U.S. Department of Energy Streamlines LNG Export Requirements

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The U.S. Department of Energy (DOE) will now only require U.S. LNG exporters to report the country or countries of LNG deliveries. not country of end-use. to satisfy the DOE’s destination reporting requirement. 

The policy change will address the reporting of LNG delivery destinations and the types of supply and sales agreements LNG exporters must file with the DOE. Currently. the DOE requires some LNG export authorization holders to report the final country of end-use for LNG exports. which can differ from the country receiving the initial physical delivery of LNG. This can be challenging given the complexity of some LNG export transactions. and the challenges associated with tracking LNG exports all the way to their point of end-use. LNG exporters are still required to continue the current ban on LNG exports to sanctioned countries.

The U.S. is growing its position as a global leader in LNG exports and is projected to be the third largest in the world behind Australia and Qatar by the end of 2019.    “With the United States now being the world’s top producer of oil and natural gas. it is imperative that U.S. LNG companies have all the tools they need to get their American product into the international market.“ said U.S. Secretary of Energy Rick Perry. “By streamlining the destination reporting requirements. the Department of Energy is taking an important deregulatory step forward in order to better provide reliable U.S. LNG to our friends and allies abroad.“

Since exports of U.S. LNG began from the lower 48-states in 2016. over 1.7 trillion cubic feet of U.S. natural gas has been exported. To date. the DOE has approved 23.05 Bcf d of long-term exports of natural gas. There are currently three large-scale LNG export projects in operation. Sabine Pass. Dominion Cove Point and Corpus Christi. which have a combined operating export capacity of approximately four Bcf d.  

Three additional large-scale export are under construction. There are also a dozen large-scale export projects under review that would provide over 20 billion cubic feet per day of additional export capacity. if approved and constructed.