U.S. Department of Energy (DOE) Clarifies its Position on Modification or Revocation of DOE Liquefied Natural Gas Export Authorizations

King & Spalding

Last month, Deputy Assistant Secretary Paula Grant of the DOE clarified DOE’s current views with respect to the grounds under which it could revoke a liquefied natural gas (LNG) export authorization. In a letter1 dated October 17 to U.S. Senator Lisa Murkowski, Ms. Grant stated, “[a]s we have stated consistently, DOE would not rescind a previously-granted [LNG export] authorization except in the event of extraordinary circumstances or use this authority as a price maintenance mechanism.” This letter was in response to written queries from Senator Murkowski, the ranking member on the Senate Energy and Natural Resources Committee, seeking clarification as to the DOE’s views and practices relating to the potential modification or rescission of a previously-issued DOE LNG export authorization.

The Basis for Prior Confusion -

While the DOE has long held the statutory authority to modify or rescind an LNG or natural gas export authorization, its vague (and somewhat sinister sounding) qualifications set out in the first round of recent LNG export authorizations caused significant concern to many in the international LNG marketplace...

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