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Trump administration issues extensions for LNG exports

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LNG Industry,

Last week, the Trump Administration extended the terms of seven long-term LNG export authorisations through 2050. This action follows through on the Department of Energy’s July 2020 policy statement that allows for long-term natural gas export authorisations to non-free trade agreement (non-FTA) countries to be extended through 2050.

“The announcement is yet another example of the Trump Administration’s commitment to protecting American jobs at home and promoting American energy exports abroad,” said US Secretary of Energy Dan Brouillette. “During this Administration, US LNG exports have more than quadrupled, putting the US among the top three LNG exporters in the world. Increased LNG exports means more American energy production, more energy security, and more American jobs.”

The US is the top global producer of natural gas and is currently in its fourth consecutive year as a net exporter of natural gas. To date, US LNG exports have reached 38 countries across five continents.

“Securing US energy jobs, and creating the potential for future growth in our energy sector is a top priority for the President’s Administration,” said Deputy Secretary Mark W. Menezes. “The development and deployment of innovation in hydraulic fracturing and multidirectional drilling has catapulted the US to the world’s number one producer of oil and natural gas. By extending these LNG export authorisations through 2050, DOE provides certainty to investors, industry and energy workers from Pennsylvania to the Permian, and across the nation.”

In addition to allowing existing non-FTA authorisation holders to apply to extend their export terms through 2050, the Department of Energy’s July 2020 policy statement also allows current applicants to amend their pending non-FTA applications to request an export term through 2050.

DOE granted the first seven applications submitted under the new policy. Through this action, long-term LNG export authorisations are now held by companies with export terminals located or proposed in Louisiana, Maryland, and Texas. The authorisation holders receiving term extensions are: Venture Global Calcasieu Pass, LLC; Venture Global Plaquemines LNG, LLC; Rio Grande LNG, LLC; Dominion Energy Cove Point LNG, LP; Corpus Christi Liquefaction Stage III, LLC; and the Freeport entities – Freeport LNG Expansion, L.P., FLNG Liquefaction, LLC, FLNG Liquefaction 2, LLC, FLNG Liquefaction 3, LLC, and FLNG Liquefaction 4, LLC.

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