Freeport Facility to be Authorized to Export More U.S. LNG

MarineLink.com
Sunday, November 17, 2013
Freeport LNG terminal: Photo courtesy of the operators

The Energy Department has conditionally authorized Freeport LNG Expansion, L.P. and FLNG Liquefaction, LLC (Freeport) to export additional volumes of 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 in Quintana Island, Texas.

Freeport previously received approval to export 1.4 billion cubic feet of natural gas a day (Bcf/d) of LNG from this facility to non-FTA countries on May 17, 2013. In response to the operator's request for additional export capacity (subject to environmental review and final regulatory approval) the facility has now been conditionally authorized to export an additional 0.4 Bcf/d, for a total rate of up to 1.8 Bcf/d, for a period of 20 years.

The development of U.S. natural gas resources is having a transformative impact on the U.S. energy landscape, helping to improve our 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 total natural gas production rate of 70.3 Bcf/d in 2013.

Federal law generally requires approval of natural gas exports to countries that have an FTA with the United States. For countries that do not have an FTA with the United States, 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 full conditional authorization can be found at: http://energy.gov/downloads/order-no-3357-freeport-lng

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