U.S. Department of Energy authorizes LNG exports from Golden Pass terminal

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

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

U.S. Secretary of Energy Rick Perry stated, “This announcement is another example of President Trump’s leadership in making the United States an energy dominant force. 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 billion in federal tax revenues and $1.2 billion in state tax revenues.

Increased natural gas production in the U.S. is helping to improve energy security, while stimulating economic development and job creation around the country.  This increase in domestic natural gas production is expected to continue, with the U.S. Energy Information Administration’s Short Term Energy Outlook projecting an average dry natural gas production rate of 73.1 Bcfgd in 2017, the second-highest on record.

Federal law generally requires approval of natural gas exports to countries that have an FTA with the United States. For countries that do not have an FTA with the United States, 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 U.S. economy in scenarios with LNG exports up to 28 Bcfgd. The Department determined that exports from Golden Pass, jointly owned by Qatar Petroleum (70%) and Exxon Mobil (30%), for a period of 20 years, was not inconsistent with the public interest.