US DOE pushing forward with LNG approvals


From the US Friday:

U.S. Senate Energy and Natural Resources Committee Chairman Ron Wyden urged the Energy Department to use updated data that includes regional factors and domestic costs when considering permits for liquefied natural gas export terminals.

In a hearing , Chris Smith, the nominee for assistant secretary of Energy for the DOE’s Office of Fossil Energy, assured Wyden and the other committee members that the Energy Department will continue to issue permits for LNG export terminals on a case-by-case basis.

“This is an opportunity to keep prices stable for our businesses and our consumers”, Wyden said. “It’s got a link to renewables because natural gas has a chance to bring those renewables into baseload power and if we do it right, we can have it all.

The Energy Department has now issued permits for four export terminals to countries that do not have free-trade agreements with the United States. Wyden has previously voiced concerns with data from a study the department uses in part to make its decisions on permits, saying again that the study is outdated and is no longer an adequate basis for making judgments about export permits.

Smith assured the committee members that the Energy Department monitors market factors and uses “appropriate and relevant data as it continues to issue LNG export terminal permits on their individual merits.”

Wyden also asked Smith about the potential that DOE would pause the approval process for new LNG exports. Smith said DOE is continuing to move forward with approvals right now.

David Llewellyn-Smith
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  1. US is forecast to be a net gas exporter in the 2020s but we’ll see. Approvals are one thing, construction of plant and liquefaction facilities another not to mention the increasing understanding of depletion rates etc.

    A warning included in the following two part report – there will be no supply for Asian customers if they insist on HH prices. It is not feasible to develop projects at HH and the reality will dawn…perhaps Australia’s current loss of investment favour primarily due to cost factors will reverse sooner than anticipated