DOE authorizes export of domestically produced LNG to countries without free trade agreement

The US Depart of Energy (DOE) announced that it has issued a final authorization to American LNG Marketing to export domestically produced LNG to countries that do not have a Free Trade Agreement (FTA) with the US. American LNG is authorized to export LNG up to the equivalent of 0.008 Billion cu ft (bcf)/day of natural gas for a period of 20 years from the liquefaction facility located near Medley, Fla., in Miami-Dade County, Fla., using approved ISO LNG containers.

The development of US natural gas resources is having a transformative impact on the US energy landscape, helping to improve US energy security while spurring economic development and job creation around the country, according to the DOE. This increase in domestic natural gas production is expected to continue, with the EIA forecasting a record average production rate of 79.06 bcf/day in 2015.

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

The DOE said it conducted an extensive, careful review of the American LNG application. Among other factors, the department considered the economic, energy security and environmental impacts and determined that exports at a rate of up to 0.008 bcf/day for a period of 20 years was not inconsistent with the public interest.

The full final authorization for American LNG can be found here.