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US DOE changes LNG export destination reporting requirement

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LNG Industry,

The US Department of Energy (DOE) has announced that it has issued a policy statement under which it is discontinuing its practice, adopted in 2016, of including an ‘end use’ reporting provision in orders authorising the export of domestically produced natural gas; including LNG.

Currently, many export authorisation holders are required to track and report the country (or countries) of destination into which their exported LNG or natural gas was ‘received for end use’. The DOE will revert to its prior practice of requiring authorisation holders to report, in relevant part, the country (or countries) into which the exported LNG or natural gas ‘was actually delivered’. The policy statement affects only future export authorisations issued by the DOE. However, concurrently with the issuance of this policy statement, the DOE is issuing a blanket order removing the end use provision from applicable existing export authorisations issued from February 2016 to present.

The DOE is also proposing an interpretive rule to clarify certain DOE regulations governing the export of natural gas, including LNG. The DOE is proposing to clarify the types of contracts and purchase agreements associated with the export of natural gas that the DOE considers to be ‘relevant’ for purposes of its regulations. DOE’s regulations also impose a ‘continuing obligation’ on authorisation holders to notify DOE ‘as soon as practicable’ of any prospective or actual changes to the information submitted during the application process upon which the authorisation was issued, including ‘the terms and conditions of any applicable contracts.’ In the proposed interpretative rule, DOE is seeking to clarify the phrase ‘as soon as practicable’ to mean within 30 days of the execution of the contracts. Comments on the proposed interpretive rule are due by 19 January 2019.

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