Published: July 31, 2020 |

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The US Department of Energy (DOE) has issued a new policy that authorizes the US liquefied natural gas (LNG) export term to non-free trade agreement (non-FTA) countries until 2050.

The new policy is a change from the current policy that authorizes LNG export terms for 20 years to non-FTA countries.

“This policy to utilise export terms through 2050 is the latest of several measures DOE, under President Trump, has taken to support US LNG exports and the benefits they bring both to the United States and to our allies around the world,” said US Secretary of Energy Dan Brouillette.

“Just this year, LNG exports from the United States will reduce our trade deficit by over $10 billionn. Furthermore, LNG exports in the United States are providing tens of thousands of jobs and have led to the investment of billions of dollars in infrastructure,” added Brouillette.

In February 2020, the DOE proposed the 2050 term extension in a proposed policy statement that was issued for public comment.

As per the final policy statement, the existing non-FTA authorization holders will have the option to apply to extend their export term through 2050.

“Especially in these times of uncertainty, this policy will provide further regulatory certainty for US exporters competing for market share around the world,” said US DOE Fossil Energy Assistant Secretary Steven Winberg.

“Importing US LNG makes sense from an economic and environmental perspective for countries looking to have reliable, low-emissions energy supplies. With this policy, US exporters will be better positioned to meet long-term global demand,” added Winberg.

In February 2020, the US DOE has authorized four proposed LNG export projects in Texas for exporting LNG to non-FTA countries.

These LNG projects include Annova LNG, Rio Grande LNG, Texas LNG, and Corpus Christi LNG’s Stage III.

Source: NS Energy

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