Biden slowing down export terminals

[Fraser921]

from 7 weeks previously to 1 year and a half now

This is a NG headwind

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HOUSTON, Oct 30 (Reuters) - U.S. Department of Energy reviews for liquefied natural gas (LNG) export permits have lengthened under President Joe Biden's administration to 11 months or more, from seven weeks, according to government data.

The delay could mean nearly completed LNG projects may not being able to supply big European buyers because of a lack of the permit. Increasing LNG exports is opposed by some U.S. industries who fear it could raise domestic prices, while environmental groups have raised concerns about continued expansion of a fossil fuel industry.

Big swaths of U.S. industry - ranging from chemicals, steel, food and agriculture - oppose unrestricted exports of U.S. gas. Export permits represent the most significant limit thus far on an industry hoping to add 50% more to U.S. export capacity by 2026.

The average time for issuing an export license for supplying the superchilled gas to some of the biggest buyers of U.S. LNG, non-Free Trade Agreement (non-FTA) countries, has climbed under the Biden administration to over 330 days from 155 days under the Obama administration and 49 days under the Trump administration, according to DOE data.

One project, Commonwealth LNG, has been waiting a year after receiving its environmental approval for a permit. Its Cameron, Louisiana, project hopes to start construction in the third quarter of next year with preliminary deals for the sale of 5 million metric tons per annum (MTPA), mainly to non-FTA countries.

Commonwealth LNG did not immediately reply to requests for comment.

New Fortress Energy (NFE.NaE) filed 11 months ago for a non-FTA authorization for its Altamira FLNG facility, which is near to starting production. But the 1.4 MTPA project will be unable to sell its gas to countries including the Netherlands, U.K., France, Spain and Germany.

New Fortress did not immediately respond to a request for comment.

"We now on average, wait about 500 days for an LNG export authorization," said Dan Brouillette, former president of Sempra's (SRE.NaE) LNG development unit and president-elect of utility lobby group, Edison Electric Institute. His measure is larger than Reuters average count for companies that have the required environmental approval in hand.

A DOE spokesperson said the agency would not comment on specific projects, but said it considers more than environmental approvals in its non-FTA decisions. It has approved non-FTA authorizations for projects representing almost 45% of the about 103 billion cubic feet per day production of domestic dry gas, the spokesperson said.

"There are many factors that can affect the amount of time the U.S. Department of Energy (DOE) needs to review an application, including the issues raised by interveners in any specific proceeding," the spokesperson said.

Non-FTA countries are the biggest buyers of U.S. LNG, but the Biden administration's DOE has slowed decisions for economic, political and environmental reasons, says Alex Munton, an LNG analyst at energy consultancy, Rapidan Group.

The DOE "is evidently sitting on decisions because of politics," he said. "Without these permits, projects cannot move forward. We're heading toward 2024 elections and the Biden administration is keenly aware of the potential for a political backlash.

[Fraser921]

a total disgrace!

[ChuckGeb]

You knew this was going to happen. The BCS has done everything they can to torpedo the domestic and North American oil & gas business. This is expected from all of their prior behavior beginning on 1/20/21, the first day in office. Most analysts have begun to doubt info published by the EIA.

The main solution is about a year away at the ballot box. In the meantime everyone should call their respective congressional representative and senator at (202) 224-3121 and voice your concern about this issue. I truly believe if they get enough calls regarding an issue they will take notice especially with an election year coming up. I believe everyone should make regular calls regarding issues. Trust me, they hate it but they do listen.

So the exercise is what jurisdiction are the LNG facilities coming online in 2024 in 2024. Everyone in EPG should call that state's rep and senators and let them know how important it is to get the permits approved. I know Golden Pass is Texas and my Rep is Wesley Hunt who I speak to regularly. The Senators are John Cornyn and Ted Cruz. John Cornyn as a RINO likely needs more persuasion then Ted Cruz but their staff keeps tallies on the numbers and points made on calls. Doesn't take long to put democracy in action.

[mitchl]

Bullish Russian gas and coal?