Biden administration tightens up extension request process for LNG exports [Gas in Transition]
Biden administration tightens up extension request process for LNG exports [Gas in Transition]
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Natural Gas News
Biden administration tightens up extension request process for LNG exports [Gas in Transition]
Summary
The administration of US President Joe Biden is cracking down on applications for extensions of LNG export authorisations by project developers that have not yet started construction. [Gas in Transition, Volume 3, Issue 5] by: Anna Kachkova
The administration of US president Joe Biden is tightening up its approach to granting extensions of LNG export authorisations to project developers that have not yet started construction of their liquefaction terminals. The move has a number of aims, according to the US department of energy (DoE), including aligning the volume of exports approved to countries with which the US does not have a free-trade agreement (FTA) with export capacity operating or under construction. It is also aimed at providing more certainty to US and global LNG markets while also encouraging new entrants by ensuring they are not disadvantaged by competition from older projects that have not yet moved forward. The DoE said in late April that with current and future non-FTA export authorisations, it would not consider requests for e...
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.