APGA: Companies exporting LNG should prove public interest

On June 26, APGA filed a motion to intervene in protest with the Department of Energy in response to a liquefied natural gas export application by Venture Global LNG to export approximately 243.6 Bcf/year to free trade agreement and non-FTA countries from a planned natural gas liquefaction to be located along the Calcasieu Ship Channel in Cameron Parish, La.

As of June 11, DOE has received 42 applications to export domestic LNG from the contiguous United States to FTA or non-FTA nations. The total export capacity applied for to date is 39.31 Bcf/day and 35.95 Bcf/day to FTA and non-FTA nations, respectively. When an application is filed for FTA countries, the application is deemed to be consistent with the public interest and granted without modification or delay. In cases where an application is seeking exportation of LNG to non-FTA countries, the burden is on those opposed to the application to demonstrate to DOE that the application is not consistent with the public interest. APGA has stated that the burden of proof should be shifted to exporting companies. In other words, companies that seek to export LNG should have to prove to DOE that exporting LNG is in the public interest.

As communicated in previous LNG export filings, APGA states that LNG exports from the lower 48 state will have adverse impacts on gas prices and will threaten an opportunity to reduce our energy dependence. In its filing, APGA also communicated that suspending this proceeding and all other pending applications would be consistent with DOE’s recent decision to commission new studies regarding the impact of LNG exports on domestic prices. APGA states that the studies upon which DOE is currently relying are out of date and assume lower export quantities than now appears likely. Lastly, APGA pointed out that deferring consideration of this and other applications would be consistent with DOE’s stated preference for not reviewing export applications until after the necessary environmental review under NEPA is concluded.

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Press Release, July 4, 2014; Image: APGA