DOE Approves Sabine Pass LNG Expansion

LNG Tanker

By MarEx 2015-06-29 15:30:39

The U.S. Energy Department announced Friday that it has issued a final authorization for Sabine Pass Liquefaction, LLC’s Expansion Project to export domestic LNG to countries that do not have a Free Trade Agreement (FTA) with the United States.

The Sabine Pass LNG Terminal in Cameron Parish, Louisiana is authorized to export additional volumes of LNG up to the equivalent of 1.38 billion standard cubic feet per day (Bcf/d) of natural gas for a period of 20 years. In 2012, Sabine Pass Liquefaction was authorized to export LNG up to the equivalent of 2.2 Bcf/d of natural gas for a period of 20 years.  With this most recent authorization, Sabine Pass Liquefaction is authorized to export LNG up to the equivalent of 3.58 Bcf/d of natural gas for a period of 20 years.

The development of U.S. natural gas resources is having a transformative impact on the U.S. energy landscape, helping to improve 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 average production rate of 78.92 Bcf/d in 2015.

Federal law generally requires approval of natural gas exports to countries that have an FTA with the United States. For countries that do not have an FTA with the United States, the Natural Gas Act directs the Department of Energy to grant export authorizations unless the Department finds that the proposed exports “will not be consistent with the public interest.”

The Energy Department conducted a careful review of the three Sabine Pass Liquefaction Expansion Project applications.  Among other factors, the Department considered the economic, energy security, and environmental impacts and determined that exports at a rate of up to 1.38 Bcf/d for a period of 20 years was not inconsistent with the public interest.