US DOE authorizes Golden Pass to export LNG to non-FTA countries

WASHINGTON – The US Department of Energy announced that it has signed an order authorizing Golden Pass Products LLC to export domestically produced LNG to countries that do not have a free trade agreement with the US.  Golden Pass is authorized to export LNG up to the equivalent of 2.21 Bcfd of natural gas to any non-FTA country not prohibited by US law or policy from the Golden Pass Terminal near Sabine Pass, in Jefferson County, Texas.

Photo Courtesy of Golden Pass Products.

With the dramatic increase in domestic natural gas production, the US is transitioning to become a net exporter of natural gas. The DOE has authorized a total of 19.2 Bcfd of natural gas exports to non-FTA countries from planned facilities in Texas, Louisiana, Florida, Georgia and Maryland. These projects, if built, would position the US to be the dominant LNG exporter in the world.

“This announcement is another example of President Trump’s leadership in making the United States an energy dominant force,” said US Secretary of Energy Rick Perry. “This is not only good for our economy and American jobs but also assists other countries with their energy security.”

Golden Pass estimates the construction of its facility will provide 45,000 direct and indirect jobs over five years, and the project will provide 3,800 direct and indirect permanent jobs over the next 25 years of operational activity. Golden Pass also estimates the cumulative impact of construction and 25 years of operation will provide up to $2.4 B in federal tax revenues and $1.2 B in state tax revenues.

This increase in domestic natural gas production is expected to continue, with the US Energy Information Administration’s Short Term Energy Outlook projecting an average dry natural gas production rate of 73.1 Bcfd in 2017, the second highest on record.

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 Energy Department 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 review of the Golden Pass application.  Among other factors, the Department considered the economic, energy security and environmental impacts, including macroeconomic studies that showed positive benefits to the US economy in scenarios with LNG exports up to 28 Bcfd.  The Department determined that exports from Golden Pass, jointly owned by Qatar Petroleum (70%) and ExxonMobil (30%), for a period of 20 yr, was not inconsistent with the public interest.

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