Federal Energy Regulatory Commission Approves Two New Gas Export Projects

Published May 31, 2019

The United States Federal Energy Regulatory Commission (FERC) approved two new Liquefied Natural Gas (LNG) export projects in April.

FERC authorized the siting, construction, and operation of liquefaction facilities and necessary pipelines for Driftwood LNG LLC’s LNG project in Calcasieu Parish, La. Upon completion the Driftwood LNG facility would be able to export an estimated 27.6 million metric tons of LNG annually.

FERC also approved the construction of Port Arthur LNG, LLC’s Port Arthur LNG export terminal and associated infrastructure on April 18. FERC estimates, when fully operational, the Port Arthur Liquefaction Project, located on the site of a previously approved for an LNG import terminal which went unbuilt, near Port Arthur, Texas, could export an estimated 13.5 million metric tons of LNG per year.

LNG Benefits The Environment

FERC’s action brings to three the number of LNG export projects the commission has approved this year. Ten other proposed LNG projects are currently pending before FERC.

Increasing America’s LNG export capacity is good for the environment, said Neil Chatterjee, FERC chairman, in a press release announcing the commission’s action.

“Today’s orders show that FERC is making a lot of headway on processing LNG applications in a more efficient manner, and I’m proud of the work that we are doing,” said Chatterjee. “LNG exports can help increase the availability of inexpensive, clean-burning fuel to our global allies who are looking for an efficient, affordable, environmentally friendly source of generation.”

Currently, any LNG shipped from the two facilities could only go to countries that are parties to various Free Trade Agreements with the United States. The companies involved in both projects, however, have applied to the Department of Energy to allow exports to non-free trade agreement countries.

H. Sterling Burnett, Ph.D. ([email protected]) is a senior fellow at The Heartland Institute.