U.S. approves additional natgas exports from Freeport LNG

Reuters

WASHINGTON, Nov 15 (Reuters) - The U.S. Department of Energysaid on Friday it conditionally approved more exports ofliquefied natural gas from Freeport LNG in Texas, a move thatcould lead to increased shipments of the fuel in coming years.

The approval is the fifth by the U.S. government since 2011to countries with which it does not have a free trade agreement.

Subject to final regulatory approval, the facility isconditionally authorized to export an additional 0.4 billioncubic feet per day (Bcf/d) for a total rate of up to 1.8 Bcf/d,for a period of 20 years, the DOE said.

The agency initially granted Freeport approval to export 1.4Bcf/d of natural gas a day of LNG from this facility on May 17.

The oil industry's main trade group, the American PetroleumInstitute, welcomed the announcement and urged Energy SecretaryErnest Moniz to approve more projects at a faster pace.

"LNG exports will significantly reduce our trade deficit,grow the economy and support thousands of U.S. jobs," said ErikMilito, the director of upstream and industry operations at theAPI.

While the U.S. natural gas boom has led to a long list ofapplications to export the fuel, the Obama administration isweighing how fast to roll out approvals in order to keepdomestic gas prices in check. The last approval, on Sept. 11,was for Dominion Resources Inc in Cove Point Maryland.

Whitney Stanco, an energy policy analyst at GuggenheimSecurities, said the announcement was in line with expectations.

She added that President Barack Obama's nominee to beAssistant Secretary of the section of the DOE that oversees LNG,told a Senate hearing on Thursday the agency had no plans topause its economic impact studies.

Senator Ron Wyden, the chairman of the Senate energy andnatural resources committee, welcomed the news with caution, butpraised the energy department for "proceeding in a deliberativemanner" and considering applications on a "case-by-case basis."

"It is imperative these potential exports not have asignificant impact on domestic prices for families andmanufacturers, and in turn harm America's energy security,growth and employment," said Wyden.

Some manufacturers are worried that excessive exports ofnatural gas could lead to higher fuel bills and make it harderto open new domestic businesses.

"The Department of Energy continues to rely on obsolete dataand ill-defined standards to justify continued LNG exports,"said Jennifer Diggins, chairwoman of America's Energy Advantage,a consortium of manufacturers and commodity producers.

"Unchecked LNG exports will threaten America's manufacturingrenaissance, double or even triple prices for consumers, andnegatively impact investment and job creation," she added.

The National Association of Manufacturers on the other handpraised the decision. "We believe principles of free trade andopen markets should govern whether companies can move forwardand construct LNG export terminals on U.S. soil," said RossEisenberg, a vice president of energy and resources policy atNAM, in a release.

Rates

View Comments (9)

Recommended for You

  • Tycoon buys 30 Rolls-Royces for Macau hotel

    A Hong Kong tycoon has placed the biggest ever order for Rolls-Royce cars, agreeing to buy 30 Phantoms to chauffeur guests at a luxury resort he's building in the global gambling capital of Macau. Stephen Hung's $20 million purchase surpasses the 14 Phantoms bought by Hong Kong's Peninsula Hotel in…

    Associated Press
  • Anyone With $40 Could Become A Millionaire

    1 simple Warren Buffett quote explains the key investing strategy that could create unimaginable long term wealth for you and your family.

    AdChoicesThe Motley FoolSponsored
  • Tycoon's arrest sends shock wave through Russia

    The arrest of a Russian telecoms and oil tycoon has sent shock waves through the country's business community, with some fearing a return to the dark days of a decade ago, when the Kremlin asserted its power by imprisoning the country's then-richest man and expropriating his companies. The criminal…

    Associated Press
  • Before You Buy Alibaba, Check Out 4 Top China Stocks

    Before You Buy Alibaba, Check Out 4 Top China Stocks While investors gear up for Alibaba Group 's (BABA) hotly anticipated initial public offering, don't forget about other Chinese stocks that are worth keeping an eye on. Today's Young Guns Screen of

    Investor's Business Daily
  • As Fed takes baby steps, Cramer's trick for profit

    In turn, Cramer says making money in the market, involves looking at the environment through the lens of the Fed. "The trick is to remember that they speak for the common person," Cramer said. "The Fed wants the common person to make money." With that backdrop always in mind, Cramer says it becomes…

    CNBC
  • "The Retiree Next Door": How successful retirees stretch their savings

    "The Retiree Next Door": How successful retirees stretch their savingsBy the time she hit her late 40s, Toni Eugenia wasn’t sure she would ever be able to retire. Eugenia, 56, a pharmacy technician who lived in Houston, was nearly $200,000 in debt and

    Yahoo Finance
  • CNBC Anchor Calls Out Fed-Hater Bill Fleckenstein In Startling Shouting Match

    CNBC Bill Fleckenstein of Fleckenstein Capital appeared on CNBC's Futures Now program on Tuesday. Futures Now host Jackie DeAngelis came out swinging, asking Fleckenstein right at the top if he was willing to admit that he had misunderstood monetary policy. Sounding taken aback, Fleckenstein…

    Business Insider
  • Beanie Babies creator's sentence debated in court

    Beanie Babies creator's sentence debated in court CHICAGO (AP) — Federal prosecutors seeking to put the billionaire creator of Beanie Babies in prison for hiding millions in Swiss bank accounts told appellate court judges Wednesday that the toymaker's sentence of probation threatens to erode the…

    Associated Press
  • Master's in Organizational Development-No GRE

    Get a master's degree 100% online in organizational development in 2 years! Top ranked by US News & World Report. No GRE or GMAT required. Apply now!

    AdChoicesAbilene Christian Univ.Sponsored
  • Play

    Citi, Bank of America Offer Discounted Mortgages

    Citigroup and Bank of America will offer mortgages at discounted interest rates to help borrowers with low incomes or subprime credit. AnnaMaria Andriotis joins MoneyBeat. Photo: Getty.

    WSJ Live
  • Apple to unveil new iPads, operating system on Oct. 21 : report

    The company plans to unveil the sixth generation of its iPad and the third edition of the iPad mini, as well as its operating system OS X Yosemite, which has undergone a complete visual overhaul, the Internet news website said. Trudy Muller, a spokeswoman for Apple, declined to comment. The iPad is…

    Reuters
  • Gilead Stock Is Falling On These Drug Setbacks

    Gilead Stock Is Falling On These Drug Setbacks Gilead Sciences (GILD) shares are backsliding Wednesday on news that the patient drop-out rate for hepatitis C drug Sovaldi is quadruple that of clinical trials. In addition, the biotech's Phase 2 study results

    Investor's Business Daily
  • Margaritaville casino owners seek bankruptcy

    The owner of Biloxi's Margaritaville casino has filed for Chapter 11 bankruptcy protection Tuesday, only hours before a hearing where the landlord aimed to seize the property. The filing by MVB Holding LLC in U.S. Don Dornan, a lawyer for landlord Clay Point LLC, said the company had planned to ask…

    Associated Press
  • Embraer to sell 50 E-175 jets to Republic in $2.1 billion deal

    Brazil's Embraer SA, the world's third largest commercial planemaker, said on Wednesday it booked a firm order from U.S. The deal, which will be included in Embraer's order book for the third quarter, is valued at $2.1 billion, the planemaker said in a securities filing. The planes will be operated…

    Reuters
  • Play

    What the Fed Meeting Means for Bonds

    Janet Yellen & Co. are expected to hint at their timetable for raising interest rates. Here's how investors should prepare ahead of the meeting.

    WSJ Live
  • AARP® Medicare Supplement

    Insurance plans insured by UnitedHealthcare® Insurance Company. Free information.

    AdChoicesUnitedHealthcare® Ins Co.Sponsored
  • Here's What Mark Cuban Wishes He Knew About Money In His 20s

    Cuban is the owner of the Dallas Mavericks basketball team. Billionaire investor and entrepreneur Mark Cuban is generous with his advice. When we asked him what he wishes he'd known about money in his 20s, he said:

    Business Insider
  • SHOE COMPANY: Our CEO Just Disappeared And Most Of The Money Is Gone

    "and like that: he's gone." This is an actual headline from a company press release: "CEO and COO disappeared, most of the company's cash missing." (Via FastFT) In a statement, German-based shoe company Ultrasonic said its CFO,  Chi Kwong Clifford Chan, has been unable to reach the company's CEO,…

    Business Insider
  • Billionaire Investor Says Chinese People Work Harder And Western Companies Could Face Deep Trouble After Alibaba IPO

    Michael Moritz, the chairman of VC firm Sequoia Capital, is a huge fan of Chinese internet companies and reiterated his enthusiasm for the Chinese market in an interview with The Wall Street Journal Wednesday. The billionaire investor described the Alibaba IPO as a “major landmark event” that is as…

    Business Insider
  • Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More

    Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More Stocks were firm on Wednesday morning ahead of the FOMC meeting outcome. Tuesday’s rally may have sparked higher interest again, and investors are looking for bargains

    24/7 Wall St.
  • 6 Things Debt Collectors Wish You Knew

    The work debt collectors do is not popular, and has become increasingly derided by those who don’t like what we do or simply don’t know the facts about debt collection. Too often, debt collection is painted with a broad brush to create a portrait that isn’t accurate, and doesn’t properly educate…

    Credit.com
  • Boeing may have outfoxed Musk, but it could have bigger problems

    Elon Musk is arguably one of the greatest entrepreneurial minds of the 21st Century, but he was outsized an old school aerospace giant. Boeing won the bulk of NASA’s contract for a space taxi.  One of the other companies vying for the deal is SpaceX, the company headed by Tesla’s Musk, will get a…

    Talking Numbers
  • Why Study at GCU's College of Education?

    Bachelor's degree programs at our College of Education are aligned to national standards & prepare you to sit for licensure exams. Learn more today!

    AdChoicesGrand Canyon UniversitySponsored
  • Romney-Sized IRAs Scrutinized as Government Studies Taxes

    The preliminary report attaches data to an issue that drew attention during the 2012 presidential campaign, when Republican nominee Mitt Romney reported an IRA worth $20 million to $102 million. Senate Finance Committee Chairman Ron Wyden said many of these "massive" accounts come from deals…

    Bloomberg