House advances bill to expedite approval of small-scale liquid natural gas exports

The U.S. House of Representatives recently advanced H.R. 4606, which is designed to expedite the approval process of small-scale shipments of liquefied natural gas (LNG).

H.R. 4606, the Ensuring Small Scale LNG Certainty and Access Act, codifies in statute a rule which the Department of Energy (DOE) recently finalized. The final rule, which took effect on Aug. 24, states that DOE will grant application to export shipments of no more than 51.75 billion cubic feet per year of natural gas as long as the proposed export qualifies for a categorical exclusion under DOE’s National Environmental Policy Act (NEPA) regulations.

The United States exports small-scale natural gas shipments primarily to countries in the Caribbean, Central America, and South America.

“By streamlining DOE’s process for approving small-scale shipments of LNG, this will diversify our allies’ supply choices who look to us to meet their natural gas needs,” Energy and Commerce Committee Chairman Greg Walden (R-OR) and Energy Subcommittee Chairman Fred Upton (R-MI) said. “This bipartisan legislation will also boost our economy by creating thousands of jobs as well as strengthen our hand diplomatically. By codifying the DOE’s final rule into law, this provides enduring regulatory certainty to protect jobs and investment in the U.S.

The House advanced the legislation by a vote of 260 to 146.