In response to concerns raised by authorization holders, potential liquefied natural gas (LNG) importers, and companies financing LNG export projects, the US Department of Energy’s Office of Fossil Energy (DOE/FE) issued a policy statement affirming its commitment to the non–free trade agreement (FTA) export authorizations it has granted and any export authorizations it grants in the future.
To date, DOE/FE has issued 29 final authorizations to export LNG to non-FTA countries. In each of the orders granting these authorizations, DOE/FE included a statement that it has the authority under Section 16 of the Natural Gas Act (NGA) to “make, amend, and rescind such [export] orders . . . as it may find necessary or appropriate.”
Commenters have asked DOE/FE to clarify the circumstances under which DOE/FE would exercise its authority to revoke an LNG export authorization. In response, DOE/FE has stated that it cannot identify all of the circumstances in which it would take such action but that it is authorized to exercise its authority to protect the public interest. DOE/FE noted that it has vacated one FTA order but that it was due to prolonged inaction by the authorization holder.