US DOE authorizes Freeport LNG to export LNG to non-FTA countries

The U.S. Department of Energy has issued two final authorizations for Freeport LNG Expansion, L.P. and FLNG Liquefaction, LLC to export domestically produced LNG to countries that do not have a Free Trade Agreement (FTA) with the U.S.

The Freeport LNG Terminal in Quintana Island, Texas, is authorized to export LNG up to the equivalent of 1.4 Bcfd of natural gas and 0.4 Bcfd, for a total authorized volume of 1.8 Bcfd, for a period of 20 years.

Following the recent announcement of the procedural change, the Department evaluated the two Freeport applications after they completed the environmental review required by the National Environmental Policy Act (NEPA).                                        
                                                  
The development of U.S. natural gas resources is having a transformative impact on the U.S. energy landscape, helping to improve the nation's energy security while spurring economic development and job creation around the country.  This increase in domestic natural gas production is expected to continue, with the Energy Information Administration forecasting a record production rate of 75.05 Bcfd in 2014.

Federal law generally requires approval of natural gas exports to countries that have an FTA with the U.S. For countries that do not have an FTA with the U.S., the Natural Gas Act directs the Department of Energy to grant export authorizations unless the Department finds that the proposed exports “will not be consistent with the public interest.”

The Energy Department conducted an extensive, careful review of the Freeport LNG applications.  Among other factors, the Department considered the economic, energy security, and environmental impacts and determined that exports at a rate of up to 1.4 Bcfd and 0.4 Bcfd for a period of 20 years was not inconsistent with the public interest.

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