IN A MOVE THAT COULD SIGNIFICANTLY SHAKE UP THE GLOBAL LNG MARKET, THE US DEPARTMENT OF ENERGY RECENTLY ANNOUNCED SEVERAL DEVELOPMENTS REGARDING NATURAL GAS EXPORTS, INCLUDING A PROPOSED RULE CHANGE FOR REVIEWING APPLICATIONS FOR EXPORTS TO COUNTRIES THAT DO NOT HAVE A FREE TRADE AGREEMENT WITH THE US, THE NON-FTA COUNTRIES.
The proposed change would suspend the current practice of issuing conditional export authorisations. Instead, only those applicants with completed National Environmental Policy Act (NEPA) reviews would proceed to a final analysis by DOE of whether the export is in the “public interest”. Since 2011, DOE has issued seven conditional approvals for liquefied natural gas (LNG) exports to non-FTA (free trade agreement) countries, only one of which has completed its NEPA review and received DOE’s final export approval.
According to DOE, the intent behind the change – announced in late May – is to focus and prioritise departmental resources by addressing those projects further along in their commercial development, and to improve the quality of information for its public interest analysis...
Originally published in Project Finance International on July 2 2014.
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Topics: DOE, Energy, Exports, Free Trade Agreement, Liquid Natural Gas, Natural Gas, NEPA, Oil & Gas, Proposed Regulation
Published In: General Business Updates, Energy & Utilities Updates, International Trade Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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