The US Government is expanding federal oversight of natural gas pipelines nationwide affecting gas gatherings systems supplying feed gas to LNG export facilities and to domestic pipeline customers.
The US Department of Energy has issued a rule to exclude some licensing and environmental requirements for liquefied natural gas export projects that had previously been required in a show of support for the energy industry by the Administration of President Donald Trump.
The rule, which the Department of Energy issued in a pre-publication notice in the Federal Register, frees LNG export and import license applications from including environmental reviews that had been required under an environmental law, the National Environmental Policy Act.
The DoE said it was updating its National Environmental Policy Act (NEPA) implementing procedures pertaining to authorizations issued under the Natural Gas Act.
“These changes will improve the efficiency of the DoE decision-making process by saving time and expense in the NEPA compliance process and eliminating unnecessary environmental documentation for these actions that the DoE has determined normally do not have significant effects,” said the filing to be published in the Federal Register on December 4, 2020.
The DoE said in the notice that the rule would “save time and expense in the NEPA compliance process”.
The rule is effective 30 days after December 4 Federal Register publication.
Analysts said there was a possibility that a new President could overturn the DoE ruling, but the outcome of the November Presidential election is still unclear amid evidence of poll fraud, which has shocked many people in Europe, Asia, Africa and the Middle East and lowered their regard for American fairness.
The Trump Administration has overseen a surge in natural gas development and US energy independence as the nation has become the world’s third-largest LNG exporter after being an net importer before the shale revolution.
The DoE rule would not affect environmental reviews by the Federal Energy Regulatory Commission, the other government office that reviews LNG projects.
President Trump has supported supplying US allies with LNG and the largest recipients of cargoes have been to countries like South Korea and Japan as well as European countries which have been taking US LNG cargoes as an available alternative to Russian pipeline natural gas.
The Energy Information Agency declared the US the third-largest LNG exporter in May 2019, overtaking Malaysia, after shipments reached a new peak of 4.7 billion cubic feet per day.
The US has six export plants on stream, Sabine Pass and Cameron LNG in Louisiana, Corpus Christi and Freeport in Texas, as well as Cove Point In Maryland and Elba Island in Georgia.
Other projects are under development and about half a dozen are likely to be constructed in the next five years, mainly on the Gulf Coast of Texas and Lousiana.
West Delta LNG, a production and export project proposed for offshore Louisiana, has filed an application with the US Maritime Administration and the US Coast Guard for the licensing of a deepwater port that would welcome large and small-scale LNG carriers.
US Energy Secretary Rick Perry will tour the Cove Point LNG export plant in Maryland on July 26 and take part in a ribbon-cutting ceremony to mark the successful start of operations for the nation’s second liquefaction facility.