US Government authorises third LNG export facility

A proposal to export domestically produced liquefied natural gas (LNG) has been approved by the US Government. The Department of Energy (DOE) said it has “conditionally granted long-term multi-contract authorisation” […]

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By Priyanka Shrestha

A proposal to export domestically produced liquefied natural gas (LNG) has been approved by the US Government.

The Department of Energy (DOE) said it has “conditionally granted long-term multi-contract authorisation” to Lake Charles Exports – a venture between UK-based BG Group and Texas-based Energy Transfer Equity – to provide LNG from the Lake Charles Terminal in Louisiana to countries that do not have a Free Trade Agreement (FTA) with the US.

The facility (pictured) is authorised to export at a rate of up to two billion cubic feet of natural gas a day (Bcf/d) for a period of 20 years. It is the third approval for LNG export, with the previous one granted in May earlier this year.

Following an “extensive, careful review” of the application, the DOE said the export plans will not be “inconsistent with the public interest” and are likely to provide economic benefits to the US.

It added: “The development of US natural gas resources is having a transformative impact on the US 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 record production rate of 69.96 Bcf/d in 2013.”

The Department granted the first authorisation in May 2011 from the Sabine Pass LNG Terminal in Cameron Parish, Louisiana at a rate of up to 2.2 Bcf/d.

Britain’s first open access Bio-LNG filling station was officially opened earlier this year.