Department of Energy approves LNG agreements
The Department of Energy (DOE) has approved a pair of long-term orders granting the export of domestically produced liquefied natural gas (LNG).
The signing, part of the EU-U.S. Energy Council High-Level Business to Business Energy Forum held in Brussels, involves Tellurian Inc.’s Driftwood LNG export facility to be built in Calcasieu Parish, Louisiana, and Sempra Energy’s Port Arthur LNG export project to be built in Port Arthur, Texas.
“The Driftwood and Port Arthur exports will ensure that U.S. LNG continues to impact our friends and allies across the globe,” Secretary of Energy Rick Perry said. “The United States is the world’s leading producer of natural gas and our exports provide a reliable, diverse and secure source of energy to countries looking to diversify their energy portfolios.”
The pact authorizes Driftwood and Port Arthur to export up to 3.88 and 1.91 billion cubic feet per day (Bcf/d) of natural gas as LNG, respectively, per officials, to any countries that do not have a free trade agreement with the United States and that are not prohibited under U.S. law or policy.
The Energy Information Administration anticipates a continued increase in domestic natural gas production, with an average dry natural gas production rate of 91 Bcf/d in 2019 and 92.5 Bcf/d in 2020, which officials said are both new records.
