US DOE Moves To Streamline LNG Exports
The US Department of Energy (DOE) announced on 19 December that it now only requires US LNG exporters to report the country or countries of LNG deliveries, not country of end-use, to satisfy the DOE’s destination reporting requirement. It also announced additional efforts to streamline the reporting requirements for LNG export supply sales and contracts.
The policy change will address the reporting of LNG delivery destinations and the types of supply and sales agreements LNG exporters must file with DOE. Currently, DOE requires some LNG export authorization holders to report the final country of end-use for LNG exports, which can differ from the country receiving the initial physical delivery of LNG. Given the complexity of some LNG export transactions, and the challenges associated with tracking LNG exports all the way to their point of end-use, DOE is indicating via a new policy statement that reporting the country or countries of LNG deliveries (not country of end-use) will satisfy the destination reporting requirement. With this change in reporting requirements, LNG exporters are still required to continue the current ban on LNG exports to sanctioned countries.
Additionally, DOE is seeking to clarify via a proposed interpretative rule which types of supply and sales contract agreements need to be reported and when they must be filed. Per DOE’s current regulations, it is required of all long-term LNG export authorization holders to report all long-term, greater than 2 years, supply and sales contracts. This proposed interpretive rule is open for public comment for 30 days.
The US Energy Information Administration projects that US LNG export capacity will reach 8.9 Bcf/D by the end of next year, making it the third-largest exporter in the world behind Australia and Qatar. By 2021, baseload US LNG export capacity will exceed 9 Bcf/D.
Since exports of US LNG began from the lower 48 states in 2016, over 1.7 Tcf of US natural gas has been exported. To date, the DOE has approved 23.05 Bcf/D of long-term exports of natural gas to any country in the world not prohibited by US law or policy. There are currently three large-scale LNG export projects in operation, Sabine Pass, Dominion Cove Point, and Corpus Christi, which have a combined operating export capacity of approximately 4 Bcf/D. Three additional large-scale export are under construction. There are also a dozen large-scale export projects under review that would provide over 20 Bcf/D of additional export capacity, if approved and constructed.
Freeport LNG Launches Private Cargo Trading Storefront
The virtual storefront will allow Freeport LNG to match physical, bilateral transactions with potential offtakers in a variety of trading formats. It is expected to launch this November.
Nigeria LNG Nears FID on Train 7 Project
After failing to meet a previous 2018 deadline, the owners of the Bonny Island plant say they are close to sanctioning the expansion project following the signing of a letter of intent to a consortium of Saipem Chiyoda and Daewoo for EPC services. Train 7 is expected to add 8 mtpa to Bonny Island’s
Novatek Sanctions Arctic LNG 2 Project
With a production capacity of nearly 20 mtpa, Wood Mackenzie says the project would be the largest single project to reach FID. Novatek plans to spend more than $21 billion to launch the project at full capacity. Startup is scheduled for 2023.
Don't miss out on the latest technology delivered to your email every two weeks. Sign up for the OGF newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
09 September 2019
09 September 2019
03 September 2019
05 September 2019
03 September 2019