Commentary: US LNG export fight centres around non-FTA countries

15 February 2013 09:40  [Source: ICB]

US-based Dow Chemical and other chemical producers such as Eastman Chemical, want the US government to carefully evaluate applications by companies to export liquefied natural gas (LNG), considering the public interest, including the interest of consumers and industrial consumers.

Already the US Department of Energy (DoE) pretty much has to rubber stamp applications to export to countries that have a free trade agreement (FTA) with the US. But most of these countries are rather limited in their need for LNG.

The big markets are in the nations where the US does not have FTAs - including Japan, China and all of Europe. And here is where the fight on LNG export application approvals is taking place.

For non-FTA countries, the DoE "is required to grant applications for export authorisations unless the Department finds that the proposed exports 'will not be consistent with the public interest'. Factors for consideration include economic, energy, security and environmental impacts", it states on its website.

So far the DoE has granted only one project approval to export to non-FTA countries - the massive Sabine Pass LNG project being built in Louisiana by Cheniere Energy. Sixteen more are still under review.

By: Joseph Chang
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