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US Issues Four LNG Export Approvals

The US Department of Energy (DOE) has issued long-term orders that authorize export of LNG from four Texas entities. Annova LNG, Rio Grande LNG, and Texas LNG, all located in Brownsville, Texas, and Corpus Christi LNG’s Stage III facility are covered by the orders. These facilities are now authorized to export LNG by ocean-going vessel to any country with which the US does not have a free-trade agreement requiring national treatment for trade in natural gas, and with which trade is not prohibited by US law or policy. While US domestic natural gas production levels are expected to slow in 2020, national production remains high, with natural gas still the leading source of electrical generation. The country has exported LNG to 37 countries as of writing, and its export capacity is expected to almost double over the next 5 years, according to DOE. 

The four entities are authorized to export LNG in the following volumes (expressed in Bcf/D): Annova LNG, 0.99; Rio Grande LNG, 3.61; Texas LNG, 0.56; and Corpus Christi LNG Stage III, 1.59. All four entities have achieved, or are planning, increases in production capacity and infrastructure investment. If built to capacity, the Rio Grande project is expected to create over 5,000 jobs and represents an infrastructure investment of over $15 billion. Corpus Christi LNG’s expansion is expected to create 2,400 jobs, while Texas LNG expects to employ 600 construction workers, and Annova LNG projects employment of 1,200 workers during peak construction. 

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