DOE Proposes Changes to LNG Export Decision-Making Procedures

The U.S. Department of Energy (DOE) has released a Notice of Proposed Procedures (Notice) stating that it is proposing to change its decision-making process for reviewing applications to export LNG to nations without a Free Trade Agreement (non-FTA) with the United States.  DOE proposes to make final public interest determinations on LNG export applications only after an LNG export project has completed the required environmental review process, instead of issuing non-FTA LNG export authorizations conditioned upon completion of environmental review.  Under the proposal, DOE would no longer follow its Order of Precedence, but would act on applications in the order in which they become ready for final action after completing the environmental review process before FERC, the U.S. Maritime Administration, or DOE.  DOE states that “[b]y removing the intermediate step of conditional decisions and setting the order of DOE decision-making based on readiness for final action, DOE will prioritize resources on the more commercially advanced projects.”  Comments on the Notice are due July 21, 2014.

DOE also plans to undertake an updated economic study “in order to gain a better understanding of how potential U.S. LNG exports between 12 and 20 billion cubic feet per day (Bcf/d) could affect the public interest.”

DOE also announced that it has prepared two additional reports on environmental issues related to LNG exports.  A report on unconventional natural gas exploration and production activities can be found here, and a report on greenhouse gas emissions can be found here.  Comments on both reports are due July 21, 2014.

Read more on these items in the press release.