Comments to the Department of Energy on Southern LNG Company proposals

The Institute for Energy Economics and Financial Analysis (IEEFA), a nonprofit organization focused on research and analysis of global energy markets and trends, provides the following comments to address the inadequate examination of economic and energy policy questions related to the export of liquified natural gas (LNG) as proposed by the Southern LNG Company. Specifically, our comments are intended to address information that, to our knowledge, the U.S. Department of Energy Office of Fossil Energy and Carbon Management (DOE/FECM) has not considered in its interpretation of what is “not inconsistent with the public interest.”

The Southern LNG Company, LLC (a wholly owned subsidiary of Kinder Morgan) is requesting authorization from DOE to export an additional 28.25 billion cubic feet (Bcf) per year via its existing Elba Island LNG terminal, which would raise its authorized export capacity per year from 130 Bcf/y to about 158.25 Bcf/y. IEEFA recommends denying this request because the additional LNG exports will cause higher domestic energy prices, which is clearly not in the public interest.