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Providing coverage of Alaska and northern Canada's oil and gas industry
June 2014

Vol. 19, No. 24 Week of June 15, 2014

LNG procedure would not apply to Alaska

As reported in the June 8 issue of Petroleum News, the U.S. Department of Energy has proposed changing its procedures for dealing with applications for the export of liquefied natural gas, or LNG, from the United States. The agency wants to end the practice of issuing conditional license decisions, prior to the completion of permitting and environmental analysis for a planned LNG export facility. Instead, the agency proposes waiting until after the completion of the environmental analysis before beginning the export license procedure.

But, according to a footnote in the Federal Register notice for the proposed new procedure, the proposed change does not apply to the export of natural gas from Alaska. The footnote says that, because the Department of Energy has not received any applications for the long-term export of LNG from Alaska, the agency does not know whether an Alaska LNG project might present unique features that might justify a need for a conditional export decision.

The Department of Energy has used conditional decisions as a means of providing guidance on whether a license would be issued, prior to major expenditure on environmental work and permitting. But the agency has said that in the Lower 48 this form of early guidance no longer appears necessary, and that the proposed changes would improve the efficiency of the licensing procedures.

- Alan Bailey






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