US Aligns Short, Long Term LNG Export Approvals
The US Department of Energy (DoE) said January 8 it had issued a policy statement removing the requirement that holders of long-term export authorisations seek separate short-term approvals for the same volumes.
“This policy is a sensible and concrete way DoE can remove unnecessary regulatory burdens for LNG exporters,” energy secretary Dan Brouillette said. “Those exports bring benefits to our economy, while also helping to reduce global emissions.”
The deregulatory measure, the DoE said, will lead to administrative efficiency and remove a duplicative requirement forcing LNG exporters to seek short-term authorisations for volumes already approved for long-term export.
“We are increasingly seeing more sales of LNG on the spot market, and this action by DoE is allowing more flexibility for US LNG exporters,” deputy energy secretary Mark Menezes said. “With this policy, US LNG exporters can let the market – not our regulatory process – determine which LNG cargos will be exported under long-term or short-term agreements on the spot market.”
Pre-commercial or commissioning cargoes can also now be exported under existing long-term authorisations on a non-additive basis, the department said.
Concurrent with the issuance of the policy statement, the DoE is amending several long-term LNG export orders to add short-term export authority to the long-term orders.