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New LNG Terminal Seeks Re-Export Licensing Citing the stagnant domestic natural gas market, the operators Freeport LNG, a Texas LNG import facility which opened in April of this year, are hoping to re-export the fuel to other countries.
Though the facility has long-term commitments from numerous parties, high gas prices in Asia and Europe have resulted in the diversion of LNG shipments to those markets.
The facility, owned by a consortium that includes Dow Chemical and ConocoPhillips, has requested that the Department of Energy grant it an export permit that would allow it to store foreign shipments of LNG and then re-load them onto tankers for export to other countries.
The company’s filings argued that this strategy will help “ensure the continuing operation and availability of U.S. energy infrastructure at times when global market forces might not otherwise support deliveries of LNG to the United States.”
Industry experts believe this strategy could help get the terminal through the current lull in the domestic LNG market, but some are concerned about its long-term sustainability.
Another Texas-based LNG terminal that opened only days before Freeport has had to cut back staffing significantly as a result of the slow market, though it has not requested export permits. Fitting the Freeport terminal with the relatively inexpensive equipment required to permit re-export could also be a first step toward equipping the facility to export domestically produced gas to overseas markets during time of excess production and low demand. Return to September 2008 Western Energy News To sponsor Western Energy News , please contact WEI at 503 231-1994.
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