U.S. Energy Department Grants Third Non-FTA LNG Export Approval

The U.S. Department of Energy (DOE) has announced that it has conditionally authorized Lake Charles Exports, LLC to export domestically produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the United States from the Lake Charles Terminal in Lake Charles, Louisiana.

Lake Charles previously received approval to export LNG from this facility to FTA countries on July 22, 2011.

The DOE notes that this authorization is subject to environmental review and final regulatory approval; however, the facility is conditionally authorized to export at a rate of up to 2.0 billion cubic feet of natural gas a day (Bcf/d) for a period of 20 years.

“The approval of the Lake Charles export license is great news for the economy,” commented Senator Lisa Murkowsi, “I’m hopeful that it also shows a willingness by the Department of Energy and Secretary Moniz to make the timely review of applications a priority. We must remember that the window for building out our LNG capacity is not open-ended – it could close if we don’t seize this opportunity to have America’s natural gas play a major role in the growing global gas market.”

Murkowski, the ranking member of the Senate Energy and Natural Resources Committee, released a white paper on Tuesday outlining her support for exporting LNG to non-free trade agreement countries.

The Department granted the first authorization to export LNG to non-FTA countries in May 2011 from the Sabine Pass LNG Terminal in Cameron Parish, Louisiana at a rate of up to 2.2 Bcf/d, and the second authorization in May 2013 from the Freeport LNG Terminal in Quintana Island, Texas at a rate of up to 1.4 Bcf/d.

The development of U.S. natural gas resources is having a transformative impact on the U.S. energy landscape, helping to improve our energy security while spurring economic development and job creation around the country. This increase in domestic natural gas production is expected to continue, with the Energy Information Administration forecasting a record production rate of 69.96 Bcf/d in 2013.

Lake Charles Exports is a jointly-owned subsidiary of BG Group plc (BG) and Southern Union Company (SUG).