Documents

Ground Zero - LNG Export Approval Process

Categories
Published
of 2
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Description
The Department of Energy (DOE) and Federal Energy Regulatory Commission (FERC) are two federal agencies with primary responsibility for approving LNG exports. FERC is responsible for authorizing the construction and operation of facilities located onshore or within state waters that liquefy natural gas and load the LNG onto ships for export. FERC conducts an environmental review of the facility to help with this decision.
Transcript
  September 26, 2014 http://www.gao.gov/assets/670/666177.pdf The Honorable Lisa MurkowskiRanking MemberCommittee on Energy and Natural Resources United States SenateDear Senator Murkowski:Technological advances in hydraulic fracturing and horizontal drilling have dramatically increased the amount of natural gas that can be extracted domestically. This increase has helped reduce natural gas prices in the United States, although prices remain significantly higher overseas. To take advantage of overseas prices, energy companies have applied to the federal government for permission to export natural gas.  Natural gas, like crude oil, requires federal approval before it can be exported. To transport natural gas by ship, the natural gas is cooled to a liquid state called liquefied natural gas (LNG). This cooling process requires expensive processing and liquefaction facilities that do not currently exist in the contiguous United States.The Department of Energy (DOE) and Federal Energy Regulatory Commission (FERC) are two federal agencies with primary responsibility for approving LNG exports. Under the Natural Gas Act of 1938 (NGA), as amended, DOE is responsible for reviewing LNG export applications and, for countries that do not have a free trade agreement (FTA) with the United States, determining whether approval of such applications is consistent with the public interest.  In this report, we discuss non-FTA applications that require a public interest review.  FERC is responsible for authorizing the construction and operation of facilities located onshore or within state waters that liquefy natural gas and load the LNG onto ships for export. FERC conducts an environmental review of the facility to help with this decision.  Until May 2014, DOE granted approvals—known as conditional approvals—on the condition that FERC completed a satisfactory environmental review of the associated export facility. DOE granted final approvals only after it had the opportunity to consider and adopt the FERC-led review.   In May 2014, DOE proposed suspending its practice of issuing conditional approvals and instead proposed reviewing applications only after FERC has completed the environmental review, and DOE has sufficient information to determine the public interest of an application. Douglas Grandt <answerthecall@icloud.com>Rex Tillerson <Rex.W.Tillerson@ExxonMobil.com>, David Rosenthal <David.S.Rosenthal@exxonmobil.com>Ground Zero - LNG export approval process  4 Attachments, 230 KB  Federal Approval Process for Liquefied Natural Gas Exports What GAO Found (GAO is not making any recommendations in this report) Since 2010, of 35 applications it has received that require a public interest review, the Department of Energy (DOE) has approved 3 applications to export liquefied natural gas (LNG) and 6 applications are conditionally approved with final approval contingent on the Federal Energy Regulatory Commission’s (FERC) issuance of a satisfactory environmental review of the export facility. DOE considers a range of factors to determine whether each application is in the public interest. After the first application was conditionally approved in 2011, DOE commissioned a study to help it determine whether additional LNG exports were in the public interest. Since the 16-month study was published in December 2012, DOE issued 7 conditional approvals (one of which became final) and 1 other final approval (see fig. below). In August 2014, DOE suspended its practice of issuing conditional approvals; instead, DOE will review applications after FERC completes its environmental review. DOE LNG Export Application Status Since 2010, FERC has approved 3 LNG export facilities for construction and operation, including 2 facilities in 2014, and is reviewing 14 applications (see fig. below). FERC’s review process is, among other things, designed to fulfill its responsibilities under the National Environmental Policy Act (NEPA). Before submitting an application to FERC, applicants must enter an initial stage called pre-filing to identify and resolve potential issues during the earliest stages of a project. Of the 14 applications, 5 are in the pre-filing stage at FERC and not shown in the figure below. FERC conducts an environmental and safety review with input from other federal, state and local agencies. FERC LNG Export Facility Application Status
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks