The U.S. Department of Energy (DOE) has announced that it has issued two long-term orders authorizing an additional 0.5 billion cubic feet per day of liquefied natural gas (LNG) exports from two LNG export projects – Golden Pass LNG in Texas and Magnolia LNG in Louisiana.
The orders allow Golden Pass LNG to export the equivalent of an additional 0.35 billion cubic feet per day and Magnolia LNG to export an additional 0.15 billion cubic feet per day of natural gas as LNG to any country not prohibited by U.S. law or policy, the DOE outlined. The organization noted that it had previously issued long-term non-free trade agreement export orders for the majority of the projects’ capacities, with Magnolia LNG’s authorization for 1.08 billion cubic feet per day in 2016 and Golden Pass LNG’s an authorization for 2.21 billion cubic feet per day in 2017.
Golden Pass, which is jointly owned by ExxonMobil Corporation and Qatar Petroleum International Limited, is currently under construction in Sabine Pass, Texas, with first exports expected in 2024, the DOE outlined. Magnolia LNG, owned by the Glenfarne Group LLC, is planned to be developed in Lake Charles, Louisiana.
The DOE highlighted that U.S. LNG exports have recently reached new highs of approximately 12 billion cubic feet per day and added that they are expected to grow to more than 13 billion cubic feet per day by the end of this year as additional export capacity comes online. The DOE also noted that U.S. fuel supplies, including LNG, continue to play a key role in global energy security, “particularly due to Putin’s invasion of Ukraine”.
Following the DOE’s decision to approve two new LNG export permits, the American Petroleum Institute’s (API) Vice President of Natural Gas Markets, Dustin Meyer, said, “we welcome the Department of Energy’s continued commitment to increasing U.S. LNG exports during this consequential moment in history”.
“The additional permits granted today are an important step forward, and further progress could send a clear and powerful signal that America is serious about strengthening global energy security while supporting emissions reductions,” he added.
“We will continue working with the administration to ensure a timely and efficient permitting system to advance not only U.S. LNG projects, but also the pipeline infrastructure needed to sustain export growth,” Meyer went on to say.
Also commenting on the DOE’s latest move, Todd Staples, the president of the Texas Oil & Gas Association (TXOGA), said, “developing American energy infrastructure is vital to delivering reliable and affordable oil and natural gas products for our nation and allies who are depending on our country”.
“We applaud Senator Cruz for his diligence in pushing for approval of DOE permits that will result in jobs here at home and a higher level of energy security. To solve today’s crisis, we must continue to unleash American energy leadership,” Staples added.
In a statement posted on its website, TXOGA highlighted that Cruz introduced the Energy Freedom Act earlier this year, which the organization noted would approve all pending LNG export licenses.
Source: Rigzone.com
