LNG provision to provide critical boost to development of domestic industry
Earlier this morning, the Center for Liquefied Natural Gas (CLNG) sent a letter to the Chairman and Ranking Members of the Senate Committee on Energy and Natural Resources, the House Committee on Energy and Commerce and the House Committee on Natural Resources, reiterating the organization’s support for quickly moving forward with a conference agreement on the energy bill.
The proposed bill includes a critical provision to codify the timeline for the Department of Energy to review LNG permits to non-free trade agreement countries. Having received bipartisan support in both the House and the Senate, the measure is widely viewed as a key component to building consensus around the main bill.
CLNG’s members see the legislation as a crucial milestone in establishing a thriving and internationally competitive LNG industry in the United States. As the letter notes:
“While LNG export terminals take years to develop and build, many planned facilities have already advanced detailed engineering plans and started negotiations toward long-term sales agreements with international consumers. These agreements are essential for project developers to secure the financing they need to construct LNG terminals. It is extremely difficult for projects to make final investment decisions and arrange funding until the DOE approves a project’s export application. The LNG industry is ready to create jobs and help supply global demand for natural gas, but it needs regulatory certainty and a clear timeline for action on exports applications from DOE to do so.”
Commenting, Charlie Riedl, CLNG’s Executive Director, said:
“The key point we want to stress today is the urgency of the issue. Global demand for LNG is increasingly being met by our international competitors, so every day we delay is a day lost for our industry. Quickly passing the current energy bill will be a huge boost to the American economy, giving companies awaiting an export permit greater regulatory certainty and a clear timetable for moving forward with capital intensive projects.
“As the letter notes, the legislation will provide an immediate solution to one of the most pressing issues facing our industry. Our leaders in Congress should be commended for their huge achievement in progressing the legislation over the course of several years. Having come this far, we now hope that Congress will be able to quickly pass the bill into law.”
A copy of the letter can be found here.