July 10, 2020 Read More →

DOE approves LNG exports from proposed Jordan Cove terminal on West Coast

Casper Star Tribune:

The U.S. Department of Energy announced this week it will allow firms to export liquefied natural gas to international markets from the proposed Jordan Cove terminal on the southern coast of Oregon. The move brings natural gas producers in landlocked states like Wyoming closer to tapping into demand for the commodity overseas, proponents said.

U.S. Secretary of Energy Dan Brouillette issued an order this week authorizing up to 1.8 billion cubic feet a day of liquefied natural gas to be shipped out of the terminal. The Jordan Cove terminal has yet to be constructed, due in part to significant regulatory issues over the past decade. But if completed, it would be the only liquefied natural gas port on the West Coast.

Energy companies convert natural gas into a liquid using cold temperatures and pressure. In its liquid state, the commodity can be transported across the globe in ocean vessels.

On Wednesday, LNG futures prices in Asia hovered at $2.20 MMBtu, down from $12 MMBtu about a year and a half ago, according to analysis by energy finance analyst Clark Williams-Derry at the Institute for Energy Economics and Financial Analysis, an energy policy think tank.

Meanwhile, liquefied natural gas export facilities around the U.S. are no longer running at their full capacity. Liquefied natural gas export facilities operate in Georgia, Louisiana, Maryland and Texas, shipping the commodity to over three dozen countries, primarily in Asia. On Wednesday, the country’s fleet operated at just 25% capacity.

Williams-Derry called the slump in liquefied natural gas prices a “monumental market meltdown.” 

[Camille Erickson]

More: U.S. Department of Energy gives green light to LNG export terminal

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