Mr Charif Souki chairman & CEO of Cheniere Energy said that "We have once made an investment mistake, but we have changed direction of our plan and currently are working on LNG export projects. Prospect for future is not dependable and we should focus on the present circumstances. We believe that the United States government will grant approval for projects if they are properly planned. In the US, gas production has grown more sharply than the demand. As a result, the stock has been piled up."

He added that "Under the current situation, it is natural for us to choose LNG exports instead of gas combustion known as flare stack from an economical point of view. Although it will take time and will cost money before we can obtain project authorization, the U.S. Department of Energy has worked for us in a strongly supportive way, which, we are sure, will remain unchanged under any political parties' policy."

Mr Jonathan Elkind principal deputy assistant secretary of DOE said that "Under the Law of the United States, Federal Energy Regulatory Commission assumes responsibility for granting approval for construction of export facilities, while DOE is in charge of giving licenses to export LNG from the US. The point is whether the export destinations are the countries which have free trade agreements with the US or not. This is a crucial matter because the exports licenses are given smoothly if the destinations are FTA nations. On the other hand, for exports to non-FTA countries, DOE must verify the project is workable to the public benefits."

He added that "Apart from the matter, DOE has tackled investigations on two projects since the beginning of this year to check how LNG exports will give influences over the US economy. The first result of the investigation by the US Energy Information Administration has already been released and the investigation by a private company is underway."

Source - TEX Report Limited

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