The Department of Energy (DOE) adopted a new policy which extends the standard term for authorizations to export natural gas and liquefied natural gas (LNG) from the U.S. lower-48 states to countries without a free trade agreement with the U.S. to December 31, 2050. The standard term had been 20 years. The new standard term will be allowed for current and future export authorizations.
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DOE Proposes to Stop Evaluating Environmental Impacts of LNG Exports
The Department of Energy proposes to no longer subject LNG exports to evaluation under the National Environmental Policy Act (NEPA). According to a recent Notice of Proposed Rulemaking (NOPR), DOE says that the only source of potential environmental impacts within its authority to review are those associated with transporting natural gas by ship, and those shipments qualify for categorical exclusion from NEPA review.
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DOE Drops “End Use” Requirement From LNG Export Reporting
DOE’s authorizations to export natural gas, including LNG, from the U.S. impose reporting requirements regarding the destination of the exported gas and certain contracts regarding its supply and sales. DOE recently modified one of those requirements in a significant way and proposed sharper guidelines for complying another to minimize regulatory burdens and reduce administrative uncertainty. These changes in DOE policy will be of interest to LNG export authorization holders and their counterparties in gas sales contracts, and to proposed LNG export projects that are now seeking or will seek such authorizations from DOE.
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European Commission Launches New Antitrust Investigation into LNG Destination Clauses
On June 21, 2018, the European Commission (“Commission”) started a new investigation to determine whether so-called destination clauses in Qatar Petroleum’s liquefied natural gas (“LNG”) supply contracts with European buyers infringe the European Union (“EU”) antitrust rules.
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Increasing LNG Exports: Modest Price Increases But in the National Interest
The Energy Information Administration (EIA) recently released a study of the impacts of increasing the amount of Liquefied Natural Gas (LNG) exported from the lower 48 states. According to the study, increasing LNG exports by 2 billion cubic feet per day (Bcf/d) each year beginning in 2015 to levels between 12 and 20 Bcf/d would…
DOE Proposes Changing Process for Non-FTA LNG Exports
In a recent notice of proposed procedures issued by DOE, the agency proposes to act on applications to export LNG to countries without a free trade agreement with the U.S. only after any review required by the National Environmental Policy Act (NEPA) is completed. DOE says that this change would mean that projects that are…