Domestically Produced LNG Approved For Export

July 2013, Vol. 240 No. 7

The U.S. Department of Energy has conditionally authorized 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 United States from the Freeport LNG Terminal on Quintana Island, TX.

Freeport previously received approval to export LNG from the facility to FTA countries on Feb. 10, 2011. Subject to environmental review and final regulatory approval, the facility is conditionally authorized to export at a rate of up to 1.4 Bcf/d of natural gas for 20 years. The Department granted the first authorization to export LNG to non-FTA countries in May 2011 for the Sabine Pass LNG Terminal in Cameron Parish, LA at a rate of up to 2.2 Bcf/d.

Sempra International, a subsidiary of Sempra Energy, has proposed a $6-7 billion expansion of its existing Cameron LNG project in Hackberry, LA. Cameron LNG is scheduled to start construction in 2014 and begin operations in late 2017. It is the only project pending before FERC with an approved schedule for a final environmental permit.

Mark A. Snell, president of Sempra Energy, released the following statement: “We applaud the Department of Energy’s action and view it as an indication that other projects, including our own Cameron LNG, will receive this authorization soon. Just yesterday, we signed agreements with Mitsubishi, Mitsui and GDF Suez that fully subscribes the capacity of our proposed new liquefaction facility.

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