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Sabine Pass LNG to become export terminal

LNG Industry,

The US Department of Energy has issued a conditional authorisation approving an application to export LNG from the Sabine Pass LNG Terminal in Louisiana. This is subject to final environmental and regulatory approval, but does represent the first authorisation for LNG exports from the lower 48 states to US trading partners.

"Our long term economic strength depends on safely and responsibly harnessing America's domestic energy resources while developing new and innovative clean energy technologies," said US Energy Secretary Steven Chu. "This project reflects a broad, 'all of the above' approach that will put Americans to work producing the energy the world needs."

Sabine Pass Liquefaction, LLC is planning to export up to 803 billion ft3/yr of domestically produced natural gas as LNG for a period of 20 years. The reason for the about turn from importing LNG to exporting it is the discovery of vast shale deposits in North America. It is only recently that it has become economically viable to fully exploit them.

Either way, if shale gas does not come up against more stringent regulation due to its methods of extracting gas by ‘fracking’, then it is highly likely that there will more export terminals springing up along the coast of North America.

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