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DOE asked to support West Coast LNG

LNG Industry,


US Senator John Barrasso and 11 other lawmakers from Wyoming, Utah and Colorado have asked the Department of Energy (DOE) to support liquefied natural gas (LNG) export facilities on the US west coast, and to allow natural gas from the Rocky Mountains to reach international markets.

In a letter to the Secretary of Energy, the 12 officials expressed support for the proposed LNG export facility at Jordan Cove in Oregon. The facility would enable the export of natural gas from the Colorado, Utah and Wyoming to Asian markets.

The letter urged the DOE to quickly review and act on Jordan Cove’s application to export LNG to non-Free Trade Agreement (FTA) countries. To date, the DOE has approved applications to export LNG to non-FTA countries from three facilities on the Gulf coast and one on the US east coast. Exports from facilities on the west coast are yet to be approved.

The full text of the letter, addressed to Secretary Moniz, reads:

“We write to express our support for Jordan Cove’s application to export liquefied natural gas (LNG) to non-Free Trade Agreement (FTA) countries. While we applaud the Department of Energy’s approval of applications to export LNG from facilities located along the east coast and the Gulf of Mexico, it is imperative that the Department quickly review and act on applications to export LNG to non-FTA countries from facilities on the west coast. Facilities, such as Jordan Cove, are essential to ensuring that Rocky Mountain states and Indian tribes have greater access to international markets and thus the opportunity to enjoy the economic benefits of LNG exports.

“Revenues to Rocky Mountain states, such as Colorado, Utah, and Wyoming, depend significantly on the production of energy resources within their borders. For example, in 2012, roughly 18 percent of the revenues to the State of Wyoming came from Federal mineral royalties and state severance taxes collected on natural gas production. Likewise, revenues to Indian tribes, such as the Ute Indian Tribe on the Uintah and Ouray Reservation in Utah, depend heavily on royalties and tribal severance taxes collected on natural gas production. The nation’s supply of natural gas, however, is projected to soon exceed domestic demand. Consequently, companies have cancelled natural gas projects which has resulted in or is expected to result in less revenue to state and tribal governments and the creation of fewer jobs in our communities.

“West coast LNG export facilities, such as Jordan Cove, would provide Colorado, Utah, and Wyoming, and Indian tribes, such as the Ute Indian Tribe, direct access to international markets. Specifically, Jordan Cove would allow gas shipped on the Ruby pipeline to be exported to Asian markets. Access to international markets is critical to ensuring that companies have the incentive to produce natural gas in the future. The Department’s approvals of LNG exports from east coast and Gulf coast facilities will encourage future natural gas production in eastern and Gulf coast communities. We believe the Department should provide the people of the Rocky Mountain states and Indian tribes the same opportunity.”

The letter concludes with a request that the DOE “expeditiously review and act on Jordan Cove’s application to export LNG to non-FTA countries.”

Signatories

The following 12 lawmakers signed the letter: Senators John Barrasso, Mike Enzi and Orrin Hatch; and Representatives Cynthia Lummis, Jim Matheson, Rob Bishop, Jason Chaffetz, Chris Stewart, Cory Gardner, Scott Tipton, Mike Coffman and Doug Lamborn.

Edited from various sources by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/14112013/letter_to_doe_for_lng_support_440/


 

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