Friday, May 17, 2013

BIG NEWS: Freeport LNG Receives DOE Approval for LNG Export

"The Energy Department announced today that it has conditionally authorized Freeport LNG Expansion, L.P. and FLNG Liquefaction, LLC (Freeport) to export domestically produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the United States from the Freeport LNG Terminal on Quintana Island, Texas."
So reads the press release from the DOE released at noon today.  The facility is conditionally authorized to export at a rate of up to 1.4 Bcf/day for a period of 20 years.  This is big news.  What's next?  Here is "The Path Forward on LNG Export Applications" in the words of the DOE:

"The Energy Department will continue to process the applications currently pending on a case-by-case basis, in the order of precedence previously detailed. As further information becomes available at the end of 2013, including the EIA’s Annual Energy Outlook Report, the Department will assess the impact of any market developments on subsequent public interest determinations."
Not exactly clear, but not much different than I expected.  No blanket approval, no specific time table, but hopefully less foot dragging.  Other prospective LNG exporters have to be cheering and eagerly pushing their projects with financiers, partners and the feds.  Earlier this week, Exxon announced plans to partner with Qatar Petroleum International in a JV called Golden Pass Products, LLC on a $10 billion LNG export project at Sabine Pass.

Game on!

2 comments:

Anonymous said...

Also big news, DOW didn't come out and say that this is the end of the world.

The Dow Chemical Company (DOW) supports today’s decision by the Department of Energy (DOE). It is a prudent step in pursuit of a measured and balanced approach to liquefied natural gas (LNG) exports that will benefit producers and consumers, such as manufacturers, utilities, homeowners and the American public.

P.S. DOW is a limited partner with Freeport LNG Development LP:)

Did you see this headline on Bloomberg? "Scaled-Back U.S. Fracking Rule Draws Qualified Praise"

TC

Bill Mendenhall said...

Well done report, Robert! Better information than I saw on the news pages.