Support for LNG Authorization Extensions
LNG Allies Statement on DOE Extension of LNG Authorizations to 2051
WASHINGTON — July 29, 2020—At his speech in Midland, Texas, President Trump announced today that the U.S. Department of Energy (DOE) had issued a final policy statement under which U.S. LNG export authorizations to nations with which the United States does not have a free trade agreement that includes the national treatment for trade in natural gas (non-FTA nations) can be extended through Dec. 31, 2050.
Under the final policy statement, existing non-FTA authorization holders could apply to extend their export term through Dec. 31, 2050, on a voluntary opt-in basis; existing applicants could amend their pending non-FTA application to request an export term through Dec. 31, 2050, on a voluntary opt-in basis; and DOE would issue all future non-FTA export authorizations with a standard export term lasting through Dec. 31, 2050, unless a shorter term is requested by the applicant.
Fred H. Hutchison, President & CEO of LNG Allies, issued the following statement: “This summer’s news about U.S. LNG exports has been mostly focused on short-term market conditions. Today’s announcement by President Trump and DOE serves as a reminder that global LNG trade has always been a long-term business, requiring buyers, sellers, investors, and lenders to adopt a ‘far-horizon’ perspective. U.S. LNG exports vie with exports from Qatar, Russia, Canada, Australia, and other nations. Thus, 30-year authorizations are key to assuring that our producers are able to compete and win in the fiercely competitive market for long-term LNG deals.”
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LNG Allies, The US LNG Association, is helping to bring the climate, environmental, geostrategic, and economic benefits of U.S. natural gas to the world.
 Requests for authorization to export U.S. LNG to free trade agreement nations are deemed by statute to be “consistent with the public interest” and must be granted by DOE “without modification or delay.” Non-FTA authorization requests are presumed to be in the public interest unless DOE finds otherwise after an informal adjudicatory process. While today’s DOE announcement does not apply to FTA authorizations, the department expects that FTA authorization holders likely will request a comparable extension in the export term of their existing FTA orders.