DOE expedites small-scale export approvals

Alan Bailey

Petroleum News

The U.S. Department of Energy has announced that it is speeding up the approval process for the small-scale export of natural gas, including liquefied natural gas, from U.S. export facilities to non-free trade agreement countries.

The regulatory change says that DOE will approve an application for the export of up to 51.75 billion cubic feet of gas per year, without a public interest review, provided that the proposed export qualifies for a categorical exclusion from a review under the National Environmental Policy Act.

The export of natural gas to countries that have a free trade agreement with the United States is already allowed, being considered to be in the public interest under the terms of the Natural Gas Act. The new DOE rule will enable qualifying small-scale exports to non-free trade countries to also be viewed as being in the public interest.

The new rule is primarily aimed at the gas trade with countries in the Caribbean, Central America and South America. In recent years a market has developed for the small-scale shipment of LNG to some of these countries.

“The finalization of this rule will expedite the permitting of certain small-scale exports of natural gas,” said Secretary of Energy Rick Perry. “The so-called ‘small-scale rule’ will further unleash American energy by reducing the regulatory burden on American businesses while also providing significant benefits to our trading partners in the Caribbean, Central America and South America.”

- ALAN BAILEY