The US Department of Energy has granted Sempra Energy a long term authorization to export LNG from its Cameron LNG Terminal in Louisiana to the countries with which the US has free trade agreement.
In November 2011, Sempra Energy filed for a permit to export LNG to FTA countries and got approval to export up to 12 million tons per year, or 620 billion cubic feet per year for 20 years on January 17th 2012.
Following its application in November, Sempra Energy applied to DOE for authorization to export LNG to Non FTA countries in December, which is currently in the approval process by DOE.
Amid several companies, which own LNG import terminals in the US, focusing on export projects, Golden Pass LNG Terminal LLC also began to move. On January 18th 2012, the company requested Federal Energy Regulatory Commission to participate in pre filing process for re exportation of LNG.
Golden Pass LNG Terminal is 70% owned by Qatar Petroleum, 17.6% by Exxon Mobil and 12.4% by Total. All these companies are participants in LNG production project in Qatar. The LNG terminal was built as a part of LNG value chain that could receive LNG from Qatar.
GPLNG placed phase 1 terminal facility into service in March 2011 and phase 2 in May 2012. At present, the terminal can receive total 15.6 million tonnes per year of LNG. In the US the necessity of LNG has sharply declined. Under the circumstances, its plan changed from import to export of LNG in less than a year.
GPLNG is presently applying for Re export, explaining that there is no need to use domestically produced natural gas. However, Cheniere Energy Inc and Freeport LNG Development LP, which plan to export LNG from the US, used to import LNG from abroad and re export it, and currently aim to export LNG, using natural gas produced in the US.
In view of the market situation, it is more profitable to export low priced liquefied domestically produced natural gas than re export LNG that was imported. Therefore, it is anticipated that GPLNG will also enter into full scale export business instead of re exportation of LNG.
(Sourced from TEX Report Limited)
