DOE approves exports of LNG from Texas facility

The U.S. Department of Energy on Dec. 4 approved a December 2014 application from Air Flow North America Corp. requesting long-term, multi-contract authorization to export up to 22,000 gallons per day of domestically produced liquefied natural gas (LNG).

According to Air Flow, this volume is equivalent to approximately 0.67 billion cubic feet per year (Bcf/yr) of natural gas, or 0.002 Bcf per day (Bcf/d).

Air Flow requested this authorization for a 25-year period commencing on the earlier of the date of first export or five years from the date that the requested authorization is granted. Air Flow states that it will transport this LNG in approved ISO containers by truck from an existing LNG production facility in Willis, Texas, owned by Clean Energy Fuels Corp. to one or more ports in the southeastern United States. Air Flow proposes to have the ISO containers holding the LNG loaded at the ports onto ocean-going vessels for export.

Air Flow sought authority to export this LNG to any country located within Central America, South America, the Caribbean, or Africa with which the United States does not have a free trade agreement (FTA) requiring national treatment for trade in natural gas and with which trade is not prohibited by U.S. law or policy (non-FTA countries), and which has or, in the future develops, the capacity to import LNG in ISO containers via ocean-going vessels.

DOE’s Office of Fossil Energy has determined that it has not been demonstrated that the proposed exports of LNG will be inconsistent with the public interest, as would be required to deny the application under Natural Gas Act section 3(a). On this basis, DOE/FE grants Air Flow’s application to export domestically produced LNG from the Clean Energy Fuels facility in a volume equivalent to 0.67 Bcf/yr of natural gas (0.002 Bcf/d) for a 20-year term.

As requested in the application, Air Flow is authorized to export this LNG to any non-FTA country located within Central America, South America, the Caribbean, or Africa that has, or in the future develops, the capacity to import LNG in ISO containers via ocean-going vessels.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.