U.S. Department of Energy approves LNG exports from Gulf LNG

The U.S. Department of Energy’s (DOE) Office of Fossil Energy has issued an order approving exports from the Gulf LNG liquefaction project located in Jackson County, Mississippi.

The Gulf LNG Liquefaction Project will be built at the site of the Gulf LNG Terminal, an existing import terminal owned by Gulf LNG Energy.

Under the order signed, Gulf LNG Liquefaction Company (GLLC) will have authority to export up to 1.53 bcf/d of natural gas as LNG from the proposed Gulf LNG liquefaction project.

GLLC is authorized to export this LNG by vessel to any country with which the U.S. does not have a free trade agreement (FTA) requiring national treatment for trade in natural gas, and with which trade is not prohibited by U.S. law or policy.

It is worth noting that FERC authorized GLLC to site, construct, and operate the project on July 16, 2019.

Including today’s permit, the Department of Energy has approved 34.52 bcf/d of exports in the form of LNG and compressed natural gas to non-free trade agreement countries. Of this approved amount, approximately 14 bcf/d is in various stages of operation and construction, with four export projects currently operating, and two more expected to come online later this year.

U.S. LNG export capacity, currently at approximately six billion cubic feet per day, is set to grow to over 10 billion cubic feet per day by the end of 2020.

The U.S. Energy Information Administration expects a continued increase in domestic natural gas production, with an average dry natural gas production rate of 91.4 bcf/d in 2019 and 92.8 bcf/d in 2020, both new records.

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