DOE expands LNG export authorization to Cheniere Energy

By OGJ editors
-- The US Department of Energy issued a conditional authorization approving an application from Cheniere Energy Inc. to export LNG from the Sabine Pass LNG terminal in Louisiana.

Subject to final environmental and regulatory approval, Cheniere’s subsidiary, Sabine Pass Liquefaction LLC, will retrofit an LNG import terminal to also be used for exports. DOE called this the first long-term authorization to export gas as LNG from the Lower 48 to all US trading partners.

In August 2010, Sabine Pass Liquefaction filed a two-part application requesting authority to export up to 803 bcf/year of US-produced gas as LNG for 20 years. On Sept. 10, 2010, DOE approved these exports to 15 countries with which the US already has a Free Trade Agreement covering natural gas.

The conditional authorization for exports to non-free trade-agreement countries that was announced May 20 means Cheniere can export LNG to all other countries except those that lack the ability to receive imports or those with which trade is prohibited by US law or policy.

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