DOE Issues Policy Statement on Non-FTA LNG Exports
The U.S. Department of Energy’s (DOE) Office of Fossil Energy (FE) has issued a policy statement regarding long-term authorizations to export LNG to nations without a Free Trade Agreement (non-FTA nations) with the United States. DOE/FE states that it wishes to allay concerns of potential importers of U.S. LNG and financiers of LNG export projects about the security of existing (or future) non-FTA export authorizations, and therefore “affirms its commitment to all export authorizations issued under the [Natural Gas Act], including long-term authorizations approving the export of LNG to non-FTA countries…. Authorization holders, as well as any interested stakeholders, thus should have the utmost confidence in the validity of DOE/FE’s LNG export authorizations for the full term of each non-FTA order.” Further, while “DOE preserves its authority to take action as necessary or appropriate to carry out its duties under the NGA, [it] does not foresee a scenario where it would rescind one or more non-FTA authorizations.”