DOE: Pause on New LNG Exports Does Not Affect Permitting Extensions

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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Department of Energy's (DOE) pause on reviews of pending liquefied natural gas (LNG) export projects will not impact the export license extension process, a top DOE official said recently.

During a recent congressional hearing on the Biden administration's pause on LNG reviews, Senator Lisa Murkowski (R-Alaska) asked Deputy Energy Secretary David Turk whether the pause would impact project license extensions.

Turk noted that sometimes the seven-year federal license deadline for LNG project projects to complete construction does not offer enough time, and a deadline extension is sought.

"To be clear, this pause does not impact that process," Turk said.

Last year, the DOE said it "will allow (LNG license) authorizations to expire on the export commencement deadline originally set forth in the order and will not consider an application for an extension, unless the authorization holder demonstrates both that: it has physically commenced construction on the associated export facility, and its inability to comply with the existing export commencement deadline is the result of extenuating circumstances outside of its control."

Turk's statement to the Senate committee was posted as a clarification on the website of Tellurian Incorporated (Houston, Texas).

Tellurian announced last week that the U.S. Federal Energy Regulatory Commission (FERC) extended its deadline for construction of the company's Driftwood LNG facility in Louisiana to April 18, 2029. Tellurian said it applied for the FERC extension last year to ensure it had enough time to complete the construction of all five plants of the facility. If all planned trains are completed, the liquefaction complex will have a capacity of 27.6 million tons per annum (mtpa).

Driftwood has an existing DOE permit to export LNG to countries that do not have free trade agreements with the U.S. A spokesperson for the company said the DOE license is valid until 2050. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can click here for the project report and click here for the plant profile.

The pause on reviews of pending LNG applications sparked concerns by industry observers that the action would also halt authorizations for deadline extensions.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).