LNG Exports - First Mover or Laggard?

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LNG Exports - First Mover or Laggard?

By William O'Keefe
Fuel Fix
June 18, 2013

The American shale gas revolution has led to a strong and
growing interest in liquefied natural gas (LNG) exports
as a result of domestic supply far outstripping domestic
demand, coupled with strong international demand. Current
U.S. policy requires Department of Energy (DOE) approval
for exports to countries with which the US does not have
free trade agreements, based on the sole criteria of
whether a requested permit to export would be in the
public interest.

This week, the process by which the Department evaluates
permits to export LNG was analyzed in earnest by the
House Energy & Commerce Committee�s Subcommittee on
Energy and Power. Likely anticipating probing questions
on the process by which the Department evaluates those
permits, DOE Acting Assistant Secretary for Fossil Energy
Chris Smith�s previewed testimony avoiding broad topics
related to the issue from questioning. Notably off the
table? The �merits of pending applications.�

The recent history of DOE�s role in LNG exports suggests
such dodging and indecision has been rife.

Only recently did DOE end a two-year freeze on reviewing
LNG export applications, after approving a second permit
out of the nearly two dozen in queue. Now the new
Secretary of Energy has promised a thorough review of the
export process going through each one by one. The current
rate of approval � one every two years � doesn�t offer
much hope or clarity for future exports.

What is clear is that the rest of the world will not
stand on the side lines while the US decides whether it
wants to participate in the global market for LNG.
Recently, the Chairman of ExxonMobil noted that his
company was not going to begin a $10 billion project if
it is going to take 5 years to complete the initial
approval process. That sentiment most likely reflects the
views of other major companies who possess the capital
and gas reserves to become major exporters.

Removing the current obstacles to facility development
and export will lead to a significant capital investment
that will create jobs and add to economic growth. As this
new industry gets off the ground it will help our balance
of trade and contribute to improved global stability.

Continues at:

http://fuelfix.com/blog/2013/06/18/lng-exports-first-mover-or-laggard-2/

Jai Maharaj, Jyotishi
Om Shanti

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