Two USLNG Projects Gain Key Approvals

Oregon LNG Receives Conditional DOE Approval
LNG Global reports: “DOE has conditionally authorized Oregon LNG to export LNG to non-FTA nations from a facility in Warrenton, Oregon. This application was next in the [DOE queue] and review was initiated before DOE issued its recent proposed procedural change. Subject to environmental review and final regulatory approval, the facility is conditionally authorized to export up to 1.25 billion cubic feet per day of natural gas (~9.6 mtpa) for a period of 20 years. The gas for the project will be produced primarily from Canadian resources, with the remainder drawn from domestic resources produced from the U. S. Rocky Mountain supply basin.” LNG Global, July 31 >

Freeport LNG Wins FERC Approval
LNG Global reports: “FERC has approved construction of Freeport LNG’s export project at Quintana Island in Texas, which will have three trains, each capable of producing 1.8 Bcf/d of LNG (4.4 mtpa). According to FERC documents, construction and start-up of Train 1 is expected to take ~48 months and Trains 2 and 3 are expected to follow at 6-9 month intervals. Freeport LNG has long-term agreements with Chubu Electric Power, Osaka Gas, BE Energy, SK E&S LNG, LLC, and Toshiba. Freeport is the third LNG project to get approval from FERC. Currently, 10 LNG export projects have filed formal applications pending before FERC, and there are three projects in the prefilling process.” LNG Global, July 30 >

API Statement about Oregon LNG Decision
API Upstream Group Director Erik Milito said: “Today’s approval is a welcome signal that, despite ongoing delays, the administration continues to work through these important export approvals. This project could mean billions of dollars in construction and new jobs for the people of Oregon, as well as a major opportunity for exports to spur growth here in the United States.

As the world’s largest producer of natural gas, we should act now to bolster our allies and send a signal to global markets that America is ready to compete. Our growth as a major energy exporter will blunt the influence of foreign suppliers that dominate other markets and help to protect the stability and independence of our allies. We urge the administration to work with leaders in Congress who have shown they are ready to act, and accelerate this process so that we can grow the economy and strengthen America’s leverage overseas.”

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