Energy Department authorizes Jordan Cove to export Liquefied Natural Gas
by Wyoming Delegation
March 24, 2014
Below is a release from the Wyoming Delegation:
3/24/14 Statement from Wyoming Delegation:
"The delegation is pleased the Department of Energy (DOE) has decided to authorize export of liquefied natural gas to more countries through Jordan Cove in Oregon. In November, the delegation along with Colorado and Utah members from both the House and Senate, wrote the DOE asking it to do this. More markets mean more economic opportunity for Wyoming’s workers and state government. Let’s hope the environmental review and final regulatory approval go smoothly."
- U.S. Senator Mike Enzi, U.S. Senator John Barrasso, U.S. Representative Cynthia Lummis
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March 24, 2014:
Energy Department Authorizes Jordan Cove to Export Liquefied Natural Gas
U.S. Energy Information Administration
Terminal in Coos Bay, Oregon Authorized to Export Liquefied Natural Gas to Non-Free Trade Agreement Countries
The Energy Department will announce today that it has conditionally authorized Jordan Cove Energy Project, L.P. (Jordan Cove) to export domestically produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the United States, from the Jordan Cove LNG Terminal in Coos Bay, Oregon. The Jordan Cove application was next in the order of precedence after the Energy Department conditionally authorized the proposed Cameron LNG facility. Subject to environmental review and final regulatory approval, the facility is conditionally authorized to export at a rate of up to the equivalent of 0.8 billion standard cubic feet per day (Bcf/d) of natural gas, for a period of 20 years.
The development of U.S. natural gas resources is having a transformative impact on the U.S. energy landscape, helping to improve our energy security while spurring economic development and job creation around the country. This increase in domestic natural gas production is expected to continue, with the Energy Information Administration forecasting a record production rate of 72.02 Bcf/d in 2014.
Federal law generally requires approval of natural gas exports to countries that have an FTA with the United States. For countries that do not have an FTA with the United States, the Natural Gas Act directs the Department of Energy to grant export authorizations unless the Department finds that the proposed exports "will not be consistent with the public interest."
The Energy Department conducted an extensive, careful review of the application to export LNG from the Jordan Cove LNG Terminal. Among other factors, the Department considered the economic, energy security, and environmental impacts - as well as public comments for and against the application and nearly 200,000 public comments related to the associated analysis of the cumulative impacts of increased LNG exports – and determined that exports from the terminal at a rate of up to 0.8 Bcf/d for a period of 20 years was not inconsistent with the public interest.
The full conditional authorization can be found later today at www.energy.gov
The Path Forward on LNG Export Applications
The Energy Department will continue to process the applications currently pending on a case-by-case basis, in the order of precedence previously detailed. During this time, the Department will continue to monitor any market developments and assess their impact in subsequent public interest determinations as further information becomes available.
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Letter from Congressional Representatives to the U.S. Department of Energy, sent November 12, 2013:
The Honorable Ernest Moniz
Secretary
U.S. Department of Energy
1000 Independence Avenue, S .W.
Washington, D.C. 20585
Dear Secretary Moniz:
We write to express our support for Jordan Cove's application to export liquefied natural gas (LNG) to non-Free Trade Agreement (FTA) countries. While we applaud the Department of Energy's approval of applications to export LNG from facilities located along the east coast and the Gulf of Mexico, it is imperative that the Department quickly review and act on applications to export LNG to non-FTA countries from facilities on the west coast Facilities, such as Jordan Cove, are essential to ensuring that Rocky Mountain states and Indian tribes have greater access to international markets and thus the opportunity to enjoy the economic benefits of LNG exports.
Revenues to Rocky Mountain states, such as Colorado, Utah, and Wyoming, depend significantly on the production of energy resources within their borders. For example, in 2012, roughly 18 percent of the revenues to the State of Wyoming came from Federal mineral royalties and state severance taxes collected on natural gas production. Likewise, revenues to Indian tribes, such as the Ute Indian Tribe on the Uintah and Ouray Reservation in Utah, depend heavily on royalties and tribal severance taxes collected on natural gas production. The nation's supply of natural gas, however, is projected to soon exceed domestic demand. Consequently, companies have cancelled natural gas projects which has resulted in or is expected to result in less revenue b state and tribal governments and the creation of fewer jobs in our communities.
West coast LNG export facilities, such as Jordan Cove, would provide Colorado, Utah, and Wyoming, and Indian tribes, such as the Ute Indian Tribe, direct access to international markets. Specifically, Jordan Cove would allow gas shipped on the Ruby pipeline to be exported to Asian markets. Access to international markets is critical to ensuring that companies have the incentive to produce natural gas in the future. The Department's approvals of LNG exports from east coast and Gulf coast facilities will encourage future natural gas production in eastern and Gulf coast communities. We believe the Department should provide the people of the Rocky Mountain states and Indian the same opportunity. To that end, we ask that the Department expeditiously review and act on Jordan Cove's application to export LNG to non-FTA countries.
Thank you for your consideration and we look forward to your prompt response.
Sincerely,
U.S. Senator John Barrasso (R-WY)
U.S. Senator Mike Enzi (R-WY)
U.S. Representative Cynthia Lummis (R-WY)
U.S. Senator Orin Hatch (R-UT)
U.S. Representative Jim Mathesen (D-UT)
U.S. Representative Chris Stewart (R-UT)
U.S. Representative Cory Gardner (R-CO)
U.S. Representative Mike Coffman (R-CO)
U. S. Representative Rob Bishop (R-UT)
U.S. Representative Scott Tipton (R-CO)
U.S. Representative Doug Lamborn (R-CO)
U.S. Representative Jason Chaffetz (R-UT)
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