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US DOE issues policy statement on non-FTA LNG exports

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LNG Industry,

The US Department of Energy’s (DOE) Office of Fossil Energy (FE) has issued a policy statement regarding long-term authorisations to export LNG to nations without a Free Trade Agreement (non-FTA nations) with the US.

The DOE/FE states that it wishes to allay concerns of potential importers of US LNG and financiers of LNG export projects about the security of existing (or future) non-FTA export authorisations, and therefore “affirms its commitment to all export authorisations issued under the [Natural Gas Act], including long-term authorisations approving the export of LNG to non-FTA countries… Authorisation holders, as well as any interested stakeholders, thus should have the utmost confidence in the validity of DOE/FE’s LNG export authorisations for the full term of each non-FTA order.” Further, while “DOE preserves its authority to take action as necessary or appropriate to carry out its duties under the NGA, [it] does not foresee a scenario where it would rescind one or more non-FTA authorisations.”

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