Friday, May 17, 2013

US Allows LNG To Be Exported To Countries That Do Not Have A Free Trade Agreement With The US; XOM/Qatar Moving On Golden Pass LNG Export

Oil & Gas Journal is reporting:
The US Department of Energy conditionally approved Freeport LNG’s request to export domestically produced LNG from its Quintana Island, Tex., terminal to countries that do not have a free trade agreement with the US.
The conditional authorization allows exports up to 1.4 bcfd for 20 years and is subject to environmental review and final regulatory approval. DOE approved Freeport’s application to export LNG from the terminal to FTA countries on Feb. 11.
The May 17 announcement was DOE’s second LNG export approval to non-FTA countries; its first for as much as 2.2 bcfd of gas came earlier in May to the Sabine Pass terminal in Cameron Parish, LA.
Several oil and gas associations applauded DOE’s move. “One export permit is a step in the right direction, but many more job and revenue creating projects are still waiting for approval,” said Erik Milito, the American Petroleum Institute’s upstream and industry operation’s director.
Reuters also reports the story. Reuters says the amount of natural gas exported will equal about 2% of total US production (at current levels). Two percent. Remarkable. Lots of questions remain.

The article also notes that there is a small window to get these export facilities built: other countries, like Australia are moving very fast on their own export facilities.

Is that cool or what, though, exporting natural gas?

Meanwhile, remember Golden Pass? Exxon and Qatar?

The joint venture is advancing its permit application for LNG export.

The Oil & Gas Journal is reporting:
Golden Pass Products LLC has taken its first step toward seeking US Federal Energy Regulatory Commission permission to build the 15.6 million-tonne/year LNG export terminal it plans at Sabine Pass, TX.

The company, a venture of Qatar Petroleum International and ExxonMobil Corp., which operates an LNG import facility at Sabine Pass, ....
It has received Department of Energy approval to export LNG to countries with which the US has free-trade agreements and earlier this month announced signing of a commercial framework agreement for sale of all the proposed facility’s output.

Is that cool or what?

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