US approves more exports of LNG "freedom gas"

The U.S. Department of Energy has approved additional exports of domestically produced natural gas from a liquefied natural gas terminal in Texas, describing the increased export capacity as "critical to spreading freedom gas throughout the world," and praising "an efficient regulatory system that allows for molecules of U.S. freedom to be exported to the world."

In a May 28, 2019 press release, the Department of Energy announced its approval of increased exports from the Freeport LNG Terminal located on Quintana Island, Texas. Freeport LNG Expansion, L.P. and other Freeport entities had previously received approval to export LNG from the first three liquefaction trains at the Terminal, as well as to site, construct and operate a fourth liquefaction train (Train 4) to be built at the Freeport LNG Terminal.

By its Order No. 4374, the Department gave Freeport LNG Expansion, L.P. and FLNG Liquefaction 4, LLC (together, FLEX4) the authority to export up to 0.72 billion cubic feet per day of natural gas as LNG from Train 4. The order authorizes FLEX4 to export U.S.-sourced liquefied natural gas to any country with which the United States has not entered into a free trade agreement requiring national treatment for trade in natural gas, and with which trade is not prohibited by U.S. law or policy.

The Department's press release quotes U.S. Under Secretary of Energy Mark W. Menezes as saying, "Increasing export capacity from the Freeport LNG project is critical to spreading freedom gas throughout the world by giving America’s allies a diverse and affordable source of clean energy." The press release also quotes Assistant Secretary for Fossil Energy Steven Winberg as expressing his pleasure that "the Department of Energy is doing what it can to promote an efficient regulatory system that allows for molecules of U.S. freedom to be exported to the world."

Freeport's first liquefaction train is expected to start making commercial exports later in 2019. U.S. exports of natural gas are increasing and poised to rise further. The first exports from the Lower 48 came in February 2016, when the first cargo shipped from the Sabine Pass terminal in Louisiana. Since 2017, the U.S. has exported more natural gas than it imports. U.S. LNG export capacity is on track to double from 5 billion cubic feet per day to 10 Bcf/d by the end of 2020, with significantly more export capacity approved or pending. Meanwhile, domestic production of natural gas reached a new peak of 101.3 billion cubic feet per day in 2018.