DOE: Pause on US LNG export permits remains despite New Fortress authorization
The US Department of Energy’s (DOE) decision Sept. 3 to authorize New Fortress Energy Inc. to export up to 1.4 million tonnes/year of LNG does not mean the Biden administration’s LNG export pause is over, a DOE spokesperson told Oil & Gas Journal Sept. 5.
“This action authorizes the already constructed and operational [New Fortress Energy] Altamira floating LNG export platform located off the coast of Mexico, in the Gulf of Mexico to re-export up to 0.4 bcfd of US-sourced natural gas as LNG to non-FTA countries for a 5-year export term,” the spokesperson said in a written response to questions.
The spokesperson noted that the authorization does not increase the total volume of LNG that New Fortress Energy Altamira can re-export, but “it does increase available exports to non-FTA countries, which include our allies in Europe, by approximately 3%,” with exports available for the upcoming winter.
DOE continues to “update its analyses of LNG exports to ensure the best information, guided by the latest science, is considered for future reviews of LNG export applications,” the spokesperson added.
The Biden administration paused LNG export authorizations in January to give DOE time to beef up its review process to more strongly consider the climate and economic impacts of boosting exports (OGJ Online, Jan. 26, 2024).
The January decision did not affect the 8 LNG terminals already in operation or the 10 projects that already hold DOE export authorizations and are currently under construction. But it did threaten future US LNG export development.
Industry groups and attorneys general in 16 Republican states sued after the White House move. This summer, a federal court judge in Louisiana blocked the pause on LNG export permits, but the real-world impacts of the ruling continue to remain murky (OGJ Online, Aug. 12, 2024).
Cathy Landry | Washington Correspondent
Cathy Landry has worked over 20 years as a journalist, including 17 years as an energy reporter with Platts News Service (now S&P Global) in Washington and London.
She has served as a wire-service reporter, general news and sports reporter for local newspapers and a feature writer for association and company publications.
Cathy has deep public policy experience, having worked 15 years in Washington energy circles.
She earned a master’s degree in government from The Johns Hopkins University and studied newspaper journalism and psychology at Syracuse University.