US to allow exports by Louisiana’s Cameron LNG, Florida’s Carib Energy

The US Department of Energy has issued the final authorization to Cameron LNG and Carib Energy to export domestically-produced LNG) to countries that do not have a free-trade agreement (FTA) with the US.

The Cameron LNG Terminal in Cameron Parish, Louisiana is authorized to export LNG up to the equivalent of 1.7 Bcfd of natural gas for a period of 20 years. Carib is authorized to export LNG up to the equivalent of 0.04 Bcfd of natural gas for a period of 20 years from the proposed liquefaction facility in Martin County, Florida using approved ISO LNG containers.

Following the recent announcement of the procedural change, the department said it evaluated the Carib and Cameron applications after they completed the environmental review required by the National Environmental Policy Act (NEPA).

The increase in domestic natural gas production is expected to continue, with the Energy Information Administration forecasting a record production rate of 74.56 Bcfd in 2014.

Federal law generally requires approval of natural gas exports to countries that have an FTA with the US. For countries that do not have an FTA with the US, the Natural Gas Act directs the Department of Energy to grant export authorizations unless the department finds that the proposed exports “will not be consistent with the public interest.”

The Energy Department conducted an extensive, careful review of the Cameron LNG and Carib Energy applications. Among other factors, the department considered the economic, energy security, and environmental impacts and determined that exports at a rate of up to 1.7 Bcfd and 0.04 Bcfd for a period of 20 years was not inconsistent with the public interest.