Photo: Courtesy of Cheniere

DoE consolidates short-term, long-term LNG export permits

The United States Department of Energy has issued a policy removing the requirement for separate short-term LNG export authorization.

DoE consolidates short-term, long-term LNG export permits
Courtesy of Cheniere

Under the previous policy, long-term LNG export permit holders were required to file a separate application for short-term exports.

By consolidating this authority in a single authorization without any increase in total approved export volumes, DOE believes this action will streamline its regulatory process.

“This deregulatory measure will lead to administrative efficiency. It will remove a duplicative requirement for exports of LNG to have DOE authorization for the short-term market, where the authorization holder already has long-term export authority”, DOE said in its statement.

Concurrent with this policy statement, DOE is amending several long-term LNG export orders to add short-term export authority to the long-term orders.

“We are increasingly seeing more sales of LNG on the spot market, and this action by DOE is allowing more flexibility for U.S. LNG exporters. With this policy, U.S. LNG exporters can let the market—not our regulatory process—determine which LNG cargos will be exported under long-term or short-term agreements on the spot market,” said Deputy Secretary of Energy Mark Menezes.

Under the terms of this policy statement and blanket order amending current long-term LNG export orders, long-term LNG export authorization holders will no longer need to apply for separate authorization to export the same volumes on a short-term basis.

This policy statement and concurrent blanket order also provide for LNG exporters’ pre-commercial or commissioning cargos to be authorized under their long-term export orders on a non-additive basis, DoE said.