Department of Energy
On May 29, 2014, SCT&E LNG (dba Monkey Island LNG) submitted an application to the Department of Energy (DOE) to export approximately 0.54 billion cubic feet per day of natural gas, or approximately 4 mtpa of domestically produced LNG to FTA countries. Almost immediately succeeding SCT&E LNG’s announcement, a number of LNG offtakers/buyers contacted SCT&E LNG requesting increased capacity from the company’s initial DOE request. SCT&E LNG executives subsequently decided to increase their request to the DOE to 12 mtpa, or approximately 1.60 bcf/d. On December 15, 2014, SCT&E LNG was granted authorization by the Department of Energy to export LNG to nations who have a Free Trade Agreement with the United States. There remains a pending application before the DOE submitted on July 24, 2014 for the non-additive export of 12 mtpa of LNG to nations with whom the U.S. does not have a Free Trade Agreement (non-FTA), such as India and China. Through a recent federal ruling, the DOE now requires companies to achieve NEPA compliance before approving their non-FTA export license “to reflect a greater efficiency in the method of approving each project.”
Monkey Island LNG is set to begin the pre-filing process before the Federal Energy Regulatory Commission (FERC). The mandatory pre-filing procedure applies to those companies seeking to site, construct and operate new LNG terminals that would transport LNG to markets globally. Monkey Island LNG has identified industry experts for professional and advisory services who have experience with FERC on other LNG related projects, and who will assist the company during the NEPA, FERC, and FEED processes.
NEPA: The National Environmental Policy Act establishes the government’s environmental policy and goals for the protection, maintenance, and enhancement of the environment and provides a process for implementing these goals within the federal agencies.
FERC: The Federal Energy Regulatory Commission is responsible for authorizing the siting and construction of onshore and near-shore LNG import or export facilities under Section 3 of the Natural Gas Act.
FEED: Front End Engineering and Design is the primary engineering phase conducted after the completion of conceptual designs. Through various studies, the FEED stage determines the technical requirements and cost estimates for the project prior to the Engineering, Procurement and Construction (EPC) phase of the project.
The United States currently has FTAs with 20 countries. These countries are listed in the order in which their FTAs were approved: Israel, Canada, Mexico, Jordan, Australia, Chile, Singapore, Bahrain, Morocco, Oman, Peru, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Dominican Republic, Panama, Colombia, and South Korea.