Biden Administration: LNG Exports to Europe Have Been Approved

Liquid natural gas exports from two major U.S. Gulf Coast plants have been approved by the Biden administration in an effort to relieve Europe’s energy crisis that has been aggravated by the Russia-Ukraine war.

Major supplier Cheniere Energy (LNG.A) received authorization from the Department of Energy (DOE) to transport supercooled fuel from its Sabine Pass, Louisiana, and Corpus Christi, Texas, terminals to countries without free trade agreements with the United States.

Before, terminals were only allowed to export LNG to places that had signed free trade agreements with the U.S. such as Canada and Mexico.

The DOE said in a press statement that the authorizations imply that every U.S. LNG export plant currently functioning can now export its full capacity to any country where it is not restricted by U.S. law or policy. 

“U.S. LNG remains an important component to global energy security, and DOE remains committed to finding ways to help our allies and trading partners with the energy supplies they need while continuing to work to mitigate the impact of climate change,” said the DOE.

Russia typically supplies between 30% and 40% of Europe’s gas, and before Russia invaded Ukraine on February 24, the US had already discussed contingency measures with LNG exporting countries and firms to keep the fuel flowing to Europe.

“This authorization will allow for additional operational flexibility for us and our customers during this pivotal time and for decades to come,” Cheniere Energy said in an e-mail.

Last week, government and industry sources said that the White House efforts to increase US LNG exports were moving slowly due to worries about the impact on climate change that may last decades.

US Liquefied Natural Gas, according to the DOE, is a vital aspect of global energy security, and as exports increase, is “particularly focused on driving down methane emissions in the oil and gas sector both domestically and abroad.”

The United States its already the world-largest exporter of LNG, and with new capacity coming up, the country is likely to increase its LNG exports by 20% this year.

Original source material for this article taken from here