Congressional Delegation: More Liquefied Natural Gas Exports Is Good News

The Wyoming Congressional delegation is pleased the Department of Energy (DOE) has decided to authorize exports of liquefied natural gas to non-Free Trade Agreement (FTA) countries through Jordan Cove in Oregon.

In November, the delegation, along with Colorado and Utah members from both the House and Senate, wrote the DOE asking it to authorize the exports.The letter said west coast LNG export facilities, such as Jordan Cove, would provide Colorado, Utah and Wyoming and Indian Tribes direct access to international markets. Specifically, Jordan Cove would allow gas shipped on the Ruby pipeline to be exported to Asian Markets.

Federal law generally requires approval of natural gas exports to countries that have an FTA with the United States. For countries that do not have an FTA with the United States, the Natural Gas Act directs the Department of Energy to grant export authorizations unless the Department finds that the proposed exports “will not be consistent with the public interest.”

The authorization is subject to environmental review and final regulatory approval. The facility is conditionally authorized to export at a rate of up to the equivalent of 0.8 billion standard cubic feet per day (Bcf/d) of natural gas, for a period of 20 years.