Time Ticking on US LNG Export Window of Opportunity

The U.S. shale revolution changed that assumption and transformed the country from a destination for foreign LNG into a potential LNG exporter, in some cases, from the same facilities build to regasify LNG coming into the country. Thanks to shale gas and oil, the United States has gone from an era of concerns over scarcity to an era of abundance. Unconventional oil and gas also have changed the way the United States thinks about energy security.

Fossil fuels, particularly natural gas, will play a key role in moving the U.S. economy forward while reducing greenhouse gas emissions, Smith noted.

Responding to criticism from the oil and gas industry that DOE was taking too long to permit LNG export projects, Smith said DOE’s job was to make “good policy decisions” that would unlock opportunities beneficial for the U.S. economy and for U.S.-based businesses.

Given the abundance of natural gas, DOE wants to ensure that this resource gets to the economy, the burner tip and to power producers to create value for the economy. At the same time, DOE wants to ensure that the communities where shale wells are drilled are confident that DOE is taking their concerns seriously and is “scientifically quantifying" these concerns and effectively mitigating risks, Smith noted.

LNG export terminals that will serve free trade agreement countries will be approved without delay or modification. Applications for projects that will serve non-FTA markets – and a number of proposed projects are intended for non-FTA countries – are evaluated on a “case by case” basis. Projects are approved on a first come, first serve basis, and applications already in progress get priority.

Project applications for LNG terminals that will export to Free Trade Agreement (FTA) countries are considered in the national interest and are approved without delay or modification. Project applications for terminals exporting LNG to non-FTA countries are evaluated on a case-by-case basis to determine if they’re in the U.S. public’s interest.


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Dr. Tom Williams  |  February 27, 2014
US LNG is probably now well behind the curve as PRC/Korea/Japan are investing NOW in pipelines and fracking and like PRC did with HongKong Black Point Power plant - built 500mi subsea pipeline from and gas collector system for a 1000++MW power plant in HK...before the contracts could be signed to get the coal... Now PRC is getting the gas production going in west and central China...laying pipelines to Beijing and Shanghai...once in Beijing piping into Incheon is piece of cake...only question is a gas line from Incheon to Pusan by land/sea...then jump the straits to Japan...subsea again. One question - highly compressed NG or LNG by pipe PRC/Korea/Japan, I believe, have already gotten agreements regarding technologies, pipelayers, pipe production/transport, and sizing/number of pipelines...along with 25 year delivery contracts. These are easy and lucrative contracts for all three.. Russians are trying to come into the north end of Japan but their gas will probably much more expensive and not include the Koreans in the mix - kiss of death...in this commodity market system. US gas may provide a little LNG in 2016-18 until the pipelines are operating to Japan. So who would want to invest in a pipeline to NWUS/Can-BC which will be moot within 5-years, as no one in Japan would sign a 25-year supply contract for LNG and receiving gasifiers when they know the PRC gas will be there within five years. That take care of the Pacific market while Argentina is progressing for the SoAmerican market...and NoAfrica and Europe can deal with the European demands within ten years...With tankers and pipeline investments it is difficult to deal with a spot market when it is LNG vs CNG.