Department of Energy authorizes Golden Pass to export liquefied natural gas to non-FTA countries

The U.S. Department of Energy (DOE) announced this week that it authorized Golden Pass, LLC to export domestically produced liquefied natural gas (LNG) to countries that do not have a free trade agreement (FTA) with the United States.

Under the order, Golden Pass may export LNG equaling up to 2.21 billion cubic feet per day (Bcf/d) of natural gas to any non-FTA country not prohibited by U.S. law or policy from the Golden Pass Terminal near Sabine Pass, in Jefferson County, Texas.

“This announcement is another example of President Trump’s leadership in making the United States an energy dominant force,” Secretary of Energy Rick Perry said. “This is not only good for our economy and American jobs but also assists other countries with their energy security.”

Golden Pass expects the construction of the terminal facility to create 45,000 direct and indirect jobs over five years and 3,800 direct and indirect permanent jobs over the next 25 years of operation of the facility.

Before granting the proposal, the DOE considered potential economic, energy security, and environmental impacts and determined that authorizing it was not inconsistent with the public interest as required by the Natural Gas Act.

DOE has approved a total of 19.2 Bcf/d of natural gas exports to non-FTA countries from planned facilities in Texas, Louisiana, Florida, Georgia, and Maryland. If completed, these projects would make the United States the world’s leading natural gas exporter. The U.S. Energy Information Administration’s Short Term Energy Outlook projects an average dry natural gas production rate of 73.1 Bcf/d in 2017, the second highest on record.