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Sempra and Cheniere extend their LNG export licenses by 2050

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Sempra and Cheniere Energy received federal extensions to their LNG export licenses by the year 2050. This action follows through on the U.S. Department of Energy’s (DOE) July 2020 policy to promote American LNG exports.

Such a license allows companies to export liquefied natural gas (LNG) through 2050 to countries without free-trade-agreements (FTA) requirements and non-FTA legal or policy restrictions.

Possibly of your interest: Sempra LNG plans to export to Asia through Mexico

Sempra and Cheniere LNG Export Extensions

Last Wednesday, DOE issued extensions for Cheniere Energy Inc. and Sempra Energy LNG export licenses.

Cheniere Energy received the extension for its Sabine Pass LNG in Louisiana and Corpus Christi LNG in South Texas facilities.

Sempra Energy’s Port Arthur LNG facilities in East Houston also had its license extended.

With these two extensions, the DOE now accounts for ten similar export licenses through 2050. These measures were issued by the Trump Administration to promote domestic gas exports.

This action now provides long-term authorizations to companies with export terminals located in Texas, Louisiana, and Maryland.

The ten extensions through 2050 were assigned by DOE  to Sabine Pass LNG; Corpus Christi LNG; Venture Global Calcasieu Pass; Venture Global Plaquemines LNG; Rio Grande LNG; Dominion Energy Cove Point LNG; and the Freeport entities: Freeport LNG Expansion and Liquefaction, FLNG Liquefaction 2, FLNG Liquefaction 3, and FLNG Liquefaction 4.

DOE and LNG export licenses extensions

Since 2011, export licenses have only lasted 20 years due to DOE limitations. In February, the Natural Gas Act required the Department to authorize FTA export licenses.

This year, through its Office of Fossil Energy (FE), the DOE established a new policy to extend the standard terms for natural gas export authorizations.

Therefore, this new measure allows companies to export domestically produced LNG, compressed natural gas, and compressed gas-liquid to countries with which the U.S. does not have FTAs, and are not non-FTA countries – with which trade is prohibited by law or policy.

Possibly of your interest: Policy for Extending Natural Gas Export Authorizations to 2050

In that regard, The Department can deny or limit licenses for export activities to non-FTA countries. With this policy change, DOE grants all new FTA licenses through 2050, extending non-FTA licenses if the respective license holders apply.

If companies wish to apply to the extended terms of this new LNG export disposal, DOE is providing online templates for entities to fill.

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