The US Department of Energy extended the terms of seven long-term liquefied natural gas export authorizations through 2050 to help preserve what it said was a vital energy source for its friends and allies.
The actions follow 10 LNG export term extensions previously issued in October pursuant to an export term policy statement finalized in July 2020 by the DoE.
“The success story of US LNG continues to be written, and these extended authorizations will ensure that the benefits from these exports continue for decades to come,” said US Secretary of Energy Dan Brouillette.
“The United States just set a new all-time high record for LNG exports in November 2020, and the monthly rate of LNG exports has now quintupled since the beginning of the Trump Administration,” added Brouillette
The term extensions issued include for the Golden Pass project owned by Qatar Petroleum and ExxonMobil whereby the terminal is currently being transformed into an export plant.
Other projects under development and on the extension list to 2050 are Texas LNG, proposed for Brownsville, Texas, as well as Magnolia LNG in Louisiana.
The Magnolia plant is proposed for a 115-acre site near the Calcasieu Ship Channel. It is designed to produce 8.8 million tonnes per annum of LNG from four Trains.
Both Texas LNG and Magnolia are controlled by Glenfarne, a New York-based fund specialising in energy infrastructure investment.
Tellurian Inc.’s Driftwood venture at Lake Charles in Louisiana and the Delfin LNG project, proposed for offshore Louisiana, are on the list as well.
The Delfin FLNG project is based on the deployment of floating liquefaction facilities with other moored production and storage vessels.
The Delfin developers have already been awarded a deepwater port licence by the US Maritime Administration and the venture has been approved by the US Coast Guard.
Delfin then asked the Federal Energy Regulatory Commission for a three-year and six-month extension until 28th March, 2023 to build facilities to connect up to the FLNG units 30 miles off the coast.
Sempra Energy, the owner of the Cameron LNG plant in Louisiana, also sees and extension linked to its Costa Azul project on the Pacific Coast of Mexico.
Costa Azul, which recently reached a final investment decision for its mid-scale project, has DoE authorization to import and liquefy US-sourced natural gas for export from Mexico.
“Critical to our Nation’s energy independence are the prospects presented by these long-term LNG export extensions,” said Deputy Secretary of Energy Mark W. Menezes.
“LNG is and will continue to be a vital energy resource for our friends and allies around the world,” added Menezes.
These issuances extend each project’s long-term LNG export authorization to non-free trade agreement (non-FTA) countries through December 31, 2050.
Acting Under Secretary of Energy and Assistant Secretary of Fossil Energy Steven Winberg said the move was necessary.
“It is important for DOE to do everything to assure a long-term future for US LNG exports, which will continue to meet global energy security and emissions reduction goals,” added Winberg.
Including the term extension applications just granted, long-term LNG export authorizations with export terms through 2050 are now held by 13 US LNG export projects, as well as the Costa Azul project in Mexico.
