DOE Authorizes American LNG Marketing Export Application

By Brad Kramer August 7, 2015 View Profile

The U.S. Department of Energy has issued a final authorization to American LNG Marketing LLC to export domestically produced liquefied natural gas to countries without a Free Trade Agreement with the United States. American LNG is authorized to export LNG up to the equivalent of 8 million cubic feet per day (MMcf/d) of natural gas for a period of 20 years from the liquefaction facility located near Medley, Florida, in Miami-Dade County, using approved ISO LNG containers.

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, according to the Aug. 7 DOE announcement. This increase in domestic natural gas production is expected to continue, with the Energy Information Administration forecasting a record average production rate of 79.06 billion cubic feet per day (Bcf/d) in 2015.

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Federal law generally requires approval of natural gas exports to countries that have a Free Trade Agreement with the United States. For countries that do not, the Natural Gas Act directs the DOE to grant export authorizations unless the Department finds that the proposed exports “will not be consistent with the public interest.”

The Energy Department conducted an extensive, careful review of the American LNG application. Among other factors, the department considered the economic, energy security and environmental impacts and determined that exports at a rate of up to 8 MMcf/d for a period of 20 years was not inconsistent with the public interest.

The full final authorization for American LNG can be found department’s website.

The Energy Department will continue to act on applications to export LNG from the lower 48 states after completion of the review required by the National Environmental Policy Act, and when DOE has sufficient information on which to base a public interest determination. During this time, the department will continue to monitor any market developments and assess their impact in subsequent public interest determinations as further information becomes available.