US DOE approves joint LNG project
24 May 2013
Mitsui, Mitsubishi and GDF Suez of France have invested in a joint LNG venture.
The deal follows an end to the freeze on natural gas exports.
The unrestricted gas will now allow the Freeport LNG Terminal on Quintana Island, Texas to freely trade natural gas at a rate of up to 1.4 billion cubic feet a day.
The DOE’s decision is a good first step but can only work if the US does not erect barriers
The project, which is partly owned by ConocoPhillips, Dow Chemical and Osaka Gas, is only the second site to gain approval from the US Department of Energy (DOE) to export gas to countries who do not possess free-trade agreements with the US.
The first such site to gain DOE export approval was the Sabine Pass LNG Terminal in Cameron Parish, Louisiana in 2011.
In addition to the Freeport Terminal, three overseas companies have agreed to invest $7 billion in a separate project. Sempra Energy has agreed to develop the second LNG facility in Hackberry, Louisiana.
The ruling to end the freeze has been met with praise from the National Association of Manufacturers, saying, “The DOE’s decision is a good first step but can only work if the US government does not erect regulatory barriers.”
