Energy Department approves additional liquefied natural gas exports from offshore Louisiana project

The U.S. Department of Energy (DOE) recently announced that it has approved a long-term application to export liquefied natural gas (LNG) from Delfin’s proposed offshore Louisiana floating LNG terminal in
the Gulf of Mexico.

The project, Delfin LNG, LLC, will be able to export 1.8 billion cubic feet per day (Bcf/d) of natural gas from the terminal.

“I am pleased that with this authorization the Administration can continue to strengthen the United States as a dominant energy force with further exports of our abundant amounts of natural gas,” U.S. Secretary of Energy Rick Perry said. “Investing in American natural gas not only helps our economy and our jobs, but also helps our allies maintain their energy security. This represents a true win-win for everyone involved.”

The construction of the project, which is located offshore of Cameron Parish, Louisiana, will include the construction of floating liquefaction and storage vessels. The Maritime Administration (MARAD) and the U.S. Coast Guard led the environmental review of the project due to its offshore location.

The United States is experiencing an increase in domestic natural gas production and is transitioning to become a net exporter of natural gas. DOE has now authorized a total of 21 Bcf/d of natural gas exports to non-free trade agreement (non-FTA) countries from planned facilities in Texas, Louisiana, Florida, Georgia, Maryland, and now, with Delfin, from the Gulf of Mexico.

The U.S. Energy Information Administration’s Short Term Energy Outlook projects that the increase in U.S. natural gas production will continue, reaching an average dry natural gas production rate of 74.1 Bcf/d in 2017, which would be the second highest amount on record.