The U.S. Department of Energy (DOE) approved a rule to expedite approval for small-scale natural gas exports including liquefied natural gas (LNG), the department announced on Wednesday.
"The finalization of this rule will expedite the permitting of certain small-scale exports of natural gas,” U.S. Energy Secretary Rick Perry was quoted as saying in a statement. He noted the so-called 'small-scale rule' would further unleash American energy by reducing the regulatory burden on American businesses while also providing significant benefits to the country's trading partners in the Caribbean, Central America and South America.
Under the Natural Gas Act, the DOE has jurisdiction over imports and exports of natural gas. It also expedites the review and approval of applications to export small amounts of natural gas in the emerging small-scale LNG export market.
The rule will help the DOE grant approval for exports of natural gas and LNG to non-free trade agreement countries. The rule stipulates that approval will be given as long as exports are no more than 51.75 billion cubic feet per year of natural gas. The proposed export will also qualify for a categorical exclusion under the DOE’s National Environmental Policy Act (NEPA) regulations.
The department noted that the small-scale LNG export market developed as a solution to the practical and economic constraints that limit natural gas exports to countries in the Caribbean, Central America, and South America. "Many of the countries in these regions do not generate enough natural gas demand to support the economies of scale required to justify LNG imports from large-scale LNG terminals via conventional LNG tankers," the DOE explained.
The final rule is expected to reduce the regulatory burden for additional small-scale LNG projects to come to market in these countries, it added. The rule will take effect on August 24.
(Anadolu Agency)
