US cautiously pushes LNG exports as terminal approved
The US government’s approval of a second liquefied natural gas (LNG) export terminal in Texas is a sign that the world’s largest natural gas producer is on its way to becoming a global LNG exporter
On 17 May the US Department of Energy (DOE) granted Freeport LNG conditional permission to export 1.4 billion cubic feet per day (cf/d) of natural gas to non-free trade countries from the Quintana Island terminal on the Gulf Coast starting in 2017. The application is still subject environmental review and final approval from the Federal Energy Regulatory Commission. The decision follows a similar approval granted by the DOE in May 2011 to Cheniere Energy’s Sabine Pass facility, which will export 2.2bn cf/d from Cameron Parish Louisiana. Burgeoning supplies of shale gas have led to a glut of the fuel on North American markets, leading many companies that had built LNG import terminals to deve
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US LNG exporter Cheniere Energy has grown its business rapidly since exporting its first cargo a decade ago. But Chief Commercial Officer Anatol Feygin tells Petroleum Economist that, as in the past, the company’s future expansion plans are anchored by high levels of contracted offtake, supporting predictable returns on investment
