US Approves Further LNG Exports
The US Department of Energy (DOE) has approved two long-term applications to export more LNG from the Lake Charles LNG liquefaction project in Louisiana. The approval covers 0.33bn ft³/d (3.4bn m3/yr), on top of the existing 2bn ft³/d (20.7bn m3/yr) approval granted.
DOE determined that increased exports from the Lake Charles LNG Liquefaction Project, jointly owned by the Texas-based Energy Transfer and the Anglo-Dutch major Shell, for a period of 20 years was not inconsistent with the public interest; it noted that "further engineering of the planned project" – which belongs to Anglo-Dutch Shell and US Energy Partners – had enabled more capacity.
Natural gas production from America’s shale reserves has generated economic growth and jobs across the US, the DOE said, and using this clean energy source has also enabled the US to achieve the largest drop in carbon emissions of all countries in 2016. It said the president, Donald Trump and his vice-president, Mike Pence, and energy secretary Rick Perry "continue carrying this message around the globe, working together with the US’ allies and trading partners in creating a clean and affordable energy future."
One of Trump's election pledges was to boost US gas exports, based on continuing gains in US natural gas production. The Energy Information Administration predicts output of dry gas to reach 73.3bn ft³/d (757.9bn m3/yr) in 2017, the second highest on record. "These production gains have led to increasing export opportunities for the United States, which is transitioning to become a net exporter of natural gas," said DOE.
DOE has now authorised a total of 21.33bn ft³/d (220.6bn m3/yr, equivalent to 160mn metric tons/yr) of natural gas exports to any country in the world from planned facilities in Texas, Louisiana, Florida, Georgia, Maryland, and the Gulf of Mexico. It has said that there are "showed positive benefits to the US economy in scenarios with LNG exports up to 28bn ft³/.
The full final authorisation for Lake Charles Exports, LLC and Lake Charles LNG Export Company, can be found under “Recent Orders” here.
Energy Transfer, along with ExxonMobil, signed a memo of understanding on future supplies to South Korean state Kogas on June 29.
William Powell