Department of Energy Issues Policy Statement Streamlining Short-Term LNG Export Authorizations

The U.S. Department of Energy (DOE) announced the issuance of a policy statement that removes the requirement for long-term LNG export authorization holders to seek separate short-term authorizations to export the same volumes approved for long-term exports. By consolidating this authority in a single authorization without any increase in total approved export volumes, DOE believes this action will streamline its regulatory process.

“This policy is a sensible and concrete way DOE can remove unnecessary regulatory burdens for LNG exporters. Those exports bring benefits to our economy, while also helping to reduce global emissions,” said Secretary of Energy Dan Brouillette.

This deregulatory measure will lead to administrative efficiency. It will remove a duplicative requirement for exports of LNG to have DOE authorization for the short-term market, where the authorization holder already has long-term export authority. Concurrent with this policy statement, DOE is amending several long-term LNG export orders to add short-term export authority to the long-term orders.

“We are increasingly seeing more sales of LNG on the spot market, and this action by DOE is allowing more flexibility for U.S. LNG exporters. With this policy, U.S. LNG exporters can let the market—not our regulatory process—determine which LNG cargos will be exported under long-term or short-term agreements on the spot market,” said Deputy Secretary of Energy Mark W. Menezes.

“We want to have a sensible regulatory system that takes current market realities into account, and this policy statement does just that,” said Acting Under Secretary of Energy and Assistant Secretary for Fossil Energy Steven Winberg.

Under the terms of this policy statement and blanket order amending current long-term LNG export orders, long-term LNG export authorization holders will no longer need to apply for separate authorization to export the same volumes on a short-term basis. This policy statement and concurrent blanket order also provide for LNG exporters’ pre-commercial or commissioning cargos to be authorized under their long-term export orders on a non-additive basis.