Department of Energy of the US government gave conditional approval for export of locally produced LNG to non-FTA (free trade agreement) countries from Freeport Terminal on Quintana Island in Texas.
The Department of Energy, in its 132 page order, said the proposed exports may result in net economic benefits to the United States.
Granting the requested authorization is unlikely to affect adversely the availability of natural gas supplies to domestic consumers or result in natural gas price increases or increased price volatility such as would negate the net economic benefits to the United States, it said.
The department gave this approval to Freeport LNG Expansion, LP and FLNG Liquefaction, LLC (Freeport). Freeport facility in Texas, the Department of Energy said, is conditionally authorized to export at a rate of up to 1.4 billion cubic feet of natural gas a day (Bcf/d) for a period of 20 years.
It may be noted that countries like China, Japan and Britain, whose companies already have an overwhelming stake in this Texas company, may benefit from this move.
However, some reports suggest that India, which does not have an FTA with the US, may benefit from the decision in the medium-to-long run if Indian companies seek licenses for import of the gas from other terminals.
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