DOE LNG Policy Statement Sends Mixed Signals to Our Allies, Creates Confusion in the Marketplace

WASHINGTON – AXPC CEO Anne Bradbury issued the following statement with regard to the US Department of Energy’s (DOE) recently issued liquefied natural gas (LNG) Policy Statement:

We are concerned about the mixed signals this Policy Statement sends to the market and our allies, as well as the lack of transparency in the process associated with this announcement.

The Biden Administration has committed to providing our allies in Europe and around the world with clean, American natural gas and the only way to meet this commitment is through increasing US LNG exports. Yet, the US Department of Energy’s new policy statement on extensions and denial of an extension request to commencement of operations sends unnecessary confusion for the global marketplace and creates uncertainty for our allies who wish to secure long-term LNG contracts.

Under Section 3 of the Natural Gas Act (NGA), both the Department of Energy (DOE) and the Federal Energy Regulatory Commission (FERC) have important roles to play in the promoting of US LNG exports to ensure the US can supply our allies with clean, abundant natural gas. DOE approves exports (and imports) of LNG for non-FTA countries. FERC approves requests to construct and operate LNG export terminals.

The US Department of Energy issued a pre-publication Policy Statement on April 21 saying that they will not extend non-FTA authorizations beyond the seven-year commencement deadline unless the project is under construction and delayed by forces beyond the LNG facility’s control.

This new Policy Statement is expected to be published in the Federal Register next week and will apply to all LNG projects in the United States, Canada, and Mexico that require DOE authorization, except for those that have already started exporting at the seven US LNG export facilities.

AXPC’s LNG Export Agenda explains that LNG export authorization and export terminal permitting is an indispensable stage of a holistic approach to promoting LNG exports.  AXPC explains that, in addition to fixing the permitting process for midstream infrastructure, US policy leaders need to optimize permitting programs for LNG exports and export terminals to ensure that the US can supply our allies with clean, abundant natural gas.

AXPC’s LNG Export Agenda calls for Congress to amend Section 3 of the Natural Gas Act to remove the need for DOE approval for FTA countries; and require DOE to issue a decision within 30 days after FERC issues its environmental document (EA or EIS), if Congress decides not to treat non-FTA countries the same as FTA countries.



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