled the U.S. to achieve the largest drop in carbon emissions of all countries in 2016.

DOE said that President Donald Trump, Vice President Mike Pence and DOE Secretary Rick Perry continue carrying this message around the globe, working together with U.S. allies and trading partners in creating a clean and affordable energy future.

Gains in U.S. natural gas production are expected to continue, with the U.S. Energy Information Administration's Short Term Energy Outlook projecting an average dry natural gas production rate of 73.3 Bcf/d in 2017, the second highest on record.

These production gains have led to increasing export opportunities for the U.S., which is transitioning to become a net exporter of natural gas, DOE said. DOE has now authorized a total of 21.33 Bcf/d of natural gas exports to any country in the world from planned facilities in Texas, Louisiana, Florida, Georgia, Maryland, and the Gulf of Mexico.

Federal law requires DOE to conduct a public interest review for applications seeking unrestricted export destinations such as the ones submitted by the Lake Charles Companies. DOE conducted an extensive review of the Lake Charles applications.

Among other factors, DOE considered the economic, energy security and environmental impacts, including macroeconomic studies that showed positive benefits to the U.S. economy in scenarios with LNG exports up to 28 Bcf/d.

DOE determined that increased exports from the Lake Charles LNG Liquefaction Project, jointly owned by the Texas-based Energy Transfer and the Anglo-Dutch based Royal Dutch Shell, for a period of 20 years, was not inconsistent with the public interest.

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