U.S. conditionally authorizes Oregon LNG for exports
WASHINGTON D.C. -- The U.S. Energy Department has conditionally authorized LNG Development Co., LLC (Oregon LNG) to export domestically produced LNG to countries that do not have a Free Trade Agreement (FTA) with the U.S., from the Oregon LNG Terminal in Warrenton, Oregon.
The Oregon LNG application was next in the order of precedence and review of the application was initiated before the Department issued the recent proposed procedural change. Subject to environmental review and final regulatory approval, the facility is conditionally authorized to export at a rate of up to the equivalent of 1.25 Bcfd of natural gas, for a period of 20 years.
The development of U.S. natural gas resources is having a transformative impact on the U.S. energy landscape, helping to improve the nation’s energy security while spurring economic development and job creation around the country.
This increase in domestic natural gas production is expected to continue, with the Energy Information Administration forecasting a record production rate of 73.29 Bcfd in 2014. However, as part of the review process, the Department of Energy took into consideration indications from Oregon LNG that the predominant amount of natural gas supply for export from the facilities would come from Canada, not the U.S.
Federal law generally requires approval of natural gas exports to countries that have an FTA with the U.S. For countries that do not have an FTA with the U.S., 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.”